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11.11.21.3

1.3.11.3.2

22.1

2.1.12.2

2.2.12.2.22.2.3

2.32.3.12.3.2

2.42.4.1

2.52.5.12.5.22.5.3

Contents

WelcometoITIL4

Aboutthispublication

IntroductionITservicemanagementinthemodernworldAboutITIL4ThestructureandbenefitsoftheITIL4framework

TheITILSVSThefourdimensionsmodel

KeyconceptsofservicemanagementValueandvalueco-creation

Valueco-creationOrganizations,serviceproviders,serviceconsumers,andotherstakeholders

ServiceprovidersServiceconsumersOtherstakeholders

ProductsandservicesConfiguringresourcesforvaluecreationServiceofferings

ServicerelationshipsTheservicerelationshipmodel

Value:outcomes,costs,andrisksOutcomesCostsRisks

2.5.42.6

33.13.23.33.4

3.4.13.4.2

3.53.6

44.14.24.3

4.3.14.3.24.3.34.3.44.3.54.3.64.3.74.3.8

4.44.4.14.4.2

4.54.5.14.5.24.5.34.5.4

UtilityandwarrantySummary

ThefourdimensionsofservicemanagementOrganizationsandpeopleInformationandtechnologyPartnersandsuppliersValuestreamsandprocesses

ValuestreamsforservicemanagementProcesses

ExternalfactorsSummary

TheITILservicevaluesystemServicevaluesystemoverviewOpportunity,demand,andvalueTheITILguidingprinciples

FocusonvalueStartwhereyouareProgressiterativelywithfeedbackCollaborateandpromotevisibilityThinkandworkholisticallyKeepitsimpleandpracticalOptimizeandautomatePrincipleinteraction

GovernanceGoverningbodiesandgovernanceGovernanceintheSVS

ServicevaluechainPlanImproveEngageDesignandtransition

4.5.54.5.6

4.64.6.14.6.2

4.74.8

55.1

5.1.15.1.25.1.35.1.45.1.55.1.65.1.75.1.85.1.95.1.105.1.115.1.125.1.135.1.14

5.25.2.15.2.25.2.35.2.45.2.55.2.65.2.7

Obtain/buildDeliverandsupport

ContinualimprovementStepsofthecontinualimprovementmodelContinualimprovementandtheguidingprinciples

PracticesSummary

ITILmanagementpracticesGeneralmanagementpractices

ArchitecturemanagementContinualimprovementInformationsecuritymanagementKnowledgemanagementMeasurementandreportingOrganizationalchangemanagementPortfoliomanagementProjectmanagementRelationshipmanagementRiskmanagementServicefinancialmanagementStrategymanagementSuppliermanagementWorkforceandtalentmanagement

ServicemanagementpracticesAvailabilitymanagementBusinessanalysisCapacityandperformancemanagementChangecontrolIncidentmanagementITassetmanagementMonitoringandeventmanagement

5.2.85.2.95.2.105.2.115.2.125.2.135.2.145.2.155.2.165.2.17

5.35.3.15.3.25.3.3

ProblemmanagementReleasemanagementServicecataloguemanagementServiceconfigurationmanagementServicecontinuitymanagementServicedesignServicedeskServicelevelmanagementServicerequestmanagementServicevalidationandtesting

TechnicalmanagementpracticesDeploymentmanagementInfrastructureandplatformmanagementSoftwaredevelopmentandmanagement

Endnote:TheITILstory,oneyearon

AppendixA:Examplesofvaluestreams

Furtherresearch

Glossary

Acknowledgements

WelcometoITIL4

AtthisnewstageinthedevelopmentoftheITindustry,AXELOSisdelightedtopresentITIL4,thelateststepintheevolutionofITbestpractice.Bybuildingonourexperienceandbringingfreshandforward-lookingthinkingtothemarketplace,ITIL4equipsyourbusinesstodealwiththechallengescurrentlyfacedbytheindustry.

TheadoptionofITILasthemostwidelyusedguidanceintheworldonITservicemanagement(ITSM)willcontinuewithITIL4.Itensurescontinuitywithexistingwaysofworking(whereservicemanagementisalreadysuccessful)byintegratingmodernandemergingpracticeswithestablishedandprovenknow-how.ITIL4alsoprovidesguidanceonthesenewmethodstohelpindividualsandorganizationstoseetheirbenefitsandmovetowardsusingthemwithconfidence,focus,andminimaldisruption.

ITIL4’sholisticapproachraisestheprofileofservicemanagementinorganizationsandindustries,settingitwithinamorestrategiccontext.Itsfocustendstobeonend-to-endproductandservicemanagement,fromdemandtovalue.

ITIL4istheresultofagreatamountofglobalresearchanddevelopmentworkacrosstheITandservicemanagementindustries;thisworkhasinvolvedactivepractitioners,trainers,consultants,vendors,technicians,andbusinesscustomers.ThearchitectteamhascollaboratedwiththewiderstakeholdersandusersofITILtoensurethatthecontentmeetsthemodernrequirementsofcontinuity,innovation,flexibility,andvalue.

ITILtrainingprovidesindividualswithastructuredapproachfordevelopingtheircompetenciesinthecurrentandfutureworkplace.Theaccompanyingguidancealsohelpsorganizationstotakeadvantageofthenewandupcomingtechnologies,succeedinmakingtheirdigital

transformations,andcreatevalueasneededforthemselvesandtheircustomers.

ITILFoundationisthebeginningofyourITIL4journey.Itwillopenyourmindtothewider,moreadvancedguidanceprovidedintheotherITILpublicationsandtrainingthatwillsupportyourgrowthanddevelopment.

WelcometothenewgenerationofITbestpractice!

MarkBashamCEOAXELOSGlobalBestPractice

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Aboutthispublication

ITILFoundationisthefirstpublicationofITIL4,thelatestevolutionofthemostwidelyadoptedguidanceforITSM.ItsaudiencerangesfromITandbusinessstudentstakingtheirfirststepsinservicemanagementtoseasonedprofessionalsfamiliarwithearlierversionsofITILandothersourcesofindustrybestpractice.

ITIL4Foundationwill:

providereaderswithanunderstandingoftheITIL4servicemanagementframeworkandhowithasevolvedtoadoptmoderntechnologiesandwaysofworkingexplaintheconceptsoftheservicemanagementframeworktosupportcandidatesstudyingfortheITIL4Foundationexamactasareferenceguidethatpractitionerscanuseintheirwork,furtherstudies,andprofessionaldevelopment.

Wehopeyouwillfindituseful.

AbouttheITILstory

Theguidanceprovidedinthispublicationcanbeadoptedandadaptedforalltypesoforganizationandservice.ToshowhowtheconceptsofITILcanbepracticallyappliedtoanorganization’sactivities,ITILFoundationfollowstheexploitsofafictionalcompanyonitsITILjourney.

Thiscompany,AxleCarHire,isundergoingatransformationtomodernizeitsservicesandimproveitscustomersatisfactionandretentionlevels,andisusingITILtodothis.Ineachchapterofthetext,theemployeesofAxlewilldescribehowthecompanyisimprovingitsservices,andexplainhowtheyareusingITILbestpracticetodothis.

ITILstorylinesectionsappearthroughoutthetext,separatedbyadistinctborder.

AxleCarHire

AxleCarHireisaglobalcompany,withitsheadquartersbasedinSeattle.Axlewasformed10yearsago,andcurrentlyemploysapproximately400staffacrossEurope,theUS,andAsia-Pacific.

Initially,thecompanyexperiencedstronggrowthandconsistentlyhighcustomersatisfactionratings.Forthefirstsixyears,repeatbusinessaccountedforaround30percentofallbookings.Shareholderscouldexpecthandsomequarterlydividends.However,overthepastfouryears,thecompanyhasexperiencedadownturn.Customersatisfactionratingshaveconsistentlydeclinedandrepeatbookingsarerare.Competitorsareofferingnewandinnovativeoptionstotraditionalvehiclehire.Car-pooling,ride-share,anddriverlesscarsarebigdraws.Customershavealsocometoexpectonlineandappinterfacesasstandardforthecompany’sservices.

Inthisevolvingmarket,AxleCarHirefacesanuncertainfuture.Theboardiskeentoimprovecustomersatisfactionlevels.Theywanttoattractandretaincustomers,andimprovethecompany’sbottomline.They’veappointedanewCIO,Henri.Henriwaschosenforhisexperienceindigitalizedservicesandhistrackrecordinsuccessful,large-scaleITtransformations.Heunderstandstheimpactofdigitalserviceofferings,notonlyforcustomersatisfactionlevels,butalsoforemployeeretentionrates.

Henri’sstrongbackgroundinITILandITSMmeansthathevaluesITILcertification,andhishiringpolicyreflectsthis.HavingworkedwithDesignThinking,DevOps,andAgilemethodologies,hebelievessustainablebusinessrequiresablendedapproachtoITSM.

Henriiskeentoseehowhisteamcanredefinethecar-hireexperienceandensurethatAxleCarHireisthefirstchoicefornewandexistingcustomers.

MeettheAxleemployees

HerearefourkeyemployeesofAxleCarHire:

HenriIsthenewCIOofAxleCarHire.Heisasuccessfulbusinessexecutivewho’spreparedtoshakethingsup.HebelievesinanintegratedapproachtoITSM.

SuIstheAxleCarHireproductmanagerfortravelexperience,andhasworkedforAxleforthepastfiveyears.Suissmart,meticulous,andpassionateabouttheenvironment.

RadhikaIstheAxleCarHireITbusinessanalyst,anditisherjobtounderstandtheuserrequirementsofAxleCarHirestaffandcustomers.Sheisinquisitiveandenergetic,andstrivestomaintainapositiverelationshipwithallhercustomers,bothinternalandexternal.Radhikaworksmostlyondiscoveryandplanningactivities,ratherthaninIToperations.Sheasksalotofquestionsandisgreatatspottingpatternsandtrends.

MarcoIstheAxleCarHireITdeliverymanager.Heisprocess-drivenandcontinuallyreferencestheITILframeworktohelphimmanagepositiveservicerelationships.However,Marcohashadlittleexposuretoablendedorcollaborativeapproachtoservicemanagement.

CHAPTER1

INTRODUCTION

1Introduction

1.1ITservicemanagementinthemodernworld

AccordingtotheWorldTradeOrganization,1servicescomprisethelargestandmostdynamiccomponentofbothdevelopedanddevelopingeconomies.Servicesarethemainwaythatorganizationscreatevalueforthemselvesandtheircustomers.AlmostallservicestodayareIT-enabled,whichmeansthereistremendousbenefitfororganizationsincreating,expanding,andimprovingtheirITservicemanagementcapability.

Technologyisadvancingfastertodaythaneverbefore.Developmentssuchascloudcomputing,infrastructureasaservice(IaaS),machinelearning,andblockchainhaveopenedfreshopportunitiesforvaluecreation,andledtoITbecominganimportantbusinessdriverandsourceofcompetitiveadvantage.Inturn,thispositionsITservicemanagementasakeystrategiccapability.

Toensurethattheyremainrelevantandsuccessful,manyorganizationsareembarkingonmajortransformationalprogrammestoexploittheseopportunities.Whilethesetransformationsareoftenreferredtoas‘digital’,theyareaboutmorethantechnology.Theyareanevolutioninthewayorganizationswork,sothattheycanflourishinthefaceofsignificantandongoingchange.Organizationsmustbalancetheneedforstabilityandpredictabilitywiththerisingneedforoperationalagilityandincreasedvelocity.Informationandtechnologyarebecomingmorethoroughlyintegratedwithotherorganizationalcapabilities,silosarebreakingdown,andcross-functionalteamsarebeingutilizedmorewidely.Servicemanagementischangingtoaddressandsupportthis

organizationalshiftandensureopportunitiesfromnewtechnologies,andnewwaysofworking,aremaximized.

Servicemanagementisevolving,andsoisITIL,themostwidelyadoptedguidanceonITservicemanagement(ITSM)intheworld.

1.2AboutITIL4ITILhasledtheITSMindustrywithguidance,training,andcertificationprogrammesformorethan30years.ITIL4bringsITILuptodatebyre-shapingmuchoftheestablishedITSMpracticesinthewidercontextofcustomerexperience,valuestreams,anddigitaltransformation,aswellasembracingnewwaysofworking,suchasLean,Agile,andDevOps.

ITIL4providestheguidanceorganizationsneedtoaddressnewservicemanagementchallengesandutilizethepotentialofmoderntechnology.Itisdesignedtoensureaflexible,coordinatedandintegratedsystemfortheeffectivegovernanceandmanagementofIT-enabledservices.

1.3ThestructureandbenefitsoftheITIL4framework

ThekeycomponentsoftheITIL4frameworkaretheITILservicevaluesystem(SVS)andthefourdimensionsmodel.

1.3.1 TheITILSVS

TheITILSVSrepresentshowthevariouscomponentsandactivitiesoftheorganizationworktogethertofacilitatevaluecreationthroughIT-enabledservices.Thesecanbecombinedinaflexibleway,whichrequiresintegrationandcoordinationtokeeptheorganizationconsistent.

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TheITILSVSfacilitatesthisintegrationandcoordinationandprovidesastrong,unified,value-focuseddirectionfortheorganization.ThestructureoftheITILSVSisshowninFigure1.1,andisrepeatedinChapter4,whereitisdescribedinmoredetail.

ThecorecomponentsoftheITILSVSare:

theITILservicevaluechaintheITILpracticestheITILguidingprinciplesgovernancecontinualimprovement.

TheITILservicevaluechainprovidesanoperatingmodelforthecreation,delivery,andcontinualimprovementofservices.Itisaflexiblemodelthatdefinessixkeyactivitiesthatcanbecombinedinmanyways,formingmultiplevaluestreams.Theservicevaluechainisflexibleenoughtobeadaptedtomultipleapproaches,includingDevOpsandcentralizedIT,toaddresstheneedformultimodalservicemanagement.Theadaptabilityofthevaluechainenablesorganizationstoreacttochangingdemandsfromtheirstakeholdersinthemosteffectiveandefficientways.

TheflexibilityoftheservicevaluechainisfurtherenhancedbytheITILpractices.EachITILpracticesupportsmultipleservicevaluechainactivities,providingacomprehensiveandversatiletoolsetforITSMpractitioners.

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Figure1.1Theservicevaluesystem

TheITILguidingprinciplescanbeusedtoguideanorganization’sdecisionsandactionsandensureasharedunderstandingandcommonapproachtoservicemanagementacrosstheorganization.TheITILguidingprinciplescreatethefoundationforanorganization’scultureandbehaviourfromstrategicdecision-makingtoday-to-dayoperations.

TheITILSVSalsoincludesgovernanceactivitiesthatenableorganizationstocontinuallyaligntheiroperationswiththestrategicdirectionsetbythegoverningbody.

EverycomponentoftheITILSVSissupportedbycontinualimprovement.ITILprovidesorganizationswithasimpleandpracticalimprovementmodeltomaintaintheirresilienceandagilityinaconstantlychangingenvironment.

1.3.2 Thefourdimensionsmodel

Toensureaholisticapproachtoservicemanagement,ITIL4outlinesfourdimensionsofservicemanagement,fromwhicheachcomponentoftheSVSshouldbeconsidered.Thefourdimensionsare:

organizationsandpeople

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informationandtechnologypartnersandsuppliersvaluestreamsandprocesses.

Bygivingeachofthefourdimensionsanappropriateamountoffocus,anorganizationensuresitsSVSremainsbalancedandeffective.ThefourdimensionsaredescribedinChapter3.

TheITILstory:TheCIO’svisionforAxleHenri:Thesedays,thepaceofindustrychangeisrapid,withtheterm‘FourthIndustrialRevolution’nowwidelyused.CompaniessuchasAxlearecompetingwithdisruptorsthatincludedriverlesscarsandcarshare.

ServiceexpectationshavechangedsinceAxlewascreated10yearsago.Customerswantimmediateaccesstoservicesviaappsandonlineservices.Axle’sbookingappisoutofdate,andourtechnologyisn’tkeepingpacewithchangesinourserviceofferings.

MyvisionforAxleisthatwebecomethemostrecognizedcar-hirebrandintheworld.We’llcontinuetoofferoutstandingcustomerservicewhilemaintainingcompetitivecar-hirerates.Afterall,Axleisnowaboutmorethanjusthiringavehicle.Wemustfocusonourcustomers’wholetravelexperience.

Footnote:1https://www.wto.org/english/tratop_e/serv_e/serv_e.htm

CHAPTER2

KEYCONCEPTSOFSERVICEMANAGEMENT

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2KeyconceptsofservicemanagementAsharedunderstandingofthekeyconceptsandterminologyofITILbyorganizationsandindividualsiscriticaltotheeffectiveuseofthisguidancetoaddressreal-worldservicemanagementchallenges.Tothatend,thischapterexplainssomeofthemostimportantconceptsofservicemanagement,including:

thenatureofvalueandvalueco-creationorganizations,serviceproviders,serviceconsumers,andotherstakeholdersproductsandservicesservicerelationshipsvalue:outcomes,costs,andrisks.

Theseconceptsapplytoallorganizationsandservices,regardlessoftheirnatureandunderpinningtechnology.Butthefirstthingthatmustbeoutlinedisthemostfundamentalquestionofall:Whatis‘servicemanagement’?

Definition:ServicemanagementAsetofspecializedorganizationalcapabilitiesforenablingvalueforcustomersintheformofservices.

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Developingthespecializedorganizationalcapabilitiesmentionedinthedefinitionrequiresanunderstandingof:

thenatureofvaluethenatureandscopeofthestakeholdersinvolvedhowvaluecreationisenabledthroughservices.

TheITILstory:Axle’sservicesSu:AtAxle,ourserviceistravelexperience.WeprovidethisservicetoourcustomerstocreatevaluebothforthemandforAxle.Servicemanagementhelpsustorealizethisvalue.

TheITILstory:Axle’scustomers

HerearethreeofAxleCarHire’sfrequentcustomers,whomyouwillmeetasthestoryunfolds:

IchikaIsauniversitystudentonholidaywithnofixedplans.Shehopestovisitmusicfestivalsaspartofhertravelexperience.Apartfromthat,hertravelisflexible.Sheistech-savvyandquicklyadaptstonewapplicationsandsolutions.Sheisinterestedintryingnewandexcitingdigitalservices.

FaruqIsrecentlyretiredandtypicallyholidaysalone.Heisthoughtfulandenjoyslearningaboutandadoptingnewtechnology.Faruqoftenmakeshistravelplansonthego,ashisneedscanchange,basedonpersonalorhealthconsiderations.

AmeliaIsthefacilitiesmanageratanorganicfooddistributioncompanycalledFoodforFuel.TheirheadofficeisincentralLondon,butmanyFoodforFuelconsumersareinregionalareas.Thismeansaccessbypublictransportistypicallyinfrequent,unreliable,andexpensive.Consequently,FoodforFuelprovidesitssalesstaffwithvehiclestoenablethemtoconvenientlyandreliablyvisitexistingandpotentialcustomers.

2.1Valueandvalueco-creation

KeymessageThepurposeofanorganizationistocreatevalueforstakeholders.

Theterm‘value’isusedregularlyinservicemanagement,anditisakeyfocusofITIL4;itmustthereforebeclearlydefined.

Definition:ValueTheperceivedbenefits,usefulness,andimportanceofsomething.

Inherentinthisdefinitionistheunderstandingthatvalueissubjecttotheperceptionofthestakeholders,whethertheybethecustomersorconsumersofaservice,orpartoftheserviceproviderorganization(s).Valuecanbesubjective.

2.1.1 Valueco-creation

Therewasatimewhenorganizationsself-identifyingas‘service

providers’sawtheirroleasdeliveringvaluetotheircustomersinmuchthesamewaythatapackageisdeliveredtoabuildingbyadeliverycompany.Thisviewtreatedtherelationshipbetweentheserviceproviderandtheserviceconsumerasmono-directionalanddistant.Theproviderdeliverstheserviceandtheconsumerreceivesvalue;theconsumerplaysnoroleinthecreationofvalueforthemselves.Thisfailstotakeintoconsiderationthehighlycomplexandinterdependentservicerelationshipsthatexistinreality.

Increasingly,organizationsrecognizethatvalueisco-createdthroughanactivecollaborationbetweenprovidersandconsumers,aswellasotherorganizationsthatarepartoftherelevantservicerelationships.Providersshouldnolongerattempttoworkinisolationtodefinewhatwillbeofvaluetotheircustomersandusers,butactivelyseektoestablishmutuallybeneficial,interactiverelationshipswiththeirconsumers,empoweringthemtobecreativecollaboratorsintheservicevaluechain.Stakeholdersacrosstheservicevaluechaincontributetothedefinitionofrequirements,thedesignofservicesolutionsandeventotheservicecreationand/orprovisioningitself(seesection4.5).

TheITILstory:ValueMarco:We’replanningtoreleaseagenerousnewoffering,givinganextradayofcarhirewitheverybooking.

Henri:However,wemustrememberthatvaluemeansdifferentthingsfordifferentpeople.Axlehasabroadrangeofcustomers,andeachofthemhastheirownrequirementsforcarhire.Weneedtomakesurethatanychangestoourservicesareactuallyprovidingsometypeofvaluetoourcustomers.

Ichika:Tome,‘value’meansfreedomofmovement.Iwantmytraveltobeeasy,hassle-free,andflexible.Ioptintomailinglistsandsubscriptionswhenitsuitsme.Itakefrequentshorttripsandrarelyvisitthesamelocationtwice.Anextradayofcarhirewon’talwayssuitmyplans.

Faruq:Idon’ttraveloften,soIdon’thavemyowncar.Thevalueofacar-hireserviceformeistheon-demandavailabilityofacarthatsuitsmyneeds.Ispendlessmoneyoncarhireeachyearthanitwouldcostmetomaintainandrunmyowncar.

Valuemeansitmeetsmybudget.BeingretiredmeansI’mflexible,withveryfew

commitmentsordeadlines.WhenI’monholiday,Ionlyplanafewdaysahead.Anextradayofcarhireoffersrealvaluetome.

Amelia:Thevalueofcarhireformyorganization,FoodforFuel,istwo-fold.First,weneedtheabilitytoreachourcustomers.Second,we’rekeentolowerourcostsandrisksbyhiringcarsinsteadofrunningourownfleet.

Asaregularcustomerwhobookscarhireonbehalfofmysalesrepsandstaff,Ivalueaconsistentandreliablestandardofservice.TravelandcarhireatFoodforFuelispre-plannedandtypicallyonlyrequiresdailyhire.There’snotmuchvalueinanextradayofcarhireformyorganization.

Henri:WealsohavetothinkabouthowvalueiscreatedforAxle.Themostobviousvaluewereceivewhenwehireoutourcarsisrevenue.Forourserviceconsumers,valueincludeseasyaccesstoavehiclewhentheyneedit,withouttheoverallexpenseofcarownership.Inbothcases,weneedacombinationofthetwoforthevaluetoberealized.Inthatway,weco-createvaluethroughourservicerelationships.

Valuewillbeexploredingreaterdepthlaterinthischapter.Beforethat,however,itisimportanttooutlinethevariousstakeholderswhoareinvolvedinvalueco-creationandthelanguageusedinITILtodescribethem.

2.2Organizations,serviceproviders,serviceconsumers,andotherstakeholders

Inservicemanagementtherearemanydifferentkindsofstakeholder,eachofwhichmustbeunderstoodinthecontextofthecreationofvalueintheformofservices.First,theterm‘organization’needstobedefined.

Definition:OrganizationApersonoragroupofpeoplethathasitsownfunctionswith

responsibilities,authorities,andrelationshipstoachieveitsobjectives.

Organizationsvaryinsizeandcomplexity,andintheirrelationtolegalentities,fromasinglepersonorateamtoacomplexnetworkoflegalentitiesunitedbycommonobjectives,relationships,andauthorities.

Associetiesandeconomiesevolve,therelationshipsbetweenandwithinorganizationsbecomemorecomplex.Eachorganizationdependsonothersinitsoperationanddevelopment.Organizationsmayholddifferentroles,dependingontheperspectiveunderdiscussion.Forexample,anorganizationthatcoordinatesadventurevacationscanfilltheroleofaserviceprovidertoatravelagentwhenitsellsavacation,whilesimultaneouslyfillingtheroleofserviceconsumerwhenitpurchasesairporttransferstoaddtotheirvacationpackages.

2.2.1 Serviceproviders

KeymessageWhenprovisioningservices,anorganizationtakesontheroleoftheserviceprovider.Theprovidercanbeexternaltotheconsumer’sorganization,ortheycanbothbepartofthesameorganization.

InthemosttraditionalviewsofITSM,theproviderorganizationisseenastheITdepartmentofacompany,andtheotherdepartmentsorotherfunctionalunitsinthecompanyareregardedastheconsumers.Thisis,

however,onlyoneverysimpleprovider-consumermodel.Aprovidercouldbesellingservicesontheopenmarkettootherbusinesses,toindividualconsumers,oritcouldbepartofaservicealliance,collaboratingtoprovideservicestoconsumerorganizations.Thekeyisthattheorganizationintheproviderrolehasaclearunderstandingofwhoitsconsumersareinagivensituationandwhotheotherstakeholdersareintheassociatedservicerelationships.

TheITILstory:ServiceprovidersHenri:AxleCarHireactsasaserviceprovider.Weprovidecarsforhire.Atthesametime,otherorganizations,suchasmechanicsandthecompaniesthatwebuyourcarsfrom,actasserviceprovidersforAxle.

2.2.2 Serviceconsumers

KeymessageWhenreceivingservices,anorganizationtakesontheroleoftheserviceconsumer.

Serviceconsumerisagenericrolethatisusedtosimplifythedefinitionanddescriptionofthestructureofservicerelationships.Inpractice,therearemorespecificrolesinvolvedinserviceconsumption,suchascustomers,users,andsponsors.Theserolescanbeseparateorcombined.

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DefinitionsCustomerApersonwhodefinestherequirementsforaserviceandtakesresponsibilityfortheoutcomesofserviceconsumption.UserApersonwhousesservices.SponsorApersonwhoauthorizesbudgetforserviceconsumption.

Forexample,ifacompanywishestopurchasemobilephoneservicesforitsemployeesfromawirelesscarrier(theserviceprovider),thevariousconsumerrolesmaybedistributedasfollows:

Thechiefinformationofficer(CIO)andkeycommunicationsteammembersfilltheroleofcustomerwhentheyanalysethemobilecommunicationsrequirementsofthecompany’semployees,negotiatethecontractwiththewirelesscarrierandmonitorthecarrier’sperformanceagainstthecontractedrequirements.Thechieffinancialofficer(CFO)fillstheroleofthesponsorwhentheyreviewtheproposedservicearrangementandapprovethecostofthecontractasnegotiated.Theemployees(includingtheCIO,CFO,andcommunicationsteammembers)filltheroleofuserswhentheyorder,receive,andusethemobilephoneservicesaspertheagreedcontract.

Inanotherexample,anindividualprivateconsumerofthesamewirelesscarrier(apersonusingthemobilenetwork)simultaneouslyactsasauser,customer,andsponsor.

TheITILstory:Axle’sserviceconsumersSu:Ourmostobviousserviceconsumersarethepeopleandorganizationswhohireourcars,visitouroffices,anduseourwebsiteandbookingapp.Forexample,IchikaandFaruqareserviceconsumers,andsoisFoodforFuel.Theyarealsoourcustomers.

Radhika:Usersarethepeoplewhomakeuseofourservices.Ourcar-hireusersarethedriversandpassengersinourvehicles.

Marco:Sponsorsarethepeoplewhoauthorizebudgets.ForAxleCarHire,oursponsorsincludeAmeliafromFoodforFuel,whoapprovesthetravelbudgetevenifshedoesn’ttravelherself.

Henri:IndividualserviceconsumerssuchasIchikaandFaruqapprovetheirownbudgets,definetheirrequirementsforcarhire,anddrivethecars.Therefore,IchikaandFaruqactassponsors,customers,andusers.Sometimes,though,theymaysharethetripwithfellowdrivers(friendsorfamilymembers).Inthiscase,theircontractswillincludeotherusers.

Itisimportanttoidentifytheserolesinservicerelationshipstoensureeffectivecommunicationandstakeholdermanagement.Eachoftheserolesmayhavedifferent,andsometimesevenconflicting,expectationsfromservices,anddifferentdefinitionsofvalue.

2.2.3 Otherstakeholders

Akeyfocusofservicemanagement,andofITIL,isthewaythatorganizationsco-createvaluewiththeirconsumersthroughservicerelationships.Beyondtheconsumerandproviderroles,thereareusuallymanyotherstakeholdersthatareimportanttovaluecreation.Examplesincludeindividualemployeesoftheproviderorganization,partnersandsuppliers,investorsandshareholders,governmentorganizationssuchasregulators,andsocialgroups.Forthesuccess,andeventhecontinuedexistenceofanorganization,itisimportantthatrelationshipswithallkeystakeholdersareunderstoodandmanaged.Ifstakeholders

areunhappywithwhattheorganizationdoesorhowitdoesit,theprovider’srelationshipswithitsconsumerscanbeinjeopardy.

Productsandservicescreatevalueforstakeholdersinanumberofways.Somearequitedirectsuchasthegenerationofrevenue,whileothersaremoreindirectsuchasemployeeexperience.Table2.1providesexamplesofvalueforseveraldifferenttypesofstakeholder.

DetailedrecommendationsonthemanagementofvaluefordifferentstakeholderscanbefoundinotherITIL4publicationsandsupplementarymaterials.

Table2.1Examplesofvaluefordifferenttypesofstakeholder

Stakeholder ExampleofvalueforstakeholderServiceconsumers Benefitsachieved;costsandrisksoptimizedServiceprovider Fundingfromtheconsumer;businessdevelopment;imageimprovementServiceprovideremployees Financialandnon-financialincentives;careerandprofessionaldevelopment;senseof

purposeSocietyandcommunity Employment;taxes;organizations’contributiontothedevelopmentofthecommunityCharityorganizations Financialandnon-financialcontributionsfromotherorganizationsShareholders Financialbenefits,suchasdividends;senseofassuranceandstability

2.3ProductsandservicesThecentralcomponentofservicemanagementis,ofcourse,theservice.Thenatureofserviceswillnowbeconsidered,andanoutlinegivenoftherelationshipbetweenaserviceandaproduct.

2.3.1 Configuringresourcesforvaluecreation

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KeymessageTheservicesthatanorganizationprovidesarebasedononeormoreofitsproducts.Organizationsownorhaveaccesstoavarietyofresources,includingpeople,informationandtechnology,valuestreamsandprocesses,andpartnersandsuppliers.Productsareconfigurationsoftheseresources,createdbytheorganization,thatwillpotentiallybevaluableforitscustomers.

DefinitionsServicesAmeansofenablingvalueco-creationbyfacilitatingoutcomesthatcustomerswanttoachieve,withoutthecustomerhavingtomanagespecificcostsandrisks.ProductAconfigurationofanorganization’sresourcesdesignedtooffervalueforaconsumer.

Eachproductthatanorganizationoffersiscreatedwithanumberoftargetconsumergroupsinmind,andtheproductswillbetailoredtoappealto,andmeettheneedsof,thesegroups.Aproductisnotexclusivetooneconsumergroup,andcanbeusedtoaddresstheneedsofseveraldifferentgroups.Forexample,asoftwareservicecanbeofferedasa‘lite’version,forindividualusers,orasamorecomprehensivecorporateversion.

Productsaretypicallycomplexandarenotfullyvisibletotheconsumer.Theportionofaproductthattheconsumeractuallyseesdoesnotalwaysrepresentallofthecomponentsthatcomprisetheproductandsupportitsdelivery.Organizationsdefinewhichproductcomponentstheir

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consumerssee,andtailorthemtosuittheirtargetconsumergroups.

2.3.2 Serviceofferings

KeymessageServiceproviderspresenttheirservicestoconsumersintheformofserviceofferings,whichdescribeoneormoreservicesbasedononeormoreproducts.

Definition:ServiceofferingAformaldescriptionofoneormoreservices,designedtoaddresstheneedsofatargetconsumergroup.Aserviceofferingmayincludegoods,accesstoresources,andserviceactions.

Serviceofferingsmayinclude:

goodstobesuppliedtoaconsumer(forexample,amobilephone).Goodsaresupposedtobetransferredfromtheprovidertotheconsumer,withtheconsumertakingtheresponsibilityfortheirfutureuseaccesstoresourcesgrantedorlicensedtoaconsumerunderagreed

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termsandconditions(forexample,tothemobilenetwork,ortothenetworkstorage).Theresourcesremainundertheprovider’scontrolandcanbeaccessedbytheconsumeronlyduringtheagreedserviceconsumptionperiodserviceactionsperformedtoaddressaconsumer’sneeds(forexample,usersupport).Theseactionsareperformedbytheserviceprovideraccordingtotheagreementwiththeconsumer.

ExamplesofdifferenttypesofserviceofferingareshowninTable2.2.

Servicesareofferedtotargetconsumergroups,andthosegroupsmaybeeitherinternalorexternaltotheserviceproviderorganization.Differentofferingscanbecreatedbasedonthesameproduct,whichallowsittobeusedinmultiplewaystoaddresstheneedsofdifferentconsumergroups.Forexample,asoftwareservicecanbeofferedasalimitedfreeversion,orasacomprehensivepaid-forversion,basedononeproductoftheserviceprovider.

Table2.2Componentsofaserviceoffering

Component Description ExamplesGoods Suppliedtotheconsumer

OwnershipistransferredtotheconsumerConsumertakesresponsibilityforfutureuse

AmobilephoneAphysicalserver

Accesstoresources OwnershipisnottransferredtotheconsumerAccessisgrantedorlicensedtotheconsumerunderagreedtermsandconditionsTheconsumercanonlyaccesstheresourcesduringtheagreedconsumptionperiodandaccordingtootheragreedserviceterms

Accesstothemobilenetwork,ortonetworkstorage

Serviceactions Performedbytheserviceprovidertoaddressaconsumer’sneedsPerformedaccordingtoanagreementwiththeconsumer

UsersupportReplacementofapieceofequipment

TheITILstory:Axle’sserviceofferingsSu:Axle’sserviceofferingsincludecarhireandthevariousoptionsweprovidetoaddressdifferenttravelneeds.Theseofferingsincludediscountedinsurance,aloyaltyprogramme,andcomplimentarytravelproductswhichincludebottledwater,tissues,badgeholdersforparkingpermits,andbabyseats.

Ourconsumersareadiversegroupandexpectdifferenttravelexperiences.Forexample,ourcorporateconsumersdon’tusuallyneedbabyseatsorweekendrates.Atthesametime,someindividualcustomersaren’tinterestedinfreeairportcar

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collectionifthey’reonlytravellinglocally.

Allourserviceofferingsincludeaccesstoourwebsiteandbookingapp.

2.4ServicerelationshipsTocreatevalue,anorganizationmustdomorethansimplyprovideaservice.Itmustalsocooperatewiththeconsumersinservicerelationships.

KeymessageServicerelationshipsareestablishedbetweentwoormoreorganizationstoco-createvalue.Inaservicerelationship,organizationswilltakeontherolesofserviceprovidersorserviceconsumers.Thetworolesarenotmutuallyexclusive,andorganizationstypicallybothprovideandconsumeanumberofservicesatanygiventime.

2.4.1 Theservicerelationshipmodel

Whenservicesaredeliveredbytheprovider,theycreatenewresourcesforserviceconsumers,ormodifytheirexistingones.Forexample:

atrainingserviceimprovestheskillsoftheconsumer’semployeesabroadbandserviceallowstheconsumer’scomputerstocommunicate

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acar-hireserviceenablestheconsumer’sstafftovisitclientsasoftwaredevelopmentservicecreatesanewapplicationfortheserviceconsumer.

Figure2.1Theservicerelationshipmodel

Theserviceconsumercanuseitsnewormodifiedresourcestocreateitsownproductstoaddresstheneedsofanothertargetconsumergroup,thusbecomingaserviceprovider.TheseinteractionsareshowninFigure2.1.

DefinitionsServicerelationshipAcooperationbetweenaserviceproviderandserviceconsumer.Servicerelationshipsincludeserviceprovision,serviceconsumption,andservicerelationshipmanagement.ServiceprovisionActivitiesperformedbyanorganizationtoprovideservices.Serviceprovisionincludes:

managementoftheprovider’sresources,configuredtodelivertheserviceensuringaccesstotheseresourcesforusersfulfilmentoftheagreedserviceactionsservicelevelmanagementandcontinualimprovement.

Serviceprovisionmayalsoincludethesupplyingofgoods.

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ServiceconsumptionActivitiesperformedbyanorganizationtoconsumeservices.Serviceconsumptionincludes:

managementoftheconsumer’sresourcesneededtousetheserviceserviceactionsperformedbyusers,includingutilizingtheprovider’sresources,andrequestingserviceactionstobefulfilled.

Serviceconsumptionmayalsoincludethereceiving(acquiring)ofgoods.ServicerelationshipmanagementJointactivitiesperformedbyaserviceproviderandaserviceconsumertoensurecontinualvalueco-creationbasedonagreedandavailableserviceofferings.

TheITILstory:Axle’sservicerelationshipsHenri:Axlehasservicerelationshipswithmanyserviceprovidersandconsumers,bothinternalandexternal.SomeservicesprovidedtoAxlecreatenewresourcesforthebusiness,suchascarmanufacturerssellingcarstous.Otherservices,suchastheworkdoneforusbyourinternalcarcleaningteam,andmechanicsoutsideofAxle,changeourexistingresourcesbyensuringthatourcarsarecleanandfunctional.

Axlecanusetheseresourcesinotherrelationshipstoprovideitsownservices,intheformofcarhire,toconsumers,i.e.ourcustomers.

ThesearejustafewexamplesoftheservicerelationshipsthatAxlehas.Theorganizationasawholehasmanymore.

2.5Value:outcomes,costs,andrisksThissectionwillfocusonhowanorganizationintheroleofserviceprovidershouldevaluatewhatitsservicesshoulddoandhowitsservicesshouldbeprovidedtomeettheneedsofconsumers.

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KeymessageAchievingdesiredoutcomesrequiresresources(andthereforecosts)andisoftenassociatedwithrisks.Serviceprovidershelptheirconsumerstoachieveoutcomes,andindoingso,takeonsomeoftheassociatedrisksandcosts(seethedefinitionofserviceinsection2.3.1).Ontheotherhand,servicerelationshipscanintroducenewrisksandcosts,andinsomecases,cannegativelyaffectsomeoftheintendedoutcomes,whilesupportingothers.

Servicerelationshipsareperceivedasvaluableonlywhentheyhavemorepositiveeffectsthannegative,asdepictedinFigure2.2.Outcomes,andhowtheyinfluenceandareinfluencedbytheotherelements,willnowbediscussed.

2.5.1 Outcomes

Actingasaserviceprovider,anorganizationproducesoutputsthathelpitsconsumerstoachievecertainoutcomes.

DefinitionsOutputAtangibleorintangibledeliverableofanactivity.

•OutcomeAresultforastakeholderenabledbyoneormoreoutputs.

Figure2.2Achievingvalue:outcomes,costs,andrisks

Itisimportanttobeclearaboutthedifferencebetweenoutputsandoutcomes.Forexample,oneoutputofaweddingphotographyservicemaybeanalbuminwhichselectedphotosareartfullyarranged.Theoutcomeoftheservice,however,isthepreservationofmemoriesandtheabilityofthecoupleandtheirfamilyandfriendstoeasilyrecallthosememoriesbylookingatthealbum.

Dependingontherelationshipbetweentheproviderandtheconsumer,itcanbedifficultfortheprovidertofullyunderstandtheoutcomesthattheconsumerwantstoachieve.Insomecasestheywillworktogethertodefinethedesiredoutcomes.Forexample,businessrelationshipmanagers(BRMs)ininternalITorHRdepartmentsmayregularlytalkwithcustomersanddiscusstheirneedsandexpectations.Inothercases,theconsumersarticulatetheirexpectationsquiteclearly,andtheproviderexpectsthemtodoso,suchaswhenstandardizedservicesareoffered

toawideconsumergroup.Thisishowmobileoperators,broadbandserviceproviders,andtransportcompaniesusuallyoperate.Finally,someserviceproviderspredictorevencreatedemandforcertainoutcomes,formingatargetgroupfortheirservices.Thismayhappenwithinnovativeservicesaddressingneedsthatconsumerswerenotevenawareofbefore.Examplesofthisincludesocialnetworksorsmarthomesolutions.

TheITILstory:OutputsandoutcomesHenri:AtAxle,ourkeyoutputisacarthatisclean,roadworthy,andwellmaintained.

Su:Forourserviceconsumers,outcomesincludetravelthatisconvenientandaffordable,andmeetsarangeofneeds.Thisincludesself-driveholidays,clientsitevisits,andtraveltoseefamilyandfriends.

2.5.2 Costs

Definition:CostTheamountofmoneyspentonaspecificactivityorresource.

Fromtheserviceconsumer’sperspective,therearetwotypesofcostinvolvedinservicerelationships:

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costsremovedfromtheconsumerbytheservice(apartofthevalueproposition).Thismayincludecostsofstaff,technology,andotherresources,whichtheconsumerdoesnotneedtoprovidecostsimposedontheconsumerbytheservice(thecostsofserviceconsumption).Thetotalcostofconsumingaserviceincludesthepricechargedbytheserviceprovider(ifapplicable),plusothercostssuchasstafftraining,costsofnetworkutilization,procurement,etc.Someconsumersdescribethisaswhattheyhaveto‘invest’toconsumetheservice.

Bothtypesofcostareconsideredwhentheconsumerassessesthevaluewhichtheyexpecttheservicetocreate.Toensurethatthecorrectdecisionsaremadeabouttheservicerelationship,itisimportantthatbothtypesofcostarefullyunderstood.

Fromtheprovider’sperspective,afullandcorrectunderstandingofthecostofserviceprovisionisessential.Providersneedtoensurethatservicesaredeliveredwithinbudgetconstraintsandmeetthefinancialexpectationsoftheorganization(seesection5.1.11).

2.5.3 Risks

Definition:RiskApossibleeventthatcouldcauseharmorloss,ormakeitmoredifficulttoachieveobjectives.Canalsobedefinedasuncertaintyofoutcome,andcanbeusedinthecontextofmeasuringtheprobabilityofpositiveoutcomesaswellasnegativeoutcomes.

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Aswithcosts,therearetwotypesofriskthatareofconcerntoserviceconsumers:

risksremovedfromaconsumerbytheservice(partofthevalueproposition).Thesemayincludefailureoftheconsumer’sserverhardwareorlackofstaffavailability.Insomecases,aservicemayonlyreduceaconsumer’srisks,buttheconsumermaydeterminethatthisreductionissufficienttosupportthevaluepropositionrisksimposedonaconsumerbytheservice(risksofserviceconsumption).Anexampleofthiswouldbeaserviceproviderceasingtotrade,orexperiencingasecuritybreach.

Itisthedutyoftheprovidertomanagethedetailedlevelofriskonbehalfoftheconsumer(seesection5.1.10).Thisshouldbehandledbasedonabalanceofwhatmattersmosttotheconsumerandtotheprovider.Theconsumercontributestothereductionofriskthrough:

activelyparticipatinginthedefinitionoftherequirementsoftheserviceandtheclarificationofitsrequiredoutcomesclearlycommunicatingthecriticalsuccessfactors(CSFs)andconstraintsthatapplytotheserviceensuringtheproviderhasaccesstothenecessaryresourcesoftheconsumerthroughouttheservicerelationship.

2.5.4 Utilityandwarranty

Toevaluatewhetheraserviceorserviceofferingwillfacilitatetheoutcomesdesiredbytheconsumersandthereforecreatevalueforthem,theoverallutilityandwarrantyoftheserviceshouldbeassessed.

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DefinitionsUtilityThefunctionalityofferedbyaproductorservicetomeetaparticularneed.Utilitycanbesummarizedas‘whattheservicedoes’andcanbeusedtodeterminewhetheraserviceis‘fitforpurpose’.Tohaveutility,aservicemusteithersupporttheperformanceoftheconsumerorremoveconstraintsfromtheconsumer.Manyservicesdoboth.WarrantyAssurancethataproductorservicewillmeetagreedrequirements.Warrantycanbesummarizedas‘howtheserviceperforms’andcanbeusedtodeterminewhetheraserviceis‘fitforuse’.Warrantyoftenrelatestoservicelevelsalignedwiththeneedsofserviceconsumers.Thismaybebasedonaformalagreement,oritmaybeamarketingmessageorbrandimage.Warrantytypicallyaddressessuchareasastheavailabilityoftheservice,itscapacity,levelsofsecurityandcontinuity.Aservicemaybesaidtoprovideacceptableassurance,or‘warranty’,ifalldefinedandagreedconditionsaremet.

Theassessmentofaservicemusttakeintoconsiderationtheimpactofcostsandrisksonutilityandwarrantytogenerateacompletepictureoftheviabilityofaservice.

Bothutilityandwarrantyareessentialforaservicetofacilitateitsdesiredoutcomesandthereforehelpcreatevalue.Forexample,arecreationalthemeparkmayoffermanyexcitingridesdesignedtodeliverthrillingexperiencesforparkvisitors(utility),butifasignificantnumberoftheridesarefrequentlyunavailableduetomechanicaldifficulties,theparkisnotfulfillingthewarranty(itisnotfitforuse)andtheconsumerswillnotreceivetheirexpectedvalue.Likewise,iftheridesarealwaysupandrunningduringadvertisedhours,buttheydonothavefeaturesthatprovidethelevelsofexcitementexpectedbyvisitors,theutilityisnotfulfilled,eventhoughthewarrantyissufficient.Again,consumerswouldnotreceivetheexpectedvalue.

TheITILstory:Anewsupplier(Craig’sCleaning)

Su:Axle’srecentcustomersatisfactionsurveysconsistentlyrevealedlowratingsforcarcleanliness.Thishamperedourcustomers’travelexperienceandwasacontributingfactorforlowrepeatbookings.

Henri:AxleCarHiremadethedecisiontooutsourcethecleaningofallvehiclestoaserviceprovider.Previously,cleaningofourvehiclefleetwasperformedbyaninternaldepartment.Thecostandefforttomaintainequipment,updaterosters,andmanageaninflexibleworkforcewereunsustainable.

Itisimportanttounderstandthattheriskofoutsourcinganytaskorserviceisthatanorganizationlosesskillsandcapabilities.However,carcleaningisaservicerequiringspecializedequipmentaswellasaflexibleandmotivatedworkforce.ContinualinvestmentinthisserviceissomethingthatisnotbeneficialforAxle.

Atfacevalue,outsourcingmayappeartocostanorganizationmorethanusinginternalresources.Initiallythismaybetrue;however,overtimeandcorrectlymanaged,outsourcingservicesshouldbebeneficialtoboththeorganizationandsupplier.ThebenefitforAxleisthatwecanconcentrateonourcorebusiness.Afterall,we’renotacleaningcompany.

Marco:Therearealwaysprosandconstooutsourcing.Let’shavealookattheoutcomes,costs,andrisksthatareintroducedandremoved.

Pros ConsUserswillbehappywithourcars’cleanlinessAxlewillnolongerneedtomaintainitsowncleaningfacilitiesTheriskofcarsbeingdamagedduringcleaningwillberemovedfromAxle.Thisriskwillnowbewiththesupplierandtheirinsurancecompany

AxlewillloseanopportunitytooffercarcleaningasaserviceAxlewillneedtopaythecleaningcompanyAxlewillhaveaheavydependencyontheexternalcleaningcompany,andtheirstaffwillhavewideaccesstoourpremises

Su:Bypartneringwithaspecialistcleaningorganization,Axlecanfocusitsresourcesonprovidingabetterserviceforourusers.Itwillalsohelptooptimizeourcosts,increasingvaluefortheorganization.

CraigistheownerofCraig’sCleaning.Craigismethodical,reliable,andwellrespectedbyhisstaff.Withhisteam,CraigiskeentocontributetotheAxlevisionofofferingahigh-standardtravelexperience.

Craig:AxleCarHiredecidedtooutsourceitscarcleaningservice,andCraig’sCleaningwaschosentotakethison.MyorganizationisnowresponsibleforthecleanlinessoftheentireAxlevehiclefleet.

Henri:TheserviceCraig’sCleaningisprovidingisonlyonecomponentoftheAxlecustomerexperience.Cleancarsareoneoutputofouroverallservice,andtheycontributedirectlytothecustomers’travelexperience.ThishelpsAxle’sclientstoachievetheiroutcomes.

Su:Craig’sCleaningisdoingagreatjob!Thecarshaveneverbeencleaner,andourcustomersatisfactionratingsforcarcleanlinessaresteadilyontheincrease.

AxleandCraig’sCleaninghaveworkedonacleaningscheduletogether,withfocusoncarcleaningturnaroundtimesduringpeakhours.AxleisresponsibleforprovidingCraigandhisteamwithtimelynoticeofanychangesthatcanimpactthisschedule.Forexample,Axlemayneedtoexpanditscleaningrequirementsinthelightofnewserviceofferings,suchastheoneMarcoisdeveloping.

Marco:Axlehasagoaltobecomeagreenercompanyandhelptheenvironment.WewouldlikeCraig’sCleaningtosupportusinthisgoalandaimforthesamesustainablegrowthasus.

2.6SummaryThischapterhascoveredthekeyconceptsinservicemanagement,inparticularthenatureofvalueandvalueco-creation,organizations,products,andservices.Ithasexploredtheoftencomplexrelationshipsbetweenserviceprovidersandconsumers,andthevariousstakeholdersinvolved.Thechapterhasalsocoveredthekeycomponentsofconsumervalue:benefits,costs,andrisks,andhowimportantitistounderstandtheneedsofthecustomerwhendesigninganddeliveringservices.Theseconceptswillbebuiltuponoverthenextfewchapters,andguidanceprovidedonapplyingtheminpracticalandflexibleways.

CHAPTER3

THEFOURDIMENSIONSOFSERVICEMANAGEMENT

3ThefourdimensionsofservicemanagementThepreviouschapteroutlinedtheconceptsthatarekeytoservicemanagement.Theobjectiveofanorganizationistocreatevalueforitsstakeholders,andthisisachievedthroughtheprovisionandconsumptionofservices.ThewaysinwhichthevariouscomponentsandactivitiesofanorganizationworktogethertocreatethisvalueisdescribedbytheITILSVS.However,beforethisisexploredfurther,thefourdimensionsofservicemanagementmustbeintroduced.Thesedimensionsarerelevantto,andimpactupon,allelementsoftheSVS.

Toachievetheirdesiredoutcomesandworkaseffectivelyaspossible,organizationsshouldconsiderallaspectsoftheirbehaviour.Inpractice,however,organizationsoftenbecometoofocusedononeareaoftheirinitiativesandneglecttheothers.Forexample,processimprovementsmaybeplannedwithoutproperconsiderationforthepeople,partners,andtechnologyinvolved,ortechnologysolutionscanbeimplementedwithoutduecarefortheprocessesorpeopletheyaresupposedtosupport.Therearemultipleaspectstoservicemanagement,andnoneofthesearesufficienttoproducetherequiredoutcomeswhenconsideredinisolation.

KeymessageTosupportaholisticapproachtoservicemanagement,ITILdefinesfourdimensionsthatcollectivelyarecriticaltotheeffective

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andefficientfacilitationofvalueforcustomersandotherstakeholdersintheformofproductsandservices.Theseare:

organizationsandpeopleinformationandtechnologypartnersandsuppliersvaluestreamsandprocesses.

ThesefourdimensionsrepresentperspectiveswhicharerelevanttothewholeSVS,includingtheentiretyoftheservicevaluechainandallITILpractices.ThefourdimensionsareconstrainedorinfluencedbyseveralexternalfactorsthatareoftenbeyondthecontroloftheSVS.

Thefourdimensions,andtherelationshipsbetweenthem,arerepresentedinFigure3.1.

Failingtoaddressallfourdimensionsproperlymayresultinservicesbecomingundeliverable,ornotmeetingexpectationsofqualityorefficiency.Forexample,failingtoconsiderthevaluestreamsandprocessesdimensionholisticallycanleadtowastefulwork,duplicationofefforts,orworse,workthatconflictswithwhatisbeingdoneelsewhereintheorganization.Equally,ignoringthepartnersandsuppliersdimensioncouldmeanthatoutsourcedservicesaremisalignedwiththeneedsoftheorganization.Thefourdimensionsdonothavesharpboundariesandmayoverlap.Theywillsometimesinteractinunpredictableways,dependingonthelevelofcomplexityanduncertaintyinwhichanorganizationoperates.

Figure3.1Thefourdimensionsofservicemanagement

Itisimportanttonotethatthefourdimensionsofservicemanagementapplytoallservicesbeingmanaged,aswellastotheSVSingeneral.Itisthereforeessentialthattheseperspectivesshouldbeconsideredforeveryservice,andthateachoneshouldbeaddressedwhenmanagingandimprovingtheSVSatalllevels.

Anoverviewofthefourdimensionsisprovidedbelow,andmoredetailedguidanceonaddressingthedimensionsinpracticecanbefoundinotherITIL4publications.

TheITILstory:Thefourdimensionsofservicemanagement

Henri:AsanITteam,weareresponsiblefortheinformationandtechnologyatAxleCarHire.However,effectiveITmanagementismuchmorethanjustmanagingtechnology.WemustalsoconsiderthewiderorganizationandpeopleinvolvedinAxle’scar-hireservice,ourrelationshipswithpartnersandsuppliers,andthevaluestreams,processes,andtechnologiesthatweuse.

3.1OrganizationsandpeopleThefirstdimensionofservicemanagementisorganizationsandpeople.

Theeffectivenessofanorganizationcannotbeassuredbyaformallyestablishedstructureorsystemofauthorityalone.Theorganizationalsoneedsaculturethatsupportsitsobjectives,andtherightlevelofcapacityandcompetencyamongitsworkforce.Itisvitalthattheleadersoftheorganizationchampionandadvocatevalueswhichmotivatepeopletoworkindesirableways.Ultimately,however,itisthewayinwhichanorganizationcarriesoutitsworkthatcreatessharedvaluesandattitudes,whichovertimeareconsideredtheorganization’sculture.

KeymessageThecomplexityoforganizationsisgrowing,anditisimportanttoensurethatthewayanorganizationisstructuredandmanaged,aswellasitsroles,responsibilities,andsystemsofauthorityandcommunication,iswelldefinedandsupportsitsoverallstrategyandoperatingmodel.

Asanexample,itisusefultopromoteacultureoftrustandtransparencyinanorganizationthatencouragesitsmemberstoraiseandescalateissuesandfacilitatescorrectiveactionsbeforeanyissueshaveanimpactoncustomers.AdoptingtheITILguidingprinciplescanbeagoodstartingpointforestablishingahealthyorganizationalculture(seesection4.3).

People(whethercustomers,employeesofsuppliers,employeesoftheserviceprovider,oranyotherstakeholderintheservicerelationship)areakeyelementinthisdimension.Attentionshouldbepaidnotonlytothe

skillsandcompetenciesofteamsorindividualmembers,butalsotomanagementandleadershipstyles,andtocommunicationandcollaborationskills.Aspracticesevolve,peoplealsoneedtoupdatetheirskillsandcompetencies.Itisbecomingincreasinglyimportantforpeopletounderstandtheinterfacesbetweentheirspecializationsandrolesandthoseofothersintheorganization,toensureproperlevelsofcollaborationandcoordination.Forexample,insomeareasofIT(suchassoftwaredevelopmentorusersupport),thereisagrowingacknowledgementthateveryoneshouldhaveabroadgeneralknowledgeoftheotherareasoftheorganization,combinedwithadeepspecializationincertainfields.

Everypersonintheorganizationshouldhaveaclearunderstandingoftheircontributiontowardscreatingvaluefortheorganization,itscustomers,andotherstakeholders.Promotingafocusonvaluecreationisaneffectivemethodofbreakingdownorganizationalsilos.

Theorganizationsandpeopledimensionofaservicecoversrolesandresponsibilities,formalorganizationalstructures,culture,andrequiredstaffingandcompetencies,allofwhicharerelatedtothecreation,delivery,andimprovementofaservice.

TheITILstory:Axle’sorganizationandpeopleHenri:TheorganizationsandpeopledimensionofAxle’scar-hireservicesincludesmyITteamandotherteamswithintheorganization,suchasprocurement,HR,andfacilities.

3.2InformationandtechnologyTheseconddimensionofservicemanagementisinformationandtechnology.Aswiththeotherthreedimensions,informationandtechnologyappliesbothtoservicemanagementandtotheservices

beingmanaged.

DetailedguidanceontheroleofinformationandtechnologyinservicemanagementcanbefoundinotherITILpublications.

KeymessageWhenappliedtotheSVS,theinformationandtechnologydimensionincludestheinformationandknowledgenecessaryforthemanagementofservices,aswellasthetechnologiesrequired.ItalsoincorporatestherelationshipsbetweendifferentcomponentsoftheSVS,suchastheinputsandoutputsofactivitiesandpractices.

Thetechnologiesthatsupportservicemanagementinclude,butarenotlimitedto,workflowmanagementsystems,knowledgebases,inventorysystems,communicationsystems,andanalyticaltools.Servicemanagementincreasinglybenefitsfromdevelopmentsintechnology.Artificialintelligence,machinelearning,andothercognitivecomputingsolutionsareusedatalllevels,fromstrategicplanningandportfoliooptimizationtosystemmonitoringandusersupport.Theuseofmobileplatforms,cloudsolutions,remotecollaborationtools,automatedtesting,anddeploymentsolutionshasbecomecommonpracticeamongserviceproviders.

InthecontextofaspecificITservice,thisdimensionincludestheinformationcreated,managed,andusedinthecourseofserviceprovisionandconsumption,andthetechnologiesthatsupportandenablethatservice.ThespecificinformationandtechnologiesdependonthenatureoftheservicesbeingprovidedandusuallycoveralllevelsofITarchitecture,includingapplications,databases,communicationsystems,

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andtheirintegrations.Inmanyareas,ITservicesusethelatesttechnologydevelopments,suchasblockchain,artificialintelligence,andcognitivecomputing.Theseservicesprovideabusinessdifferentiationpotentialtoearlyadopters,especiallyinhighlycompetitiveindustries.Othertechnologysolutions,suchascloudcomputingormobileapps,havebecomecommonpracticeacrossmanyindustriesglobally.

Inrelationtotheinformationcomponentofthisdimension,organizationsshouldconsiderthefollowingquestions:

Whatinformationismanagedbytheservices?Whatsupportinginformationandknowledgeareneededtodeliverandmanagetheservices?Howwilltheinformationandknowledgeassetsbeprotected,managed,archived,anddisposedof?

Formanyservices,informationmanagementistheprimarymeansofenablingcustomervalue.Forexample,anHRservicefacilitatesvaluecreationforitscustomersbyenablingtheorganizationtoaccessandmaintainaccurateinformationaboutitsemployees,theiremployment,andtheirbenefits,withoutexposureofprivateinformationtounauthorizedparties.Anetworkmanagementservicefacilitatesvaluecreationforitsusersbymaintainingandprovidingaccurateinformationaboutanorganization’sactivenetworkconnectionsandutilization,allowingittoadjustitsnetworkbandwidthcapacity.InformationisgenerallythekeyoutputofthemajorityofITserviceswhichareconsumedbybusinesscustomers.

Anotherkeyconsiderationinthisdimensionishowinformationisexchangedbetweendifferentservicesandservicecomponents.Theinformationarchitectureofthevariousservicesneedstobewellunderstoodandcontinuallyoptimized,takingintoaccountsuchcriteriaastheavailability,reliability,accessibility,timeliness,accuracy,andrelevanceoftheinformationprovidedtousersandexchangedbetweenservices.

Thechallengesofinformationmanagement,suchasthosepresentedby

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securityandregulatorycompliancerequirements,arealsoafocusofthisdimension.Forexample,anorganizationmaybesubjecttotheEuropeanUnion’sGeneralDataProtectionRegulation(GDPR),whichinfluencesitsinformationmanagementpoliciesandpractices.Otherindustriesorcountriesmayhaveregulationsthatimposeconstraintsonthecollectionandmanagementofdataofmultinationalcorporations.Forexample,intheUStheHealthInsurancePortabilityandAccountabilityActof1996providesdataprivacyandsecurityprovisionsforsafeguardingmedicalinformation.

MostservicesnowadaysarebasedonIT,andareheavilydependentonit.Whenconsideringatechnologyforuseintheplanning,design,transition,oroperationofaproductorservice,questionsanorganizationmayaskinclude:

Isthistechnologycompatiblewiththecurrentarchitectureoftheorganizationanditscustomers?Dothedifferenttechnologyproductsusedbytheorganizationanditsstakeholdersworktogether?Howareemergingtechnologies(suchasmachinelearning,artificialintelligence,andInternetofThings)likelytodisrupttheserviceortheorganization?Doesthistechnologyraiseanyregulatoryorothercomplianceissueswiththeorganization’spoliciesandinformationsecuritycontrols,orthoseofitscustomers?Isthisatechnologythatwillcontinuetobeviableintheforeseeablefuture?Istheorganizationwillingtoaccepttheriskofusingagingtechnology,orofembracingemergingorunproventechnology?Doesthistechnologyalignwiththestrategyoftheserviceprovider,oritsserviceconsumers?Doestheorganizationhavetherightskillsacrossitsstaffandsupplierstosupportandmaintainthetechnology?Doesthistechnologyhavesufficientautomationcapabilitiestoensureitcanbeefficientlydeveloped,deployed,andoperated?Doesthistechnologyofferadditionalcapabilitiesthatmightbeleveragedforotherproductsorservices?Doesthistechnologyintroducenewrisksorconstraintstothe

organization(forexample,lockingitintoaspecificvendor)?

Thecultureofanorganizationmayhaveasignificantimpactonthetechnologiesitchoosestouse.Someorganizationsmayhavemoreofaninterestinbeingatthecuttingedgeoftechnologicaladvancesthanothers.Equallythecultureofsomeorganizationsmaybemoretraditional.Onecompanymaybekeentotakeadvantageofartificialintelligence,whileanothermaybarelybereadyforadvanceddataanalysistools.

Thenatureofthebusinesswillalsoaffectthetechnologyitmakesuseof.Forexample,acompanythatdoessignificantbusinesswithgovernmentclientsmayhaverestrictionsontheuseofsometechnologies,orhavesignificantlyhighersecurityconcernsthatmustbeaddressed.Otherindustries,suchasfinanceorlifesciences,arealsosubjecttorestrictionsaroundtheiruseoftechnology.Forexample,theyusuallycannotuseopensourceandpublicserviceswhendealingwithsensitivedata.

TheITILstory:Axle’sinformationandtechnology

Henri:TheinformationandtechnologydimensionofAxleCarHirerepresentstheinformationcreatedandmanagedbyteams.Italsoincludesthetechnologiesthatsupportandenableourservices.Applicationsanddatabasessuchasourbookingappandfinancialsystemarepartoftheinformationandtechnologydimensionaswell.

Definition:CloudcomputingAmodelforenablingon-demandnetworkaccesstoasharedpoolofconfigurablecomputingresourcesthatcanberapidlyprovided

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withminimalmanagementeffortorproviderinteraction.

ITSMinthemodernworld:cloudcomputing

ITSMhasbeenfocusingonvalueforusersandcustomersforyears,andthisfocusisusuallytechnology-agnostic:whatmattersisnotthetechnology,buttheopportunitiesitcreatesforthecustomers.Althoughforthemostpartthisisaperfectlyacceptableapproach,organizationscannotignorenewarchitecturalsolutionsandtheevolutionoftechnologyingeneral.CloudcomputinghasbecomeanarchitecturalshiftinIT,introducingnewopportunitiesandrisks,andorganizationshavehadtoreacttoitinwaysthataremostbeneficialforthemselves,theircustomers,andotherstakeholders.

Keycharacteristicsofcloudcomputinginclude:

on-demandavailability(oftenself-service)networkaccess(ofteninternetaccess)resourcepooling(oftenamongmultipleorganizations)rapidelasticity(oftenautomatic)measuredservice(oftenfromserviceconsumer’sperspective).

InthecontextofITSM,cloudcomputingchangesservicearchitectureandthedistributionofresponsibilitiesbetweenserviceconsumers,serviceproviders,andtheirpartners.Itespeciallyappliestoin-houseserviceproviders,i.e.theorganization’sinternalITdepartments.Inatypicalsituation,adoptionofthecloudcomputingmodel:

replacessomeinfrastructure,previouslymanagedbytheserviceprovider,withapartner’scloudservicedecreasesorremovestheneedforinfrastructuremanagementexpertiseandtheresourcesoftheserviceprovider

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shiftsthefocusofservicemonitoringandcontrolfromthein-houseinfrastructuretoapartner’sserviceschangesthecoststructureoftheserviceprovider,removingspecificcapitalexpendituresandintroducingnewoperatingexpendituresandtheneedtomanagethemappropriatelyintroduceshigherrequirementsfornetworkavailabilityandsecurityintroducesnewsecurityandcompliancerisksandrequirements,applicabletoboththeserviceprovideranditspartnerprovidingthecloudserviceprovidesuserswithopportunitiestoscaleserviceconsumptionusingself-serviceviasimplestandardrequests,orevenwithoutanyrequests.

Alltheseaffectmultipleserviceproviders’practices,including,butnotlimitedto:

servicelevelmanagementmeasurementandreportinginformationsecuritymanagementservicecontinuitymanagementsuppliermanagementincidentmanagementproblemmanagementservicerequestmanagementserviceconfigurationmanagement.

Anotherimportanteffectofcloudcomputing,resultingfromthecomputingresources’elasticity,isthatthecloudinfrastructuremayenablesignificantlyfasterdeploymentofnewandchangedservices,thussupportinghigh-velocityservicedelivery.TheabilitytoconfigureanddeploycomputingresourceswiththesamespeedasnewapplicationsisanimportantprerequisiteforthesuccessofDevOpsandsimilarinitiatives.Thissupportsmodernorganizationsintheirneedforfastertimetomarketanddigitalizationoftheir

services.

Consideringtheinfluenceofcloudcomputingonorganizations,itisimportanttomakedecisionsabouttheuseofthismodelatthestrategicleveloftheorganization,involvingalllevelsofstakeholders,fromgovernancetooperations.

3.3PartnersandsuppliersThethirddimensionofservicemanagementispartnersandsuppliers.Everyorganizationandeveryservicedependtosomeextentonservicesprovidedbyotherorganizations.

KeymessageThepartnersandsuppliersdimensionencompassesanorganization’srelationshipswithotherorganizationsthatareinvolvedinthedesign,development,deployment,delivery,support,and/orcontinualimprovementofservices.Italsoincorporatescontractsandotheragreementsbetweentheorganizationanditspartnersorsuppliers.

Relationshipsbetweenorganizationsmayinvolvevariouslevelsofintegrationandformality.Thisrangesfromformalcontractswithclearseparationofresponsibilities,toflexiblepartnershipswherepartiessharecommongoalsandrisks,andcollaboratetoachievedesiredoutcomes.SomerelationshipexamplesareshowninTable3.1.Notethattheformsofcooperationdescribedarenotfixedbutexistasaspectrum.

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Anorganizationactingasaserviceproviderwillhaveapositiononthisspectrum,whichwillvarydependingonitsstrategyandobjectivesforcustomerrelationships.Likewise,whenanorganizationactsasaserviceconsumer,theroleittakesonwilldependonitsstrategyandobjectivesforsourcingandsuppliermanagement.Whenitcomestousingpartnersandsuppliers,anorganization’sstrategyshouldbebasedonitsgoals,culture,andbusinessenvironment.Forexample,someorganizationsmaybelievethattheywillbebestservedbyfocusingtheirattentionondevelopingcertaincorecompetencies,usingpartnersandsupplierstoprovideotherneeds.Otherorganizationsmaychoosetorelyasmuchaspossibleontheirownresources,usingpartnersandsuppliersaslittleaspossible.Thereare,ofcourse,manyvariationsbetweenthesetwooppositeapproaches.

Table3.1Relationshipsbetweenorganizations

Onemethodanorganizationmayusetoaddressthepartnersandsuppliersdimensionisserviceintegrationandmanagement.Thisinvolvestheuseofaspeciallyestablishedintegratortoensurethatservicerelationshipsareproperlycoordinated.Serviceintegrationandmanagementmaybekeptwithintheorganization,butcanalsobedelegatedtoatrustedpartner.

Factorsthatmayinfluenceanorganization’sstrategywhenusingsuppliersinclude:

StrategicfocusSomeorganizationsmayprefertofocusontheircorecompetencyandtooutsourcenon-coresupportingfunctionstothirdparties;othersmayprefertostayasself-sufficientaspossible,retainingfullcontroloverallimportantfunctions.

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CorporatecultureSomeorganizationshaveahistoricalpreferenceforoneapproachoveranother.Long-standingculturalbiasisdifficulttochangewithoutcompellingreasons.ResourcescarcityIfarequiredresourceorskillsetisinshortsupply,itmaybedifficultfortheserviceprovidertoacquirewhatisneededwithoutengagingasupplier.CostconcernsAdecisionmaybeinfluencedbywhethertheserviceproviderbelievesthatitismoreeconomicaltosourceaparticularrequirementfromasupplier.SubjectmatterexpertiseTheserviceprovidermaybelievethatitislessriskytouseasupplierthatalreadyhasexpertiseinarequiredarea,ratherthantryingtodevelopandmaintainthesubjectmatterexpertiseinhouse.ExternalconstraintsGovernmentregulationorpolicy,industrycodesofconduct,andsocial,politicalorlegalconstraintsmayimpactanorganization’ssupplierstrategy.DemandpatternsCustomeractivityordemandforservicesmaybeseasonalordemonstratehighdegreesofvariability.Thesepatternsmayimpacttheextenttowhichorganizationsuseexternalserviceproviderstocopewithvariabledemand.

Thelastdecadehasseenanexplosionincompaniesthatoffertechnicalresources(infrastructure)orcapabilities(platforms,software)‘asaservice’.Thesecompaniesbundlegoodsandservicesintoasingleproductofferingthatcanbeconsumedasautility,andistypicallyaccountedforasoperatingexpenditure.Thisfreescompaniesfrominvestingincostlyinfrastructureandsoftwareassetsthatneedtobeaccountedforascapitalexpenditure.

TheITILstory:Axle’spartnersandsuppliersHenri:ThepartnersandsuppliersdimensionforAxleincludessupplierssuchasGoGoGasandCraig’sCleaning,aswellasinternetserviceprovidersanddevelopers.

3.4ValuestreamsandprocessesThefourthdimensionofservicemanagementisvaluestreamsandprocesses.Liketheotherdimensions,thisdimensionisapplicabletoboththeSVSingeneral,andtospecificproductsandservices.Inbothcontextsitdefinestheactivities,workflows,controls,andproceduresneededtoachieveagreedobjectives.

KeymessageAppliedtotheorganizationanditsSVS,thevaluestreamsandprocessesdimensionisconcernedwithhowthevariouspartsoftheorganizationworkinanintegratedandcoordinatedwaytoenablevaluecreationthroughproductsandservices.Thedimensionfocusesonwhatactivitiestheorganizationundertakesandhowtheyareorganized,aswellashowtheorganizationensuresthatitisenablingvaluecreationforallstakeholdersefficientlyandeffectively.

ITILgivesorganizationsactingasserviceprovidersanoperatingmodelthatcoversallthekeyactivitiesrequiredtomanageproductsandserviceseffectively.ThisisreferredtoastheITILservicevaluechain(seesection4.5).

Theservicevaluechainoperatingmodelisgenericandinpracticeitcanfollowdifferentpatterns.Thesepatternswithinthevaluechainoperationarecalledvaluestreams.

3.4.1 Valuestreamsforservicemanagement

KeymessageAvaluestreamisaseriesofstepsthatanorganizationusestocreateanddeliverproductsandservicestoaserviceconsumer.Avaluestreamisacombinationoftheorganization’svaluechainactivities(seesection4.5formoredetailsonvaluechainactivitiesandAppendixAforexamplesofvaluestreams).

Definition:ValuestreamAseriesofstepsanorganizationundertakestocreateanddeliverproductsandservicestoconsumers.

Identifyingandunderstandingthevariousvaluestreamsanorganizationhasiscriticaltoimprovingitsoverallperformance.Structuringtheorganization’sactivitiesintheformofvaluestreamsallowsittohaveaclearpictureofwhatitdeliversandhow,andtomakecontinualimprovementstoitsservices.

Organizationsshouldexaminehowtheyperformworkandmapallthe

valuestreamstheycanidentify.Thiswillenablethemtoanalysetheircurrentstateandidentifyanybarrierstoworkflowandnon-value-addingactivities,i.e.waste.Wastefulactivitiesshouldbeeliminatedtoincreaseproductivity.

Opportunitiestoincreasevalue-addingactivitiescanbefoundacrosstheservicevaluechain.Thesemaybenewactivitiesormodificationstoexistingones,whichcanmaketheorganizationmoreproductive.Valuestreamoptimizationmayincludeprocessautomationoradoptionofemergingtechnologiesandwaysofworkingtogainefficienciesorenhanceuserexperience.

Valuestreamsshouldbedefinedbyorganizationsforeachoftheirproductsandservices.Dependingontheorganization’sstrategy,valuestreamscanberedefinedtoreacttochangingdemandandothercircumstances,orremainstableforasignificantamountoftime.Inanycase,theyshouldbecontinuallyimprovedtoensurethattheorganizationachievesitsobjectivesinanoptimalway.ValuestreammappingisdescribedinmoredetailinotherITIL4publications.

3.4.2 Processes

KeymessageAprocessisasetofactivitiesthattransforminputstooutputs.Processesdescribewhatisdonetoaccomplishanobjective,andwell-definedprocessescanimproveproductivitywithinandacrossorganizations.Theyareusuallydetailedinprocedures,whichoutlinewhoisinvolvedintheprocess,andworkinstructions,whichexplainhowtheyarecarriedout.

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Definition:ProcessAsetofinterrelatedorinteractingactivitiesthattransforminputsintooutputs.Aprocesstakesoneormoredefinedinputsandturnsthemintodefinedoutputs.Processesdefinethesequenceofactionsandtheirdependencies.

Whenappliedtoproductsandservices,thisdimensionhelpstoanswerthefollowingquestions,criticaltoservicedesign,delivery,andimprovement:

Whatisthegenericdeliverymodelfortheservice,andhowdoestheservicework?Whatarethevaluestreamsinvolvedindeliveringtheagreedoutputsoftheservice?Who,orwhat,performstherequiredserviceactions?

Specificanswerstothesequestionswillvarydependingonthenatureandarchitectureoftheservice.

TheITILstory:Axle’svaluestreamsandprocesses

Radhika:ThevaluestreamsandprocessesdimensionrepresentstheseriesofactivitiesthatarecarriedoutwithinAxle.ValuestreamshelpAxletoidentifywastefulactivityandremoveobstaclesthathindertheorganization’sproductivity.

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3.5ExternalfactorsServiceprovidersdonotoperateinisolation.Theyareaffectedbymanyexternalfactors,andworkindynamicandcomplexenvironmentsthatcanexhibithighdegreesofvolatilityanduncertaintyandimposeconstraintsonhowtheserviceprovidercanwork.Toanalysetheseexternalfactors,frameworkssuchasthePESTLE(orPESTEL)modelareused.PESTLEisanacronymforthepolitical,economic,social,technological,legal,andenvironmentalfactorsthatconstrainorinfluencehowaserviceprovideroperates.

Collectively,thesefactorsinfluencehoworganizationsconfiguretheirresourcesandaddressthefourdimensionsofservicemanagement.Forexample:

Governmentandsocietalattitudestowardsenvironmentallyfriendlyproductsandservicesmayresultintheorganizationinvestingmoreintoolsandtechnologiesthatmeetexternalexpectations.Anorganizationmaychoosetopartnerwithotherorganizations(orsourceservicesfromexternalproviders)whocandemonstrateenvironmentallyfriendlycredentials.Forexample,somecompaniespublishproductenvironmentalreportsthatdescribetheirproducts’performanceagainsttheirpoliciesaroundclimatechange,safermaterials,andotherresources.Economicandsocietalfactorsmayinfluenceorganizationstocreateseveralversionsofthesameproducttoaddressvariousconsumergroupsthatshowdifferentbuyingpatterns.Oneexampleismusicandvideostreamingservices,manyofwhichhaveafreetier(withadvertising),apremiumtier(withoutadvertising),andinsomecasesa‘familyplan’thatallowsmultipleindividualprofilesunderonepaid-foraccount.Dataprotectionlawsorregulations(likeGDPR)havechangedhowcompaniesmustcollect,process,access,andstorecustomerdata,aswellashowtheyworkwithexternalpartnersandsuppliers.

3.6SummaryThefourdimensionsrepresentaholisticapproachtoservicemanagement,andorganizationsshouldensurethatthereisabalanceoffocusbetweeneachdimension.Theimpactofexternalfactorsonthefourdimensionsshouldalsobeconsidered.Allfourdimensionsandtheexternalfactorsthataffectthemshouldbeaddressedastheyevolve,consideringemergingtrendsandopportunities.Itisessentialthatanorganization’sSVSisconsideredfromallfourdimensions,asthefailuretoadequatelyaddressoraccountforonedimension,oranexternalfactor,canleadtosub-optimalproductsandservices.

TheITILstory:BalancingthefourdimensionsMarco:TomakeAxle’sservicesaseffectiveaspossible,weusethebestcombinationofourpeople,ourteams,ourvaluestreams,andourwaysofworking.Wenowengageablendedapproachtoservicemanagement,incorporatingDevOps,DesignThinking,andAgileintoproductdevelopment.Wealsousenewtechnologiessuchasrobotics,AI,andmachinelearning,strivingtobeefficientandLean,andtoautomatewhereverpossible.

CHAPTER4

THEITILSERVICEVALUESYSTEM

4TheITILservicevaluesystem

4.1ServicevaluesystemoverviewForservicemanagementtofunctionproperly,itneedstoworkasasystem.TheITILSVSdescribestheinputstothissystem(opportunityanddemand),theelementsofthissystem(organizationalgovernance,servicemanagement,continualimprovement,andtheorganization’scapabilitiesandresources),andtheoutputs(achievementoforganizationalobjectivesandvaluefortheorganization,itscustomers,andotherstakeholders).

KeymessageTheITILSVSdescribeshowallthecomponentsandactivitiesoftheorganizationworktogetherasasystemtoenablevaluecreation.Eachorganization’sSVShasinterfaceswithotherorganizations,forminganecosystemthatcaninturnfacilitatevalueforthoseorganizations,theircustomers,andotherstakeholders.

ThekeyinputstotheSVSareopportunityanddemand.Opportunitiesrepresentoptionsorpossibilitiestoaddvalueforstakeholdersorotherwiseimprovetheorganization.Demandistheneedordesireforproductsandservicesamonginternalandexternalconsumers.The

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outcomeoftheSVSisvalue,thatis,theperceivedbenefits,usefulness,andimportanceofsomething.TheITILSVScanenablethecreationofmanydifferenttypesofvalueforawidegroupofstakeholders.

TheITILSVSincludesthefollowingcomponents:

GuidingprinciplesRecommendationsthatcanguideanorganizationinallcircumstances,regardlessofchangesinitsgoals,strategies,typeofwork,ormanagementstructure.GovernanceThemeansbywhichanorganizationisdirectedandcontrolled.ServicevaluechainAsetofinterconnectedactivitiesthatanorganizationperformstodeliveravaluableproductorservicetoitsconsumersandtofacilitatevaluerealization.PracticesSetsoforganizationalresourcesdesignedforperformingworkoraccomplishinganobjective.ContinualimprovementArecurringorganizationalactivityperformedatalllevelstoensurethatanorganization’sperformancecontinuallymeetsstakeholders’expectations.ITIL4supportscontinualimprovementwiththeITILcontinualimprovementmodel.

ThepurposeoftheSVSistoensurethattheorganizationcontinuallyco-createsvaluewithallstakeholdersthroughtheuseandmanagementofproductsandservices.ThestructureoftheSVSisshowninFigure4.1.TheleftsideofthefigureshowsopportunityanddemandfeedingintotheSVSfrombothinternalandexternalsources.Therightsideshowsvaluecreatedfortheorganization,itscustomers,andotherstakeholders.

Figure4.1TheITILservicevaluesystem

TheITILSVSdescribeshowallthecomponentsandactivitiesoftheorganizationworktogetherasasystemtoenablevaluecreation.Thesecomponentsandactivities,togetherwiththeorganization’sresources,canbeconfiguredandreconfiguredinmultiplecombinationsinaflexiblewayascircumstanceschange,butthisrequirestheintegrationandcoordinationofactivities,practices,teams,authoritiesandresponsibilities,andallpartiestobetrulyeffective.

Oneofthebiggestchallengesanorganizationcanfacewhentryingtoworkeffectivelyandefficientlywithasharedvision,ortobecomemoreAgileandresilient,isthepresenceoforganizationalsilos.Organizationalsiloscanforminmanywaysandformanydifferentreasons.Siloscanberesistanttochangeandcanpreventeasyaccesstotheinformationandspecializedexpertisethatexistsacrosstheorganization,whichcaninturnreduceefficiencyandincreasebothcostandrisk.Silosalsomakeitmoredifficultforcommunicationorcollaborationtooccuracrossdifferentgroups.

Asiloedorganizationcannotactquicklytotakeadvantageofopportunitiesortooptimizetheuseofresourcesacrosstheorganization.Itisoftenunabletomakeeffectivedecisionsaboutchanges,duetolimitedvisibilityandmanyhiddenagendas.Practicescanalsobecomesilos.Manyorganizationshaveimplementedpracticessuchasorganizationalchangemanagementorincidentmanagementwithout

clearinterfaceswithotherpractices.Allpracticesshouldhavemultipleinterfaceswithoneanother.Theexchangeofinformationbetweenpracticesshouldbetriggeredatkeypointsintheworkflow,andisessentialtotheproperfunctioningoftheorganization.

ThearchitectureoftheITILSVSspecificallyenablesflexibilityanddiscouragessiloedworking.TheservicevaluechainactivitiesandthepracticesintheSVSdonotformafixed,rigidstructure.Rather,theycanbecombinedinmultiplevaluestreamstoaddresstheneedsoftheorganizationinavarietyofscenarios.Thispublicationprovidesexamplesofservicevaluestreams,butnoneofthemaredefiniteorprescriptive.Organizationsshouldbeabletodefineandredefinetheirvaluestreamsinaflexible,yetsafeandefficientmanner.Thisrequirescontinualimprovementactivitytobecarriedoutatalllevelsoftheorganization;theITILcontinualimprovementmodelhelpstostructurethisactivity.Finally,thecontinualimprovementandoveralloperationofanorganizationareshapedbytheITILguidingprinciples.Theguidingprinciplescreateafoundationforasharedcultureacrosstheorganization,thussupportingcollaborationandcooperationwithinandbetweentheteams,andremovingtheneedforconstraintsandcontrolspreviouslyprovidedbysilos.

Withthesecomponents,theITILSVSsupportsmanyworkapproaches,suchasAgile,DevOpsandLean(seeGlossary),aswellastraditionalprocessandprojectmanagement,withaflexiblevalue-orientedoperatingmodel.

Anorganizationcantakeanynumberofforms,including,butnotlimitedto,soletrader,company,corporation,firm,enterprise,authority,partnership,charityorinstitution,oranypartorcombinationthereof,whetherincorporatedornot,andbeeitherpublicorprivate.ThismeansthatthescopeoftheSVScanbeawholeorganizationorasmallersubsetofthatorganization.ToachievethemaximumvaluefromtheSVSandtoproperlyaddresstheissueoforganizationalsilos,itispreferabletoincludethewholeorganizationinthescoperatherthanasubset.

TherestofthischapterwillexploreeachelementoftheSVS.

Organizationalagilityandorganizationalresilience

Foranorganizationtobesuccessful,itmustachieveorganizationalagilitytosupportinternalchanges,andorganizationalresiliencetowithstandandeventhriveinchangingexternalcircumstances.Theorganizationmustalsobeconsideredaspartofalargerecosystemoforganizations,alldelivering,coordinating,andconsumingproductsandservices.

Organizationalagilityistheabilityofanorganizationtomoveandadaptquickly,flexibly,anddecisivelytosupportinternalchanges.Thesemightincludechangestothescopeoftheorganization,mergersandacquisitions,changingorganizationalpractices,ortechnologiesrequiringdifferentskillsororganizationalstructureandchangestorelationshipswithpartnersandsuppliers.

Organizationalresilienceistheabilityofanorganizationtoanticipate,preparefor,respondto,andadapttobothincrementalchangesandsuddendisruptionsfromanexternalperspective.Externalinfluencescouldbepolitical,economic,social,technological,legalorenvironmental.Resiliencecannotbeachievedwithoutacommonunderstandingoftheorganization’sprioritiesandobjectives,whichsetsthedirectionandpromotesalignmentevenasexternalcircumstanceschange.

TheITILSVSprovidesthemeanstoachieveorganizationalagilityandresilienceandtofacilitatetheadoptionofastrongunifieddirection,focusedonvalueandunderstoodbyeveryoneintheorganization.Italsoenablescontinualimprovementthroughouttheorganization.

4.2Opportunity,demand,andvalue

KeymessageOpportunityanddemandtriggeractivitieswithintheITILSVS,andtheseactivitiesleadtothecreationofvalue.Opportunityanddemandarealwaysenteringintothesystem,buttheorganizationdoesnotautomaticallyacceptallopportunitiesorsatisfyalldemand.

Opportunityrepresentsoptionsorpossibilitiestoaddvalueforstakeholdersorotherwiseimprovetheorganization.Theremaynotbedemandfortheseopportunitiesyet,buttheycanstilltriggerworkwithinthesystem.Organizationsshouldprioritizeneworchangedserviceswithopportunitiesforimprovementtoensuretheirresourcesarecorrectlyallocated.

Demandrepresentstheneedordesireforproductsandservicesfrominternalandexternalcustomers.Adefinitionofvalue,andwhatconstitutesvaluefordifferentstakeholders,canbefoundinChapter2.

4.3TheITILguidingprinciples

KeymessageAguidingprincipleisarecommendationthatguidesan

organizationinallcircumstances,regardlessofchangesinitsgoals,strategies,typeofwork,ormanagementstructure.Aguidingprincipleisuniversalandenduring.

Table4.1Overviewoftheguidingprinciples

Guidingprinciple DescriptionFocusonvalue Everythingthattheorganizationdoesneedstomap,directlyorindirectly,tovalueforthe

stakeholders.Thefocusonvalueprincipleencompassesmanyperspectives,includingtheexperienceofcustomersandusers.

Startwhereyouare Donotstartfromscratchandbuildsomethingnewwithoutconsideringwhatisalreadyavailabletobeleveraged.Thereislikelytobeagreatdealinthecurrentservices,processes,programmes,projects,andpeoplethatcanbeusedtocreatethedesiredoutcome.Thecurrentstateshouldbeinvestigatedandobserveddirectlytomakesureitisfullyunderstood.

Progressiterativelywithfeedback Donotattempttodoeverythingatonce.Evenhugeinitiativesmustbeaccomplishediteratively.Byorganizingworkintosmaller,manageablesectionsthatcanbeexecutedandcompletedinatimelymanner,itiseasiertomaintainasharperfocusoneacheffort.Usingfeedbackbefore,throughout,andaftereachiterationwillensurethatactionsarefocusedandappropriate,evenifcircumstanceschange.

Collaborateandpromotevisibility Workingtogetheracrossboundariesproducesresultsthathavegreaterbuy-in,morerelevancetoobjectives,andincreasedlikelihoodoflong-termsuccess.Achievingobjectivesrequiresinformation,understanding,andtrust.Workandconsequencesshouldbemadevisible,hiddenagendasavoided,andinformationsharedtothegreatestdegreepossible.

Thinkandworkholistically Noservice,orelementusedtoprovideaservice,standsalone.Theoutcomesachievedbytheserviceproviderandserviceconsumerwillsufferunlesstheorganizationworksontheserviceasawhole,notjustonitsparts.Resultsaredeliveredtointernalandexternalcustomersthroughtheeffectiveandefficientmanagementanddynamicintegrationofinformation,technology,organization,people,practices,partners,andagreements,whichshouldallbecoordinatedtoprovideadefinedvalue.

Keepitsimpleandpractical Ifaprocess,service,actionormetricfailstoprovidevalueorproduceausefuloutcome,eliminateit.Inaprocessorprocedure,usetheminimumnumberofstepsnecessarytoaccomplishtheobjective(s).Alwaysuseoutcome-basedthinkingtoproducepracticalsolutionsthatdeliverresults.

Optimizeandautomate Resourcesofalltypes,particularlyHR,shouldbeusedtotheirbesteffect.Eliminateanythingthatistrulywastefulandusetechnologytoachievewhateveritiscapableof.Humaninterventionshouldonlyhappenwhereitreallycontributesvalue.

TheguidingprinciplesdefinedhereembodythecoremessagesofITILandofservicemanagementingeneral,supportingsuccessfulactionsandgooddecisionsofalltypesandatalllevels.TheycanbeusedtoguideorganizationsintheirworkastheyadoptaservicemanagementapproachandadaptITILguidancetotheirownspecificneedsandcircumstances.Theguidingprinciplesencourageandsupportorganizationsincontinualimprovementatalllevels.

Theseprinciplesarealsoreflectedinmanyotherframeworks,methods,standards,philosophies,and/orbodiesofknowledge,suchasLean,

Agile,DevOps,andCOBIT.Thisallowsorganizationstoeffectivelyintegratetheuseofmultiplemethodsintoanoverallapproachtoservicemanagement.

Theguidingprinciplesareapplicabletopracticallyanyinitiativeandtoallrelationshipswithstakeholdergroups.Forexample,thefirstprinciple,focusonvalue,can(andshould)beappliednotonlytoserviceconsumers,buttoallrelevantstakeholdersandtheirrespectivedefinitionsofvalue.

Table4.1providesahigh-levelintroductiontotheguidingprinciples.Additionaldetailsforeachprinciplearepresentedlaterinthischapter.

ITIL,Agile,andDevOps

Agilemethods,whenappliedtosoftwaredevelopment,focusonthedeliveryofincrementalchangestosoftwareproductswhilerespondingtothechanging(orevolving)needsofusers.Theyfosteracultureofcontinuallearning,flexibility,andwillingnesstotrynewapproachesandadapttorapidlychangingneeds.Agilewaysofworkingincludetechniquessuchastimeboxingwork,self-organizingandcross-functionalteams,andongoingcollaborationandcommunicationwithcustomersandusers.

Agilesoftwaredevelopmentteamsoftenfocusontherapiddeliveryofproductincrementsattheexpenseofamoreholisticviewthatconsiderstheoperability,reliability,andmaintainabilityoftheseproductsinaliveenvironment.Similarly,continuallearningandimprovementinitiativescanfocusonbetteringthearticulationandprioritizationofuserneeds,orstreamliningtheprocedurestodevelop,test,anddeployworkingsoftware.Whiletheseinitiativescanprovidevaluableoutcomes,theyalsoruntheriskofbeingoutofsyncwithotherinitiativesataservicelevel.

JustasAgiletechniquesprovideserviceorganizationswithaflowofproductandsoftwareincrements,ITILcanalsoprovidesoftware

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developmentorganizationswithawiderperspectiveandlanguagewithwhichtoengageotherserviceteams.AdoptingAgilewithoutITILcanleadtohighercostsovertime,suchasthecostsofadoptingdifferenttechnologiesandarchitectures,andcoststorelease,operate,andmaintainsoftwareincrements.Similarly,implementingITILwithoutAgiletechniquescanrisklosingfocusonvalueforcustomersandusers,creatingslow-movingandhighlycentralizedbureaucracies.

WhenAgileandITILareadoptedtogether,softwaredevelopmentandservicemanagementcanprogressatasimilarcadence,shareacommonterminology,andensurethattheorganizationcontinuestoco-createvaluewithallitsstakeholders.SomeofthewaysinwhichITILandAgilecanworktogetherinclude:

streamliningpracticessuchaschangecontrolestablishingprocedurestoincorporateandprioritizethemanagementofunplannedinterruptions(incidents),andtoinvestigatethecausesoffailureseparatinginteractions,ifnecessary,between‘systemsofrecord’(e.g.theconfigurationmanagementdatabase)neededtomanageservicesfrom‘systemsofengagement’(e.g.collaborationtools)usedbysoftwaredevelopmentteams.

DevOpsmethodsbuildonAgilesoftwaredevelopmentandservicemanagementtechniquesbyemphasizingclosecollaborationbetweentherolesofsoftwaredevelopmentandtechnicaloperations.Usinghighdegreesofautomationtofreeupthetimeofskilledprofessionalssothattheycanfocusonvalue-addingactivities,DevOpsisabletoshinealightonaspectssuchasoperability,reliability,andmaintainabilityofsoftwareproductsthatcanassistinthemanagementofservices.CulturalaspectsthatDevOpspractitionersadvocatecan,andshould,beextendedacrossthevaluestreamandallservicevaluechainactivitiessothatproductandserviceteamsarealignedwiththesamegoalsandusethesamemethods.

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ItisoftensaidthatDevOpscombinessoftwaredevelopmenttechniques(Agile),goodgovernanceandaholisticapproachtovalueco-creation(ITIL),andanobsessionwithlearningaboutandimprovingthewayinwhichvalueisgenerated(Lean).Assuch,theadoptionofDevOpsmethodspresentsfurtheropportunitiestoimprovethewayinwhichsoftwareproductsaredevelopedandmanaged,suchas:

creatingfastfeedbackloopsfromdeliveryandsupporttosoftwaredevelopmentandtechnologyoperationsstreamliningvaluechainactivitiesandvaluestreamssothatdemandforworkcanbequicklyconvertedtovalueformultiplestakeholdersdifferentiatingdeploymentmanagementfromreleasemanagementadvocatinga‘systemsview’thatemphasizesclosecollaborationbetweenenterprisegovernance,serviceteams,softwaredevelopment,andtechnologyoperations.

4.3.1 Focusonvalue

KeymessageAllactivitiesconductedbytheorganizationshouldlinkback,directlyorindirectly,tovalueforitself,itscustomers,andotherstakeholders.

Thissectionismostlyfocusedonthecreationofvalueforserviceconsumers.However,aservicealsocontributestovaluefortheorganizationandotherstakeholders.Thisvaluemaycomeinvariousforms,suchasrevenue,customerloyalty,lowercost,orgrowthopportunities.Thefollowingrecommendationscanbeadaptedtoaddressvariousstakeholdergroupsandthevaluethatiscreatedforthembytheorganization.

4.3.1.1Whoistheserviceconsumer?

Whenfocusingonvalue,thefirststepistoknowwhoisbeingserved.Ineachsituationtheserviceprovidermust,therefore,determinewhotheserviceconsumerisandwhothekeystakeholdersare(forexample,customers,users,orsponsors;seesection2.2formoredetails).Indoingthis,theserviceprovidershouldconsiderwhowillreceivevaluefromwhatisbeingdeliveredorimproved.

TheITILstory:Axle’snewtechnology

Axleisconsideringintroducingseveralpiecesofnewtechnologyintotheircars.InthefollowingsectionstheAxleteamlooksatwhatnewtechnologycouldbeintroducedandusestheITILguidingprinciplestohelpdecideonthebestcourseofaction.

Su:Oneaspectofourserviceweareconsideringisthecollectionandreturnofvehicles.Thisprocessremainsverymanual.Someofourregionaldepotscontinuetousepaper-basedformstoregistercustomers.Customersdon’twanttowastetimecompletingformsforidentificationwhenthisinformationhasalreadybeenprovidedduringtheonlinebookingprocess.

Toimprovethecustomeridentificationprocess,Axlecouldusebiometrictechnologytoidentifyourcustomers.

Marco:Biometrictechnologyusesscannedgraphicaldataforpersonalidentification.It’sfastandreliable,andwidelyusedinotherindustries.Forexample,theairlineindustryisusingitforsecurityscreening,check-in,andevenforaircraftboarding.Wecouldusefingerprintorfacialrecognitionscanstoquicklyidentifyourcustomers,andautomatethecarcollectionandreturnprocess.

Radhika:WeneedtobemindfulofregulationssuchasGDPRandthepossible

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riskstodatasecuritythistechnologycouldbring.

Marco:Axlealsowantstotrialautomatedidentificationofdamagetoreturnedvehicles,includingscratches,dents,andbrokenlights.Potentiallythetechnologycouldevenidentifyfuellevels.Thiswouldautomatethecalculationofanyfuelchargesincurredbyourcustomers,whichisalsoamanualprocess.

Su:Ourcustomerswantsimplicityandspeedwhilemaintainingcomfortandsafetyontheroad.Biometrictechnologyandcarscanningwouldbeasourceofopportunitytomeetevolvingcustomerdemands.

Marco:Ourservicesalreadyrelyontechnology,andtheintelligenceofsmartphonesandpersonaldevicestomeetcustomerneedsandexpectations.Theadoptionofbiometrictechnologyisanaturalprogression.Anyonewhocanaccesstheirphonewithathumbprintorfacialrecognitionwillbecomfortableandconfidentusingthesametechnologytocollectorreturnacar.

Henri:Wecan’tmakethemistakeoftryingtoimplementeveryinnovationatonce,eveniftheyallsoundliketheidealsolutionforAxleCarHire.Weneedaframeworkinplacetomakesurevalueisrealized,andtogovernourdecisions.It’salsoimportantthatnoneofourexistingcustomersaredisadvantaged,evenasweventureintonewsurroundings.Forexample,notallourcustomersaretech-savvy.Thisisespeciallytrueforourelderlycustomers,whorepresentalargepercentageofourcustomerbaseforleisuretravel.Wealsoneedtobalanceinnovationwithexistingoperationaldemands.

4.3.1.2Theconsumer’sperspectivesofvalue

Nexttheserviceprovidermustunderstandwhatistrulyofvaluetotheserviceconsumer.Theserviceproviderneedstoknow:

whytheconsumerusestheserviceswhattheserviceshelpthemtodohowtheserviceshelpthemachievetheirgoalstheroleofcost/financialconsequencesfortheserviceconsumertherisksinvolvedfortheserviceconsumer.

Valuecancomeinmanyforms,suchasincreasedproductivity,reducednegativeimpact,reducedcosts,theabilitytopursuenewmarkets,orabettercompetitiveposition.Valuefortheserviceconsumer:

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isdefinedbytheirownneedsisachievedthroughthesupportofintendedoutcomesandoptimizationoftheserviceconsumer’scostsandriskschangesovertimeandindifferentcircumstances.

4.3.1.3Thecustomerexperience

Animportantelementofvalueistheexperiencethatserviceconsumershavewhentheyinteractwiththeserviceandtheserviceprovider.Thisisfrequentlycalledcustomerexperience(CX)oruserexperience(UX)dependingontheadopteddefinitions,anditmustbeactivelymanaged.

CXcanbedefinedastheentiretyoftheinteractionsacustomerhaswithanorganizationanditsproducts.Thisexperiencecandeterminehowthecustomerfeelsabouttheorganizationanditsproductsandservices.

CXisbothobjectiveandsubjective.Forexample,whenacustomerordersaproductandreceiveswhattheyorderedatthepromisedpriceandinthepromiseddeliverytime,thesuccessofthisaspectoftheirexperienceisobjectivelymeasurable.Ontheotherhand,iftheydon’tlikethestyleorlayoutofthewebsitetheyareorderingfrom,thisissubjective.Anothercustomermightreallyenjoythedesign.

4.3.1.4Applyingtheprinciple

Toapplythisprinciplesuccessfully,considerthisadvice:

KnowhowserviceconsumersuseeachserviceUnderstandtheirexpectedoutcomes,howeachservicecontributestothese,andhowtheserviceconsumersperceivetheserviceprovider.Collectfeedbackonvalueonanongoingbasis,notjustatthebeginningoftheservicerelationship.EncourageafocusonvalueamongallstaffTeachstafftobeawareofwhotheircustomersareandtounderstandCX.FocusonvalueduringnormaloperationalactivityaswellasduringimprovementinitiativesTheorganizationasawhole

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contributestothevaluethatthecustomerperceives,andsoeverybodywithintheorganizationmustmaximizethevaluetheycreate.Thecreationofvalueshouldnotbeleftonlytothepeopleworkingonexcitingprojectsandnewthings.IncludefocusonvalueineverystepofanyimprovementinitiativeEverybodyinvolvedinanimprovementinitiativeneedstounderstandwhatoutcomestheinitiativeistryingtofacilitate,howitsvaluewillbemeasured,andhowtheyshouldbecontributingtotheco-creationofthatvalue.

TheITILstory:FocusonvalueRadhika:WhenAxleexpandedtotheAsia-Pacificregion,weundertookresearchfocusedoncustomerstravellingoutsidetheirnativecountries.TheresultsfoundthatAmericanandEuropeancustomerstravellingtotheseareashadconcernsaroundunfamiliarroadrulesandsafety.

Marco:Axleisintroducingacertified,third-partydriverassistancesystemcalledAxleAware.Thesystemchecksexternalsurroundingsandinternalconditionsinthecar.Itincludescamerastomonitortheareaaroundthecar,andanartificialintelligenceprogramwithlocalroadrules.Itcanevenletthedriverknowwhenfatigueisstartingtosetin.

Thesystemwillalertthedrivertoapproachingdangersandpotentialroadrulebreaches.Forexample,inAustralia,localroadrulesdictatethatdriversarerequiredtogiveaminimumof1metrewhenpassingcyclistsataspeedof60km/horless,or1.5metreswhenthespeedismorethan60km/h.

Su:Manyvisitingtouristswillbemostlyfocusedondrivingonthecorrectsideoftheroadandwon’tknowaboutthisrule,buttheAxleAwaresystemdoes!

Marco:Studieshaveshownthatsystemssuchasthissignificantlydecreaseaccidentratesandseriousinjuries.

Su:Thismeansthatthevaluetoourconsumersisasafertravelexperience.Itwillbecheapertoo,astheywillhavefewerpenaltiesforbreakingrulestheyarenotfamiliarwith!

Henri:ThevalueforAxleCarHireisimprovedcustomersatisfaction,reducedrepaircostsandlowerinsurancepremiums.

Marco:Thistypeofinnovationwillalsoprovideadditionalvalueforsomeofourpartnersandsuppliers.

Radhika:Forexample,we’veupdatedourcontractwithourfleetmaintenancepartner.MaintenancewillnowincludeAxleAware.Thevaluetoourmaintenancepartneristheadditionalrevenue.

4.3.2 Startwhereyouare

KeymessageIntheprocessofeliminatingold,unsuccessfulmethodsorservicesandcreatingsomethingbetter,therecanbegreattemptationtoremovewhathasbeendoneinthepastandbuildsomethingcompletelynew.Thisisrarelynecessary,orawisedecision.Thisapproachcanbeextremelywasteful,notonlyintermsoftime,butalsointermsofthelossofexistingservices,processes,people,andtoolsthatcouldhavesignificantvalueintheimprovementeffort.Donotstartoverwithoutfirstconsideringwhatisalreadyavailabletobeleveraged.

TheITILstory:Axle’sbookingappMarco:Marco:TheAxlebookingappwasfirstdevelopedtwoyearsago.Theappisnolongermeetingbusinessrequirements.Itcan’tcaterfortheadvancesintechnologywe’reusingnow,suchasthebiometricsystemandthedriverassistancesystem.

Forexample,weneedourapptohavethecapabilitytoscanandvalidateourcustomers’fingerprintsandfacialimages.Thecurrentcodingsimplycan’tsupport

that.Weneedanewapp!

4.3.2.1Assesswhereyouare

Servicesandmethodsalreadyinplaceshouldbemeasuredand/orobserveddirectlytoproperlyunderstandtheircurrentstateandwhatcanbere-usedfromthem.Decisionsonhowtoproceedshouldbebasedoninformationthatisasaccurateaspossible.Withinorganizationsthereisfrequentlyadiscrepancybetweenreportsandreality.Thisisduetothedifficultyofaccuratelymeasuringcertaindata,ortheunintentionalbiasordistortionofdatathatisproducedthroughreports.Gettingdatafromthesourcehelpstoavoidassumptionswhich,ifproventobeunfounded,canbedisastroustotimelines,budgets,andthequalityofresults.

Thoseobservinganactivityshouldnotbeafraidtoaskwhatmayseemtobestupidquestions.Itcansometimesbebeneficialforapersonwithlittleornopriorknowledgeoftheservicetobepartoftheobservation,astheyhavenopreconceptionsoftheservice,andmayspotthingsthatthosemorecloselyinvolvedwithitwouldmiss.

TheITILstory:AssessingthecurrentstateHenri:Everyonelikestheideaofanewapp,andITiskeentostartgatheringuserrequirementssothatwecanstartdevelopment.However,beforewedevelopanentirelynewapp,let’sassessthecurrentstateoftheappwehavetoseeifthere’sanyfunctionalitywecanre-use.

Thecurrentprocessforbookingacarmeetsbasicrequirements,anddoesn’tneedtochange.Wejustneedadditionalfunctionality.Forexample,theprocessforrecording,storing,andcalculatingpointsforourloyaltyprogrammewon’tchange.

Weshouldalsoconsiderthelimitsofthetechnologythatourcustomersuse.Ifwewanttointroducebiometricdatarecognition,userswillneedtohavemoderndevices.Iamnotsuretheyalldo,soweshouldinvestigateconstraintsandopportunitieshere.

Marco:Ourcurrentbookingappisworkingwell.Incidentdataindicatesthatcustomersmakeveryfewcallstotheservicedesk.Thisindicatesthatthecurrentfunctionalityisfitforuseandmeetscustomerrequirements.

Henri:However,ourfocusgroupsindicatethatcustomersavoidusingtheappbecauseit’sslowanddifficulttouse.Previously,upgradesfocusedontechnology,nottherequirementsofourcustomers.Wedidn’thavetheflexibilitytoeasilyconfigurefunctionalitytomatchnewandchangingserviceofferings.Sothereliabilityandusabilityofthebookingappcan’tbeassessedsolelyusingthedatafromincidentslogged.

Weneedtoconfirmthesefindingswithotherresearch.

4.3.2.2Theroleofmeasurement

Theuseofmeasurementisimportanttothisprinciple.Itshould,however,supportbutnotreplacewhatisobserved,asover-relianceondataanalyticsandreportingcanunintentionallyintroducebiasesandrisksindecision-making.Organizationsshouldconsideravarietyoftechniquestodevelopknowledgeoftheenvironmentsinwhichtheywork.Althoughitistruethatsomethingscanonlybeunderstoodthroughmeasuringtheireffect(forexample,naturalphenomenasuchasthewind),directobservationshouldalwaysbethepreferredoption.Toooftenexistingdataisusedwithnoconsiderationofdirectpersonalinvestigation.

Itshouldbenotedthattheactofmeasuringcansometimesaffecttheresults,makingtheminaccurate.Forexample,ifaservicedeskknowsitisbeingmonitoredonlengthoftimespentonthephone,itmightfocustoomuchonminimizingcustomerengagement(thusleadingtogoodreports),ratherthanactuallyhelpingusersresolveissuestotheirsatisfaction.Peopleareverycreativeinfindingwaystomeetthemetricstheyaremeasuredagainst.Therefore,metricsneedtobemeaningfulanddirectlyrelatetothedesiredoutcome.

‘Whenameasurebecomesatarget,itceasestobeagoodmeasureGoodhart’sLaw’

4.3.2.3Applyingtheprinciple

Havingaproperunderstandingofthecurrentstateofservicesand

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methodsisimportanttoselectingwhichelementstore-use,alter,orbuildupon.Toapplythisprinciplesuccessfully,considerthisadvice:

Lookatwhatexistsasobjectivelyaspossible,usingthecustomerorthedesiredoutcomeasthestartingpoint.Aretheelementsofthecurrentstatefitforpurposeandfitforuse?Therearelikelytobemanyelementsofthecurrentservices,practices,projects,andskillsthatcanbeusedtocreatethedesiredfuturestate,providedthepeoplemakingthisjudgementareobjective.Whenexamplesofsuccessfulpracticesorservicesarefoundinthecurrentstate,determineifandhowthesecanbereplicatedorexpandedupontoachievethedesiredstate.Inmany,ifnotmost,cases,leveragingwhatalreadyexistswillreducetheamountofworkneededtotransitionfromthecurrentstatetothedesiredstate.Thereshouldbeafocusonlearningandimprovement,notjustreplicationandexpansion.Applyyourriskmanagementskills.Therearerisksassociatedwithre-usingexistingpracticesandprocesses,suchasthecontinuationofoldbehavioursthataredamagingtotheservice.Therearealsorisksassociatedwithputtingsomethingnewinplace,suchasnewproceduresnotbeingperformedcorrectly.Theseshouldbeconsideredaspartofthedecision-makingprocess,andtherisksofmakingornotmakingachangeevaluatedtodecideonthebestcourseofaction.Recognizethatsometimesnothingfromthecurrentstatecanbere-used.Regardlessofhowdesirableitmaybetore-use,repurposeandrecycle,orevenupcycle,therewillbetimeswhentheonlywaytoachievethedesiredresultistostartoverentirely.Itshouldbenoted,however,thatthesesituationsareveryrare.

4.3.3 Progressiterativelywithfeedback

KeymessageResistthetemptationtodoeverythingatonce.Evenhugeinitiativesmustbeaccomplishediteratively.Byorganizingworkintosmaller,manageablesectionsthatcanbeexecutedandcompletedinatimelymanner,thefocusoneacheffortwillbesharperandeasiertomaintain.

Improvementiterationscanbesequentialorsimultaneous,basedontherequirementsoftheimprovementandwhatresourcesareavailable.Eachindividualiterationshouldbebothmanageableandmanaged,ensuringthattangibleresultsarereturnedinatimelymannerandbuiltupontocreatefurtherimprovement.

Amajorimprovementinitiativeorprogrammemaybeorganizedintoseveralsignificantimprovementinitiatives,andeachofthesemay,inturn,comprisesmallerimprovementefforts.Theoverallinitiativeorprogramme,aswellasitscomponentiterations,mustbecontinuallyre-evaluatedandpotentiallyrevisedtoreflectanychangesincircumstancesandensurethatthefocusonvaluehasnotbeenlost.Thisre-evaluationshouldmakeuseofawiderangeoffeedbackchannelsandmethodstoensurethatthestatusoftheinitiativeanditsprogressareproperlyunderstood.

4.3.3.1Theroleoffeedback

Whetherworkingtoimproveaservice,groupofservices,practice,process,technicalenvironment,orotherservicemanagementelement,noimprovementiterationoccursinavacuum.Whiletheiterationisbeingundertaken,circumstancescanchangeandnewprioritiescanarise,and

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theneedfortheiterationmaybealteredoreveneliminated.Seekingandusingfeedbackbefore,throughout,andaftereachiterationwillensurethatactionsarefocusedandappropriate,eveninchangingcircumstances.

Afeedbackloopisatermcommonlyusedtorefertoasituationwherepartoftheoutputofanactivityisusedfornewinput.Inawell-functioningorganization,feedbackisactivelycollectedandprocessedalongthevaluechain.Well-constructedfeedbackmechanismsfacilitateunderstandingof:

enduserandcustomerperceptionofthevaluecreatedtheefficiencyandeffectivenessofvaluechainactivitiestheeffectivenessofservicegovernanceaswellasmanagementcontrolstheinterfacesbetweentheorganizationanditspartnerandsuppliernetworkthedemandforproductsandservices.

Oncereceived,feedbackcanbeanalysedtoidentifyimprovementopportunities,risks,andissues.

4.3.3.2Iterationandfeedbacktogether

Workinginatimeboxed,iterativemannerwithfeedbackloopsembeddedintotheprocessallowsfor:

greaterflexibilityfasterresponsestocustomerandbusinessneedstheabilitytodiscoverandrespondtofailureearlieranoverallimprovementinquality.

Havingappropriatefeedbackloopsbetweentheparticipantsofanactivitygivesthemabetterunderstandingofwheretheirworkcomesfrom,wheretheiroutputsgo,andhowtheiractionsandoutputsaffectthe

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outcomes,whichinturnenablesthemtomakebetterdecisions.

TheITILstory:ProgressiterativelyMarco:It’snowbeenthreemonthssinceAxlereleasedthefirstiterationofitsnewapp.WebeganbymakingitavailablesolelytotrustedVIPcustomers.Weworkedwiththeirfeedbacktorefinethebookingprocess.

Radhika:Welearnedthattheappneededtobeflexiblesowecouldmakechangeseasilybasedonrapidlyevolvingcustomerrequirements.Forexample,ourbusinesscustomerswantedtheapptoautomaticallyrecorddistancetravelled.Workingwithourproductteam,wewereeasilyabletoaddthisfunctionality.

Su:Theappisnoweasilyconfigurable,allowingAxletoquicklyaddnewfunctionsandfeaturesbasedoncustomerfeedback.

4.3.3.3Applyingtheprinciple

Toapplythisprinciplesuccessfully,considerthisadvice:

Comprehendthewhole,butdosomethingSometimesthegreatestenemytoprogressingiterativelyisthedesiretounderstandandaccountforeverything.Thiscanleadtowhatissometimescalled‘analysisparalysis’,inwhichsomuchtimeisspentanalysingthesituationthatnothingevergetsdoneaboutit.Understandingthebigpictureisimportant,butsoismakingprogress.Theecosystemisconstantlychanging,sofeedbackisessentialChangeishappeningconstantly,soitisveryimportanttoseekandusefeedbackatalltimesandatalllevels.FastdoesnotmeanincompleteJustbecauseaniterationissmallenoughtobedonequicklydoesnotmeanthatitshouldnotincludealltheelementsnecessaryforsuccess.Anyiterationshouldbeproducedinlinewiththeconceptoftheminimumviableproduct.Aminimumviableproductisaversionofthefinalproductwhichallowsthemaximumamountofvalidatedlearningwiththeleasteffort.

4.3.4 Collaborateandpromotevisibility

KeymessageWheninitiativesinvolvetherightpeopleinthecorrectroles,effortsbenefitfrombetterbuy-in,morerelevance(becausebetterinformationisavailablefordecision-making)andincreasedlikelihoodoflong-termsuccess.

Creativesolutions,enthusiasticcontributions,andimportantperspectivescanbeobtainedfromunexpectedsources,soinclusionisgenerallyabetterpolicythanexclusion.Cooperationandcollaborationarebetterthanisolatedwork,whichisfrequentlyreferredtoas‘siloactivity’.Siloscanoccurthroughthebehaviourofindividualsandteams,butalsothroughstructuralcauses.Thistypicallyhappenswherefunctionsorbusinessunitsinanorganizationareimpededorunabletocollaborate,becausetheirprocesses,systems,documentation,andcommunicationsaredesignedtofulfiltheneedsofonlyaspecificpartoftheorganization.Applyingtheguidingprincipleofthinkandworkholistically(seesection4.3.5)canhelporganizationstobreakdownbarriersbetweensilosofwork.

RecognitionoftheneedforgenuinecollaborationhasbeenoneofthedrivingfactorsintheevolutionofwhatisnowknownasDevOps.Withouteffectivecollaboration,neitherAgile,Lean,noranyotherITSMframeworkormethodwillwork.

Workingtogetherinawaythatleadstorealaccomplishmentrequiresinformation,understanding,andtrust.Workanditsresultsshouldbemadevisible,hiddenagendasshouldbeavoided,andinformationshould

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besharedtothegreatestdegreepossible.Themorepeopleareawareofwhatishappeningandwhy,themoretheywillbewillingtohelp.

Whenimprovementactivityoccursinrelativesilence,orwithonlyasmallgroupbeingawareofthedetails,assumptionsandrumourscanprevail.Resistancetochangewilloftenariseasstaffmembersspeculateaboutwhatischangingandhowitmightimpactthem.

4.3.4.1Whomtocollaboratewith

Identifyingandmanagingallthestakeholdergroupsthatanorganizationdealswithisimportant,asthepeopleandperspectivesnecessaryforsuccessfulcollaborationcanbesourcedwithinthesestakeholdergroups.Asthenamesuggests,astakeholderisanyonewhohasastakeintheactivitiesoftheorganization,includingtheorganizationitself,itscustomersand/orusers,andmanyothers.Thescopeofstakeholderscanbeextensive.

Thefirstandmostobviousstakeholdergroupisthecustomers.Themaingoalofaserviceprovideristofacilitateoutcomesthatitscustomersareinterestedin,sothecustomershavealargestakeintheserviceprovider’sabilitytomanageserviceseffectively.Someorganizations,however,doapoorjobofinteractingwithcustomers.Aserviceprovidermayfeelthatitistoodifficulttogetinputorfeedbackfromthecustomer,andthattheresultingdelaysareawasteoftime.Equally,customersmayfeelthat,aftertheyhavedefinedtheirrequirements,theserviceprovidercanbelefttodelivertheservicewithnofurthercontactneeded.Whenitcomestotheimprovementofaserviceprovider’spractices,thecustomermaynotseeanyneedtobeinvolvedatall.Intheend,however,therightlevelofcollaborationwithcustomerswillleadtobetteroutcomesfortheorganization,itscustomers,andotherstakeholders.

Otherexamplesofstakeholdercollaborationinclude:

developersworkingwithotherinternalteamstoensurethatwhatisbeingdevelopedcanbeoperatedefficientlyandeffectively.Developersshouldcollaboratewithtechnicalandnon-technical

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operationalteamstomakesurethattheyareready,willing,andabletotransitiontheneworchangedserviceintooperation,perhapsevenparticipatingintesting.Developerscanalsoworkwithoperationsteamstoinvestigatedefects(problems)andtodevelopworkaroundsorpermanentfixestoresolvethesedefectssupplierscollaboratingwiththeorganizationtodefineitsrequirementsandbrainstormsolutionstocustomerproblemsrelationshipmanagerscollaboratingwithserviceconsumerstoachieveacomprehensiveunderstandingofserviceconsumerneedsandprioritiescustomerscollaboratingwitheachothertocreateasharedunderstandingoftheirbusinessissuesinternalandexternalsupplierscollaboratingwitheachothertoreviewsharedprocessesandidentifyopportunitiesforoptimizationandpotentialautomation.

4.3.4.2Communicationforimprovement

Thecontributiontoimprovementofeachstakeholdergroupateachlevelshouldbeunderstood;itisalsoimportanttodefinethemosteffectivemethodstoengagewiththem.Forexample,thecontributiontoimprovementfromcustomersofapubliccloudservicemaybethroughasurveyorchecklistofoptionsfordifferentfunctionalities.Foraninternalcustomergroup,thecontributiontoimprovementmaycomefromfeedbacksolicitedviaaworkshoporacollaborationtoolontheorganization’sintranet.

Somecontributorsmayneedtobeinvolvedataverydetailedlevel,whileotherscansimplybeinvolvedasreviewersorapprovers.Dependingontheserviceandtherelationshipbetweentheserviceproviderandtheserviceconsumer,theexpectationsaboutthelevelandtypeofcollaborationcanvarysignificantly.

4.3.4.3Increasingurgencythroughvisibility

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Whenstakeholders(whetherinternalorexternal)havepoorvisibilityoftheworkloadandprogressionofwork,thereisariskofcreatingtheimpressionthattheworkisnotapriority.Ifaninitiativeiscommunicatedtoateam,department,oranotherorganizationandthenisnever,orrarely,mentionedagain,theperceptionwillbethatthechangeisnotimportant.Equally,whenstaffmembersattempttoprioritizeimprovementworkversusothertasksthathavedailyurgency,improvementworkmayseemtobealow-priorityactivityunlessitsimportancehasbeenmadetransparentanditissupportedbytheorganization’smanagement.

Insufficientvisibilityofworkleadstopoordecision-making,whichinturnimpactstheorganization’sabilitytoimproveinternalcapabilities.Itwillthenbecomedifficulttodriveimprovementsasitwillnotbeclearwhichonesarelikelytohavethegreatestpositiveimpactonresults.Toavoidthis,theorganizationneedstoperformsuchcriticalanalysisactivitiesas:

understandingtheflowofworkinprogressidentifyingbottlenecks,aswellasexcesscapacityuncoveringwaste.

Itisimportanttoinvolveandaddresstheneedsofstakeholdersatalllevels.Leadersatvariouslevelsshouldalsoprovideappropriateinformationrelatingtotheimprovementworkintheirowncommunicationstoothers.Together,theseactionswillservetoreinforcewhatisbeingdone,whyitisbeingdone,andhowitrelatestothestatedvision,mission,goals,andobjectivesoftheorganization.Determiningthetype,method,andfrequencyofsuchmessagingisoneofthecentralactivitiesrelatedtocommunication.

TheITILstory:WorkingcollaborativelyHenri:Aswellasbeingiterative,ourworkonthenewAxlebookingappisalsocollaborative.Weincludemanyofourteams,suchasdevelopers,testers,andsupportstaff,andofcourse,ourcustomersandusers.Thisapproachenablesustoimproveourservicesinamoreresponsiveandtargetedmanner,basedonfeedback.

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4.3.4.4Applyingtheprinciple

Toapplythisprinciplesuccessfully,considerthisadvice:

CollaborationdoesnotmeanconsensusItisnotnecessary,orevenalwayswise,togetconsensusfromeveryoneinvolvedinaninitiativebeforeproceeding.Someorganizationsaresoconcernedwithgettingconsensusthattheytrytomakeeveryonehappyandendupeitherdoingnothingorproducingsomethingthatdoesnotproperlysuitanyone’sneeds.CommunicateinawaytheaudiencecanhearInanattempttobringdifferentstakeholdersintotheloop,manyorganizationsuseverytraditionalmethodsofcommunication,ortheyusethesamemethodforallcommunication.Selectingtherightmethodandmessageforeachaudienceiscriticalforsuccess.DecisionscanonlybemadeonvisibledataMakingdecisionsintheabsenceofdataisrisky.Decisionsshouldbemadeaboutwhatdataisneeded,andthereforewhatworkneedstobemadevisible.Theremaybeacosttocollectingdata,andtheorganizationmustbalancethatcostagainstthebenefitandintendedusageofthedata.

4.3.5 Thinkandworkholistically

KeymessageNoservice,practice,process,department,orsupplierstandsalone.Theoutputsthattheorganizationdeliverstoitself,itscustomers,andotherstakeholderswillsufferunlessitworksinanintegratedwaytohandleitsactivitiesasawhole,ratherthanasseparateparts.Alltheorganization’sactivitiesshouldbefocused

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onthedeliveryofvalue.

Servicesaredeliveredtointernalandexternalserviceconsumersthroughthecoordinationandintegrationofthefourdimensionsofservicemanagement(seeChapter3).

Takingaholisticapproachtoservicemanagementincludesestablishinganunderstandingofhowallthepartsofanorganizationworktogetherinanintegratedway.Itrequiresend-to-endvisibilityofhowdemandiscapturedandtranslatedintooutcomes.Inacomplexsystem,thealterationofoneelementcanimpactothersand,wherepossible,theseimpactsneedtobeidentified,analysedandplannedfor.

TheITILstory:ThinkandworkholisticallySu:Currently,Axleisworkingonmanyinitiatives.Wehaveascheduleofiterativereleasesofournewbookingapp,aswellasourAxleAwareadvanceddriverassistancesystem,andthenewbiometricscanningforcollectionandreturnofvehicles.

Henri:Withsomuchactivity,weneedtounderstandtheimpactsbothupstreamanddownstream.Forexample,adecisiontoexpandourbookingappwithanewfunctionalitywouldneedtoconsideranyresourceconstraintsforoursupportteams.

4.3.5.1Applyingtheprinciple

Toapplythisprinciplesuccessfully,considerthisadvice:

RecognizethecomplexityofthesystemsDifferentlevelsofcomplexityrequiredifferentheuristicsfordecision-making.Applyingmethodsandrulesdesignedforasimplesystemcanbeineffectiveorevenharmfulinacomplexsystem,whererelationshipsbetweencomponentsarecomplicatedandchangemorefrequently.CollaborationiskeytothinkingandworkingholisticallyIftheright

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mechanismsareputinplaceforallrelevantstakeholderstocollaborateinatimelymanner,itwillbepossibletoaddressanyissueholisticallywithoutbeingundulydelayed.Wherepossible,lookforpatternsintheneedsofandinteractionsbetweensystemelementsDrawonknowledgeineachareatoidentifywhatisessentialforsuccess,andwhichrelationshipsbetweenelementsinfluencetheoutcomes.Withthisinformation,needscanbeanticipated,standardscanbeset,andaholisticviewpointcanbeachieved.AutomationcanfacilitateworkingholisticallyWheretheopportunityandsufficientresourcesareavailable,automationcansupportend-to-endvisibilityfortheorganizationandprovideanefficientmeansofintegratedmanagement.

4.3.6 Keepitsimpleandpractical

KeymessageAlwaysusetheminimumnumberofstepstoaccomplishanobjective.Outcome-basedthinkingshouldbeusedtoproducepracticalsolutionsthatdelivervaluableoutcomes.Ifaprocess,service,action,ormetricfailstoprovidevalueorproduceausefuloutcome,theneliminateit.Althoughthisprinciplemayseemobvious,itisfrequentlyignored,resultinginoverlycomplexmethodsofworkthatrarelymaximizeoutcomesorminimizecost.

Tryingtoprovideasolutionforeveryexceptionwilloftenleadtoover-complication.Whencreatingaprocessoraservice,designersneedto

thinkaboutexceptions,buttheycannotcoverthemall.Instead,rulesshouldbedesignedthatcanbeusedtohandleexceptionsgenerally.

TheITILstory:JudgingwhattokeepSu:Axle’smarketingdepartmenthasindicatedtheywouldliketolaunchanewend-of-yearpromotion.ThepromotionwouldincludeafreeupgradetoaluxuryvehicleduringFebruaryandthechancetowinanoverseasholiday.

Toenter,customerswillsubmitanarticletitled‘MyBestDrivingHolidayAdventure’.Themarketingteamwillthencollectandanalysethecustomerdataandcreateanappthattargetstheirtravelpreferences.

Henri:Ourdevelopersarealreadybusywithanimplementationscheduleforbiometricservices.Weneedspeedtomarketforthisfunctionality.Wemustprioritizeourworkbasedontheexpectedvalue.

4.3.6.1Judgingwhattokeep

Whenanalysingapractice,process,service,metric,orotherimprovementtarget,alwaysaskwhetheritcontributestovaluecreation.

Whendesigningorimprovingservicemanagement,itisbettertostartwithanuncomplicatedapproachandthencarefullyaddcontrols,activities,ormetricswhenitisseenthattheyaretrulyneeded.

Criticaltokeepingservicemanagementsimpleandpracticalisunderstandingexactlyhowsomethingcontributestovaluecreation.Forexample,astepinaprocessmaybeperceivedbytheoperationalstaffinvolvedasawasteoftime.However,fromacorporateperspective,thesamestepmaybeimportantforregulatorycomplianceandthereforevaluableinanindirect,butneverthelessimportant,way.Itisnecessarytoestablishandcommunicateaholisticviewoftheorganization’sworksothatindividualteamsorgroupscanthinkholisticallyabouthowtheirworkisbeinginfluencedby,andinturninfluences,others.

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TheITILstory:JudgingwhattokeepMarco:Ouroriginalbookingappcapturedalotofdata,suchashowlongittookacustomertocompleteeachforminthebookingapp.Butwediscoveredthatthedataprovidedlittlevaluefordecision-making.Thetruevaluelayinhowlongtheoverallbookingprocesstook.Werefinedthebookingappfieldsandimproveditsoverallspeedbyremovingthisdatacapturefunction.

4.3.6.2Conflictingobjectives

Whendesigning,managing,oroperatingpractices,bemindfulofconflictingobjectives.Forexample,themanagementofanorganizationmaywanttocollectalargeamountofdatatomakedecisions,whereasthepeoplewhomustdotherecord-keepingmaywantasimplerprocessthatdoesnotrequireasmuchdataentry.Throughtheapplicationofthisandtheotherguidingprinciples,theorganizationshouldagreeonabalancebetweenitscompetingobjectives.Inthisexample,thiscouldmeanthatservicesshouldonlygeneratedatathatwilltrulyprovidevaluetothedecision-makingprocess,andrecord-keepingshouldbesimplifiedandautomatedwherepossibletomaximizevalueandreducenon-value-addingwork.

4.3.6.3Applyingtheprinciple

Toapplythisprinciplesuccessfully,considerthisadvice:

EnsurevalueEveryactivityshouldcontributetothecreationofvalue.SimplicityistheultimatesophisticationItmayseemhardertosimplify,butitisoftenmoreeffective.Dofewerthings,butdothembetterMinimizingactivitiestoincludeonlythosewithvalueforoneormorestakeholderswillallowmorefocusonthequalityofthoseactions.RespectthetimeofthepeopleinvolvedAprocessthatistoocomplicatedandbureaucraticisapooruseofthetimeofthepeople

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involved.Easiertounderstand,morelikelytoadoptToembedapractice,makesureitiseasytofollow.SimplicityisthebestroutetoachievingquickwinsWhetherinaproject,orwhenimprovingdailyoperationsactivities,quickwinsalloworganizationstodemonstrateprogressandmanagestakeholderexpectations.Workinginaniterativewaywithfeedbackwillquicklydeliverincrementalvalueatregularintervals.

4.3.7 Optimizeandautomate

KeymessageOrganizationsmustmaximizethevalueoftheworkcarriedoutbytheirhumanandtechnicalresources.Thefourdimensionsmodel(outlinedinChapter3)providesaholisticviewofthevariousconstraints,resourcetypes,andotherareasthatshouldbeconsideredwhendesigning,managing,oroperatinganorganization.Technologycanhelporganizationstoscaleupandtakeonfrequentandrepetitivetasks,allowinghumanresourcestobeusedformorecomplexdecision-making.However,technologyshouldnotalwaysberelieduponwithoutthecapabilityofhumanintervention,asautomationforautomation’ssakecanincreasecostsandreduceorganizationalrobustnessandresilience.

Optimizationmeanstomakesomethingaseffectiveandusefulasitneedstobe.Beforeanactivitycanbeeffectivelyautomated,itshouldbeoptimizedtowhateverdegreeispossibleandreasonable.Itisessential

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thatlimitsaresetontheoptimizationofservicesandpractices,astheyexistwithinasetofconstraintswhichmayincludefinanciallimitations,compliancerequirements,timeconstraints,andresourceavailability.

4.3.7.1Theroadtooptimization

Therearemanywaysinwhichpracticesandservicescanbeoptimized.TheconceptsandpracticesdescribedinITIL,particularlythepracticesofcontinualimprovement,andmeasurementandreporting(seesections5.1.2and5.1.5),areessentialtothiseffort.ThespecificpracticesanorganizationusestoimproveandoptimizeperformancemaydrawuponguidancefromITIL,Lean,DevOps,Kanban,andothersources.Regardlessofthespecifictechniques,thepathtooptimizationfollowsthesehigh-levelsteps:

UnderstandandagreethecontextinwhichtheproposedoptimizationexistsThisincludesagreeingtheoverallvisionandobjectivesoftheorganization.AssessthecurrentstateoftheproposedoptimizationThiswillhelptounderstandwhereitcanbeimprovedandwhichimprovementopportunitiesarelikelytoproducethebiggestpositiveimpact.Agreewhatthefuturestateandprioritiesoftheorganizationshouldbe,focusingonsimplificationandvalueThistypicallyalsoincludesstandardizationofpracticesandservices,whichwillmakeiteasiertoautomateoroptimizefurtheratalaterpoint.EnsuretheoptimizationhastheappropriatelevelofstakeholderengagementandcommitmentExecutetheimprovementsinaniterativewayUsemetricsandotherfeedbacktocheckprogress,stayontrack,andadjusttheapproachtotheoptimizationasneeded.ContinuallymonitortheimpactofoptimizationThiswillhelptoidentifyopportunitiestoimprovemethodsofworking.

4.3.7.2Usingautomation

Automationtypicallyreferstotheuseoftechnologytoperformasteporseriesofstepscorrectlyandconsistentlywithlimitedornohumanintervention.Forexample,inorganizationsadoptingcontinuousdeployment,itreferstotheautomaticandcontinuousreleaseofcodefromdevelopmentthroughtolive,andoftenautomatictestingoccurringineachenvironment.Initssimplestform,however,automationcouldalsomeanthestandardizationandstreamliningofmanualtasks,suchasdefiningtherulesofpartofaprocesstoallowdecisionstobemade‘automatically’.Efficiencycanbegreatlyincreasedbyreducingtheneedforhumaninvolvementtostopandevaluateeachpartofaprocess.

Opportunitiesforautomationcanbefoundacrosstheentireorganization.Lookingforopportunitiestoautomatestandardandrepeatingtaskscanhelpsavetheorganizationcosts,reducehumanerror,andimproveemployeeexperience.

TheITILstory:OptimizeandautomateMarco:Axlehasstartedtotrialthenewbiometrictechnology,andthetestsaregoingwell.We’rekeentoimplementthistechnologyinallourdepots.

Radhika:BeforeAxleintroducedbiometrics,thereweremanymanual,paper-basedprocesses.Axlestaffusedpapercheckliststocarryoutvehicledamagechecks.Theirnotesthenhadtobeenteredinadatabase,whichwasonlyavailableondesktopcomputers.Itwasnotrealtimeoraccessibleacrossothersystems.

Su:Thisworkwasusuallyputasideuntiltheendoftheday,anddetailswereoftenlost.Wehadtoimprovetheprocessofdatacapturebeforeautomating.

Radhika:Wecanautomatealmostanything.Butlet’sgetthebusinessrulesandprocessesrightfirst.

4.3.7.3Applyingtheprinciple

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Toapplythisprinciplesuccessfully,considerthisadvice:

Simplifyand/oroptimizebeforeautomatingAttemptingtoautomatesomethingthatiscomplexorsub-optimalisunlikelytoachievethedesiredoutcome.Taketimetomapoutthestandardandrepeatingprocessesasfaraspossible,andstreamlinewhereyoucan(optimize).Fromthereyoucanstarttoautomate.DefineyourmetricsTheintendedandactualresultoftheoptimizationshouldbeevaluatedusinganappropriatesetofmetrics.Usethesamemetricstodefinethebaselineandmeasuretheachievements.Makesurethatthemetricsareoutcome-basedandfocusedonvalue.UsetheotherguidingprincipleswhenapplyingthisoneWhenoptimizingandautomating,itissmarttofollowtheotherprinciplesaswell:

ProgressiterativelywithfeedbackIterativeoptimizationandautomationwillmakeprogressvisibleandincreasestakeholderbuy-inforfutureiterations.KeepitsimpleandpracticalItispossibleforsomethingtobesimple,butnotoptimized,sousethesetwoprinciplestogetherwhenselectingimprovements.FocusonvalueSelectingwhattooptimizeandautomateandhowtodososhouldbebasedonwhatwillcreatethebestvaluefortheorganization.StartwhereyouareThetechnologyalreadyavailableintheorganizationmayhavefeaturesandfunctionalitiesthatarecurrentlyuntappedorunder-utilized.Makeuseofwhatisalreadytheretoimplementopportunitiesforoptimizationandautomationquicklyandeconomically.

4.3.8 Principleinteraction

AswellasbeingawareoftheITILguidingprinciples,itisalsoimportanttorecognizethattheyinteractwithanddependuponeachother.Forexample,ifanorganizationiscommittedtoprogressingiterativelywith

feedback,itshouldalsothinkandworkholisticallytoensurethateachiterationofanimprovementincludesalltheelementsnecessarytodeliverrealresults.Similarly,makinguseofappropriatefeedbackiskeytocollaboration,andfocusingonwhatwilltrulybevaluabletothecustomermakesiteasiertokeepthingssimpleandpractical.

Organizationsshouldnotusejustoneortwooftheprinciples,butshouldconsidertherelevanceofeachofthemandhowtheyapplytogether.Notallprincipleswillbecriticalineverysituation,buttheyshouldallbereviewedoneachoccasiontodeterminehowappropriatetheyare.

4.4Governance

4.4.1 Governingbodiesandgovernance

KeymessageEveryorganizationisdirectedbyagoverningbody,i.e.apersonorgroupofpeoplewhoareaccountableatthehighestlevelfortheperformanceandcomplianceoftheorganization.Allsizesandtypesoforganizationperformgovernanceactivities;thegoverningbodymaybeaboardofdirectorsorexecutivemanagerswhotakeonaseparategovernancerolewhentheyareperforminggovernanceactivities.Thegoverningbodyisaccountablefortheorganization’scompliancewithpoliciesandanyexternalregulations.

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Organizationalgovernanceisasystembywhichanorganizationisdirectedandcontrolled.Governanceisrealizedthroughthefollowingactivities:

EvaluateTheevaluationoftheorganization,itsstrategy,portfolios,andrelationshipswithotherparties.Thegoverningbodyevaluatestheorganizationonaregularbasisasstakeholders’needsandexternalcircumstancesevolve.DirectThegoverningbodyassignsresponsibilityfor,anddirectsthepreparationandimplementationof,organizationalstrategyandpolicies.Strategiessetthedirectionandprioritizationfororganizationalactivity,futureinvestment,etc.Policiesestablishtherequirementsforbehaviouracrosstheorganizationand,whererelevant,suppliers,partners,andotherstakeholders.MonitorThegoverningbodymonitorstheperformanceoftheorganizationanditspractices,products,andservices.Thepurposeofthisistoensurethatperformanceisinaccordancewithpoliciesanddirection.

Organizationalgovernanceevaluates,directs,andmonitorsalltheorganization’sactivities,includingthoseofservicemanagement.

4.4.2 GovernanceintheSVS

TheroleandpositionofgovernanceintheITILSVSdependsonhowtheSVSisappliedinanorganization.TheSVSisauniversalmodelthatcanbeappliedtoanorganizationasawhole,ortooneormoreofitsunitsorproducts.Inthelattercase,someorganizationsdelegateauthoritytoperformgovernanceactivitiesatdifferentlevels.Thegoverningbodyoftheorganizationshouldretainoversightofthistoensurealignmentwiththeobjectivesandprioritiesoftheorganization.

InITIL4,theguidingprinciplesandcontinualimprovementapplytoallcomponentsoftheSVS,includinggovernance.Inanorganization,thegoverningbodycanadopttheITILguidingprinciplesandadaptthem,ordefineitsownspecificsetofprinciplesandcommunicatethemacrosstheorganization.Thegoverningbodyshouldalsohavevisibilityofthe

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outcomesofcontinualimprovementactivitiesandthemeasurementofvaluefortheorganizationanditsstakeholders.

RegardlessofthescopeoftheSVSandthepositioningofthecomponents,itiscrucialtomakesurethat:

theservicevaluechainandtheorganization’spracticesworkinlinewiththedirectiongivenbythegoverningbodythegoverningbodyoftheorganization,eitherdirectlyorthroughdelegationofauthority,maintainsoversightoftheSVSboththegoverningbodyandmanagementatalllevelsmaintainalignmentthroughaclearsetofsharedprinciplesandobjectivesthegovernanceandmanagementatalllevelsarecontinuallyimprovedtomeetexpectationsofthestakeholders.

4.5ServicevaluechainThecentralelementoftheSVSistheservicevaluechain,anoperatingmodelwhichoutlinesthekeyactivitiesrequiredtorespondtodemandandfacilitatevaluerealizationthroughthecreationandmanagementofproductsandservices.

AsshowninFigure4.2,theITILservicevaluechainincludessixvaluechainactivitieswhichleadtothecreationofproductsandservicesand,inturn,value.

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Figure4.2TheITILservicevaluechain

KeymessageThesixvaluechainactivitiesare:

planimproveengagedesignandtransitionobtain/builddeliverandsupport.

Theseactivitiesrepresentthestepsanorganizationtakesinthecreationofvalue.Eachactivitytransformsinputsintooutputs.Theseinputscanbedemandfromoutsidethevaluechainoroutputsofotheractivities.Alltheactivitiesareinterconnected,witheachactivityreceivingandprovidingtriggersforfurtheraction.

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Toconvertinputsintooutputs,thevaluechainactivitiesusedifferentcombinationsofITILpractices(setsofresourcesforperformingcertaintypesofwork),drawingoninternalorthird-partyresources,processes,skills,andcompetenciesasrequired.Forexample,theengageactivitymightdrawonsuppliermanagement,servicedeskmanagement,relationshipmanagement,andservicerequestmanagementtorespondtonewdemandsforproductsandservices,orinformationfromvariousstakeholders(seeChapter5formoreinformationonpractices).

Regardlessofwhichpracticesaredeployed,therearesomecommonruleswhenusingtheservicevaluechain:

AllincomingandoutgoinginteractionswithpartiesexternaltothevaluechainareperformedviaengageAllnewresourcesareobtainedthroughobtain/buildPlanningatalllevelsisperformedviaplanImprovementsatalllevelsareinitiatedandmanagedviaimprove.

Tocarryoutacertaintaskorrespondtoaparticularsituation,organizationscreateservicevaluestreams.Thesearespecificcombinationsofactivitiesandpractices,andeachoneisdesignedforaparticularscenario.Oncedesigned,valuestreamsshouldbesubjecttocontinualimprovement.

Avaluestreammight,forexample,becreatedforasituationwhereauserofaserviceneedsanincidenttoberesolved.Thevaluestreamwillbedesignedspecificallytoresolvethisissue,andwillprovideacompleteguidetotheactivities,practices,androlesinvolved.AmoredetailedoutlineofthisandotherexamplesofvaluestreamscanbefoundinAppendixA.

Exampleofaservicevaluechain,itspractices,

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andvaluestreams

Amobileapplicationdevelopmentcompanyhasavaluechain,enablingthefullcycleofapplicationdevelopmentandmanagement,frombusinessanalysistodevelopment,release,andsupport.Thecompanyhasdevelopedanumberofpractices,supportedwithspecializedresourcesandtechniques:

businessanalysisdevelopmenttestingreleaseanddeploymentsupport.

Althoughthehigh-levelstepsareuniversal,differentproductsandclientsneeddifferentstreamsofwork.Forexample:

Thedevelopmentofanewapplicationforanewclientstartswithinitialengagement(pre-sale),thenproceedstobusinessanalysis,prototyping,thedrawingupofagreements,development,testing,andeventuallytoreleaseandsupport.Changinganexistingapplicationtomeetnewrequirementsofexistingclientsdoesnotincludepre-saleandinvolvesbusinessanalysis,development,testing,andsupportinadifferentway.Fixinganerrorinaliveapplicationmaybeinitiatedinsupport,proceedwithrollingbacktoapreviousstableversion(release),thenmovestodevelopment,testing,andreleaseofafix.Experimentswithneworexistingapplicationstoexpandthetargetaudiencemaystartwithinnovationplanningandprototyping,thenproceedtodevelopment,andeventuallytoapilotreleaseforalimitedgroupofuserstotesttheirperceptionofthechangesmade.

Theseareexamplesofvaluestreams:theycombinepracticesandvaluechainactivitiesinvariouswaystoimproveproductsandservicesandincreasepotentialvaluefortheconsumersandthe

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organization.

ITSMinthemodernworld:AgileITSM

Foranorganizationtobesuccessful,itmustbeabletoadapttochangingcircumstanceswhileremainingfunctionalandeffective.Thismightincludechangestotheproductsandservicesitprovidesandconsumes,aswellaschangestoitsstructureandpractices.Inthemodernworld,whereITisessentialforallorganizations,ITandITmanagementareexpectedtobeAgile.

FormanyITprofessionals,agilityreferstosoftwaredevelopmentandisassociatedwiththeAgileManifesto,proclaimedin2001.Themanifestopromotednewapproachestosoftwaredevelopment,andvaluedcustomerexperience,collaboration,andrapidchangesoverdetailedplanninganddocumentation,controls,andrequirements.Agilesoftwaredevelopmentmethodshavebeenadoptedbymanycompaniesandsoftwareteamssincethen,andinmanycaseshaveproventobeeffective.

Agilesoftwaredevelopmentusuallyincludes:

continuallyevolvingrequirements,collectedthroughfeedbackanalysisanddirectobservationbreakingdevelopmentworkintosmallincrementsanditerationsestablishingproduct-basedcross-functionalteamsvisuallypresenting(Kanban)andregularlydiscussing(dailystand-ups)workprogresspresentingaworking(atleast,theminimumviable)softwaretothestakeholdersattheendofeachiteration.

Ifappliedsuccessfully,Agilesoftwaredevelopmentenablesfastresponsestotheevolvingneedsofserviceconsumers.However,inmanyorganizations,Agilesoftwaredevelopmenthasnot

providedtheexpectedbenefits,oftenduetolackofAgilemethodsintheotherphasesoftheservicelifecycle.Thisfragmentedagilitymakeslittlesensefortheorganization,astheoverallperformanceofthevaluechainisdefinedbythatoftheslowestpart.AholisticapproachtotheservicevaluechainshouldbeadoptedtomakesurethattheserviceproviderisAgilethroughouttheservicelifecycle.Thismeansthatagilityshouldbecomeaqualityofallservicemanagementdimensionsandallservicevaluechainactivities.

Oneofthegreatestobstaclestoservicevaluechainagilityusedtobetherigidityofinfrastructuresolutions.Itcouldtakemonthstodeploythenecessaryinfrastructureforanewsoftwareprogram,whichmadealldevelopmentagilityinvisibleandirrelevantfortheserviceconsumer.Thisproblemhas,toagreatextent,beensolvedastechnologyhasevolved.Virtualization,fastbroadbandandmobileconnections,andcloudcomputinghaveallowedorganizationstotreattheirITinfrastructureasaserviceorasacode,thusprovidinginfrastructurechangeswithavelocitythatwaspreviouslyonlypossibleforsoftware.Oncethetechnicalproblemwasresolved,Agilemethodscouldbeappliedtoinfrastructureconfigurationanddeployment.Thisstimulatedintegrationbetweensoftwareandinfrastructureteams,andconsequentlybetweendevelopmentandoperations.

ManyprinciplesofAgiledevelopmentcanandshouldbeappliedtoserviceoperationsandsupport.Operationalchangesandservicerequestscanbehandledinsmalliterationsbydedicatedproductorservice-focusedteams,withconstantfeedbackandhighvisibility.Dailyoperationalactivitiescanandshouldbevisibleandprioritizedtogetherwithothertasks.Allservicemanagementactivitiescanandshouldcontinuallyprovide,collect,andprocessfeedback.

Agilityisnotasoftwaredevelopmentfeature;itisanimportantqualityoforganizationsintheirentirety.AgileactivitiesrequireAgilefundingandadjustedfinancialandcompliancecontrols,Agileresourcing,Agilecontracting,Agileprocurement,etc.IfbeingAgile

isadoptedasakeyprinciple,anorganizationshouldbeabletosurviveandprosperinaconstantlychangingenvironment.Appliedinafragmentedway,Agilemethodscanbecomeacostlyandwastefulcomplication.

TheITILstory:ValuechainsandvaluestreamsHenri:AtAxleCarHire,thevaluechainisthewaythatourcompanyoperates.Ithasmultiplevaluestreams.Eachvaluestreamadoptsandadaptstheactivitiesofthevaluechainforcarryingoutparticulartasks.Forexample,thereisonevaluestreamforinnovation,andanotherforprovidingstandardservicestoexistingcustomers.

Thevaluestreamforprovidingstandardservicestoexistingcustomersrepresentstheactivitiesthatarecarriedoutwhenacustomerhiresacar.Thisstartswithengagement,whenacustomercontactsAxle,andthenproceedstodelivery,whentheyreceiveacar(althoughengagementcanstillhappenatthisstage).

Somevaluechainactivitiesmaybeongoingthroughoutaparticularvaluestream,ormaynotbeinvolvedatall.Inthisstream,planningactivityiscontinuous,butdesignandprocurementactivitieswilltypicallynotbeinvolved.Thestreamendswithmoreengagementactivities,whencarsarereturnedbycustomers,feedbackisgiven,andordersareclosed.

Marco:Valuechainactivitiesdonothavetohappeninaparticularorder.Axle’sinnovationvaluestreamistriggeredbyopportunity,andthengoestoplanning,designing,buildingorobtaining,transitioning,andfinallytodelivering.Thisstreamoftenincludesprocurementactivities.Forexample,weprocuresoftwareandhardwareforourbiometricsolutions.

Henri:Wemanagevaluestreamsfordifferentobjectives,combiningthevaluechainactivitiesandsupportingthemwithpractices.Everyvaluestreamshouldbeeffectiveandefficient,andsubjecttocontinualimprovement.

Thefollowingsectionsoutlinethevaluechainactivitiesanddefinethepurpose,inputs,andoutputsforeach.Aseachvaluestreamismadeupofadifferentcombinationofactivitiesandpractices,theinputsandoutputslistedwillnotalwaysapply,astheyarespecifictoparticularvaluestreams.Forexample,the‘strategic,tactical,andoperationalplans’outputoftheplanvaluechainactivityisformedasaresultofstrategic,tactical,andoperationalplanningrespectively.Eachoftheselevelsis

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likelytoinvolvedifferentresources,haveadifferentplanningcycle,andbetriggeredbydifferentevents.Thelistsofinputsandoutputsgivenarenotprescriptive,andtheycanandshouldbeadjustedwhenorganizationsdesigntheirvaluestreams.

4.5.1 Plan

KeymessageThepurposeoftheplanvaluechainactivityistoensureasharedunderstandingofthevision,currentstatus,andimprovementdirectionforallfourdimensionsandallproductsandservicesacrosstheorganization.

Thekeyinputstothisactivityare:

policies,requirements,andconstraintsprovidedbytheorganization’sgoverningbodyconsolidateddemandsandopportunitiesprovidedbyengagevaluechainperformanceinformation,improvementstatusreports,andimprovementinitiativesfromimproveknowledgeandinformationaboutnewandchangedproductsandservicesfromdesignandtransition,andobtain/buildknowledgeandinformationaboutthird-partyservicecomponentsfromengage.

Thekeyoutputsofthisactivityare:

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strategic,tactical,andoperationalplansportfoliodecisionsfordesignandtransitionarchitecturesandpoliciesfordesignandtransitionimprovementopportunitiesforimproveaproductandserviceportfolioforengagecontractandagreementrequirementsforengage.

4.5.2 Improve

KeymessageThepurposeoftheimprovevaluechainactivityistoensurecontinualimprovementofproducts,services,andpracticesacrossallvaluechainactivitiesandthefourdimensionsofservicemanagement.

Thekeyinputstothisvaluechainactivityare:

productandserviceperformanceinformationprovidedbydeliverandsupportstakeholders’feedbackprovidedbyengageperformanceinformationandimprovementopportunitiesprovidedbyallvaluechainactivitiesknowledgeandinformationaboutnewandchangedproductsandservicesfromdesignandtransition,andobtain/buildknowledgeandinformationaboutthird-partyservicecomponentsfromengage.

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Thekeyoutputsofthisvaluechainactivityare:

improvementinitiativesforallvaluechainactivitiesvaluechainperformanceinformationforplanandthegoverningbodyimprovementstatusreportsforallvaluechainactivitiescontractandagreementrequirementsforengageserviceperformanceinformationfordesignandtransition.

4.5.3 Engage

KeymessageThepurposeoftheengagevaluechainactivityistoprovideagoodunderstandingofstakeholderneeds,transparency,andcontinualengagementandgoodrelationshipswithallstakeholders.

Thekeyinputstothisvaluechainactivityare:

aproductandserviceportfolioprovidedbyplanhigh-leveldemandforservicesandproductsprovidedbyinternalandexternalcustomersdetailedrequirementsforservicesandproductsprovidedbycustomersrequestsandfeedbackfromcustomersincidents,servicerequests,andfeedbackfromusersinformationonthecompletionofusersupporttasksfromdeliverandsupport

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marketingopportunitiesfromcurrentandpotentialcustomersanduserscooperationopportunitiesandfeedbackprovidedbypartnersandsupplierscontractandagreementrequirementsfromallvaluechainactivitiesknowledgeandinformationaboutnewandchangedproductsandservicesfromdesignandtransition,andobtain/buildknowledgeandinformationaboutthird-partyservicecomponentsfromsuppliersandpartnersproductandserviceperformanceinformationfromdeliverandsupportimprovementinitiativesfromimproveimprovementstatusreportsfromimprove.

Thekeyoutputsofthisvaluechainactivityare:

consolidateddemandsandopportunitiesforplanproductandservicerequirementsfordesignandtransitionusersupporttasksfordeliverandsupportimprovementopportunitiesandstakeholders’feedbackforimprovechangeorprojectinitiationrequestsforobtain/buildcontractsandagreementswithexternalandinternalsuppliersandpartnersfordesignandtransition,andobtain/buildknowledgeandinformationaboutthird-partyservicecomponentsforallvaluechainactivitiesserviceperformancereportsforcustomers.

4.5.4 Designandtransition

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KeymessageThepurposeofthedesignandtransitionvaluechainactivityistoensurethatproductsandservicescontinuallymeetstakeholderexpectationsforquality,costs,andtimetomarket.

Thekeyinputstothisactivityare:

portfoliodecisionsprovidedbyplanarchitecturesandpoliciesprovidedbyplanproductandservicerequirementsprovidedbyengageimprovementinitiativesprovidedbyimproveimprovementstatusreportsfromimproveserviceperformanceinformationprovidedbydeliverandsupport,andimproveservicecomponentsfromobtain/buildknowledgeandinformationaboutthird-partyservicecomponentsfromengageknowledgeandinformationaboutnewandchangedproductsandservicesfromobtain/buildcontractsandagreementswithexternalandinternalsuppliersandpartnersprovidedbyengage.

Thekeyoutputsofthisactivityare:

requirementsandspecificationsforobtain/buildcontractandagreementrequirementsforengagenewandchangedproductsandservicesfordeliverandsupportknowledgeandinformationaboutnewandchangedproductsandservicestoallvaluechainactivitiesperformanceinformationandimprovementopportunitiesforimprove.

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4.5.5 Obtain/build

KeymessageThepurposeoftheobtain/buildvaluechainactivityistoensurethatservicecomponentsareavailablewhenandwheretheyareneeded,andmeetagreedspecifications.

Thekeyinputstothisactivityare:

architecturesandpoliciesprovidedbyplancontractsandagreementswithexternalandinternalsuppliersandpartnersprovidedbyengagegoodsandservicesprovidedbyexternalandinternalsuppliersandpartnersrequirementsandspecificationsprovidedbydesignandtransitionimprovementinitiativesprovidedbyimproveimprovementstatusreportsfromimprovechangeorprojectinitiationrequestsprovidedbyengagechangerequestsprovidedbydeliverandsupportknowledgeandinformationaboutnewandchangedproductsandservicesfromdesignandtransitionknowledgeandinformationaboutthird-partyservicecomponentsfromengage.

Thekeyoutputsofthisactivityare:

servicecomponentsfordeliverandsupport

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servicecomponentsfordesignandtransitionknowledgeandinformationaboutnewandchangedservicecomponentstoallvaluechainactivitiescontractandagreementrequirementsforengageperformanceinformationandimprovementopportunitiesforimprove.

4.5.6 Deliverandsupport

KeymessageThepurposeofthedeliverandsupportvaluechainactivityistoensurethatservicesaredeliveredandsupportedaccordingtoagreedspecificationsandstakeholders’expectations.

Thekeyinputstothisactivityare:

newandchangedproductsandservicesprovidedbydesignandtransitionservicecomponentsprovidedbyobtain/buildimprovementinitiativesprovidedbyimproveimprovementstatusreportsfromimproveusersupporttasksprovidedbyengageknowledgeandinformationaboutnewandchangedservicecomponentsandservicesfromdesignandtransition,andobtain/buildknowledgeandinformationaboutthird-partyservicecomponentsfromengage.

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Thekeyoutputsofthisactivityare:

servicesdeliveredtocustomersandusersinformationonthecompletionofusersupporttasksforengageproductandserviceperformanceinformationforengageandimproveimprovementopportunitiesforimprovecontractandagreementrequirementsforengagechangerequestsforobtain/buildserviceperformanceinformationfordesignandtransition.

FurtherdetailsontheservicevaluechainactivitiescanbefoundinotherITIL4publicationsandsupplementarymaterials.

4.6ContinualimprovementContinualimprovementtakesplaceinallareasoftheorganizationandatalllevels,fromstrategictooperational.Tomaximizetheeffectivenessofservices,eachpersonwhocontributestotheprovisionofaserviceshouldkeepcontinualimprovementinmind,andshouldalwaysbelookingforopportunitiestoimprove.

ThecontinualimprovementmodelappliestotheSVSinitsentirety,aswellastoalloftheorganization’sproducts,services,servicecomponents,andrelationships.Tosupportcontinualimprovementatalllevels,theITILSVSincludes:

theITILcontinualimprovementmodel,whichprovidesorganizationswithastructuredapproachtoimplementingimprovementstheimproveservicevaluechainactivity,whichembedscontinualimprovementintothevaluechainthecontinualimprovementpractice,supportingorganizationsintheirday-to-dayimprovementefforts.

TheITILcontinualimprovementmodelcanbeusedasahigh-levelguide

tosupportimprovementinitiatives.UseofthemodelincreasesthelikelihoodthatITSMinitiativeswillbesuccessful,putsastrongfocusoncustomervalue,andensuresthatimprovementeffortscanbelinkedbacktotheorganization’svision.Themodelsupportsaniterativeapproachtoimprovement,dividingworkintomanageablepieceswithseparategoalsthatcanbeachievedincrementally.

Figure4.3providesahigh-leveloverviewoftheITILcontinualimprovementmodel.

Figure4.3Thecontinualimprovementmodel

TheITILstory:ImprovingAxle

HenriwouldlikeAxletobecomeagreenercompanyandintroducemoreenvironmentallyfriendlypracticesintoitswork.OverthefollowingsectionstheAxleteamusesthestepsofthecontinualimprovementmodeltoimplementchangestotheorganization.

Henri:AtAxlewestriveforcontinualimprovementatalllevels.Oneofour

objectivesistobeagreenerbusinessandincorporatesustainableprinciplesintoeverybusinessdecision.Myteamiscommittedtothisinitiative.Aspartofourservicerelationshipmodel,ourpartnersandsuppliersarealsoinvolvedinthis.

Itisimportanttorememberthatthescopeanddetailsofeachstepofthemodelwillvarysignificantlybasedonthesubjectandthetypeofimprovement.Itshouldberecognizedthatthismodelcanserveasaworkflow,butitcanalsobeusedsimplyasahigh-levelreminderofasoundthoughtprocesstoensureimprovementsareproperlymanaged.Theflowseekstoensurethatimprovementsarelinkedtotheorganization’sgoalsandareproperlyprioritized,andthatimprovementactionsproducesustainableresults.

Logicandcommonsenseshouldalwaysprevailwhenusingthecontinualimprovementmodel.Thestepsofthismodeldonotneedtobecarriedoutinalinearfashion,anditmaybenecessarytore-evaluateandreturntoapreviousstepatsomepoint.Criticaljudgementshouldalwaysbeappliedwhenusingthismodel.

4.6.1 Stepsofthecontinualimprovementmodel

Thissectionprovidesmoredetailoneachstepofthecontinualimprovementmodel.Anorganizationcanadjustthesestepstoitscultureandgoals.Themodelissimpleandflexible,andcanjustaseasilybeusedinanAgilecultureasinamoretraditionalwaterfallculture.

4.6.4.1Step1:Whatisthevision?

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KeymessageEachimprovementinitiativeshouldsupporttheorganization’sgoalsandobjectives.Thefirststepofthecontinualimprovementmodelistodefinethevisionoftheinitiative.Thisprovidescontextforallsubsequentdecisionsandlinksindividualactionstotheorganization’svisionforthefuture.

Thisstepfocusesontwokeyareas:

Theorganization’svisionandobjectivesneedtobetranslatedforthespecificbusinessunit,department,team,and/orindividual,sothatthecontext,objectives,andboundariesforanyimprovementinitiativeareunderstood.Ahigh-levelvisionfortheplannedimprovementneedstobecreated.

Theworkwithinthisstepshouldensurethat:

thehigh-leveldirectionhasbeenunderstoodtheplannedimprovementinitiativeisdescribedandunderstoodinthatcontextthestakeholdersandtheirroleshavebeenunderstoodtheexpectedvaluetoberealizedisunderstoodandagreedtheroleofthepersonorteamresponsibleforcarryingouttheimprovementisclearinrelationtoachievingtheorganization’svision.

Ifthisstepisskipped,improvementsmightonlybeoptimizedforthepeopleorteamsinvolvedratherthanthewholeorganization,ornon-value-addingactivitiesmightbecomethesolefocusofimprovements.

TheITILstory:Whatisthevision?Henri:Axle’svisionisforthebusinesstobecomeoneofthetopthreegreencar-hirecompaniesglobally.AcontinualimprovementinitiativecalledAxleGreenwascreatedforthispurpose.

Craig:AsasupplierofcleaningservicestoAxle,I’llsupporttheminthisimprovementinitiative.

4.6.1.2Step2:Wherearewenow?

KeymessageThesuccessofanimprovementinitiativedependsonaclearandaccurateunderstandingofthestartingpointandtheimpactoftheinitiative.AnimprovementcanbethoughtofasajourneyfromPointAtoPointB,andthisstepclearlydefineswhatPointAlookslike.Ajourneycannotbemappedoutifthestartingpointisnotknown.

Akeyelementinthisstepisacurrentstateassessment.Thisisanassessmentofexistingservices,includingtheusers’perceptionofvaluereceived,people’scompetenciesandskills,theprocessesandproceduresinvolved,and/orthecapabilitiesoftheavailabletechnologicalsolutions.Theorganization’sculture,i.e.theprevailingvaluesandattitudesacrossallstakeholdergroups,alsoneedstobeunderstoodtodecidewhatleveloforganizationalchangemanagementisrequired.

Currentstateassessmentsshouldbedonethroughobjectivemeasurementwheneverpossible.Thiswillallowforanaccurateunderstandingoftheissuesassociatedwiththecurrentstateand,oncetheinitiativeisimplemented,enablepropermeasurementofthelevelofimprovementachievedbycomparisonwiththeinitialstate.Ifagoodmeasurementsystemisinplace,theinformationtofulfilthisstepmayalreadyhavebeenprovidedwhentheproposedimprovementwasinitiallydocumented.

Ifthisstepisskipped,thecurrentstatewillnotbeunderstoodandtherewillnotbeanobjectivebaselinemeasurement.Itwillthereforebedifficulttotrackandmeasuretheeffectivenessoftheimprovementactivities,asthenewstatecannotbecomparedwithapreviousstateatalaterpoint.

TheITILstory:Wherearewenow?

Su:Weneedtounderstandthebaseline.Howdoweknowifwe’veimproved,ifwedon’tknowwherewestarted?Currently,only5percentofthevehiclesinourfleetareelectric.

Craig:Only20percentofmycleaningproductsarebiodegradable.

4.6.1.3Step3:Wheredowewanttobe?

KeymessageJustasthepreviousstep(Step2)describesPointAonthe

improvementjourney,Step3outlineswhatPointB,thetargetstateforthenextstepofthejourney,shouldlooklike.Ajourneycannotbemappedoutifthedestinationisnotclear.

Basedontheresultsofthefirsttwosteps,agapanalysiscanbeperformed,whichevaluatesthescopeandnatureofthedistancetobetravelledfromthestartingpointtotheachievementoftheinitiative’svision.Itisimportanttonotethattheinitialvisionoftheinitiativeisaspirationalandmayneverbeachievedinfull.Improvementisthegoal,notperfection.Thisstepshoulddefineoneormoreprioritizedactionsalongthewaytocompletingthevisionfortheimprovement,basedonwhatisknownatthestartingpoint.Improvementopportunitiescanbeidentifiedandprioritizedbasedonthegapanalysis,andimprovementobjectivescanbeset,alongwithcriticalsuccessfactors(CSFs)andkeyperformanceindicators(KPIs).

Theagreedobjectives,CSFs,andKPIsneedtofollowwhatisknownastheSMARTprinciple.Theyshouldbespecific,measurable,achievable,relevant,andtime-bound.Itismucheasiertodefinetherouteoftheimprovementjourneyiftheexactdestinationisknown.Itisimportanttonotethatthetargetstaterepresentsprogresstowardsthevision,nottheachievementoftheentirevision.

Ifthisstepisskipped,thetargetstatewillremainunclear.Itwillbedifficulttoprepareasatisfactoryexplanationofwhatkeystakeholdersstandtogainfromtheimprovementinitiative,whichmayresultinlowsupportorevenpushback.

TheITILstory:Wheredowewanttobe?

Su:Withinfiveyears,wewant50percentofourfleettoconsistofelectricvehicles.Theotherhalfshouldcomplywiththestrictestecologicalrequirementsforpetrolanddieselcars.

Craig:Oneofmytargetsisthat90percentofmycleaningproductswillbebiodegradablewithinthenexttwoyears.

Radhika:Thisisagreatinitiative.InourITteam,wewanttousebiodegradablecups.WewouldalsolikeAxletouseenvironmentallyfriendlylightbulbsinallouroffices.

4.6.1.4Step4:Howdowegetthere?

Nowthatthestartandendpointsoftheimprovementjourneyhavebeendefined,aspecificroutecanbeagreed.Basedontheunderstandingofthevisionoftheimprovementandthecurrentandtargetstates,andcombiningthatknowledgewithsubjectmatterexpertise,aplanforaddressingthechallengesoftheinitiativecanbecreated.

KeymessageTheplanforStep4canbeastraightforwardanddirectroutetocompletingasinglesimpleimprovement,oritmaybemoreinvolved.Themosteffectiveapproachtoexecutingtheimprovementmaynotbeclear,anditwillsometimesbenecessarytodesignexperimentsthatwilltestwhichoptionshavethemostpotential.

Evenifthepathtofollowisclear,itmaybemosteffectivetocarryouttheworkinaseriesofiterations,eachofwhichwillmovetheimprovementforwardpartoftheway.Witheachiteration,thereisanopportunitytocheckprogress,re-evaluatetheapproach,andchangedirectionifappropriate.

Ifthisstepisskipped,theexecutionoftheimprovementislikelytoflounderandfailtoachievewhatisrequiredofit.Failedimprovementserodeconfidenceandcanmakeitdifficulttogetsupportforfutureimprovements.

TheITILstory:Howdowegetthere?

Craig:Myplanistoreplaceourcurrentstocksofcleaningproductswithbiodegradableoptionsaswerunout.Meanwhile,we’lltestnewproductstofindtheoptimalbalanceofpriceandquality.

Su:Sometimesknowinghowyougetthereiseasy,butreplacinghalfofourfleetwithelectriccarsisabiggerchallenge.Wedon’twantexcesscarsinourcarlotsifthey’renotbeingused.Wemustalsoconsiderspecificsandinfrastructureindifferentcountries,aswellaslocalregulations.

Radhika:We’reencouragingtheuseofceramiccupsoverplasticones.We’rediscontinuingthepurchaseofplasticcups,andwearebuyingceramiccupsforallouroffices.

4.6.1.5Step5:Takeaction

KeymessageInStep5theplanfortheimprovementisactedupon.Thiscouldinvolveatraditionalwaterfall-styleapproach,butitcouldbemoreappropriatetofollowanAgileapproachbyexperimenting,iterating,changingdirections,orevengoingbacktoprevioussteps.

Someimprovementstakeplaceaspartofabiginitiativethatmakesalotofchange,whereasotherimprovementsaresmallbutsignificant.Insomecases,alargerchangeiseffectedthroughtheimplementationofmultiplesmallerimprovementiterations.Evenifthepathtocompletetheimprovementseemedclearwhenitwasplanned,itisimportanttoremainopentochangethroughouttheapproach.Achievingthedesiredresultsistheobjective,notrigidadherencetooneviewofhowtoproceed.

Duringtheimprovement,thereneedstobecontinualfocusonmeasuringprogresstowardsthevisionandmanagingrisks,aswellasensuringvisibilityandoverallawarenessoftheinitiative.ITILpracticessuchasorganizationalchangemanagement(section5.1.6),measurementandreporting(section5.1.5),riskmanagement(section5.1.10)and,ofcourse,continualimprovement(section5.1.2)areimportantfactorsinachievingsuccessinthisstep.

Oncethisstepiscompleted,theworkwillbeattheendpointofthejourney,resultinginanewcurrentstate.

TheITILstory:Takeaction

Craig:Wehavestartedtoreplaceourstocksofcleaningproductswithbiodegradableoptions.We’vefoundsomegreatnewproductstouse,andevenmanagedtosavemoneybyusingcheaperalternativesthatdon’tcompromiseonquality.

Su:Wehavestartedtophaseoutsomeofourolderpetrolanddieselcarsandreplacethemwithnewelectricmodels.Wehavecarriedoutathoroughcheckofthepetrolanddieselcarswearekeepingtoensuretheymeetecologicalrequirements,andwilltakeactiontofixthiswheretheydonot.

Radhika:Wehavebroughtthenewbiodegradablecupsandenvironmentallyfriendlylightbulbsintoourofficesandstartedtoremovetheplasticcups.

4.6.1.6Step6:Didwegetthere?

Thisstepinvolvescheckingthedestinationofthejourneytobesurethatthedesiredpointhasbeenreached.

KeymessageToooften,onceanimprovementplanissetinmotion,itisassumedthattheexpectedbenefitshavebeenachieved,andthatattentioncanberedirectedtothenextinitiative.Inreality,thepathtoimprovementisfilledwithvariousobstacles,sosuccessmustbevalidated.

Foreachiterationoftheimprovementinitiative,boththeprogress(havetheoriginalobjectivesbeenachieved?)andthevalue(arethoseobjectivesstillrelevant?)needtobecheckedandconfirmed.Ifthedesiredresulthasnotbeenachieved,additionalactionstocompletetheworkareselectedandundertaken,commonlyresultinginanewiteration.

Ifthisstepisskipped,itishardtobesurewhetherthedesiredorpromisedoutcomeswereactuallyachieved,andanylessonsfromthisiteration,whichwouldsupportacoursecorrectionifneeded,willbelost.

TheITILstory:Didwegetthere?Craig:Afterafewmonthswemanagedtohitourtargetofhaving90percentofourproductsbeingbiodegradable.

Su:Theelectriccarsarebeingintroduced,butforlogisticalreasonsitisprovingmoredifficulttoreplacethepetrolanddieselcarsthanwehadanticipated.Wewillneedtodothisatafasterpaceifwewanttohitourfive-yeartarget.Wemaynowhavetoreconsiderourtarget,anddecidewhetherweshoulddomoretosupportit,orifitneedstoberevised.

Radhika:Ourofficesnowhavebiodegradablecupsandenvironmentallyfriendlylightbulbs.Someoftheoldplasticcupsarestillbeingused,butwehavestoppedpurchasingmore,sooncetheyrunoutthey’llbegone.

4.6.1.7Step7:Howdowekeepthemomentumgoing?

KeymessageIftheimprovementhasdeliveredtheexpectedvalue,thefocusoftheinitiativeshouldshifttomarketingthesesuccessesandreinforcinganynewmethodsintroduced.Thisistoensurethattheprogressmadewillnotbelostandtobuildsupportandmomentumforthenextimprovements.

Theorganizationalchangemanagementandknowledgemanagementpracticesshouldbeusedtoembedthechangesintheorganizationandensurethattheimprovementsandchangedbehavioursarenotatriskofreversion.Leadersandmanagersshouldhelptheirteamstotrulyintegratenewworkmethodsintotheirdailyworkandinstitutionalizenewbehaviours.

Iftheexpectedresultsoftheimprovementwerenotachieved,stakeholdersneedtobeinformedofthereasonsforthefailureoftheinitiative.Thisrequiresathoroughanalysisoftheimprovement,documentingandcommunicatingthelessonslearned.Thisshouldincludeadescriptionofwhatcanbedonedifferentlyinthenextiteration,basedontheexperiencegathered.Transparencyisimportantforfuture

efforts,regardlessoftheresultsofthecurrentiteration.

Ifthisstepisskipped,thenitislikelythatimprovementswillremainisolatedandindependentinitiatives,andanyprogressmademaybelostovertime.Itmayalsobedifficulttogetsupportforfutureimprovements,andembedcontinualimprovementintheorganization’sculture.

TheITILstory:Howdowekeepthemomentumgoing?

Craig:Nowthatwehavehitourtargetwewillmonitoranynewproductswebuytoensurethattheymeetourstandardsofbeingbiodegradable.Wewillalsobeonthelookoutforanyopportunitiestoreplaceourremainingnon-biodegradableproductswithmoreenvironmentallyfriendlyalternatives.

Su:We’vemadeagreatstartonaddingnewelectricvehiclestotheAxlefleet,buthaven’thitourtargetsyet.Nowweneedtoanalysewhathaspreventedusfromreachingourobjectives,recordwhatlessonswehavelearned,anddecidewhatcanbedonedifferentlyinthefuturetomaketheintroductionofelectriccarsmoreeffective.

Radhika:Wewillcontinuetobuyceramiccupsandenvironmentallyfriendlylightbulbsforouroffices.Wewillalsoconsiderfurtherwaystomakeourofficesgreener,andruncampaignswithstaffmemberstoencouragethemtobecomemoreenvironmentallyaware.

4.6.2 Continualimprovementandtheguidingprinciples

Followingthecontinualimprovementmodel,anorganizationmaysignificantlybenefitfromapplyingtheITILguidingprinciples.Alltheprinciplesareapplicableandrelevantateverystepofanimprovementinitiative.However,someoftheguidingprinciplesareespeciallyrelevanttospecificstepsofthecontinualimprovementmodel.Followingtheseprinciplesateverystepofanimprovementincreasesthechancesforsuccessofthestepsandtheoverallimprovementinitiative.Table4.2

outlinestowhichstepsofthecontinualimprovementmodeleachoftheguidingprinciplesisparticularlyrelevant,althoughallprinciplesareapplicabletoallstepsatsomelevel.

ContinualimprovementisnotonlyanintegralpartofLean,butalsoAgile(retrospectives),DevOps(continualexperimentationandlearning,andmastery),andotherframeworks.ItisoneofthekeycomponentsoftheITILSVS,providing,alongwiththeguidingprinciples,asolidplatformforsuccessfulservicemanagement.

Table4.2ThestepsofthecontinualimprovementmodellinkedtothemostrelevantITILguidingprinciples

Continualimprovementandthetheoryofconstraints

Inanincreasinglydynamicbusinessenvironment,anenterprise’sabilitytochangequickly,whetherinresponsetoexternalfactorsortodisruptthemarket,canmakethedifferencebetweenfailureandsuccess.

Whenplanningimprovements,itiscrucialtofocusontheworkthatisthehighestpriority.Accordingtothetheoryofconstraints(ToC),theweakestlinkinthevaluechaindeterminestheflowandthroughputofthesystem.Theweakestlinkmustbeelevatedasmuchaspossible(sometimesrevealinganewweakestlink),andalltheotherstepsinthevaluechainmustbeorganizedaroundit.

Theweakestlinkofavaluestreamcanbedeterminedwithvaluestreammapping.ThisisaLeanpracticethatexaminesthestream,quantifiesitswaste(forexample,adelay),andinsodoing,identifiesitsweakestlink.Iftheweakestlinkisthedevelopmentofinformationsystems,thentheapplicationofAgileprinciplesandpracticescanimprovethequalityof,andthespeedwithwhich,functionalityisdeveloped.ThisincludesthecriticalinteractionbetweenbusinessandITinwhichtherequiredfunctionalityisdefinedalongsidethenon-functionalrequirements.TheITIL4practicesthathelpwiththisinclude,amongothers,softwaredevelopmentandmanagement,businessanalysis,andrelationshipmanagement.

Iftheweakestlinkisthespeedandreliabilityofdeployment,thenusingDevOpsprinciples,technicalpracticesandtoolscanmakeasignificantdifference.TheITIL4practicesthatarerelevanttothisincludedeploymentmanagement,releasemanagement,andorganizationalchangemanagement.

Finally,iftheweakestlinkisthedeliveryandsupportofITservices,thenIToperationspracticesandtoolscanbeused,suchastheITIL4practicesofincidentmanagement,problemmanagement,servicedesk,andinfrastructureandplatformmanagement.

4.7PracticesApracticeisasetoforganizationalresourcesdesignedforperformingworkoraccomplishinganobjective.Theseresourcesaregroupedintothefourdimensionsofservicemanagement(seeChapter3).TheITILSVSincludesgeneralmanagement,servicemanagement,andtechnicalmanagementpractices,asdescribedinChapter5.

4.8Summary

TheITILSVSdescribeshowallthecomponentsandactivitiesoftheorganizationworktogetherasasystemtoenablevaluecreation.Eachorganization’sSVShasinterfaceswithotherorganizations,forminganecosystemthatfacilitatesvaluecreationfortheorganizations,theircustomers,andotherstakeholders.

TheITILSVSisapowerfulholisticconstructforthegovernanceandmanagementofmodernproductsandservicesthatenablesorganizationstoco-createvaluewithconsumers.TheSVSincludestheservicevaluechainactivitiessupportedbyuniversalandholisticpracticesthatallowtheorganizationtomanagedemandsofalltypes.Theserangefromstrategicdemandsthatenabletheorganizationtothriveinacompetitivelandscape,tooperationalrequestsforinformation,services,orsupport.Everyorganizationparticipatesinsomeformofthevaluechainactivitiesdescribedhere,evenwhenmanyofthemareperformedbysuppliersandpartners.ITIL4guidancecanbeadaptedandadoptedtofacilitatevalue,feedback,andcontinualimprovementacrosstheSVS.

CHAPTER5

ITILMANAGEMENTPRACTICES

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5ITILmanagementpracticesTheITILSVSincludes14generalmanagementpractices,17servicemanagementpractices,andthreetechnicalmanagementpractices,allofwhicharesubjecttothefourdimensionsofservicemanagement(seeChapter3).

KeymessageInITIL,amanagementpracticeisasetoforganizationalresourcesdesignedforperformingworkoraccomplishinganobjective.Theoriginsofthepracticesareasfollows:

Generalmanagementpracticeshavebeenadoptedandadaptedforservicemanagementfromgeneralbusinessmanagementdomains.ServicemanagementpracticeshavebeendevelopedinservicemanagementandITSMindustries.TechnicalmanagementpracticeshavebeenadaptedfromtechnologymanagementdomainsforservicemanagementpurposesbyexpandingorshiftingtheirfocusfromtechnologysolutionstoITservices.

The34ITILmanagementpracticesarelistedinTable5.1.

Table5.1TheITILmanagementpractices

Generalmanagementpractices Servicemanagementpractices TechnicalmanagementpracticesArchitecturemanagementContinualimprovementInformationsecuritymanagementKnowledgemanagementMeasurementandreportingOrganizationalchangemanagementPortfoliomanagementProjectmanagementRelationshipmanagementRiskmanagementServicefinancialmanagementStrategymanagementSuppliermanagementWorkforceandtalentmanagement

AvailabilitymanagementBusinessanalysisCapacityandperformancemanagementChangecontrolIncidentmanagementITassetmanagementMonitoringandeventmanagementProblemmanagementReleasemanagementServicecataloguemanagementServiceconfigurationmanagementServicecontinuitymanagementServicedesignServicedeskServicelevelmanagementServicerequestmanagementServicevalidationandtesting

DeploymentmanagementInfrastructureandplatformmanagementSoftwaredevelopmentandmanagement

ITSMinthemodernworld:high-velocityservicedelivery

Inbusinessinnovationanddifferentiation,speedtomarketisakeysuccessfactor.Ifanorganizationtakestoolongtoimplementanewbusinessidea,itislikelytobedonefasterbysomeoneelse.Becauseofthis,organizationshavestarteddemandingshortertimetomarketfromtheirITserviceproviders.

Forserviceprovidersthathavealwaysusedmoderntechnology,thishasnotbeenabigchallenge.Theyhaveadoptedmodernwaysofscalingtheirresourcesandestablishedappropriatepracticesforprojectandproductmanagement,testing,integration,deployment,release,delivery,andsupportofITservices.ThesepracticeshavebeendocumentedandhavetriggeredthedevelopmentofnewITmanagementmovementsandpractices,suchasDevOps.However,fororganizationsbearingalegacyofoldITarchitecturesandITmanagementpracticesfocusedoncontrolandcostefficiency,thenewbusinessdemandhasintroducedagreaterchallenge.

Thehigh-velocityservicedeliveryparadigmincludes:

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focusonfastdeliveryofnewandchangedITservicestouserscontinualanalysisoffeedbackprovidedforITservicesateverystageoftheirlifecycleagilityinprocessingthefeedback,givingrisetocontinualandfastimprovementofITservicesanend-to-endapproachtotheservicelifecycle,fromideation,throughcreationanddelivery,toconsumptionofservicesintegrationofproductandservicemanagementpracticesdigitalizationofITinfrastructureandadoptionofcloudcomputingextensiveautomationoftheservicedeliverychain.

High-velocityservicedeliveryinfluencesallthepracticesofaserviceprovider,includinggeneralmanagementpractices,servicemanagementpractices,andtechnicalmanagementpractices.Forexample,anorganizationaimingtodeliverandimproveitsservicesfasterthanothersneedstoconsider:

AgileprojectmanagementAgilefinancialmanagementproduct-basedorganizationalstructureadaptiveriskmanagement,andauditandcompliancemanagementflexiblearchitecturemanagementspecificarchitecturetechnologysolutions,suchasmicroservicescomplexpartnerandsupplierenvironmentscontinualmonitoringoftechnologyinnovationsandexperimentinghuman-centreddesigninfrastructuremanagementfocusedoncloudcomputing.

Evenifonlysomeoftheservicesinaprovider’sportfolioneedhigh-velocitydelivery,organizationalchangesofasignificantscale

arerequiredtoenablethis,especiallyiftheorganizationhasalegacyoflow-velocityservices,practices,andhabits.Moreover,bi-modalIT,wherehigh-velocityservicemanagementiscombinedwithtraditionalpractices,introducesevenmorecomplexityandgreaterchallenges.However,formanymodernorganizations,high-velocityservicedeliveryisnolongeranoptionbutanecessity,andtheymustimprovetheirservicemanagementpracticestorespondtothischallenge.

5.1Generalmanagementpractices

5.1.1 Architecturemanagement

KeymessageThepurposeofthearchitecturemanagementpracticeistoprovideanunderstandingofallthedifferentelementsthatmakeupanorganizationandhowthoseelementsinterrelate,enablingtheorganizationtoeffectivelyachieveitscurrentandfutureobjectives.Itprovidestheprinciples,standards,andtoolsthatenableanorganizationtomanagecomplexchangeinastructuredandAgileway.

Justasthemodernorganization’senvironmentandecosystemhavebecomemorecomplex,sohaveitschallenges.Theseincludenotonlyhowtoincreaseefficiencyandautomation,butalsohowtobetter

managethecomplexityoftheenvironmentandhowtoachieveorganizationalagilityandresilience.Withoutthevisibilityandcoordinationmadepossiblebyaproperarchitecturemanagementpractice,anorganizationcanbecomealabyrinthofthird-partycontracts,variantprocessesacrossdifferentorganizationalsilos,variousproductsandservicesthathavebeenneedlesslycustomizedfordifferentcustomers,andalegacyinfrastructure.Theresultisacomplexlandscapewhereanychangebecomesfarmoredifficulttoimplementandintroducesamuchhigherrisk.

Acompletearchitecturemanagementpracticeshouldaddressallarchitecturedomains:business,service,information,technology,andenvironment.Forasmallerandlesscomplexorganization,thearchitectcandevelopasingleintegratedarchitecture.

Architecturetypes

Businessarchitecture

Thebusinessarchitectureallowstheorganizationtolookatitscapabilitiesintermsofhowtheyalignwithallthedetailedactivitiesrequiredtocreatevaluefortheorganizationanditscustomers.Thesearethencomparedwiththeorganization’sstrategyandagapanalysisofthetargetstateagainstcurrentcapabilitiesisperformed.Identifiedgapsbetweenthebaselineandtargetstateareprioritizedandthesecapabilitygapsareaddressedincrementally.A‘roadmap’describesthetransformationfromcurrenttofuturestatetoachievetheorganization’sstrategy.

Servicearchitecture

Servicearchitecturegivestheorganizationaviewofalltheservicesitprovides,includinginteractionsbetweentheservicesandservicemodelsthatdescribethestructure(howtheservicecomponentsfittogether)andthedynamics(activities,flowofresources,andinteractions)ofeachservice.Aservicemodelcan

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beusedasatemplateorblueprintformultipleservices.

Informationsystemsarchitecture,includingdataandapplicationsarchitectures

Theinformationarchitecturedescribesthelogicalandphysicaldataassetsoftheorganizationandthedatamanagementresources.Itshowshowtheinformationresourcesaremanagedandsharedforthebenefitoftheorganization.

Informationisavaluableassetfortheorganization,withactualandmeasurablevalue.Informationisthebasisfordecision-making,soitmustalwaysbecomplete,accurate,andaccessibletothosewhoareauthorizedtoaccessit.Informationsystemsmustthereforebedesignedandmanagedwiththeseconceptsinmind.

Technologyarchitecture

Thetechnologyarchitecturedefinesthesoftwareandhardwareinfrastructureneededtosupporttheportfolioofproductsandservices.

Environmentalarchitecture

Theenvironmentalarchitecturedescribestheexternalfactorsimpactingtheorganizationandthedriversforchange,aswellasallaspects,types,andlevelsofenvironmentalcontrolandtheirmanagement.Theenvironmentincludesdevelopmental,technological,business,operational,organizational,political,economic,legal,regulatory,ecological,andsocialinfluences.

Figure5.1showsthecontributionofarchitecturemanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities;however,itismostinstrumentalintheplan,improve,anddesignandtransitionvaluechainactivities:

PlanThearchitecturemanagementpracticeisresponsiblefor

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developingandmaintainingareferencearchitecturethatdescribesthecurrentandtargetarchitecturesforthebusiness,information,data,application,technology,andenvironmentperspectives.Thisisusedasabasisforalltheplanvaluechainactivity.ImproveManyopportunitiesforimprovementareidentifiedthroughreviewofthebusiness,service,information,technical,andenvironmentarchitectures.EngageThearchitecturemanagementpracticefacilitatestheabilitytounderstandtheorganization’sreadinesstoaddressneworunder-servedmarketsandawidervarietyofproductsandservices,andmorequicklyrespondtochangingcircumstances.Thearchitecturemanagementpracticeisresponsibleforassessingtheorganization’scapabilitiesintermsofhowtheyalignwithallthedetailedactivitiesrequiredtoco-createvaluefortheorganizationanditscustomers.DesignandtransitionOnceaneworchangedproductorserviceisapprovedtobedeveloped,thearchitecture,design,andbuildteamswillcontinuallyevaluatewhethertheproduct/servicemeetstheinvestmentobjectives.Thearchitecturemanagementpracticeisresponsiblefortheservicearchitecture,whichdescribesthestructure(howtheservicecomponentsfittogether)andthedynamics(activities,flowofresources,andinteractions)oftheservice.Aservicemodelcanbeusedasatemplateorblueprintformultipleservicesandisessentialtothedesignandtransitionactivity.Obtain/buildThereferencearchitectures(business,service,information,technical,andenvironmental)facilitateidentificationofwhatproducts,services,orservicecomponentsneedtobeobtainedorbuilt.DeliverandsupportThereferencearchitecturesareusedcontinuallyaspartoftheoperation,restoration,andmaintenanceofproductsandservices.

Figure5.1Heatmapofthecontributionofarchitecturemanagementtovaluechainactivities

5.1.2 Continualimprovement

KeymessageThepurposeofthecontinualimprovementpracticeistoaligntheorganization’spracticesandserviceswithchangingbusinessneedsthroughtheongoingimprovementofproducts,services,andpractices,oranyelementinvolvedinthemanagementofproductsandservices.

Includedinthescopeofthecontinualimprovementpracticeisthe

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developmentofimprovement-relatedmethodsandtechniquesandthepropagationofacontinualimprovementcultureacrosstheorganization,inalignmentwiththeorganization’soverallstrategy.Thecommitmenttoandpracticeofcontinualimprovementmustbeembeddedintoeveryfibreoftheorganization.Ifitisnot,thereisarealriskthatdailyoperationalconcernsandmajorprojectworkwilleclipsecontinualimprovementefforts.

Keyactivitiesthatarepartofcontinualimprovementpracticesinclude:

encouragingcontinualimprovementacrosstheorganizationsecuringtimeandbudgetforcontinualimprovementidentifyingandloggingimprovementopportunitiesassessingandprioritizingimprovementopportunitiesmakingbusinesscasesforimprovementactionplanningandimplementingimprovementsmeasuringandevaluatingimprovementresultscoordinatingimprovementactivitiesacrosstheorganization.

Therearemanymethods,models,andtechniquesthatcanbeemployedformakingimprovements.Differenttypesofimprovementmaycallfordifferentimprovementmethods.Forexample,someimprovementsmaybebestorganizedintoamulti-phaseproject,whileothersmaybemoreappropriateasasinglequickeffort.

TheITILSVSincludesthecontinualimprovementmodel(seeFigure4.3),whichcanbeappliedtoanytypeofimprovement,fromhigh-levelorganizationalchangestoindividualservicesandconfigurationitems(CIs).Themodelisdescribedinsection4.6.

Whenassessingthecurrentstate,therearemanytechniquesthatcanbeemployed,suchasastrength,weakness,opportunity,andthreat(SWOT)analysis,abalancedscorecardreview,internalandexternalassessmentsandaudits,orperhapsevenacombinationofseveraltechniques.Organizationsshoulddevelopcompetenciesinmethodologiesandtechniquesthatwillmeettheirneeds.

Approachestocontinualimprovementcanbefoundinmanyplaces.Leanmethodsprovideperspectivesontheeliminationofwaste.Agilemethodsfocusonmakingimprovementsincrementallyatacadence.DevOpsmethodsworkholisticallyandensurethatimprovementsarenotonlydesignedwell,butappliedeffectively.Althoughthereareanumberofmethodsavailable,organizationsshouldnottrytoformallycommittotoomanydifferentapproaches.Itisagoodideatoselectafewkeymethodsthatareappropriatetothetypesofimprovementtheorganizationtypicallyhandlesandtocultivatethosemethods.Inthisway,teamswillhaveasharedunderstandingofhowtoworktogetheronimprovementstofacilitateagreateramountofchangeataquickerrate.

Thisdoesnotmean,however,thattheorganizationshouldnottrynewapproachesorallowforinnovation.Thoseintheorganizationwithskillsinalternativemethodsshouldbeencouragedtoapplythemwhenitmakessense,andifthiseffortissuccessful,thealternativemethodmaybeaddedtotheorganization’srepertoire.Oldermethodsmaygraduallyberetiredinfavourofnewonesifbetterresultsareachieved.

Continualimprovementiseveryone’sresponsibility.Althoughtheremaybeagroupofstaffmemberswhofocusonthisworkfull-time,itiscriticalthateveryoneintheorganizationunderstandsthatactiveparticipationincontinualimprovementactivitiesisacorepartoftheirjob.Toensurethatthisismorethanagoodintention,itiswisetoincludecontributiontocontinualimprovementinalljobdescriptionsandeveryemployee’sobjectives,aswellasincontractswithexternalsuppliersandcontractors.

Thehighestlevelsoftheorganizationneedtotakeresponsibilityforembeddingcontinualimprovementintothewaythatpeoplethinkandwork.Withouttheirleadershipandvisiblecommitmenttocontinualimprovement,attitudes,behaviour,andculturewillnotevolvetoapointwhereimprovementsareconsideredineverythingthatisdone,atalllevels.

Trainingandotherenablementassistanceshouldbeprovidedtostaffmemberstohelpthemfeelpreparedtocontributetocontinualimprovement.Althougheveryoneshouldcontributeinsomeway,thereshouldatleastbeasmallteamdedicatedfull-timetoleadingcontinual

improvementeffortsandadvocatingthepracticeacrosstheorganization.Thisteamcanserveascoordinators,guides,andmentors,helpingothersintheorganizationtodeveloptheskillstheyneedandnavigatinganydifficultiesthatmaybeencountered.

Whenthird-partysuppliersformpartoftheservicelandscape,theyshouldalsobepartoftheimprovementeffort.Whencontractingforasupplier’sservice,thecontractshouldincludedetailsofhowtheywillmeasure,reporton,andimprovetheirservicesoverthelifeofthecontract.Ifdatawillberequiredfromsupplierstooperateinternalimprovements,thatshouldbespecifiedinthecontractaswell.Accuratedata,carefullyanalysedandunderstood,isthefoundationoffact-baseddecision-makingforimprovement.Thecontinualimprovementpracticeshouldbesupportedbyrelevantdatasourcesanddataanalysistoensurethateachpotentialimprovementissufficientlyunderstoodandprioritized.

Totrackandmanageimprovementideasfromidentificationthroughtofinalaction,organizationsuseadatabaseorstructureddocumentcalledacontinualimprovementregister(CIR).TherecanbemorethanoneCIRinanorganization,asmultipleCIRscanbemaintainedonindividual,team,departmental,businessunit,andorganizationallevels.SomeorganizationsmaintainasinglemasterCIR,butsegmenthowitisusedandbywhomatamoregranularlevel.

Improvementideascanalsoinitiallybecapturedinotherplacesandthroughotherpractices,suchasduringprojectexecutionorsoftwaredevelopmentactivities.Inthiscase,itisimportanttodocumentforattentiontheimprovementideasthatcomeupaspartofongoingcontinualimprovement.Asnewideasaredocumented,CIRsareusedtoconstantlyreprioritizeimprovementopportunities.TheuseofCIRsprovidesadditionalvaluebecausetheyhelptomakethingsvisible.Thisisnotlimitedtowhatiscurrentlybeingdone,butalsotowhatisalreadycompleteandwhathasbeensetasideforfurtherconsiderationatalaterdate.

ItdoesnotmatterexactlyhowtheinformationinaCIRisstructured,orwhatthecollectionsofimprovementideasarecalledinanygiven

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organization.Whatisimportantisthatimprovementideasarecaptured,documented,assessed,prioritized,andappropriatelyactedupontoensurethattheorganizationanditsservicesarealwaysbeingimproved.

ThecontinualimprovementpracticeisintegraltothedevelopmentandmaintenanceofeveryotherpracticeaswellastothecompletelifecycleofallservicesandindeedtheSVSitself.Thatsaid,therearesomepracticesthatmakeaspecialcontributiontocontinualimprovement.Forexample,theorganization’sproblemmanagementpracticecanuncoverissuesthatwillbemanagedthroughcontinualimprovement.Thechangesinitiatedthroughcontinualimprovementmayfailwithoutthecriticalcontributionsoforganizationalchangemanagement.Andmanyimprovementinitiativeswilluseprojectmanagementpracticestoorganizeandmanagetheirexecution.

Figure5.2Heatmapofthecontributionofcontinualimprovementtovaluechainactivities

Figure5.2showsthecontributionofcontinualimprovementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanThecontinualimprovementpracticeisappliedtoplanningactivities,methods,andtechniquestomakesuretheyarerelevantto

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theorganization’scurrentobjectivesandcontext.ImproveThecontinualimprovementpracticeiskeytothisvaluechainactivity.Itstructuresresourcesandactivities,enablingimprovementatalllevelsoftheorganizationandtheSVS.Engage,designandtransition,obtain/build,anddeliverandsupportEachofthesevaluechainactivitiesissubjecttocontinualimprovement,andthecontinualimprovementpracticeisappliedtoallofthem.

5.1.3 Informationsecuritymanagement

KeymessageThepurposeoftheinformationsecuritymanagementpracticeistoprotecttheinformationneededbytheorganizationtoconductitsbusiness.Thisincludesunderstandingandmanagingriskstotheconfidentiality,integrity,andavailabilityofinformation,aswellasotheraspectsofinformationsecuritysuchasauthentication(ensuringsomeoneiswhotheyclaimtobe)andnon-repudiation(ensuringthatsomeonecan’tdenythattheytookanaction).

Therequiredsecurityisestablishedbymeansofpolicies,processes,behaviours,riskmanagement,andcontrols,whichmustmaintainabalancebetween:

PreventionEnsuringthatsecurityincidentsdon’toccurDetectionRapidlyandreliablydetectingincidentsthatcan’tbeprevented

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CorrectionRecoveringfromincidentsaftertheyaredetected.

Itisalsoimportanttoachieveabalancebetweenprotectingtheorganizationfromharmandallowingittoinnovate.Informationsecuritycontrolsthataretoorestrictivemaydomoreharmthangood,ormaybecircumventedbypeopletryingtodoworkmoreeasily.Informationsecuritycontrolsshouldconsiderallaspectsoftheorganizationandalignwithitsriskappetite.

Informationsecuritymanagementinteractswitheveryotherpractice.Itcreatescontrolsthateachpracticemustconsiderwhenplanninghowworkwillbedone.Italsodependsonotherpracticestohelpprotectinformation.

Informationsecuritymanagementmustbedrivenfromthemostseniorlevelintheorganization,basedonclearlyunderstoodgovernancerequirementsandorganizationalpolicies.Mostorganizationshaveadedicatedinformationsecurityteam,whichcarriesoutriskassessmentsanddefinespolicies,procedures,andcontrols.Inhigh-velocityenvironments,informationsecurityisintegratedasmuchaspossibleintothedailyworkofdevelopmentandoperations,shiftingtherelianceoncontrolofprocesstowardsverificationofpreconditionssuchasexpertiseandintegrity.

Informationsecurityiscriticallydependentonthebehaviourofpeoplethroughouttheorganization.Staffwhohavebeentrainedwellandpayattentiontoinformationsecuritypoliciesandothercontrolscanhelptodetect,prevent,andcorrectinformationsecurityincidents.Poorlytrainedorinsufficientlymotivatedstaffcanbeamajorvulnerability.

Manyprocessesandproceduresarerequiredtosupportinformationsecuritymanagement.Theseinclude:

aninformationsecurityincidentmanagementprocessariskmanagementprocessacontrolreviewandauditprocessanidentityandaccessmanagementprocess

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eventmanagementproceduresforpenetrationtesting,vulnerabilityscanning,etc.proceduresformanaginginformationsecurityrelatedchanges,suchasfirewallconfigurationchanges.

Figure5.3showsthecontributionofinformationsecuritymanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanInformationsecuritymustbeconsideredinallplanningactivityandmustbebuiltintoeverypracticeandservice.ImproveInformationsecuritymustbeconsideredinallimprovementvaluechainactivitytoensurethatvulnerabilitiesarenotintroducedwhenmakingimprovements.EngageInformationsecurityrequirementsfornewandchangedservicesmustbeunderstoodandcaptured.Alllevelsofengagement,fromoperationaltostrategic,mustsupportinformationsecurityandencouragethebehavioursneeded.Allstakeholdersmustcontributetoinformationsecurity,includingcustomers,users,suppliers,etc.

Figure5.3Heatmapofthecontributionofinformationsecurity

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managementtovaluechainactivities

DesignandtransitionInformationsecuritymustbeconsideredthroughoutthisvaluechainactivity,witheffectivecontrolsbeingdesignedandtransitionedintooperation.Thedesignandtransitionofallservicesmustconsiderinformationsecurityaspectsaswellasallotherutilityandwarrantyrequirements.Obtain/buildInformationsecuritymustbebuiltintoallcomponents,basedontheriskanalysis,policies,procedures,andcontrolsdefinedbyinformationsecuritymanagement.Thisapplieswhetherthecomponentsarebuiltinternallyorprocuredfromsuppliers.DeliverandsupportDetectionandcorrectionofinformationsecurityincidentsmustbeanintegralpartofthisvaluechainactivity.

TheITILstory:Axle’sinformationsecuritymanagement

Su:Ourtravelappstoresalotofsensitivedata,includingcustomerandcreditcarddetails.Ourroleistomakesurethisdataissecure.

Marco:Someofthedataisalsostoredandprocessedbyourpartners,whohelpedustodeveloptheappandcontinuetosupporttheapponourbehalf.

Radhika:Weusethedatatoanalysecustomerdemandandtheuseofourfleet,tracktheconditionsofourcars,andanalyseourcustomers’preferencestocreatetailoredofferings.

Su:Ourconsumersneedtoknowthattheirdataissafeandwillnotbemisused.Weregularlyundergoexternalauditstoprovideassuranceforourstakeholdersandtoconfirmcompliancewithnationalandinternationalregulations.

Henri:AsCIO,ImakesureeveryonewhoworksinandwithAxleisawareoftheimportanceofinformationsecurity,andfollowsAxlepoliciesandproceduresconcerninginformationsecuritymanagement.

5.1.4 Knowledgemanagement

KeymessageThepurposeoftheknowledgemanagementpracticeistomaintainandimprovetheeffective,efficient,andconvenientuseofinformationandknowledgeacrosstheorganization.

Knowledgeisoneofthemostvaluableassetsofanorganization.Theknowledgemanagementpracticeprovidesastructuredapproachtodefining,building,re-using,andsharingknowledge(i.e.information,skills,practices,solutions,andproblems)invariousforms.Asmethodsofcapturingandsharingknowledgemovemoretowardsdigitalsolutions,thepracticeofknowledgemanagementbecomesevenmorevaluable.

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Figure5.4Heatmapofthecontributionofknowledgemanagementtovaluechainactivities

Itisimportanttounderstandthat‘knowledge’isnotsimplyinformation.Knowledgeistheuseofinformationinaparticularcontext.Thisneedstobeunderstoodwithboththeuseroftheknowledgeandtherelevantsituationinmind.Forexample,informationpresentedintheformofa300-pagemanualisnotusefulforaservicedeskanalystwhoneedstofindafastsolution.Abetterexampleofknowledgethatisfitforpurposemightbeasimplifiedsetofinstructionsorreferencepointsthatallowtheanalysttofindtherelevantcontentquickly.

Knowledgemanagementaimstoensurethatstakeholdersgettherightinformation,intheproperformat,attherightlevel,andatthecorrecttime,accordingtotheiraccesslevelandotherrelevantpolicies.Thisrequiresaprocedurefortheacquisitionofknowledge,includingthedevelopment,capturing,andharvestingofunstructuredknowledge,whetheritisformalanddocumentedorinformalandtacitknowledge.

Figure5.4showsthecontributionofknowledgemanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanKnowledgemanagementhelpstheorganizationtomakesoundportfoliodecisionsandtodefineitsstrategyandotherplans,andsupportsfinancialmanagement.ImproveThisvaluechainactivityisbasedonanunderstandingofthecurrentsituationandtrends,supportedbyhistoricalinformation.Knowledgemanagementprovidescontextfortheassessmentofachievementsandimprovementplanning.EngageRelationshipsatalllevels,fromstrategictooperational,arebasedonanunderstandingofthecontextandhistoryofthoserelationships.Knowledgemanagementhelpstobetterunderstandstakeholders.DesignandtransitionAswiththeobtain/buildvaluechainactivity,knowledgeofthesolutionsandtechnologiesavailable,andthere-useofinformation,canmakethisvaluechainactivitymoreeffective.

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Obtain/buildTheefficiencyofthisvaluechainactivitycanbesignificantlyimprovedwithsufficientknowledgeofthesolutionsandtechnologiesavailable,andthroughthere-useofinformation.DeliverandsupportOngoingvaluechainactivityinthisareabenefitsfromknowledgemanagementthroughre-useofsolutionsinstandardsituationsandabetterunderstandingofthecontextofnon-standardsituationsthatrequireanalysis.

TheITILstory:Axle’sknowledgemanagementRadhika:Becausewe’reusinganAgiledeploymentforourappdevelopment,weneedtomakesureourstaffhaveup-to-dateknowledgeonnewfeatures.Justasimportantly,knowledgeneedstoberetiredwhenit’soutofdate.Forexample,werecentlydiscoveredtheprintingfeatureofourappwasnotbeingusedbyourcustomers.Weremovedprintingandreplaceditwithanewfunctiontosendinformationfromtheappbyemailinstead.Aspartofreleasemanagement,we’vealreadyprovidedupdatedknowledgearticlestoourservicedesktoreflectthechange.

Su:Knowledgemanagementismorethanjustdatacollection.AtAxle,wefocusonopencommunicationandthesharingofknowledge.Topromotecollaborationandvisibility,wemakesurethatinformation,problems,andconcernsareopenlysharedbetweenourteamsandbranches.

Henri:Butwealsoneedtofollowinformationsecuritypoliciesandmakesurethatopennessdoesnotmeancarelessness.

Marco:We’retestingnewsystemsbasedonAItoimproveourforecastinganddecision-makingatalllevels,fromstrategicplanningtousersupport.

5.1.5 Measurementandreporting

KeymessageThepurposeofthemeasurementandreportingpracticeistosupportgooddecision-makingandcontinualimprovementbydecreasingthelevelsofuncertainty.Thisisachievedthroughthecollectionofrelevantdataonvariousmanagedobjectsandthevalidassessmentofthisdatainanappropriatecontext.Managedobjectsinclude,butarenotlimitedto,productsandservices,practicesandvaluechainactivities,teamsandindividuals,suppliersandpartners,andtheorganizationasawhole.

Manyofthesemanagedobjectsareconnected,andsoaretheirrespectivemetricsandindicators.Forexample,tosetclearobjectivesformeasurementandreporting,thereisaneedtounderstandorganizationalgoals.Thesecanbebasedonanumberofareas:profit,growth,competitiveadvantage,customerretention,operational/publicservice,etc.(seethefocusonvalueguidingprincipleinsection4.3.1).Insuchcases,itisimportanttoestablishaclearrelationshipbetweenhigh-levelandsubordinategoalsandtheobjectivesthatrelatetothem.

Forthesetgoals,operationalcriticalsuccessfactors(CSFs)canbedefined.BasedontheseCSFs,asetofrelatedkeyperformanceindicators(KPIs)canthenbeagreedupon,againstwhichsuccesscanbemeasured.

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Criticalsuccessfactor(CSF)Anecessarypreconditionfortheachievementofintendedresults.Keyperformanceindicator(KPI)Animportantmetricusedtoevaluatethesuccessinmeetinganobjective.

5.1.5.1KPIsandbehaviour

KPIsforindividualscanworkasacompetitivemotivator,andthiswilldrivepositiveresultsiftheKPIsaresettomeetclearbusinessgoals.However,target-settingforindividualscanalsohaveanegativeside,drivinginappropriateorunsuitablebehaviours.ThistypicallyhappensifthereistoomuchfocusplacedonindividualKPIs.Forexample,servicedeskstaffmightbeheavilydriventokeepcallsshort,butthiscannegativelyimpactoncustomersatisfaction,andevenresolutiontimes,ifissuesarenotproperlydealtwith.

OperationalKPIsshouldideallybesetforteamsratherthanfocusingtoocloselyonindividuals.Thismeansthattherecanbesomeflexibilityinthetargetsandbehavioursallowedbytheteamasawhole.Individualswill,ofcourse,stillneedsomespecificguidelinesfortheirperformance,butthisshouldbeclearlywithinthegoalsoftheteamandorganization,andalltargetsshouldbesetinthecontextofprovidingvaluefortheorganization.

5.1.5.2Reporting

Datacollectedasmetricsisusuallypresentedintheformofreportsordashboards.Itisimportanttorememberthatreportsareintendedtosupportgooddecision-making,sotheircontentshouldberelevanttotherecipientsoftheinformationandrelatedtotherequiredtopic.Reportsanddashboardsshouldmakeiteasyfortherecipienttoseewhatneedstobedoneandthentakeaction.Assuch,agoodreportordashboardshouldanswertwomainquestions:howfararewefromourtargetsandwhatbottleneckspreventusfromachievingbetterresults?

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Figure5.5showsthecontributionofmeasurementandreportingtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanMeasurementandreportingenablesstrategyandserviceportfoliodecisionsbyprovidingdetailsoncurrentperformanceofproductsandservices.ImprovePerformanceisconstantlymonitoredandevaluatedtosupportcontinualimprovement,alignment,andvaluecreation.EngageEngagementwithstakeholdersisbasedoncorrect,up-to-date,andsufficientinformationprovidedintheformofdashboardsandreports.DesignandtransitionMeasurementandreportingprovidesinformationformanagementdecisionsateverystagebeforegoinglive.Obtain/buildThepracticeensurestransparencyofalldevelopmentandprocurementactivities,enablingeffectivemanagementandintegrationwithallothervaluechainactivities.DeliverandsupportOngoingmanagementofproductsandservicesisbasedoncorrect,up-to-date,andsufficientperformanceinformation.

Figure5.5Heatmapofthecontributionofmeasurementandreportingtovaluechainactivities

5.1.6 Organizationalchangemanagement

KeymessageThepurposeoftheorganizationalchangemanagementpracticeistoensurethatchangesinanorganizationaresmoothlyandsuccessfullyimplemented,andthatlastingbenefitsareachievedbymanagingthehumanaspectsofthechanges.

Improvementsinvariablyrequirepeopletochangethewaytheywork,theirbehaviour,andsometimestheirrole.Regardlessofwhetherthechangeistoapractice,thestructureoftheorganization,relatedtotechnology,oristheintroductionofaneworchangedservice,peopleareessentialtothesuccessofthechange.Theorganizationalchangemanagementpracticeaimstoensurethateveryoneaffectedbythechangeacceptsandsupportsit.Thisisachievedbyremovingorreducingresistancetothechange,eliminatingoraddressingadverseimpacts,andprovidingtraining,awareness,andothermeansofensuringasuccessfultransitiontothechangedstate.

OrganizationalchangemanagementcontributestoeverypartoftheSVS,whereverthecooperation,participation,andenthusiasmofthepeopleinvolvedarerequired.Foranimprovementinitiativetobesuccessful,nomatterwhatthelevelorscopeofthechangeis,therearecertainelementsthatareessentialtoaddressingthehumanfactor.Organizationalchangemanagementmustensurethatthefollowingare

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establishedandmaintainedthroughoutthechange:ClearandrelevantobjectivesTogainsupport,theobjectivesofthechangemustbeclearandmakesensetothestakeholders,basedonthecontextoftheorganization.Thechangemustbeseentobeofrealvalue.StrongandcommittedleadershipItiscriticalthatthechangehastheactivesupportofsponsorsandday-to-dayleaderswithintheorganization.Asponsorisamanagerorbusinessleaderwhowilladvocate,andcanauthorize,thechange.Leadersshouldvisiblysupportandconsistentlycommunicatetheircommitmenttothechange.WillingandpreparedparticipantsTobesuccessful,achangeneedstobemadebywillingparticipants.Inpart,thiswillingnesswillcomefromtheparticipantsbeingconvincedoftheimportanceofthechange.Inaddition,themorepreparedparticipantsfeeltheyaretomakethechangesaskedofthemthroughrelevanttraining,awareness,andregularcommunications,thekeenertheywillbetogoforward.SustainedimprovementManychangesfailbecause,aftersometimehaspassed,peoplereverttooldwaysofworking.Organizationalchangemanagementseekstocontinuallyreinforcethevalueofthechangethroughregularcommunication,addressinganyimpactsandconsequencesofthechange,andthesupportofsponsorsandleaders.Thecommunicationofvaluewillbestrongerwhenmetricsareusedtovalidatethemessage.

5.1.6.1Activitiesoforganizationalchangemanagement

ThekeyactivitiesofeffectiveorganizationalchangemanagementareoutlinedinTable5.2.

Table5.2Organizationalchangemanagementactivities

Activity HelpstodeliverCreationofasenseofurgency Clearandrelevantobjectives,willingparticipantsStakeholdermanagement StrongandcommittedparticipantsSponsormanagement Strongandcommittedleadership

Communication WillingandpreparedparticipantsEmpowerment PreparedparticipantsResistancemanagement WillingparticipantsReinforcement Sustainedimprovement

Theactivitiesoforganizationalchangemanagementinteractwiththoseofmanyotherpractices,particularlycontinualimprovementandprojectmanagement.Otherpracticeswithimportantlinkstoorganizationalchangemanagementincludemeasurementandreporting,workforceandtalentmanagement,andrelationshipmanagement.

Thevariousaudiencesaffectedbythechangemustbeidentifiedandtheircharacteristicsdefined.Notallpeoplewillrespondtothesamemessagingorbemotivatedbythesamedrivers.Itisparticularlyimportantinorganizationalchangemanagementtotakeculturaldifferencesintoconsideration,whethertheyarebasedongeography,nationality,corporatehistory,orotherfactors.

Unlikeotherpractices,accountabilityfororganizationalchangemanagementcannotbetransferredtoanexternalsupplier.Someonewithintheorganizationitselfmustbeaccountablefororganizationalchangemanagement,eveniftheexecutionofsomeormostoftheorganizationalchangemanagementactivitiesisdelegatedtootherpeopleorgroupsincludingsuppliers.Externalexpertisemay,however,besoughttosupplementtheorganizationalchangemanagementcapabilitiesofanorganization.Sometimesorganizationsstrugglewiththekeyskillsetsneededfororganizationalchangemanagementandcanbenefitfromthesupportandguidanceofanexternalsupplier.Evenifexternalhelpisused,theoverallleadershipsupportmuststillcomefromtheorganizationitself.

Figure5.6showsthecontributionoforganizationalchangemanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

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Figure5.6Heatmapofthecontributionoforganizationalchangemanagementtovaluechainactivities

PlanDecisionsregardingchangeattheportfoliolevelcausetheinitiationoforganizationalchangemanagementtosupportanapprovedinitiative.ImproveWithoutproperorganizationalchangemanagement,improvementcannotbesustained.EngageTheorganizationalchangemanagementpracticeactivelyengageswithstakeholdersatallstagesofachange.DesignandtransitionOrganizationalchangemanagementisessentialforthedeploymentofanewserviceorasignificantchangetoanexistingone.Obtain/buildOrganizationalchangemanagementensuresengagementandcooperationwithinandacrossprojects.DeliverandsupportOrganizationalchangemanagementcontinuesduringliveoperationsandsupporttoensurethatthechangehasbeenadoptedandissustained.

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5.1.7 Portfoliomanagement

KeymessageThepurposeoftheportfoliomanagementpracticeistoensurethattheorganizationhastherightmixofprogrammes,projects,products,andservicestoexecutetheorganization’sstrategywithinitsfundingandresourceconstraints.

Portfoliomanagementisacoordinatedcollectionofstrategicdecisionsthattogetherenablethemosteffectivebalanceoforganizationalchangeandbusinessasusual.Portfoliomanagementachievesthisthroughthefollowingactivities:

Developingandapplyingasystematicframeworktodefineanddeliveraportfolioofproducts,services,programmes,andprojectsinsupportofspecificstrategiesandobjectives.Clearlydefiningproductsandservicesandlinkingthemtotheachievementofagreedoutcomes,thusensuringthatallactivitiesintheservicevaluechainarealignedwithvaluedefinitionandtherelatedCSFs.Evaluatingandprioritizingincomingproduct,service,orprojectproposalsandotherchangeinitiatives,basedonresourceconstraints,existingcommitments,andtheorganization’sstrategyandobjectives.Implementingastrategicinvestmentappraisalanddecision-makingprocessbasedonanunderstandingofthevalue,costs,risks,resourceconstraints,inter-dependencies,andimpactonexistingbusinessactivities.

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Analysingandtrackinginvestmentsbasedonthevalueofproducts,services,programmes,andprojectstotheorganizationanditscustomers.Monitoringtheperformanceoftheoverallportfolioandproposingadjustmentsinresponsetoanychangesinorganizationalpriorities.Reviewingtheportfoliosintermsofprogress,outcomes,costs,risk,benefits,andstrategiccontribution.

Portfoliomanagementplaysanimportantroleinhowresourcesareallocated,deployed,andmanagedacrosstheorganization.ThisfacilitatesthealignmentofresourcesandcapabilitieswithcustomeroutcomesaspartofthestrategyexecutionwithintheITILSVS.

Portfoliomanagementencompassesanumberofdifferentportfolios,includingthefollowing:

Product/serviceportfolioTheproduct/serviceportfolioisthecompletesetofproductsand/orservicesthataremanagedbytheorganization,anditrepresentstheorganization’scommitmentsandinvestmentsacrossallitscustomersandmarketspaces.Italsorepresentscurrentcontractualcommitments,newproductandservicedevelopment,andongoingimprovementplansinitiatedasaresultofcontinualimprovement.Theportfoliomayalsoincludethird-partyproductsandservices,whichareanintegralpartofofferingstointernalandexternalcustomers.ProjectportfolioTheprojectportfolioisusedtomanageandcoordinateprojectsthathavebeenauthorized,ensuringobjectivesaremetwithintimeandcostconstraintsandtospecification.Theprojectportfolioalsoensuresthatprojectsarenotduplicated,thattheystaywithintheagreedscope,andthatresourcesareavailableforeachproject.Itisthetoolusedtomanagesingleprojectsaswellaslarge-scaleprogrammesconsistingofmultipleprojects.CustomerportfolioThecustomerportfolioismaintainedbytheorganization’srelationshipmanagementpractice,whichprovidesimportantinputtotheportfoliomanagementpractice.Thecustomerportfolioisusedtorecordalltheorganization’scustomersandistherelationshipmanager’sviewoftheinternalandexternalcustomers

whoreceiveproductsand/orservicesfromtheorganization.Portfoliomanagementusesthecustomerportfoliotoensurethattherelationshipbetweenbusinessoutcomes,customers,andservicesiswellunderstood.Itdocumentstheselinkagesandisvalidatedwithcustomersthroughtherelationshipmanagementpractice.

Agileportfoliomanagement

Thesuccessofprogrammesandprojectshashistoricallybeengaugedbytheextenttowhichimplementationhasbeencompletedontimeandwithinbudget,andhasdeliveredtherequiredoutputs,outcomes,andbenefits.Inmanycases,however,organizationshavestruggledtodemonstrateareturnontheirinvestmentfromchange,andthereisanincreasingrecognitionthattruesuccessisonlypossibleiftheprogrammeorprojectwasthe‘right’initiativetoimplementinthefirstplace.Agileportfoliomanagementtakesthisfurther,withanincreasedfocusonvisualizingstrategicthemesandtheabilitytoreprioritizetheportfolioswiftly,increaseworkflow,reducebatchsizesofwork,andcontrolthelengthoflonger-termdevelopmentqueues.

Traditionalportfoliomanagementisfocusedontop-downplanningwithworklaidoutoverlongertimeperiods,butAgileportfoliomanagementtakestheconceptofbuild–measure–learncyclesusedbyindividualAgileteamsandappliesitonanorganization-widebasis.Teamsworktogether,usemodulardesign,andsharefindings.Thisresultsintremendousflexibility,whichshiftsthefocusfromcontinuingtoexecuteaninflexibleplantodeliveringvalueandmakingtangibleprogressaccordingtobusinessstrategyandgoals.

OrganizationspractisingAgileportfoliomanagementcommunicateasmuchaspossibleacrossthebusiness.Theyshareknowledgeandbreakbarriersbetweenorganizationalsilos.

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Figure5.7Heatmapofthecontributionofportfoliomanagementtovaluechainactivities

Figure5.7showsthecontributionofportfoliomanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanPortfoliomanagementprovidesimportantinformationaboutthestatusofprojects,products,andservicescurrentlyinthepipelineorcatalogueandwhatstrategicobjectivestheyhavebeendesignedtomeet,whichisessentialforplanning.Portfoliomanagementalsoincludesreviewingtheportfoliosintermsofprogress,valuecreation,costs,risk,benefits,andstrategiccontribution.ImprovePortfoliomanagementidentifiesopportunitiestoimproveefficiencyandincreasecollaboration,eliminateduplicationbetweenprojects,andidentifyandmitigaterisks.Improvementinitiativesareprioritizedandifapprovedmaybeaddedtotherelevantportfolio.EngageWhenopportunitiesordemandareidentifiedbytheorganization,thedecisionsonhowtoprioritizethesearemadebasedupontheorganization’sstrategyplustheriskassessmentandresourceavailability.Designandtransition,obtain/build,anddeliverandsupportPortfoliomanagementisresponsibleforensuringthatproductsand

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5.1.8 Projectmanagement

KeymessageThepurposeoftheprojectmanagementpracticeistoensurethatallprojectsintheorganizationaresuccessfullydelivered.Thisisachievedbyplanning,delegating,monitoring,andmaintainingcontrolofallaspectsofaproject,andkeepingthemotivationofthepeopleinvolved.

Projectsareoneofthemeansbywhichsignificantchangesareintroducedtoanorganization,andtheycanbedefinedastemporarystructuresthatarecreatedforthepurposeofdeliveringoneormoreoutputs(orproducts)accordingtoanagreedbusinesscase.Theymaybeastand-aloneinitiativeorpartofalargerprogramme,togetherwithotherinterrelatedprojects,formorecomplexpiecesoftransformation.However,evenstand-aloneprojectsshouldbeconsideredinthecontextoftheorganization’sprojectportfolio.

Therearedifferentapproachestothewayinwhichprojectsaredelivered,withthewaterfallandAgilemethodsbeingthemostcommon:

Thewaterfallmethodworkswellinenvironmentswheretherequirementsareknownupfront(andunlikelytosignificantlychange),andwheredefinitionoftheworkismoreimportantthanthespeedofdelivery.

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TheAgilemethodworksbestwhererequirementsareuncertainandlikelytoevolverapidlyovertime(forexample,asbusinessneedsandprioritieschange),andwherespeedofdeliveryisoftenprioritizedoverthedefinitionofpreciserequirements.

Successfulprojectmanagementisimportantastheorganizationmustbalanceitsneedto:

maintaincurrentbusinessoperationseffectivelyandefficientlytransformthosebusinessoperationstochange,survive,andcompeteinthemarketplacecontinuallyimproveitsproductsandservices.

Thisbalancebetweenprojectsand‘businessasusual’canpotentiallyimpactanumberofareas,includingresources(people,assets,finances),servicelevels,customerrelationships,andproductivity,andsotheorganization’scapacityandcapabilitymustbeconsideredaspartofitsprojectmanagementapproach.

Projectsdependonthebehaviourofpeoplebothwithintheprojectteamandthewiderorganization.Thebestprojectplanamountstoverylittleiftherightpeoplearenotinvolvedattherighttime.Therelationshipbetweentheprojectandtheorganizationalsoneedstobeconsidered,asmanyprojectteammemberswillbesecondedfrombusinessoperationsonafull-orpart-timebasis.

Figure5.8showsthecontributionofprojectmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanProjectmanagementsupportsstrategicandtacticalplanningwithmethodsandtools.ImproveManyimprovementinitiativesarelargeandcomplex,soprojectmanagementistherelevantpracticetomanagethem.EngageStakeholderengagementisakeyelementinthesuccessfuldeliveryofanyproject.Projectmanagementprovidestheorganizationwithstakeholdermanagementtoolsandtechniques.DesignandtransitionDesignofapracticeorservicecanbe

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managedasaprojectoraniterationinalargerproject;thesameappliestosometransitions.Obtain/buildObtainingnewresourcesaswellasdevelopmentandintegrationisusuallyperformedasaproject.Variousprojectmanagementtechniquesareapplicabletothisactivity.DeliverandsupportThedesign,transition,andhandovertointernalorexternalserviceconsumersforoperationalmanagementneedstobewellplannedandexecutedtoensurethatbusinessasusualisnotcompromised.Theprojectmanagementpracticeensuresthishappens.

Figure5.8Heatmapofthecontributionofprojectmanagementtovaluechainactivities

5.1.9 Relationshipmanagement

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KeymessageThepurposeoftherelationshipmanagementpracticeistoestablishandnurturethelinksbetweentheorganizationanditsstakeholdersatstrategicandtacticallevels.Itincludestheidentification,analysis,monitoring,andcontinualimprovementofrelationshipswithandbetweenstakeholders.

Therelationshipmanagementpracticeensuresthat:

stakeholders’needsanddriversareunderstood,andproductsandservicesareprioritizedappropriatelystakeholders’satisfactionishighandaconstructiverelationshipbetweentheorganizationandstakeholdersisestablishedandmaintainedcustomers’prioritiesforneworchangedproductsandservices,inalignmentwithdesiredbusinessoutcomes,areeffectivelyestablishedandarticulatedanystakeholders’complaintsandescalationsarehandledwellthroughasympathetic(yetformal)processproductsandservicesfacilitatevaluecreationfortheserviceconsumersaswellasfortheorganizationtheorganizationfacilitatesvaluecreationforallstakeholders,inlinewithitsstrategyandprioritiesconflictingstakeholderrequirementsaremediatedappropriately.

Serviceprovidersquitenaturallyfocusmostoftheireffortsontheirrelationshipswithserviceconsumers(sponsors,customers,andusers).Itisaveryimportantstakeholdergroup;however,organizationsshouldensurethattheyunderstandandmanagetheirrelationshipswithvarious

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stakeholders,bothinternalandexternal.Therelationshipmanagementpracticeshouldapplytoallrelevantparties.Thismeansthatthepracticecontributestoallservicevaluechainactivitiesandmultiplevaluestreams.

Figure5.9showsthecontributionofrelationshipmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanRelationshipmanagementprovidesinformationontherequirementsandexpectationsofinternalandexternalcustomers.Italsoassistswithstrategicassessmentandprioritizationacrossportfoliosaswellasevaluatingcurrentandfuturemarketspaces,whichareessentialaspectsofplanning.ImproveRelationshipmanagementseekstoharmonizeandsynergizedifferentorganizationalrelationshipswithinternalandexternalcustomerstorealizetargetedbenefitsthroughcontinualimprovement.EngageRelationshipmanagementisthepracticeresponsibleforengagingwithinternalandexternalcustomerstounderstandtheirrequirementsandpriorities.DesignandtransitionRelationshipmanagementplaysakeyroleincoordinatingfeedbackfrominternalandexternalcustomersaspartofdesign.Italsoensuresthatinconvenienceandadverseimpactstocustomersduringtransitionarepreventedorminimized.Obtain/buildRelationshipmanagementprovidesthecustomerrequirementsandprioritiestohelpselectproducts,servicesorservicecomponentstobeobtainedorbuilt.DeliverandsupportRelationshipmanagementisresponsibleforensuringthatahighlevelofcustomersatisfactionandaconstructiverelationshipbetweentheorganizationanditscustomersareestablishedandmaintained.

Figure5.9Heatmapofthecontributionofrelationshipmanagementtovaluechainactivities

5.1.10 Riskmanagement

KeymessageThepurposeoftheriskmanagementpracticeistoensurethattheorganizationunderstandsandeffectivelyhandlesrisks.Managingriskisessentialtoensuringtheongoingsustainabilityofanorganizationandcreatingvalueforitscustomers.Riskmanagementisanintegralpartofallorganizationalactivitiesandthereforecentraltotheorganization’sSVS(seesection2.5.3foradefinitionofrisk).

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Riskisnormallyperceivedassomethingtobeavoidedbecauseofitsassociationwiththreats,andalthoughthisisgenerallytrue,riskisalsoassociatedwithopportunity.Failuretotakeopportunitiescanbeariskinitself.Theopportunitycostsofunder-servedmarketspacesandunfulfilleddemandisarisktobeavoided.

Theorganization’sportfoliocanbemappedtoanunderlyingportfolioofriskstobemanaged.Whenservicemanagementiseffective,productsandservicesintheservicecatalogueandpipelinerepresentopportunitiestocreateandcapturevalueforcustomers,theorganization,andotherstakeholders.Otherwise,thoseproductsandservicescanrepresentthreatsduetothepossibilityoffailureassociatedwiththedemandpatternstheyattract,thecommitmentstheyrequire,andthecoststheygenerate.Implementingstrategyoftenrequireschangestotheproductandserviceportfolio,whichmeansmanagingassociatedrisks.

Decisionsaboutriskneedtobebalancedsothatthepotentialbenefitsareworthmoretotheorganizationthanthecosttoaddresstherisk.Forexample,innovationisinherentlyriskybutcouldprovidemajorbenefitsinimprovingproductsandservices,achievingcompetitiveadvantage,andincreasingagilityandresilience.Theabilityoftheorganizationtolimititsexposuretoriskwillalsobeofrelevance.Theaimshouldbetomakeanaccurateassessmentoftherisksinagivensituation,andanalysethepotentialbenefits.Therisksandopportunitiespresentedbyeachcourseofactionshouldbedefinedtoidentifyappropriateresponses.

Forriskmanagementtobeeffective,risksneedtobe:

IdentifiedUncertaintiesthatwouldaffecttheachievementofobjectiveswithinthecontextofaparticularorganizationalactivity.Theseuncertaintiesmustbeconsideredandthendescribedtoensurethatthereiscommonunderstanding.AssessedTheprobability,impact,andproximityofindividualrisksmustbeestimatedsotheycanbeprioritizedandtheoveralllevelofrisk(riskexposure)associatedwiththeorganizationalactivityunderstood.TreatedAppropriateresponsestorisksmustbeplanned,assigning

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ownersandactionees,andthenimplemented,monitored,andcontrolled.

Thefollowingprinciplesapplyspecificallytotheriskmanagementpractice:

RiskispartofbusinessTheorganizationshouldensurethatrisksareappropriatelymanaged.Thisdoesnotmeanthatallrisksaretobeavoided.Onthecontrary,risk-takingisrequiredtoensurelong-termsustainability.However,risksneedtobeidentified,understood,andassessedagainstthelevelsofrisktheorganizationiswillingtotake(i.e.theriskappetite),andappropriatelymanagedandmonitored.RiskmanagementmustbeconsistentacrosstheorganizationItisvitalthattheriskmanagementpracticeismanagedholisticallytoachieveconsistencyacrossthewholeorganization.Toensureeffectiveness,thereshouldbeongoingconsultationwithstakeholdersandappropriateflexibilityfordifferentpartsoftheorganization.Thisflexibilitywillallowtailoredriskmanagementprocedurestobedevelopedsothatorganizationalunitsand/orcustomer-specificcircumstancesareaddressed.RiskmanagementcultureandbehavioursareimportantTheappropriatecultureandbehavioursdemonstratedbyalllevelsoftheorganization’spersonnelarecriticalandmustbeembeddedaspartofthe‘waywedothings’.Thiswillbedemonstratedbybehavioursandbeliefssuchas:

understandingthateffectiveriskmanagementisvitalforthesustainabilityoftheorganizationandsupportstheachievementofbusinessgoalsusingproactiveriskmanagementbehavioursensuringtransparencyandclarityofriskmanagementprocedures,roles,responsibilities,andaccountabilitiesactivelyencouragingandfollowingupthereportingofrisks,incidents,andopportunitiesensuringremunerationstructuressupportdesiredbehaviours(i.e.thisshouldnotdiscouragethereportingofincidentsnorencourageover-reporting)

• activelyencouraginglearningandgrowthinmaturityfromtheorganization’sexperiencesandtheexperiencesofotherorganizations.

ISO31000:2018Riskmanagement

Theseguidelinesprovideanoverallandgeneralperspectiveofthepurposeandprinciplesofriskmanagement.Theyareapplicableatalllevelsinanytypeoforganization.ISO31000statesthat‘thepurposeofriskmanagementisthecreationandprotectionofvalue’andthatriskmanagement‘improvesperformance,encouragesinnovationandsupportstheachievementofobjectives’.

Figure5.10Heatmapofthecontributionofriskmanagementtovaluechainactivities

Figure5.10showsthecontributionofriskmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

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PlanRiskmanagementprovidesessentialinputstotheorganization’sstrategyandplanning,withafocusonrisksthatcandrivevariabilityofoutcomes.Theseinclude:

shiftsincustomerdemandandprioritieslegalandregulatorychangescompetitorsdependenciesonsuppliersandpartnerstechnologicalchangesconflictingstakeholderrequirements.

ImproveAllimprovementinitiativesshouldbeassessedandcontinuallycontrolledbyriskmanagement.Thepracticeestablishesanimportantperspectiveforimprovementprioritization,planning,andreview.EngageTheriskmanagementpracticehelpstoidentifykeystakeholdersandoptimizeengagementbasedonsuchinformationasriskappetiteandriskprofiles.DesignandtransitionProductsandservicesshouldbedesignedtoaddressprioritizedrisks.Forexample,theyshouldbescalabletosupportchangesindemandovertime.Fortheorganization,neworchangedservicescarryvaryinglevelsofriskwhichshouldbeidentifiedandassessedbeforethechangeisapproved.Ifapproved,therisksshouldbemanagedaspartofthechange,includingreleases,deployments,andprojects.Obtain/buildRiskmanagementshouldinformdecisionsabouttheobtainingorbuildingofproducts,services,orservicecomponents.DeliverandsupportRiskmanagementhelpstoensurethattheongoingdeliveryofproductsandservicesismaintainedattheagreedlevelandthatalleventsaremanagedaccordingtotherisksthattheyintroduce.

5.1.11 Servicefinancialmanagement

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KeymessageThepurposeoftheservicefinancialmanagementpracticeistosupporttheorganization’sstrategiesandplansforservicemanagementbyensuringthattheorganization’sfinancialresourcesandinvestmentsarebeingusedeffectively.

Servicefinancialmanagementsupportsdecision-makingbythegoverningbodyandmanagementoftheorganizationregardingwheretobestallocatefinancialresources.Itprovidesvisibilityintothebudgeting,costing,andaccountingactivitiesrelatedtotheproductsandservices.TobeeffectiveinthecontextoftheSVS,thispracticeneedstobealignedwiththeorganization’spoliciesandpracticesforportfoliomanagement,projectmanagement,andrelationshipmanagement.

Financeisthecommonlanguagewhichallowstheorganizationtocommunicateeffectivelywithitsstakeholders.Servicefinancialmanagementisresponsibleformanagingthebudgeting,costing,accounting,andchargingfortheactivitiesofanorganization,actingasbothserviceproviderandserviceconsumer:

Budgeting/costingThisisanactivityfocusedonpredictingandcontrollingtheincomeandexpenditureofmoneywithintheorganization.Budgetingconsistsofaperiodicnegotiationcycletosetbudgetsandongoingmonitoringofthecurrentbudgets.Toaccomplishthisobjective,itfocusesoncapturingforecastedandactualservicedemand.Ittranslatesthisdemandintoanticipatedoperatingandprojectcostsusedforsettingbudgetsandratestoensureadequatefundingforproductsandservices.Service-basedbudgetingseekstounderstandthebudgetandestablishfundingmodelsbasedonthefullcostofprovidingorconsumingaservice.AccountingThisactivityenablestheorganizationtoaccountfullyfor

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thewayitsmoneyisspent,allowingittocompareforecastvsactualcostsandexpenditures(particularlytheabilitytoidentifyusageandcostsbycustomer,service,andactivity/costcentre).Itusuallyinvolvesaccountingsystems,includingledgers,chartsofaccounts,andjournals.ChargingThisactivityisrequiredtoformallyinvoiceserviceconsumers(usuallyexternal)fortheservicesprovidedtothem.Itisimportanttonotethatwhilechargingisanoptionalpractice,allservicesrequireafundingmodel,becauseallcostsneedtobeadequatelyfundedbyanagreedmethod.

Figure5.11showsthecontributionofservicefinancialmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanPlansatalllevelsneedfundingbasedoninformation,includingfinancial.Servicefinancialmanagementsupportsplanningwithbudgets,reports,forecasts,andotherrelevantinformation.ImproveAllimprovementsshouldbeprioritizedwithreturnoninvestmentinmind.Servicefinancialmanagementprovidestoolsandinformationforimprovementsevaluationandprioritization.EngageFinancialconsiderationsareimportantforestablishingandmaintainingservicerelationshipswithserviceconsumers,suppliers,andpartners.Forsomestakeholders(investors,sponsors)thefinancialaspectoftherelationshipisthemostimportant.Thepracticesupportsthisvaluechainactivitybyprovidingfinancialinformation.

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Figure5.11Heatmapofthecontributionofservicefinancialmanagementtovaluechainactivities

DesignandtransitionServicefinancialmanagementhelpstokeepthisactivitycost-effectivebyprovidingthemeansforfinancialplanningandcontrol.Italsoensurestransparencyofcostsforproductsandservicesfortheserviceprovider,accountingfordesignandtransitionexpenditures.Obtain/buildObtainingresourcesofalltypesissupportedbybudgeting(toensuresufficientfunding)andaccounting(toensuretransparencyandevaluation).DeliverandsupportOngoingoperationalcostsareasignificantpartoftheorganization’sexpenditures.Forcommercialorganizations,ongoingservicedeliveryactivitiesarealsothesourceofincome.Servicefinancialmanagementhelpstoensuresufficientunderstandingofboth.Charging(ifapplicable)supportstheserviceproviderandtheserviceconsumerintheirrelationshipswithbillingandreporting.

Evolutionoffinancialmanagementwithnew

technology

Financialmanagementreferstotheefficientandeffectivemanagementofmoneyinthemostappropriatemannertoaccomplishthefinancialobjectivesoftheorganization.Sinceitsinception,thefinancialmanagementdisciplinehasgonethroughvariousdegreesofchange,improvement,andinnovation.Akeycomponentofthischangehasbeentheemergenceofnewtechnology.Manytechnologicaldevelopmentshaveimpacteduponfinancialmanagement,butthethreekeyinnovationsaretheintroductionofagreaternumberofdigitaltechnologies,blockchain,andITbudgetsandpaymentmodels.

Digitaltechnologies

Majorfinancialinstitutionsarenowanalysingandusingthelatesttechnologiessuchasthecloud,bigdata,analytics,andartificialintelligence(AI)togain,orevenjusttomaintain,competitiveadvantageinthemarketplace.However,newfinancialorganizationsarealsousingthesetechnologiesandstartingoperationswithoutanylegacyIT,technicaldebt,orbureaucraticprocesses,whichmeanstheytendtobemoreAgile.

Bigdataandanalyticsarebeingusedbyfinancialorganizationstogaindeeperinsightinto,andunderstandingof,theircustomers.Theamountofdatabeingcapturedisphenomenalandrequiresscalablecomputingpowertoprocessthedataefficientlyandcost-effectively.Inreturn,thisdeepercustomerunderstandingiscausingfinancialorganizationstodevelopnewandinnovativeproductsandservices.Dataisnowbeingreferredtoasthe‘newoil’,asorganizationsarescramblingtocapture,analyse,andexploitit.

Blockchain

Anotherevolutioninfinancialmanagementishappeningthroughaspecificinnovationcalledblockchain,againenabledonlythroughcloud-basedservices.Initiallyblockchainwasdevelopedtoenable

thede-centralizedmanagementofcrypto-currencies,allowingtransactionstobeauditedandverifiedautomaticallyandinexpensively.

Blockchaintechnologiesareusedtomanagepublicdigitalledgers.Thesedigitalledgersrecordtransactionsacrossmanygloballydistributedcomputers.Thedistributionofrecordsensuresthateachrecordcannotbechangedwithoutthealterationofallsubsequentrecords(alsoknownasblocks)andwithouttheconsensusoftheentiredistributedledger(alsocalledthenetwork).

Globalfinancialinstitutionsareresearchinghowthisblockchaintechnologycanprovidethemwithcompetitiveadvantagebystreamliningback-officefunctionsandreducingsettlementratesforbankingtransactions.Newfinancialorganizationsareinvestigatingblockchaintodeliveralternativebankingfunctionsatafractionofthecostandoverheadsoftraditionalbanks.

ITbudgetsandpaymentmodels

Theemergenceofnewtechnologyhasnotjustaffectedfinancialorganizations,butalsothewaythateveryorganizationmanagesitsITservicesfromafinancialperspective.Muchofthecurrentwaveoftechnologicalevolutionhasbeenenabledbycloudcomputing,andthisseemslikelytocontinuefortheforeseeablefuture.ThishasledtoamajorchangeinhowITservicesareobtained,funded,andpaidforbyorganizations.

Traditionally,ITresourceswereobtainedusingupfrontcapitalexpenditure(CAPEX).However,underthecloudmodel,theprovisionofITinfrastructure,platforms,andsoftwareisprovided‘asaservice’.Thismodelgenerallyusessubscription-basedorpay-as-you-usechargingmechanismswhicharepaidforoutofoperationalexpenditure(OPEX).

Anotherareathathasseenchangeistheorganization’sapproachtosettingandmanagingITbudgets.FlexibleITbudgetsarerequiredtomeetthecostsofscalingcloud-basedservicesinan

Agileandon-demandway.FixedITbudgets,oftenforecastmonthsinadvance,struggletoaccountforthescalingofITresourcesinthisway.

Procurementruleswithinorganizationsarealsohavingtochange.Thereremainsaplaceforfixed-priceITprojectsandservices;however,cloud-baseddigitalservicesaregenerallysoldunderavariable-pricemodel,i.e.themoreyouuseandconsume,themoreyoupay,andviceversa.Therefore,thoseorganizationsthathavenotupdatedtheirprocurementrulestoallowthemtobuyvariable-pricedITresourceswillfacealargeself-madebarrierpreventingthemfromusingcloud-baseddigitalservices.Tobeaseffectiveaspossible,organizationsmustupdatetheirpoliciesandeducatetheirstafftoensurethattheycanpurchaseITunderavariable-pricedmodel.

5.1.12 Strategymanagement

KeymessageThepurposeofthestrategymanagementpracticeistoformulatethegoalsoftheorganizationandadoptthecoursesofactionandallocationofresourcesnecessaryforachievingthosegoals.Strategymanagementestablishestheorganization’sdirection,focuseseffort,definesorclarifiestheorganization’spriorities,andprovidesconsistencyorguidanceinresponsetotheenvironment.

Thestartingpointforstrategymanagementistounderstandthecontext

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oftheorganizationanddefinethedesiredoutcomes.Thestrategyoftheorganizationestablishescriteriaandmechanismsthathelptodecidehowtobestprioritizeresources,capabilities,andinvestmenttoachievethoseoutcomes,whilethepracticeensuresthatthestrategyisdefined,agreed,maintained,andachieved.

Theobjectivesofstrategymanagementareto:

analysetheenvironmentinwhichtheorganizationexiststoidentifyopportunitiesthatwillbenefittheorganizationidentifyconstraintsthatmightpreventtheachievementofbusinessoutcomesanddefinehowthoseconstraintscouldberemovedortheireffectsreduceddecideandagreetheorganization’sperspectiveanddirectionwithrelevantstakeholders,includingitsvision,mission,andprinciplesestablishtheperspectiveandpositionoftheorganizationrelativetoitscustomersandcompetitors.Thisincludesdefiningwhichservicesandproductswillbedeliveredtowhichmarketspacesandhowtomaintaincompetitiveadvantageensurethatthestrategyhasbeentranslatedintotacticalandoperationalplansforeachorganizationalunitthatisexpectedtodeliveronthestrategyensurethestrategyisimplementedthroughexecutionofthestrategicplansandcoordinationofeffortsatthestrategic,tactical,andoperationallevelsmanagechangestothestrategiesandrelateddocuments,ensuringthatstrategieskeeppacewithchangestointernalandexternalenvironmentsandotherrelevantfactors.

Strategymanagementisoftenseenastheresponsibilityoftheseniormanagementandgoverningbodyofanorganization.Itenablesthemtosettheobjectivesoftheorganization,tospecifyhowtheorganizationwillmeetthoseobjectives,andtoprioritizetheinvestmentsthatarerequiredtomeetthem.However,intoday’scomplex,fast-changingenvironment,traditionalstrategypractices,basedoncarefuldeliberation,extensiveresearch,andscenarioplanning,arealsoevolving.Strategyisbecoming

morefluidandthereisanincreasedfocusonestablishingtheessentialpurposeandprinciplesofanorganization,whichcanserveastheguidingdirectionforallitsactions,evenascircumstanceschange.Forexample,aLeanstrategyprocesscanbeusedtobalancetheextremesofrigidplanninganduncontrolledexperimentation.Thestrategyprovidestheoveralldirectionandalignmentoftheorganization,servingasbothascreenthatinnovativeideasmustpassandabasisforevaluatingthesuccessoftheSVS.Itencouragesemployeestobecreative,whileensuringthattheyareinharmonywiththeorganizationandpursueonlyvaluableopportunities.

Strategymustenablevaluecreationfortheorganization.Agoodbusinessmodeldescribesthemeansoffulfillinganorganization’sobjectives.Thestrategyoftheorganizationshouldincludesomewaytomakeitsservicesandproductsuniquelyvaluabletoitscustomers;itmustthereforedefinetheorganization’sapproachfordeliveringbettervalue.Theneedforastrategyisnotlimitedtolargerorganizations;itisjustasimportantforsmallerones,allowingthemtohaveaclearperspective,positioning,andplanstoensurethattheyremainrelevanttotheircustomers.

Customerswantsolutionsthatbreakthroughperformancebarriersandachievehigher-qualityoutcomeswithlittleornoincreaseincost.Suchsolutionsareusuallymadeavailablethroughinnovativeproductsandservices.Thestrategyshouldbalancetheorganization’sneedtodeliverbothefficientandeffectiveoperationswithinnovationandfuture-focusedactivities.

Thevalueofproductsandservicesfromeitherthecustomer’sortheorganization’sperspectivemayalterovertimeduetochangingconditions,events,orotherfactorsoutsideanorganization’scontrol.Strategymanagementensuresacarefullyconsideredapproachtotheorganization’srelationshipswithcustomers,aswellasbothagilityandresilienceindealingwiththevariationsinvaluethatdefinethoserelationships.

Ahigh-performancestrategyisonethatenablesanorganizationtoconsistentlyoutperformcompetingalternativesovertime,across

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businesscycles,duringindustrydisruptions,andwhenchangesinleadershipoccur.Itshouldbefocusedonwhatneedstobedoneacrosstheorganizationtofacilitatevaluecreation.

Figure5.12showsthecontributionofstrategymanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanStrategymanagementensuresthattheorganization’sstrategyhasbeentranslatedintotacticalandoperationalplansforeachorganizationalunitthatisexpectedtodeliveronthestrategy.

Figure5.12Heatmapofthecontributionofstrategymanagementtovaluechainactivities

ImproveStrategymanagementprovidesstrategyandobjectivestobeusedtoprioritizeandevaluateimprovements.EngageWhenopportunitiesordemandareidentifiedbytheorganization,thedecisionsabouthowtoprioritizethesearebasedupontheorganization’sstrategyplustheriskassessmentandresourceavailability.Designandtransition,obtain/build,anddeliverandsupport

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Strategymanagementensuresthestrategyisimplementedthroughexecutionofthestrategicplansincoordinationwiththeseactivities.Italsoprovidesfeedbacktoenablethemeasurementandevaluationofproductsandservicesduringdesignandtransition.

5.1.13 Suppliermanagement

KeymessageThepurposeofthesuppliermanagementpracticeistoensurethattheorganization’ssuppliersandtheirperformancesaremanagedappropriatelytosupporttheseamlessprovisionofqualityproductsandservices.Thisincludescreatingcloser,morecollaborativerelationshipswithkeysupplierstouncoverandrealizenewvalueandreducetheriskoffailure.

Activitiesthatarecentraltothepracticeinclude:

CreatingasinglepointofvisibilityandcontroltoensureconsistencyThisshouldbeacrossallproducts,services,servicecomponents,andproceduresprovidedoroperatedbyinternalandexternalsuppliers,includingcustomersactingassuppliers.Maintainingasupplierstrategy,policy,andcontractmanagementinformationNegotiatingandagreeingcontractsandarrangementsAgreementsneedtobealignedwithbusinessneedsandservicetargets.Contractswithexternalsuppliersmightneedtobenegotiatedoragreedthroughthelegal,procurement,commercial,orcontractsfunctionsoftheorganization.Foraninternalsuppliertherewillneedto

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beaninternalagreement.ManagingrelationshipsandcontractswithinternalandexternalsuppliersThisshouldbedonewhenplanning,designing,building,orchestrating,transitioning,andoperatingproductsandservices,workingcloselywithprocurementandperformancemanagement.ManagingsupplierperformanceSupplierperformanceshouldbemonitoredtoensurethattheymeettheterms,conditions,andtargetsoftheircontractsandagreements,whileaimingtoincreasethevalueformoneyobtainedfromsuppliersandtheproducts/servicestheyprovide.

5.1.13.1Sourcing,supplierstrategy,andrelationships

Thesupplierstrategy,sometimescalledthesourcingstrategy,definestheorganization’splanforhowitwillleveragethecontributionofsuppliersintheachievementofitsoverallservicemanagementstrategy.

Someorganizationsmayadoptastrategythatdictatestheuseofsuppliersonlyinveryspecificandlimitedcircumstances,whileanotherorganizationmaychoosetomakeextensiveuseofsuppliersinproductandserviceprovision.Asuccessfulsourcingstrategyrequiresathoroughunderstandingofanorganization’sobjectives,theresourcesrequiredtodeliverthatstrategy,theenvironmental(e.g.market)factors,andtherisksassociatedwithimplementingspecificapproaches.

Therearedifferenttypesofsupplierrelationshipbetweenanorganizationanditssuppliersthatneedtobeconsideredaspartoftheorganization’ssourcingstrategy.Theseinclude:

InsourcingTheproductsorservicesaredevelopedand/ordeliveredinternallybytheorganization.OutsourcingTheprocessofhavingexternalsuppliersprovideproductsandservicesthatwerepreviouslyprovidedinternally.Outsourcinginvolvessubstitution,i.e.thereplacementofinternal

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capabilitybythatofthesupplier.SinglesourceorpartnershipProcurementofaproductorservicefromonesupplier.Thiscaneitherbeasinglesupplierwhosuppliesallservicesdirectlyoranexternalserviceintegratorwhomanagestherelationshipswithallsuppliersandintegratestheirservicesonbehalfoftheorganization.Thesecloserelationships(andthemutualinterdependencetheycreate)fosterhighquality,reliability,shortleadtimes,andcooperativeaction.Multi-sourcingProcurementofaproductorservicefrommorethanoneindependentsupplier.Theseproductsandservicescanbecombinedtoformnewserviceswhichtheorganizationcanprovidetointernalandexternalcustomers.Asorganizationsplacemorefocusonincreasedspecializationandcompartmentalizationofcapabilitiestoincreaseagility,multi-sourcingisincreasinglyapreferredoption.Traditionallyorganizationshavemanagedthesesuppliersseparatelyacrossdifferentpartsoftheorganization,butthereisamovetowardsdevelopinganinternalserviceintegrationcapabilityorselectinganexternalserviceintegrator.

Individualsupplierscanprovidesupportservicesandproductsthatindependentlyhavearelativelyminorandfairlyindirectroleinvaluegeneration,butcollectivelymakeamuchmoredirectandimportantcontributiontothisandtheimplementationoftheorganization’sstrategy.

5.1.13.2Evaluationandselectionofsuppliers

Theorganizationshouldevaluateandselectsuppliersbasedon:

ImportanceandimpactThevalueoftheservicetothebusiness,providedbythesupplierRiskTherisksassociatedwithusingtheserviceCostsThecostoftheserviceanditsprovision.

Otherimportantfactorsinevaluatingandselectingsuppliersincludethewillingnessorfeasibilityofasuppliertocustomizeitsofferingsorwork

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cooperativelyinamulti-supplierenvironment;thelevelofinfluenceoftheorganizationorserviceintegratoronthesupplier’sperformance;andthedegreeofdependenceofonesupplieronothersuppliers.

5.1.13.3Activities

Activitiesofthesuppliermanagementpracticeinclude:

SupplierplanningThepurposeofthisactivityistounderstandneworchangedservicerequirementsandreviewrelevantenterprisedocumentationtodevelopasourcingstrategyandsuppliermanagementplan,workinginconjunctionwithotherpracticessuchasbusinessanalysis,portfoliomanagement,servicedesign,andservicelevelmanagement.EvaluationofsuppliersandcontractsThepurposeofthisactivityistoidentify,evaluate,andselectsuppliersforthedeliveryofneworchangedbusinessservices.SupplierandcontractnegotiationThepurposeofthisactivityistodevelop,negotiate,review,update,finalize,andawardsuppliercontracts.Thefailureofnegotiationswilltriggeranewcontract,anupdatedcontract,oracontracttermination.SuppliercategorizationThisprocedureaimstocategorizesuppliersonaperiodicbasisandaftertheawardingofneworupdatedcontracts.Commonlyusedcategoriesincludestrategic,tactical,andcommoditysuppliers.SupplierandcontractmanagementThepurposeofthisactivityistoensurethattheorganizationobtainsvalueformoneyandthedeliveryoftheagreedperformanceofthesupplieragainstthecontractandtargets.WarrantymanagementThepurposeofthisactivityistomanagewarrantyrequirementsorclausesandmakewarrantyclaimswhenawarrantyissuearises,inconjunctionwithperformancemanagement.PerformancemanagementThisactivityincludesthesetupandcontinuoustrackingofoperationalmeasuresthathavebeenmutuallyagreedwithinternalandexternalsuppliers.Itfocusesonthekey

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measures,whichcanthenbeconsolidatedonasupplierscorecard.Monitoringwillallowfortheidentificationofsystemicproblemsandimprovementopportunitiesandprovideabasisforreporting.Contractrenewaland/orterminationThisprocedureaimstomanagecontractrenewalsandterminations,whicharetriggeredbyeitherspecificorperiodicreviewsofsupplierperformance.

5.1.13.4Serviceintegration

Serviceintegrationisresponsibleforcoordinatingororchestratingallthesuppliersinvolvedinthedevelopmentanddeliveryofproductsandservices.Itfocusesontheend-to-endprovisionofservice,ensuringcontrolofallinterfacesandoutcomesfromsuppliers,andfacilitatingcollaborationbetweensuppliers.Anorganizationcaneitherperformtheroleofserviceintegratoritself,oruseathird-partyserviceintegrator.Itispossibletodevelopahybridmodel,wheretheorganizationisresponsibleforsomeoftheserviceintegrationfunctionandaugmentsthatcapabilitywiththatofanexternalserviceintegrator.Theserviceintegrationfunctioncanalsobeoperatedbyaleadsupplier.Theserviceintegratorisalsoresponsibleforassurance;thisincludesperformancemanagementandreporting,definingrolesandresponsibilities,maintainingrelationshipsacrossallparties,andheadingregularforumsandsteeringcommitteestoaddressissues,agreepriorities,andmakedecisions.

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Figure5.13Heatmapofthecontributionofsuppliermanagementtovaluechainactivities

Figure5.13showsthecontributionofsuppliermanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanSuppliermanagementprovidestheorganization’sapprovedsourcingstrategyandplan.ImproveThepracticeidentifiesopportunitiesforimprovementwithexistingsuppliers,isinvolvedintheselectionofnewsuppliers,andprovidesongoingsupplierperformancemanagement.EngageSuppliermanagementisresponsibleforengagingwithallsuppliersandfortheevaluationandselectionofsuppliers;fornegotiatingandagreeingcontractsandagreements;andforongoingmanagementofsupplierrelationships.DesignandtransitionSuppliermanagementisresponsiblefordefiningrequirementsforcontractsandagreementsrelatedtoneworchangedproductsorservices,inalignmentwiththeorganization’sneedsandservicetargets.Obtain/buildSuppliermanagementsupportstheprocurementorobtainingofproducts,services,andservicecomponentsfromthird

•parties.DeliverandsupportSupplierperformanceforliveservicesismanagedbythispracticetoensurethatsuppliersmeettheterms,conditions,andtargetsoftheircontractsandagreements.

TheITILstory:Axle’ssuppliermanagementMarco:I’vebeenassignedtothesuppliermanagementroleatAxle.ThismeansI’llbemanagingthemonthlygovernanceforumswithoursupplierstotracktheirserviceperformanceasoutlinedintheirservicelevelagreements.I’llmakesurethecontractualobligationsofoursuppliersareinlinewithAxleCarHirebusinessoutcomes.

Radhika:Forexample,wepromiseourcustomersthatthecarswillalwaysbeclean.Weusedtohaveourcarscleanedweekly,buttomeetthenewservicepromise,Craig’sCleaningwillcleanthecarseachtimethey’rereturnedtothelot.

Henri:Axle’sservicesdependonmultiplepartnersandsuppliers.Weworkwithcardealersandmanufacturers,tyremanufacturers,cleaners,androadsideassistanceproviders.WealsohaveAxleagentswhopromoteourofferings,andpartnersinaloyaltyprogrammewhoprovidetheirservicestoourclientsonspecialterms.

Radhika:Weusemanypartners’andsuppliers’servicesforourITsystemsaswell.ThissupportsAxle’sworkonmanylevels,frominternetaccesstosoftwaredevelopment.

Marco:GreaterdigitalizationatAxlemeansmoreopportunitytobuildITintoourserviceofferings.TheAxleappmakesitpossibletobookandpayforcarhireviapersonaldevices.TheAxleAwaresystemisinstalledineverycarandissupportedbyITandourpartners.Fleetmaintenanceisplannedbasedonthehirehistoryofourvehicles,andcontrolledbyourITsystems.

Henri:Becauseofthis,Axle’sbusinessisnowheavilydependentonITandnon-ITsuppliers.Integratingandcoordinatingtheseservicesispartofsuppliermanagement.WeexpectoursupplierstoprovideaconsistentlevelofqualityforAxleandourcustomers.

5.1.14 Workforceandtalentmanagement

KeymessageThepurposeoftheworkforceandtalentmanagementpracticeistoensurethattheorganizationhastherightpeoplewiththeappropriateskillsandknowledgeandinthecorrectrolestosupportitsbusinessobjectives.Thepracticecoversabroadsetofactivitiesfocusedonsuccessfullyengagingwiththeorganization’semployeesandpeopleresources,includingplanning,recruitment,onboarding,learninganddevelopment,performancemeasurement,andsuccessionplanning.

Workforceandtalentmanagementplaysacriticalroleinestablishingorganizationalvelocitybyhelpingorganizationstoproactivelyunderstandandforecastfuturedemandforservices.Italsoensuresthattherightpeoplewiththenecessarycompetenciesareavailableattherighttimetodelivertheservicesrequired.

Achievingthisobjectivereducesbacklogs,improvesquality,avoidsreworkcausedbydefects,andreduceswaittimewhilealsoclosingknowledgeandskillsgaps.Asorganizationstransformtheirpracticesandautomationandorganizationalcapabilitiestosupportthedigitaleconomyandimprovespeedtomarket,havingtherighttalentbecomescritical.

Workforceandtalentmanagementenablesorganizations,leaders,andmanagerstofocusoncreatinganeffectiveandactionablepeoplestrategy,andtoexecutethatstrategyatvariouslevelswithintheorganization.Agoodstrategyshouldsupporttheidentificationofrolesandassociatedknowledge,aswellastheskillsandattitudesneededtokeepanorganizationrunningdaytoday.Itshouldalsoaddresstheemergingtechnologiesandleadershipandorganizationalchangecapabilitiesrequiredtopositiontheorganizationforfuturegrowth.

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Theideaofmanaginganddevelopinganorganization’sworkforceandtalentisnotnew.However,withtheincreaseduseofthird-partysuppliersandtherapidadoptionofautomationforrepeatablework,traditionalrolesarechangingdramatically.Becauseofthis,workforceandtalentmanagementshouldbetheresponsibilityofleadersandmanagersateverylevelthroughouttheorganization.

DefinitionsOrganizationalvelocityThespeed,effectiveness,andefficiencywithwhichanorganizationoperates.Organizationalvelocityinfluencestimetomarket,quality,safety,costs,andrisks.CompetenciesThecombinationofobservableandmeasurableknowledge,skills,abilities,andattitudesthatcontributetoenhancedemployeeperformanceandultimatelyresultinorganizationalsuccess.SkillsAdevelopedproficiencyordexterityinthought,verbalcommunication,orphysicalaction.AbilityThepoweroraptitudetoperformphysicalormentalactivitiesrelatedtoaprofessionortrade.KnowledgeTheunderstandingoffactsorinformationacquiredbyapersonthroughexperienceoreducation;thetheoreticalorpracticalunderstandingofasubject.AttitudeAsetofemotions,beliefs,andbehaviourstowardsaparticularobject,person,thing,orevent.

5.1.14.1Workforceandtalentmanagement

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activities

Theactivitiesofthispracticecoverabroadrangeofareasandareperformedbyavarietyofrolesforspecificpurposes,including:

WorkforceplanningTranslatingtheorganization’sstrategyandobjectivesintodesiredorganizationalcapabilities,andthenintocompetenciesandroles.RecruitmentTheacquisitionofnewemployeesandcontractorstofillidentifiedgapsrelatedtodesiredcapabilities.PerformancemeasurementThedeliveryofregularperformancemeasurementandassessmentsagainstestablishedjobrolesbasedonpre-definedcompetencies.PersonaldevelopmentAnemployee’suseofpublishedjobrolesandcompetencyframeworkstoproactivelyplanpersonalgrowthandadvancement.LearninganddevelopmentTargetededucationandexperientiallearningopportunitiesusingvariousformalandnon-formalmethods.MentoringandsuccessionplanningFormalmentoring,engagement,andsuccessionplanningactivitiesprovidedbyleadership.

Figure5.14presentstheactivitiesofworkforceandtalentmanagement.

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Figure5.14Workforceandtalentmanagementactivities

Figure5.15showsthecontributionofworkforceandtalentmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities;however,itisaprimaryfocusofplanandimproveactivities:

PlanWorkforceplanningisaspecificoutputofthisvaluechainactivity,asleadershipandmanagementevaluatetheircurrentorganizationalcapabilitiesinrelationtofuturerequirementsfortheorganization’sresources,aswellastheproductsandservicesdefinedwithintheserviceportfolio.ImproveAllimprovementsrequiresufficientlyskilledandmotivatedpeople.Theworkforceandtalentmanagementpracticeensuresunderstandingandfulfilmentoftheserequirements.EngageWorkforceandtalentmanagementiscloselylinkedtothisvaluechainactivity.Itworkswithpracticessuchasrelationshipmanagement,servicerequestmanagement,andservicedesktounderstandandforecastchangingservicedemandrequirements,and

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howthiswillimpactanddirectworkforceplanningandtalentmanagementactivities.DesignandtransitionTalentmanagementisimportanttothisvaluechainactivity.Specificfocusisgiventoknowledge,skills,andabilitiesrelatedtosystemsanddesignthinking.Obtain/buildTalentmanagementfocusesspecificallyonknowledge,skills,andabilitiesrelatedtocollaboration,customerfocus,quality,speed,andcostmanagement.DeliverandsupportSpecificfocusbytalentmanagementisgiventoknowledge,skills,andabilitiesrelatedtocustomerservice,performancemanagement,andcustomerinteractionsandrelationships.

Figure5.15Heatmapofthecontributionofworkforceandtalentmanagementtovaluechainactivities

5.2Servicemanagementpractices

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5.2.1 Availabilitymanagement

KeymessageThepurposeoftheavailabilitymanagementpracticeistoensurethatservicesdeliveragreedlevelsofavailabilitytomeettheneedsofcustomersandusers.

Definition:AvailabilityTheabilityofanITserviceorotherconfigurationitemtoperformitsagreedfunctionwhenrequired.

Availabilitymanagementactivitiesinclude:

negotiatingandagreeingachievabletargetsforavailabilitydesigninginfrastructureandapplicationsthatcandeliverrequiredavailabilitylevelsensuringthatservicesandcomponentsareabletocollectthedatarequiredtomeasureavailabilitymonitoring,analysing,andreportingonavailabilityplanningimprovementstoavailability.

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Inthesimplestterms,theavailabilityofaservicedependsonhowfrequentlytheservicefails,andhowquicklyitrecoversafterafailure.Theseareoftenexpressedasmeantimebetweenfailures(MTBF)andmeantimetorestoreservice(MTRS):

MTBFmeasureshowfrequentlytheservicefails.Forexample,aservicewithaMTBFoffourweeksfails,onaverage,13timeseachyear.MTRSmeasureshowquicklyserviceisrestoredafterafailure.Forexample,aservicewithaMTRSoffourhourswill,onaverage,fullyrecoverfromfailureinfourhours.Thisdoesnotmeanthatservicewillalwaysberestoredinfourhours,asMTRSisanaverageovermanyincidents.

OlderserviceswereoftendesignedwithveryhighMTBF,sothattheywouldfailinfrequently.MorerecentlytherehasbeenashifttowardsoptimizingservicedesigntominimizeMTRS,sothatservicescanberecoveredveryquickly.Themosteffectivewaytodothisistodesignanti-fragilesolutions,whichrecoverautomaticallyandveryquickly,withvirtuallynobusinessimpact.Forsomeservices,evenaveryshortfailurecanbecatastrophic,andfortheseitismoreimportanttofocusonincreasingMTBF.

Thewaythatavailabilityisdefinedmustbeappropriateforeachservice.Itisimportanttounderstandusers’andcustomers’viewsonavailabilityandtodefineappropriatemetrics,reports,anddashboards.ManyorganizationscalculatepercentageavailabilitybasedonMTBFandMTRS,butthesepercentagefiguresrarelymatchcustomers’experience,andarenotappropriateformostservices.Otherthingsthatshouldbeconsideredinclude:

whichvitalbusinessfunctionsareaffectedbydifferentapplicationfailuresatwhatpointisslowperformancesobadthattheserviceiseffectivelyunusablewhendoestheserviceneedtobeavailable,andwhencantheserviceprovidercarryoutmaintenanceactivities.

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Measurementsthatworkwellforsomeservicesinclude:

UseroutageminutesCalculatedbymultiplyingincidentdurationbythenumberofusersimpacted,orbyaddingupthenumberofminuteseachuserisaffected.Thisworkswellforservicesthatdirectlysupportuserproductivity;forexample,anemailservice.NumberoflosttransactionsCalculatedbysubtractingthenumberoftransactionsfromthenumberexpectedtohavehappenedduringthetimeperiod.Thisworkswellforservicesthatsupporttransaction-basedbusinessprocesses,suchasmanufacturingsupport.LostbusinessvalueCalculatedbymeasuringhowbusinessproductivitywasimpactedbythefailuresofsupportingservices.Thisiseasilyunderstoodbycustomersandcanbeusefulforplanninginvestmentinimprovedavailability.However,itcanbedifficulttoidentifywhichlostbusinessvaluewascausedbyITservicefailuresandwhichhadothercauses.UsersatisfactionServiceavailabilityisoneofthemostimportantandvisiblecharacteristicsofservices,andhasagreatinfluenceonusersatisfaction.Itisimportanttomakesurethatusersaresatisfiedwithserviceavailabilityinadditiontomeetingformallyagreedavailabilitytargets.

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Figure5.16Heatmapofthecontributionofavailabilitymanagementtovaluechainactivities

Mostorganizationsdonothavededicatedavailabilitymanagementstaff.Theactivitiesneededareoftendistributedaroundtheorganization.Someorganizationsincludeavailabilitymanagementactivitiesaspartofriskmanagement,whileotherscombineitwithservicecontinuitymanagementorwithcapacityandperformancemanagement.Someorganizationshavesitereliabilityengineers(SREs)whomanageandimprovetheavailabilityofspecificproductsorservices.

Aprocessisneededfortheregulartestingoffailoverandrecoverymechanisms.Manyorganizationsalsohaveaprocessforcalculatingandreportingavailabilitymetrics;however,availabilitymanagementisdrivenasmuchbyculture,experience,andknowledgeasbyfollowingprocedures.

Figure5.16showsthecontributionofavailabilitymanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanAvailabilitymanagementmustbeconsideredinserviceportfoliodecisionsandwhensettinggoalsanddirectionforservicesandpractices.ImproveWhenplanningandmakingimprovements,availabilitymanagementensuresthatservicesarenotdegraded.EngageAvailabilityrequirementsfornewandchangedservicesmustbeunderstoodandcaptured.DesignandtransitionNewandchangedservicesmustbedesignedtomeetavailabilitytargetsandtestingofavailabilitycontrolsisneededduringtransition.Obtain/buildAvailabilityisaconsiderationwhenbuildingcomponentsorobtainingthemfromthirdparties.DeliverandsupportThisactivityincludesmeasurementofavailabilityandreactingtoeventswhichmightaffecttheabilitytomeetavailabilitytargets.

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5.2.2 Businessanalysis

KeymessageThepurposeofthebusinessanalysispracticeistoanalyseabusinessorsomeelementofit,defineitsassociatedneeds,andrecommendsolutionstoaddresstheseneedsand/orsolveabusinessproblem,whichmustfacilitatevaluecreationforstakeholders.Businessanalysisenablesanorganizationtocommunicateitsneedsinameaningfulway,expresstherationaleforchange,anddesignanddescribesolutionsthatenablevaluecreationinalignmentwiththeorganization’sobjectives.

Analysisandsolutionsshouldbeapproachedinaholisticwaythatincludesconsiderationofprocesses,organizationalchange,technology,information,policies,andstrategicplanning.Theworkofbusinessanalysisisperformedprimarilybybusinessanalysts(BAs),althoughothersmaycontribute.

InIT,businessanalysispracticesarefrequentlyappliedinsoftwaredevelopmentprojects,buttheyarealsoappropriatetohigher-levelarchitectures,services,andtheorganization’sservicevaluesystem(SVS)ingeneral.Torestricttheapplicationofbusinessanalysistosoftwaredevelopmentaloneistoruntheriskofdevelopingincompletesolutions.

Thekeyactivitiesassociatedwithbusinessanalysisare:

analysingbusinesssystems,businessprocesses,services,orarchitecturesinthechanginginternalandexternalcontext

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identifyingandprioritizingpartsoftheSVS,andproductsandservicesthatrequireimprovement,aswellasopportunitiesforinnovationevaluatingandproposingactionsthatcanbetakentocreatethedesiredimprovement.ActionsmayincludenotonlyITsystemchanges,butalsoprocesschanges,alterationstoorganizationalstructure,andstaffdevelopmentdocumentingthebusinessrequirementsforthesupportingservicestoenablethedesiredimprovementsrecommendingsolutionsfollowinganalysisofthegatheredrequirementsandvalidatingthesewithstakeholders.

Businessrequirementscanbeutility-focusedorwarranty-focused.

DefinitionsWarrantyrequirementsTypicallynon-functionalrequirementscapturedasinputsfromkeystakeholdersandotherpractices.Organizationsshouldaimtomanagealibraryofpre-definedwarrantyacceptancecriteriaforuseinpracticessuchasprojectmanagementandsoftwaredevelopmentandmanagement.UtilityrequirementsFunctionalrequirementswhichhavebeendefinedbythecustomerandareuniquetoaspecificproduct.

Businessanalysisshouldensurethemostefficientandcomprehensiveachievementoftheseactivities,butnotmaketheerrorofanalysiswithoutintentofsubsequentaction.Anorganizationshouldnotattempttoanalyseanissuesodeeplyorforsolongthatatimelysolutioncannotbeachieved,ortrytosolveeveryproblemwithasingle,massiveinitiativethatfailstofacilitatevaluecreationinenoughtimetobeofpracticaluse.

Theprocessesassociatedwiththispracticeshouldguardagainstthesemistakes.

Thescopeofworkforthebusinessanalysispracticeincludesusingandevaluatinginformationfromoperationsandsupporttobuildknowledgeofhowtheservicesandpracticesareperformingintheliveenvironment.Thisknowledgewillnotonlyhelptoidentifyareasforimprovementinthecurrentservicedesign,butalsoreveallessonslearnedthatwillimprovefuturedesigns.

Theroleofbusinessanalysismaybedefineddifferentlyfromorganizationtoorganization,butitisarecognizeddisciplinewithaspecificsetofskills.Businessanalysisrequiresnotonlycriticalthinkingandevaluation,butalsolistening,communication,andfacilitationskills,theabilitytoanalyseanddocumentbusinessprocessesandusecases,andperformdataanalysisandmodelling.

Whenthesystemorservicebeinganalysedcrossesmanyorganizationalboundaries,itisimportantthatthevariousbusinessunitsinvolvedadoptapartnerrelationshiptoensureaholisticanalysisandcomprehensivesolutionproposal.Ifcompromisesareneededfromoneormoreoftheseunits,acollaborative,partner-likerelationshipwillfacilitateasolutionthatwillprovidevalueforalltheparties.

Withouttherightinformation,businessanalysiscannotbesuccessful,andtobeeffective,itneedsaccesstoallinformationrelatedtotheareaunderanalysis.Forbusinessprocesses,forexample,businessanalystswillneedaccesstoallprocessdocumentation,includingprocessflows,proceduresandworkinstructions,policies,andprocessmetrics.Theymayneedtointerviewnotonlythepersonresponsibleforthebusinessprocess,butalsothosewhoparticipateineachpartoftheprocesstocompileaclearviewoftheprocessandtherelatedissues.

Thetechnologiesdeployedusuallyincludewhateversystemtheorganizationusestogatheranddocumentrequirements,aswellasprojectmanagementsystemsandreportingtoolsforgatheringandprocessingdataandinformationforanalysis.Othertechnologiesthatcanbeofassistancewhenpresentingtheresultsofanalysisarevisual

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modellingandmappingtoolsandfeaturesofmanyofthetypicalofficeproductivitysuitessuchasspreadsheets,presentationsoftware,andwordprocessing.

Aswithallpractices,businessanalysiscannotensuresuccessfulsolutionsinisolation.Forexample,strategymanagementpracticesprovidehigh-levelguidancetobusinessanalysis,whichthendirectsanalysisandsolutionrecommendations.Inturn,therecommendationsfrombusinessanalysiscaninfluencetechnicalandotherstrategies.Toensuretheparticipationoftherightparties,businessanalysisreliesonrelationshipmanagement.Furthermore,thenaturalprogressionthroughtheservicevaluechainrequiresinteractionbetweenbusinessanalysisactivitiesandthosefromservicedesign,softwaredevelopmentandmanagement,measurementandreporting,andmanyothers.

Figure5.17showsthecontributionofbusinessanalysistotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanBusinessanalysiscontributestostrategicdecision-makingonwhatwillbedoneandhow.ImproveAlllevelsofevaluationandimprovementbenefitfrombusinessanalysis,whichisparticularlyapplicableatstrategicandtacticallevels.EngageBusinessanalysisiskeytothegatheringofrequirementsduringthisvaluechainactivity.DesignandtransitionGathering,prioritization,andanalysisofaccuraterequirementscanhelpensurethatahigh-qualitysolutionisdesignedandprogressedtooperation.Obtain/buildBusinessanalysisskillsareintegraltothedefinitionofanagreedsolution.DeliverandsupportDatafromtheongoingdeliveryofaservicecanbepartofbusinessanalysisactivitieswhendesigningchangestotheservice,aswellaswhenlookingforopportunitiesforcontinualimprovement.

Figure5.17Heatmapofthecontributionofbusinessanalysistovaluechainactivities

5.2.3 Capacityandperformancemanagement

KeymessageThepurposeofthecapacityandperformancemanagementpracticeistoensurethatservicesachieveagreedandexpectedperformance,satisfyingcurrentandfuturedemandinacost-effectiveway.

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Definition:PerformanceAmeasureofwhatisachievedordeliveredbyasystem,person,team,practice,orservice.

Serviceperformanceisusuallyassociatedwiththenumberofserviceactionsperformedinatimeframeandthetimerequiredtofulfilaserviceactionatagivenlevelofdemand.Serviceperformancedependsonservicecapacity,whichisdefinedasthemaximumthroughputthataCIorservicecandeliver.SpecificmetricsforcapacityandperformancedependonthetechnologyandbusinessnatureoftheserviceorCI.

Thecapacityandperformancemanagementpracticeusuallydealswithserviceperformanceandtheperformanceofthesupportingresourcesonwhichitdepends,suchasinfrastructure,applications,andthird-partyservices.Inmanyorganizations,thecapacityandperformancemanagementpracticealsocoversthecapacityandperformanceofthepersonnel.

Thecapacityandperformancemanagementpracticeincludesthefollowingactivities:

serviceperformanceandcapacityanalysis:researchandmonitoringofthecurrentserviceperformancecapacityandperformancemodelling

serviceperformanceandcapacityplanning:capacityrequirementsanalysisdemandforecastingandresourceplanningperformanceimprovementplanning.

Serviceperformanceisanimportantaspectoftheexpectationsand

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requirementsofcustomersandusers,andthereforesignificantlycontributestotheirsatisfactionwiththeservicestheyuseandthevaluetheyperceive.Capacityandperformanceanalysisandplanningcontributestoserviceplanningandbuilding,aswellastoongoingservicedelivery,evaluation,andimprovement.Anunderstandingofcapacityandperformancemodelsandpatternshelpstoforecastdemandandtodealwithincidentsanddefects.

Figure5.18showsthecontributionofcapacityandperformancemanagementtotheservicevaluechain,withthepracticebeinginvolvedinallservicevaluechainactivities:

PlanCapacityandperformancemanagementsupportstacticalandoperationalplanningwithinformationaboutactualdemandandperformance,andwithmodellingandforecastingtoolsandmethods.ImproveImprovementsareidentifiedanddrivenbyperformanceinformationprovidedbythispractice.EngageCustomers’andusers’expectationsaremanagedandsupportedbyinformationaboutperformanceandcapacityconstraintsandcapabilities.DesignandtransitionCapacityandperformancemanagementisessentialforproductandservicedesign:ithelpstoensurethatnewandchangedservicesaredesignedforoptimumperformance,capacity,andscalability.Obtain/buildCapacityandperformancemanagementhelpstoensurethatcomponentsandservicesbeingobtainedorbuiltmeetperformanceneedsoftheorganization.DeliverandsupportServicesandservicecomponentsaresupportedandtestedbyperformanceandcapacitytargets,metricsandmeasurement,andreportingtargetsandtools.

Figure5.18Heatmapofthecontributionofcapacityandperformancemanagementtovaluechainactivities

5.2.4 Changecontrol

KeymessageThepurposeofthechangecontrolpracticeistomaximizethenumberofsuccessfulserviceandproductchangesbyensuringthatriskshavebeenproperlyassessed,authorizingchangestoproceed,andmanagingthechangeschedule.

Definition:ChangeTheaddition,modification,orremovalofanythingthatcouldhaveadirectorindirecteffectonservices.

Thescopeofchangecontrolisdefinedbyeachorganization.ItwilltypicallyincludeallITinfrastructure,applications,documentation,processes,supplierrelationships,andanythingelsethatmightdirectlyorindirectlyimpactaproductorservice.

Itisimportanttodistinguishchangecontrolfromorganizationalchangemanagement.Organizationalchangemanagementmanagesthepeopleaspectsofchangestoensurethatimprovementsandorganizationaltransformationinitiativesareimplementedsuccessfully.Changecontrolisusuallyfocusedonchangesinproductsandservices.

Changecontrolmustbalancetheneedtomakebeneficialchangesthatwilldeliveradditionalvaluewiththeneedtoprotectcustomersandusersfromtheadverseeffectofchanges.Allchangesshouldbeassessedbypeoplewhoareabletounderstandtherisksandtheexpectedbenefits;thechangesmustthenbeauthorizedbeforetheyaredeployed.Thisassessment,however,shouldnotintroduceunnecessarydelay.

Thepersonorgroupwhoauthorizesachangeisknownasachangeauthority.Itisessentialthatthecorrectchangeauthorityisassignedtoeachtypeofchangetoensurethatchangecontrolisbothefficientandeffective.Inhigh-velocityorganizations,itisacommonpracticetodecentralizechangeapproval,makingthepeerreviewatoppredictorofhighperformance.

Therearethreetypesofchangethatareeachmanagedindifferentways:

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StandardchangesThesearelow-risk,pre-authorizedchangesthatarewellunderstoodandfullydocumented,andcanbeimplementedwithoutneedingadditionalauthorization.Theyareofteninitiatedasservicerequests,butmayalsobeoperationalchanges.Whentheprocedureforastandardchangeiscreatedormodified,thereshouldbeafullriskassessmentandauthorizationasforanyotherchange.Thisriskassessmentdoesnotneedtoberepeatedeachtimethestandardchangeisimplemented;itonlyneedstobedoneifthereisamodificationtothewayitiscarriedout.NormalchangesThesearechangesthatneedtobescheduled,assessed,andauthorizedfollowingaprocess.Changemodelsbasedonthetypeofchangedeterminetherolesforassessmentandauthorization.Somenormalchangesarelowrisk,andthechangeauthorityfortheseisusuallysomeonewhocanmakerapiddecisions,oftenusingautomationtospeedupthechange.Othernormalchangesareverymajorandthechangeauthoritycouldbeashighasthemanagementboard(orequivalent).Initiationofanormalchangeistriggeredbythecreationofachangerequest.Thismaybecreatedmanually,butorganizationsthathaveanautomatedpipelineforcontinuousintegrationandcontinuousdeploymentoftenautomatemoststepsofthechangecontrolprocess.EmergencychangesThesearechangesthatmustbeimplementedassoonaspossible;forexample,toresolveanincidentorimplementasecuritypatch.Emergencychangesarenottypicallyincludedinachangeschedule,andtheprocessforassessmentandauthorizationisexpeditedtoensuretheycanbeimplementedquickly.Asfaraspossible,emergencychangesshouldbesubjecttothesametesting,assessment,andauthorizationasnormalchanges,butitmaybeacceptabletodefersomedocumentationuntilafterthechangehasbeenimplemented,andsometimesitwillbenecessarytoimplementthechangewithlesstestingduetotimeconstraints.Theremayalsobeaseparatechangeauthorityforemergencychanges,typicallyincludingasmallnumberofseniormanagerswhounderstandthebusinessrisksinvolved.

Thechangescheduleisusedtohelpplanchanges,assistincommunication,avoidconflicts,andassignresources.Itcanalsobe

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usedafterchangeshavebeendeployedtoprovideinformationneededforincidentmanagement,problemmanagement,andimprovementplanning.Regardlessofwhothechangeauthorityis,theymayneedtocommunicatewidelyacrosstheorganization.Riskassessment,forinstance,mayrequirethemtogatherinputfrommanypeoplewithspecialistknowledge.Additionally,thereisusuallyaneedtocommunicateinformationaboutthechangetoensurepeoplearefullypreparedbeforethechangeisdeployed.

Figure5.19showsthecontributionofchangecontroltotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanChangestoproductandserviceportfolios,policies,andpracticesallrequireacertainlevelofcontrol,andthechangecontrolpracticeisusedtoprovideit.ImproveManyimprovementswillrequirechangestobemade,andtheseshouldbeassessedandauthorizedinthesamewayasallotherchanges.EngageCustomersandusersmayneedtobeconsultedorinformedaboutchanges,dependingonthenatureofthechange.DesignandtransitionManychangesareinitiatedasaresultofneworchangedservices.Changecontrolactivityisamajorcontributortotransition.Obtain/buildChangestocomponentsaresubjecttochangecontrol,whethertheyarebuiltinhouseorobtainedfromsuppliers.DeliverandsupportChangesmayhaveanimpactondeliveryandsupport,andinformationaboutchangesmustbecommunicatedtopersonnelwhocarryoutthisvaluechainactivity.Thesepeoplemayalsoplayapartinassessingandauthorizingchanges.

Figure5.19Heatmapofthecontributionofchangecontroltovaluechainactivities

TheITILstory:ChangecontrolHenri:Thecarhiremarketisdevelopingfasterthanever.TomakesurethatAxlemeetscustomerdemandsandcapitalizesonopportunities,weneedtohavespeed-to-marketandtoexperimentwithnewideas.OurnewserviceofferingswillseealotofchangeatAxle.Someteamswillneedtodouble,whileothersmayreduce.WeneedtobringeveryoneatAxleonboard.

Radhika:ThechangecontrolpracticeatAxlemakessurethatourservicesachievetherightbalanceofflexibilityandreliability.

Marco:Someofourprocessesarehighlyautomatedanddesignedforthefastdeploymentofchanges.TheseareperfectforchangestoourbookingappandsomeofourITsystems.

Su:Inothercases,suchaswhenweupdateourvehicles,weuseamixofmanualandautomatedtesting.Forexample,theAxleAwareroadmonitoringandsafetysystemrequiresconsultationandapprovalbeforewecanupdateit.

Marco:SystemssuchasAxleAwarecan’tbealteredlikethebookingapp.Thepriorityforthosechangesisthatweactsafelyandcomplywithappropriateregulations.That’smoreimportantthantimetomarket.

5.2.5 Incidentmanagement

KeymessageThepurposeoftheincidentmanagementpracticeistominimizethenegativeimpactofincidentsbyrestoringnormalserviceoperationasquicklyaspossible.

Definition:IncidentAnunplannedinterruptiontoaserviceorreductioninthequalityofaservice.

Incidentmanagementcanhaveanenormousimpactoncustomerandusersatisfaction,andonhowcustomersandusersperceivetheserviceprovider.Everyincidentshouldbeloggedandmanagedtoensurethatitisresolvedinatimethatmeetstheexpectationsofthecustomeranduser.Targetresolutiontimesareagreed,documented,andcommunicatedtoensurethatexpectationsarerealistic.Incidentsareprioritizedbasedonanagreedclassificationtoensurethatincidentswiththehighestbusinessimpactareresolvedfirst.

Organizationsshoulddesigntheirincidentmanagementpracticetoprovideappropriatemanagementandresourceallocationtodifferenttypesofincident.Incidentswithalowimpactmustbemanagedefficientlytoensurethattheydonotconsumetoomanyresources.Incidentswithalargerimpactmayrequiremoreresourcesandmorecomplexmanagement.Thereareusuallyseparateprocessesformanagingmajorincidents,andformanaginginformationsecurityincidents.

Informationaboutincidentsshouldbestoredinincidentrecordsinasuitabletool.Ideally,thistoolshouldalsoprovidelinkstorelatedCIs,changes,problems,knownerrors,andotherknowledgetoenablequickandefficientdiagnosisandrecovery.ModernITservicemanagementtoolscanprovideautomatedmatchingofincidentstootherincidents,problems,orknownerrors,andcanevenprovideintelligentanalysisofincidentdatatogeneraterecommendationsforhelpingwithfutureincidents.

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Itisimportantthatpeopleworkingonanincidentprovidegood-qualityupdatesinatimelyfashion.Theseupdatesshouldincludeinformationaboutsymptoms,businessimpact,CIsaffected,actionscompleted,andactionsplanned.Eachoftheseshouldhaveatimestampandinformationaboutthepeopleinvolved,sothatthepeopleinvolvedorinterestedcanbekeptinformed.Theremayalsobeaneedforgoodcollaborationtoolssothatpeopleworkingonanincidentcancollaborateeffectively.

Incidentsmaybediagnosedandresolvedbypeopleinmanydifferentgroups,dependingonthecomplexityoftheissueortheincidenttype.Allofthesegroupsneedtounderstandtheincidentmanagementprocess,andhowtheircontributiontothishelpstomanagethevalue,outcomes,costs,andrisksoftheservicesprovided:

Someincidentswillberesolvedbytheusersthemselves,usingself-help.Useofspecificself-helprecordsshouldbecapturedforuseinmeasurementandimprovementactivities.Someincidentswillberesolvedbytheservicedesk.Morecomplexincidentswillusuallybeescalatedtoasupportteamforresolution.Typically,theroutingisbasedontheincidentcategory,whichshouldhelptoidentifythecorrectteam.Incidentscanbeescalatedtosuppliersorpartners,whooffersupportfortheirproductsandservices.Themostcomplexincidents,andallmajorincidents,oftenrequireatemporaryteamtoworktogethertoidentifytheresolution.Thisteammayincluderepresentativesofmanystakeholders,includingtheserviceprovider,suppliers,users,etc.Insomeextremecases,disasterrecoveryplansmaybeinvokedtoresolveanincident.Disasterrecoveryisdescribedintheservicecontinuitymanagementpractice(section5.2.12).

Effectiveincidentmanagementoftenrequiresahighlevelofcollaborationwithinandbetweenteams.Theseteamsmayincludetheservicedesk,technicalsupport,applicationsupport,andvendors.Collaborationcanfacilitateinformation-sharingandlearning,aswellashelpingtosolvetheincidentmoreefficientlyandeffectively.

TipSomeorganizationsuseatechniquecalledswarmingtohelpmanageincidents.Thisinvolvesmanydifferentstakeholdersworkingtogetherinitially,untilitbecomesclearwhichofthemisbestplacedtocontinueandwhichcanmoveontoothertasks.

Third-partyproductsandservicesthatareusedascomponentsofaservicerequiresupportagreementswhichaligntheobligationsofthesupplierwiththecommitmentsmadebytheserviceprovidertocustomers.Incidentmanagementmayrequirefrequentinteractionwiththesesuppliers,androutinemanagementofthisaspectofsuppliercontractsisoftenpartoftheincidentmanagementpractice.Asuppliercanalsoactasaservicedesk,loggingandmanagingallincidentsandescalatingthemtosubjectmatterexpertsorotherpartiesasrequired.

Thereshouldbeaformalprocessforloggingandmanagingincidents.Thisprocessdoesnotusuallyincludedetailedproceduresforhowtodiagnose,investigate,andresolveincidents,butcanprovidetechniquesformakinginvestigationanddiagnosismoreefficient.Theremaybescriptsforcollectinginformationfromusersduringinitialcontact,andthismayleaddirectlytodiagnosisandresolutionofsimpleincidents.Investigationofmorecomplicatedincidentsoftenrequiresknowledgeandexpertise,ratherthanproceduralsteps.

Dealingwithincidentsispossibleineveryvaluechainactivity,thoughthemostvisible(duetoeffectonusers)areincidentsinanoperationalenvironment.

Figure5.20showsthecontributionofincidentmanagementtotheservicevaluechain,withthepracticebeingappliedmainlytotheengage,and

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deliverandsupportvaluechainactivities.Exceptforplan,otheractivitiesmayuseinformationaboutincidentstohelpsetpriorities:

ImproveIncidentrecordsareakeyinputtoimprovementactivities,andareprioritizedbothintermsofincidentfrequencyandseverity.EngageIncidentsarevisibletousers,andsignificantincidentsarealsovisibletocustomers.Goodincidentmanagementrequiresregularcommunicationtounderstandtheissues,setexpectations,providestatusupdates,andagreethattheissuehasbeenresolvedsotheincidentcanbeclosed.DesignandtransitionIncidentsmayoccurintestenvironments,aswellasduringservicereleaseanddeployment.Thepracticeensurestheseincidentsareresolvedinatimelyandcontrolledmanner.Obtain/buildIncidentsmayoccurindevelopmentenvironments.Incidentmanagementpracticeensurestheseincidentsareresolvedinatimelyandcontrolledmanner.DeliverandsupportIncidentmanagementmakesasignificantcontributiontosupport.Thisvaluechainactivityincludesresolvingincidentsandproblems.

Figure5.20Heatmapofthecontributionofincidentmanagementto

valuechainactivities

TheITILstory:Axle’sincidentmanagementRadhika:AxlefacesmanypotentialITandnon-ITincidents.Carscanbreakdown,roadaccidentsmightoccur,orourcustomersmightfacechallengeswithunfamiliarroadrules.

Marco:Acarbookingcanbeaffectedbyanerrorinourapp,orbyausergettinglostduetoanavigationerrorwithoursoftware.Whenincidentsoccur,wehavetobereadytorestorenormalservicesassoonaspossible.Wealsohavetomakesureourteamknowshowandwhentoswitchfrompre-definedrecoveryprocedurestoswarmingandcollectiveanalysis.

Radhika:Wealsomakesurethatsuchcasesarefollowedbyinvestigationandimprovements.

Henri:Axlehasdevelopedclearprocessesforalltypesofincidents,withworkaroundsavailableforcasesthathappenfrequently,suchasatyrepunctureorlossofinternetconnectivity.

Radhika:Ourteamsworktogetherwithoursuppliersandpartnerstoensurefastandeffectiveincidentresponse.Wedevelopandtestrecoveryprocedurestogetherwiththepartnersinvolvedinanyincidentsweexperience.

5.2.6 ITassetmanagement

KeymessageThepurposeoftheITassetmanagementpracticeistoplanandmanagethefulllifecycleofallITassets,tohelptheorganization:

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maximizevaluecontrolcostsmanageriskssupportdecision-makingaboutpurchase,re-use,retirement,anddisposalofassetsmeetregulatoryandcontractualrequirements.

Definition:ITassetAnyfinanciallyvaluablecomponentthatcancontributetothedeliveryofanITproductorservice.

ThescopeofITassetmanagementtypicallyincludesallsoftware,hardware,networking,cloudservices,andclientdevices.Insomecases,itmayalsoincludenon-ITassetssuchasbuildingsorinformationwherethesehaveafinancialvalueandarerequiredtodeliveranITservice.ITassetmanagementcanincludeoperationaltechnology(OT),includingdevicesthatarepartoftheInternetofThings.ThesearetypicallydevicesthatwerenottraditionallythoughtofasITassets,butthatnowincludeembeddedcomputingcapabilityandnetworkconnectivity.

Typesofassetmanagement

Assetmanagementisawell-establishedpracticethatincludestheacquisition,operation,care,anddisposaloforganizationalassets,particularlycriticalinfrastructure.

ITassetmanagement(ITAM)isasub-practiceofassetmanagementthatisspecificallyaimedatmanagingthelifecyclesandtotalcostsofITequipmentandinfrastructure.

Softwareassetmanagement(SAM)isanaspectofITassetmanagementthatisspecificallyaimedatmanagingtheacquisition,development,release,deployment,maintenance,andeventualretirementofsoftwareassets.SAMproceduresprovideeffectivemanagement,control,andprotectionofsoftwareassets.

Understandingthecostandvalueofassetsisessentialtoalsocomprehendingthecostandvalueofproductsandservices,andisthereforeanimportantunderpinningfactorineverythingtheserviceproviderdoes.ITassetmanagementcontributestothevisibilityofassetsandtheirvalue,whichisakeyelementtosuccessfulservicemanagementaswellasbeingusefultootherpractices.

ITassetmanagementrequiresaccurateinventoryinformation,whichitkeepsinanassetregister.Thisinformationcanbegatheredinanaudit,butitismuchbettertocaptureitaspartoftheprocessesthatchangethestatusofassets,forexample,whennewhardwareisdelivered,orwhenanewinstanceofacloudserviceisrequested.IfITassetmanagementhasgoodinterfaceswithotherpractices,includingserviceconfigurationmanagement,incidentmanagement,changecontrol,anddeploymentmanagement,thentheassetstatusinformationcanbemaintainedwithlesseffort.Auditsarestillneeded,butthesecanbelessfrequent,andareeasiertodowhenthereisalreadyanaccurateassetregister.

ITassetmanagementhelpstooptimizetheuseofvaluableresources.Forexample,thenumberofsparecomputersanorganizationrequirescanbecalculatedbasedonservicelevelagreementcommitments,themeasuredperformanceofservicerequests,anddemandpredictionsfromcapacityandperformancemanagement.

SomeorganizationsdiscoveraneedforITassetmanagementafterasoftwarevendorrequestsanauditoflicenceuse.Thiscanbevery

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stressfuliftherequiredinformationhasnotbeenmaintained,andcanleadtosignificantcosts,bothincarryingouttheauditandthenpayinganyadditionallicencecoststhatareidentified.ItismuchcheaperandeasiertosimplymaintaininformationaboutsoftwarelicenceuseaspartofnormalITassetmanagementactivity,andtoprovidethisinresponsetoanyvendorrequests.Softwarerunsonhardware,sothemanagementofsoftwareandhardwareassetsshouldbecombinedtoensurethatalllicencesareproperlymanaged.Forthesamereason,themanagementofcloud-basedassetsshouldalsobeincluded.

ThecostofcloudservicescaneasilygetoutofcontroliftheorganizationdoesnotmanagetheseinthesamewayasotherITassets.Eachindividualuseofacloudservicemayberelativelycheap,butbyspendinginsmallamountsitiseasytoconsumemuchmoreresourcethanwasplanned,leavingtheorganizationwithacorrespondinglylargebill.Again,goodITassetmanagementcanhelptocontrolthis.

TheactivitiesandrequirementsofITassetmanagementwillvaryfordifferenttypesofasset:

Hardwareassetsmustbelabelledforclearidentification.Itisimportanttoknowwheretheyareandtohelpprotectthemfromtheft,damage,anddataleakage.Theymayneedspecialhandlingwhentheyarere-usedordecommissioned;forexample,erasureorshreddingofdiskdrivesdependsoninformationsecurityrequirements.Hardwareassetsmayalsobesubjecttoregulatoryrequirements,suchastheEUWasteElectricalandElectronicEquipmentDirective.Softwareassetsmustbeprotectedfromunlawfulcopying,whichcouldresultinunlicenseduse.Theorganizationmustensurethatlicencetermsareadheredtoandthatlicencesareonlyre-usedinwaysthatareallowedunderthecontract.Itisimportanttoretainverifiedproofofpurchaseandentitlementtorunthesoftware.Itisveryeasytolosesoftwarelicenceswhenequipmentisdecommissioned,soitisimportantthattheITassetmanagementprocessrecoverstheselicencesandmakesthemavailableforre-usewhereappropriate.Cloud-basedassetsmustbeassignedtospecificproductsorgroups

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sothatcostscanbemanaged.Fundingmustbemanagedsothattheorganizationhastheflexibilitytoinvokenewinstancesofcloudusewhenneeded,andtoremoveinstancesthatarenotneeded,withouttheriskofuncontrolledcosts.Contractualarrangementsmustbeunderstoodandadheredto,inthesamewayasforsoftwarelicences.Clientassetsmustbeassignedtoindividualswhotakeresponsibilityfortheircare.Processesareneededtomanagelostorstolendevices,andtoolsmaybeneededtoerasesensitivedatafromthemorotherwiseensurethatthisdataisnotlostorstolenwiththedevice.

Inallcases,theorganizationneedstoensurethatthefulllifecycleofeachassetismanaged.Thisincludesmanagingassetprovisioning;receiving,decommissioning,andreturn;hardwaredisposal;softwarere-use;leasingmanagement;andpotentiallymanyotheractivities.

ITassetmanagementmaintainsinformationabouttheassets,theircosts,andrelatedcontracts.Therefore,theITassetregisterisoftencombined(orfederated)withtheinformationstoredinaconfigurationmanagementsystem(CMS).Ifthetwoareseparatethenitisimportantthatassetscanbemappedbetweenthem,usuallybyuseofastandardnamingconvention.Itmayalsobenecessarytocombine(orfederate)theITassetregisterwithsystemsusedtomanageotherfinancialassets,orwithsystemsusedtomanagesuppliers.

InsomeorganizationsthereisacentralizedteamresponsibleforITassetmanagement.Thisteammayalsoberesponsibleforconfigurationmanagement.Inotherorganizations,eachtechnicalteammayberesponsibleformanagementoftheITassetstheysupport;forexample,thestorageteamcouldmanagestorageassetswhilethenetworkingteammanagesnetworkassets.Eachorganizationmustconsideritsowncontextandculturetochoosetheappropriatelevelofcentralization.However,havingsomecentralroleshelpstoensureassetdataqualityandthedevelopmentofexpertiseonspecificaspectssuchassoftwarelicensingandinventorysystems.

ITassetmanagementtypicallyincludesthefollowingactivities:

Define,populate,andmaintaintheassetregisterintermsofstructure

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andcontent,andthestoragefacilitiesforassetsandrelatedmediaControltheassetlifecycleincollaborationwithotherpractices(forexample,upgradingobsoletesoftwareoronboardingnewstaffmemberswithalaptopandmobilephone)andrecordallchangestoassets(status,location,characteristics,assignment,etc.)Providecurrentandhistoricaldata,reports,andsupporttootherpracticesaboutITassetsAuditassets,relatedmedia,andconformity(particularlywithregulations,andlicencetermsandconditions)anddrivecorrectiveandpreventiveimprovementstodealwithdetectedissues.

Figure5.21showsthecontributionofITassetmanagementtotheservicevaluechain,withthepracticebeingappliedmainlytothedesignandtransition,andobtain/buildvaluechainactivities:

PlanMostpoliciesandguidanceforITassetmanagementcomesfromtheservicefinancialmanagementpractice.Someassetmanagementpoliciesaredrivenbygovernanceandsomearedrivenbyotherpractices,suchasinformationsecuritymanagement.ITassetmanagementcanbeconsideredastrategicpracticethathelpstheorganizationtounderstandandmanagecostandvalue.ImproveThisvaluechainactivitymustconsidertheimpactonITassets,andsomeimprovementswilldirectlyinvolveITassetmanagementinhelpingtounderstandandmanagecosts.EngageTheremaybesomedemandforITassetmanagementfromstakeholders.Forexample,ausermayreportalostorstolenmobilephone,oracustomermayrequirereportsonthevalueofITassets.DesignandtransitionThisvaluechainactivitychangesthestatusofITassets,andsodrivesmostITassetmanagementactivity.Obtain/buildITassetmanagementsupportsassetprocurementtoensurethatassetsaretraceablefromthebeginningoftheirlifecycle.DeliverandsupportITassetmanagementhelpstolocateITassets,tracetheirmovements,andcontroltheirstatusintheorganization.

Figure5.21HeatmapofthecontributionofITassetmanagementtovaluechainactivities

5.2.7 Monitoringandeventmanagement

KeymessageThepurposeofthemonitoringandeventmanagementpracticeistosystematicallyobserveservicesandservicecomponents,andrecordandreportselectedchangesofstateidentifiedasevents.Thispracticeidentifiesandprioritizesinfrastructure,services,businessprocesses,andinformationsecurityevents,andestablishestheappropriateresponsetothoseevents,includingrespondingtoconditionsthatcouldleadtopotentialfaultsorincidents.

Definition:EventAnychangeofstatethathassignificanceforthemanagementofaserviceorotherconfigurationitem(CI).EventsaretypicallyrecognizedthroughnotificationscreatedbyanITservice,CI,ormonitoringtool.

Themonitoringandeventmanagementpracticemanageseventsthroughouttheirlifecycletoprevent,minimize,oreliminatetheirnegativeimpactonthebusiness.

ThemonitoringpartofthepracticefocusesonthesystematicobservationofservicesandtheCIsthatunderpinservicestodetectconditionsofpotentialsignificance.Monitoringshouldbeperformedinahighlyautomatedmanner,andcanbedoneactivelyorpassively.Theeventmanagementpartfocusesonrecordingandmanagingthosemonitoredchangesofstatethataredefinedbytheorganizationasanevent,determiningtheirsignificance,andidentifyingandinitiatingthecorrectcontrolactiontomanagethem.Frequentlythecorrectcontrolactionwillbetoinitiateanotherpractice,butsometimesitwillbetotakenoactionotherthantocontinuemonitoringthesituation.Monitoringisnecessaryforeventmanagementtotakeplace,butnotallmonitoringresultsinthedetectionofanevent.

Notalleventshavethesamesignificanceorrequirethesameresponse.Eventsareoftenclassifiedasinformational,warning,andexceptions.Informationaleventsdonotrequireactionatthetimetheyareidentified,butanalysingthedatagatheredfromthematalaterdatemayuncoverdesirable,proactivestepsthatcanbebeneficialtotheservice.Warningeventsallowactiontobetakenbeforeanynegativeimpactisactually

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experiencedbythebusiness,whereasexceptioneventsindicatethatabreachtoanestablishednormhasbeenidentified(forexample,toaservicelevelagreement).Exceptioneventsrequireaction,eventhoughbusinessimpactmaynotyethavebeenexperienced.

Theprocessesandproceduresneededinthemonitoringandeventmanagementpracticemustaddressthesekeyactivitiesandmore:

identifyingwhatservices,systems,CIs,orotherservicecomponentsshouldbemonitored,andestablishingthemonitoringstrategyimplementingandmaintainingmonitoring,leveragingboththenativemonitoringfeaturesoftheelementsbeingobservedaswellastheuseofdesigned-for-purposemonitoringtoolsestablishingandmaintainingthresholdsandothercriteriafordeterminingwhichchangesofstatewillbetreatedasevents,andchoosingcriteriatodefineeachtypeofevent(informational,warning,orexception)establishingandmaintainingpoliciesforhoweachtypeofdetectedeventshouldbehandledtoensurepropermanagementimplementingprocessesandautomationsrequiredtooperationalizethedefinedthresholds,criteria,andpolicies.

Thispracticeishighlyinteractivewithotherpracticesparticipatingintheservicevaluechain.Forexample,someeventswillindicateacurrentissuethatqualifiesasanincident.Inthiscase,thecorrectcontrolactionwillbetoinitiateactivityintheincidentmanagementpractice.Repeatedeventsshowingperformanceoutsideofdesiredlevelsmaybeevidenceofapotentialproblem,whichwouldinitiateactivityintheproblemmanagementpractice.Forsomeevents,thecorrectresponseistoinitiateachange,engagingthechangecontrolpractice.

Althoughtheworkofthispractice,onceputinplace,ishighlyautomated,humaninterventionisstillrequired,andisinfactessential.Forthedefinitionofmonitoringstrategiesandspecificthresholdsandassessmentcriteria,itcanhelptobringinabroadrangeofperspectives,includinginfrastructure,applications,serviceowners,servicelevelmanagement,andrepresentationfromthewarranty-relatedpractices.

Rememberthatthestartingpointforthispracticeislikelytobesimple,settingthestageforalaterincreaseincomplexity,soitisimportantthattheexpectationsofparticipantsaremanaged.

Organizationsandpeoplearealsocriticaltoprovidinganappropriateresponsetomonitoreddataandevents,inalignmentwithpoliciesandorganizationalpriorities.Rolesandresponsibilitiesmustbeclearlydefined,andeachpersonorgroupmusthaveeasy,timelyaccesstotheinformationneededtoperformtheirrole.

Automationiskeytosuccessfulmonitoringandeventmanagement.Someservicecomponentscomeequippedwithbuilt-inmonitoringandreportingcapabilitiesthatcanbeconfiguredtomeettheneedsofthepractice,butsometimesitisnecessarytoimplementandconfigurepurpose-builtmonitoringtools.Themonitoringitselfcanbeeitheractiveorpassive.Inactivemonitoring,toolswillpollkeyCIs,lookingattheirstatustogeneratealertswhenanexceptionconditionisidentified.Inpassivemonitoring,theCIitselfgeneratestheoperationalalerts.

Automatedtoolsshouldalsobeusedforthecorrelationofevents.ThesefeaturesmaybeprovidedbymonitoringtoolsorothertoolssuchasITSMworkflowsystems.Therecanbeahugevolumeofdatageneratedbythispractice,butwithoutclearpoliciesandstrategiesonhowtolimit,filter,andusethisdata,itwillbeofnovalue.

Ifthirdpartiesareprovidingproductsorservicesintheoverallservicearchitecture,theyshouldalsosupplyexpertiseinthemonitoringandreportingcapabilitiesoftheirofferings.Leveragingthisexpertisecansavetimewhentryingtooperationalizemonitoringandeventmanagementstrategiesandworkflows.IfsomeITfunctions,suchasinfrastructuremanagement,arepartiallyorwhollyoutsourcedtoasupplier,theymaybereluctanttoexposemonitoringoreventdatarelatedtotheelementstheymanage.Don’taskfordatathatisnottrulyneeded,butifdataisrequired,makesurethattheprovisionofthatdataisexplicitlypartofthecontractforthesupplier’sservices.

Figure5.22showsthecontributionofmonitoringandeventmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvalue

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chainactivitiesexceptplan:

ImproveThemonitoringandeventmanagementpracticeisessentialtothecloseobservationoftheenvironmenttoevaluateandproactivelyimproveitshealthandstability.EngageMonitoringandeventmanagementmaybethesourceofinternalengagementforaction.DesignandtransitionMonitoringdatainformsdesigndecisions.Monitoringisanessentialcomponentoftransition:itprovidesinformationaboutthetransitionsuccessinallenvironments.Obtain/buildMonitoringandeventmanagementsupportsdevelopmentenvironments,ensuringtheirtransparencyandmanageability.DeliverandsupportThepracticeguideshowtheorganizationmanagesinternalsupportofidentifiedevents,initiatingotherpracticesasappropriate.

Figure5.22Heatmapofthecontributionofmonitoringandeventmanagementtovaluechainactivities

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5.2.8 Problemmanagement

KeymessageThepurposeoftheproblemmanagementpracticeistoreducethelikelihoodandimpactofincidentsbyidentifyingactualandpotentialcausesofincidents,andmanagingworkaroundsandknownerrors.

DefinitionsProblemAcause,orpotentialcause,ofoneormoreincidents.KnownerrorAproblemthathasbeenanalysedbuthasnotbeenresolved.

Figure5.23Thephasesofproblemmanagement

Everyservicehaserrors,flaws,orvulnerabilitiesthatmaycauseincidents.Theymayincludeerrorsinanyofthefourdimensionsof

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servicemanagement.Manyerrorsareidentifiedandresolvedbeforeaservicegoeslive.However,someremainunidentifiedorunresolved,andmaybearisktoliveservices.InITIL,theseerrorsarecalledproblemsandtheyareaddressedbytheproblemmanagementpractice.

Problemsarerelatedtoincidents,butshouldbedistinguishedastheyaremanagedindifferentways:

Incidentshaveanimpactonusersorbusinessprocesses,andmustberesolvedsothatnormalbusinessactivitycantakeplace.Problemsarethecausesofincidents.Theyrequireinvestigationandanalysistoidentifythecauses,developworkarounds,andrecommendlonger-termresolution.Thisreducesthenumberandimpactoffutureincidents.

Problemmanagementinvolvesthreedistinctphases,asshowninFigure5.23.

Problemidentificationactivitiesidentifyandlogproblems.Theseinclude:

performingtrendanalysisofincidentrecordsdetectionofduplicateandrecurringissuesbyusers,servicedesk,andtechnicalsupportstaffduringmajorincidentmanagement,identifyingariskthatanincidentcouldrecuranalysinginformationreceivedfromsuppliersandpartnersanalysinginformationreceivedfrominternalsoftwaredevelopers,testteams,andprojectteams.

Othersourcesofinformationcanalsoleadtoproblemsbeingidentified.

Problemcontrolactivitiesincludeproblemanalysis,anddocumentingworkaroundsandknownerrors.

Problemsareprioritizedforanalysisbasedontheriskthattheypose,andaremanagedasrisksbasedontheirpotentialimpactandprobability.Itisnotessentialtoanalyseeveryproblem;itismorevaluabletomake

significantprogressonthehighest-priorityproblemsthantoinvestigateeveryminorproblemthattheorganizationisawareof.

Incidentstypicallyhavemanyinterrelatedcauses,andtherelationshipsbetweenthemcanbecomplex.Problemcontrolshouldconsiderallcontributorycauses,includingcausesthatcontributedtothedurationandimpactofincidents,aswellasthosethatledtotheincidentshappening.Itisimportanttoanalyseproblemsfromtheperspectiveofallfourdimensionsofservicemanagement.Forexample,anincidentthatwascausedbyinaccuratedocumentationmayrequirenotonlyacorrectiontothatdocumentationbutalsotrainingandawarenessforsupportpersonnel,suppliers,andusers.

Whenaproblemcannotberesolvedquickly,itisoftenusefultofindanddocumentaworkaroundforfutureincidents,basedonanunderstandingoftheproblem.Workaroundsaredocumentedinproblemrecords.Thiscanbedoneatanystage;itdoesn’tneedtowaitforanalysistobecomplete.Ifaworkaroundhasbeendocumentedearlyinproblemcontrol,thenthisshouldbereviewedandimprovedafterproblemanalysishasbeencompleted.

Definition:WorkaroundAsolutionthatreducesoreliminatestheimpactofanincidentorproblemforwhichafullresolutionisnotyetavailable.Someworkaroundsreducethelikelihoodofincidents.

Aneffectiveincidentworkaroundcanbecomeapermanentwayofdealingwithsomeproblemswhenresolvingtheproblemisnotviableorcost-effective.Inthiscase,theproblemremainsintheknownerrorstatus,andthedocumentedworkaroundisappliedshouldrelated

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incidentsoccur.Everydocumentedworkaroundshouldincludeacleardefinitionofthesymptomstowhichitapplies.Insomecases,workaroundapplicationcanbeautomated.

Forotherproblems,awaytofixtheerrorshouldbefound.Thisisapartoferrorcontrol.Errorcontrolactivitiesmanageknownerrors,whichareproblemswhereinitialanalysishasbeencompleted;itusuallymeansthatfaultycomponentshavebeenidentified.Errorcontrolalsoincludesidentificationofpotentialpermanentsolutionswhichmayresultinachangerequestforimplementationofasolution,butonlyifthiscanbejustifiedintermsofcost,risks,andbenefits.

Errorcontrolregularlyre-assessesthestatusofknownerrorsthathavenotbeenresolved,includingoverallimpactoncustomers,availabilityandcostofpermanentresolutions,andeffectivenessofworkarounds.Theeffectivenessofworkaroundsshouldbeevaluatedeachtimeaworkaroundisused,astheworkaroundmaybeimprovedbasedontheassessment.

Problemmanagementactivitiesareverycloselyrelatedtoincidentmanagement.Thepracticesneedtobedesignedtoworktogetherwithinthevaluechain.Activitiesfromthesetwopracticesmaycomplementeachother(forexample,identifyingthecausesofanincidentisaproblemmanagementactivitythatmayleadtoincidentresolution),buttheymayalsoconflict(forexample,investigatingthecauseofanincidentmaydelayactionsneededtorestoreservice).

Examplesofinterfacesbetweenproblemmanagement,riskmanagement,changecontrol,knowledgemanagement,andcontinualimprovementareasfollows:

Problemmanagementactivitiescanbeorganizedasaspecificcaseofriskmanagement:theyaimtoidentify,assess,andcontrolrisksinanyofthefourdimensionsofservicemanagement.Itisusefultoadoptriskmanagementtoolsandtechniquesforproblemmanagement.Implementationofproblemresolutionisoftenoutsidethescopeofproblemmanagement.Problemmanagementtypicallyinitiatesresolutionviachangecontrolandparticipatesinthepost-

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implementationreview;however,approvingandimplementingchangesisoutofscopefortheproblemmanagementpractice.Outputfromtheproblemmanagementpracticeincludesinformationanddocumentationconcerningworkaroundsandknownerrors.Inaddition,problemmanagementmayutilizeinformationinaknowledgemanagementsystemtoinvestigate,diagnose,andresolveproblems.Problemmanagementactivitiescanidentifyimprovementopportunitiesinallfourdimensionsofservicemanagement.Solutionscaninsomecasesbetreatedasimprovementopportunities,sotheyareincludedinacontinualimprovementregister(CIR),andcontinualimprovementtechniquesareusedtoprioritizeandmanagethem,sometimesaspartofaproductbacklog.

Manyproblemmanagementactivitiesrelyontheknowledgeandexperienceofstaff,ratherthanonfollowingdetailedprocedures.Peopleresponsiblefordiagnosingproblemsoftenneedtheabilitytounderstandcomplexsystems,andtothinkabouthowdifferentfailuresmighthaveoccurred.Developingthiscombinationofanalyticalandcreativeabilityrequiresmentoringandtime,aswellassuitabletraining.

TheITILstory:Axle’sproblemmanagementHenri:Axleparticipatesinfeedbackprogrammeswithallourcarmanufacturers.Wesharemaintenanceandrepairdatawiththemtohelpthemtocontinuallyimprovetheirservices.Inreturn,theyalertustoanypotentialproblemsinourvehicles.

Radhika:Recently,wewerealertedtoapotentialprobleminourfleet.Acarmanufacturerhadrecalledapopularmodelinourfleettofixanerrorfoundintheairbagactivationsystem.

Su:FortunatelyitwasfoundbeforeAxleexperiencedanyincidents,buttherewasstillthepotentialforissuestooccur,whichmeantitwasaproblemwehadtodealwith.

Marco:Wefollowasimilarpracticeforourothersystemsandservices,includingalloftheITcomponentsweuse.

Radhika:Axle’sincidentmanagementpracticeisoneofourmostimportantsources

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ofinformationonerrorsinoursystems.Anymajorincidentweexperienceisfollowedbyaninvestigationintothepossiblecauses.Sometimesthiswillleadustofindandfixerrorsinthesystems,andweoftenidentifywaystodecreasethenumberofincidentsAxlewillhaveinthefuture.

Figure5.24Heatmapofthecontributionofproblemmanagementtovaluechainactivities

Problemmanagementisusuallyfocusedonerrorsinoperationalenvironments.Figure5.24showsthecontributionofproblemmanagementtotheservicevaluechain,withthepracticebeingappliedmainlytotheimprove,anddeliverandsupportvaluechainactivities:

ImproveThisisthemainfocusareaforproblemmanagement.Effectiveproblemmanagementprovidestheunderstandingneededtoreducethenumberofincidentsandtheimpactofincidentsthatcan’tbeprevented.EngageProblemsthathaveasignificantimpactonserviceswillbevisibletocustomersandusers.Insomecases,customersmaywishtobeinvolvedinproblemprioritization,andthestatusandplansformanagingproblemsshouldbecommunicated.Workaroundsareoftenpresentedtousersviaaserviceportal.

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DesignandtransitionProblemmanagementprovidesinformationthathelpstoimprovetestingandknowledgetransfer.Obtain/buildProductdefectsmaybeidentifiedbyproblemmanagement;thesearethenmanagedaspartofthisvaluechainactivity.DeliverandsupportProblemmanagementmakesasignificantcontributionbypreventingincidentrepetitionandsupportingtimelyincidentresolution.

5.2.9 Releasemanagement

KeymessageThepurposeofthereleasemanagementpracticeistomakenewandchangedservicesandfeaturesavailableforuse.

Definition:ReleaseAversionofaserviceorotherconfigurationitem,oracollectionofconfigurationitems,thatismadeavailableforuse.

Areleasemaycomprisemanydifferentinfrastructureandapplication

componentsthatworktogethertodeliverneworchangedfunctionality.Itmayalsoincludedocumentation,training(forusersorITstaff),updatedprocessesortools,andanyothercomponentsthatarerequired.Eachcomponentofareleasemaybedevelopedbytheserviceproviderorprocuredfromathirdpartyandintegratedbytheserviceprovider.

Releasescanrangeinsizefromtheverysmall,involvingjustoneminorchangedfeature,totheverylarge,involvingmanycomponentsthatdeliveracompletelynewservice.Ineithercase,areleaseplanwillspecifytheexactcombinationofnewandchangedcomponentstobemadeavailable,andthetimingfortheirrelease.

Areleasescheduleisusedtodocumentthetimingforreleases.Thisscheduleshouldbenegotiatedandagreedwithcustomersandotherstakeholders.Areleasepost-implementationreviewenableslearningandimprovement,andhelpstoensurethatcustomersaresatisfied.

Insomeenvironments,almostallofthereleasemanagementworktakesplacebeforedeployment,withplansinplaceastoexactlywhichcomponentswillbedeployedinaparticularrelease.Thedeploymentthenmakesthenewfunctionalityavailable.

Figure5.25Releasemanagementinatraditional/waterfallenvironment

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Figure5.26ReleasemanagementinanAgile/DevOpsenvironment

Figure5.25showshowreleasemanagementishandledinatraditional/waterfallenvironment.Intheseenvironmentsreleasemanagementanddeploymentmaybecombinedandexecutedasasingleprocess.

InanAgile/DevOpsenvironmenttherecanbesignificantreleasemanagementactivityafterdeployment.Inthesecases,softwareandinfrastructurearetypicallydeployedinmanysmallincrements,andreleasemanagementactivityenablesthenewfunctionalityatalaterpoint.Thismaybedoneasaverysmallchange.Figure5.26showshowreleasemanagementishandledinsuchanenvironment.

Releasemanagementisoftenstaged,withpilotreleasesbeingmadeavailabletoasmallnumberofuserstoensurethateverythingisworkingcorrectlybeforethereleaseisgiventoadditionalgroups.ThisstagedapproachcanworkwitheitherofthetwosequencesshowninFigures5.25and5.26.Sometimesareleasemustbemadeavailabletoallusersatthesametime,aswhenamajorrestructuringoftheunderlyingshareddataisrequired.

Stagingofareleaseisoftenachievedusingblue/greenreleasesorfeatureflags:

Blue/greenreleasesusetwomirroredproductionenvironments.Userscanbeswitchedtoanenvironmentthathasbeenupdatedwiththenewfunctionalitybyuseofnetworktoolsthatconnectthemtothecorrectenvironment.

•Featureflagsenablespecificfeaturestobereleasedtoindividualusersorgroupsinacontrolledway.Thenewfunctionalityisdeployedtotheproductionenvironmentwithoutbeingreleased.Auserconfigurationsettingthenreleasesthenewfunctionalitytoindividualusers(orgroupsofusers)asneeded.

InaDevOpsenvironment,releasemanagementisoftenintegratedwiththecontinuousintegrationandcontinuousdeliverytoolchain.Thetoolsofreleasemanagementmaybetheresponsibilityofadedicatedperson,butdecisionsaboutthereleasecanbemadebythedevelopmentteam.Inamoretraditionalenvironment,releasesareenabledbythedeploymentofthecomponents.EachreleaseisdescribedbyareleaserecordonanITSMtool.ReleaserecordsarelinkedtoCIsandchangerecordstomaintaininformationabouttherelease.

Componentsofareleaseareoftenprovidedbythirdparties.Examplesofthird-partycomponentsincludecloudinfrastructure,softwareasaservicecomponents,andthird-partysupport.Itisalsocommontoincludethird-partysoftware,oropen-sourcesoftware,aspartofapplicationdevelopment.Releasemanagementneedstoworkacrossorganizationalboundariestoensurethatallcomponentsarecompatibleandtoprovideaseamlessexperienceforusers.Italsoneedstoconsidertheimpactofchangestothird-partycomponents,andtoplanforhowthesewillbereleased.

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Figure5.27Heatmapofthecontributionofreleasemanagementtovaluechainactivities

Figure5.27showsthecontributionofreleasemanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanPolicies,guidance,andtimelinesforreleasesaredrivenbytheorganizationalstrategyandserviceportfolio.Thesize,scope,andcontentofeachreleaseshouldbeplannedandmanaged.ImproveNeworchangedreleasesmayberequiredtodeliverimprovements,andtheseshouldbeplannedandmanagedinthesamewayasanyotherrelease.EngageThecontentandcadenceofreleasesmustbedesignedtomatchtheneedsandexpectationsofcustomersandusers.DesignandtransitionReleasemanagementensuresthatneworchangedservicesaremadeavailabletocustomersinacontrolledway.Obtain/buildChangestocomponentsarenormallyincludedinarelease,deliveredinacontrolledway.DeliverandsupportReleasesmayimpactondeliveryandsupport.Training,documentation,releasenotes,knownerrors,userguides,

supportscripts,etc.areprovidedbythispracticetofacilitateservicerestoration.

TheITILstory:Axle’sreleasemanagementMarco:Whenwereleaseupdatestoourbookingapp,wemakesurethey’reaccompaniedbyuserawarenessandmarketingcampaignsforourusers,customers,andteams.Weprovidespecifictrainingfortheservicedeskandsupportteamsthatareinternalandexternal.

Radhika:Somechangesmayneedextrasupportortheintroductionofnewcomponents.Forexample,AxleAwarewasreleasedwithanewusermanualtoexplainthesystem.WealsomadesuretheAwaresystemcouldsyncwiththeAxlebookingappbeforewereleasedit.

Henri:ThesupportgiventothenewappandAxleAwarehasreallyhelpedthereleaseofbothofthesenewofferings,leadingtogreatfirstimpressionsandastronglevelofadoptionamongstourusersandcustomers,aswellasourownteams.

5.2.10 Servicecataloguemanagement

KeymessageThepurposeoftheservicecataloguemanagementpracticeistoprovideasinglesourceofconsistentinformationonallservicesandserviceofferings,andtoensurethatitisavailabletotherelevantaudience.

Thelistofserviceswithintheservicecataloguerepresentsthosewhicharecurrentlyavailableandisasubsetofthetotallistofservicestracked

intheserviceprovider’sserviceportfolio.Servicecataloguemanagementensuresthatserviceandproductdescriptionsareexpressedclearlyforthetargetaudiencetosupportstakeholderengagementandservicedelivery.Theservicecataloguemaytakemanyformssuchasadocument,onlineportal,oratoolthatenablesthecurrentlistofservicestobecommunicatedtotheaudience.

5.2.10.1Servicecataloguemanagementactivities

Theservicecataloguemanagementpracticeincludesanongoingsetofactivitiesrelatedtopublishing,editing,andmaintainingserviceandproductdescriptionsandtheirrelatedofferings.Itprovidesaviewonthescopeofwhatservicesareavailable,andonwhatterms.Theservicecataloguemanagementpracticeissupportedbyrolessuchastheserviceownerandothersresponsibleformanaging,editing,andkeepinguptodatethelistofavailableservicesastheyareintroduced,changed,orretired.

Tailoredviews

Asdescribedabove,theservicecatalogueenablesthecreationofvalueandisusedbymanydifferentpracticeswithintheservicevaluechain.Becauseofthis,itneedstobeflexibleregardingwhatservicedetailsandattributesitpresents,basedonitsintendedpurpose.Assuch,organizationsmaywishtoconsiderprovidingdifferentviewsofthecataloguefordifferentaudiences.

Thefulllistofserviceswithinaservicecataloguemaynotbeapplicabletoallcustomersand/orusers.Likewise,thevariousattributesofservicessuchastechnicalspecifications,offerings,agreements,andcostsarenotapplicabletoallserviceconsumertypes.Thismeansthattheservicecatalogueshouldbeabletoprovidedifferentviewsandlevelsofdetailtodifferentstakeholders.Examplesofviewsinclude:

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UserviewsProvideinformationonserviceofferingsthatcanberequested,andonprovisioningdetails.CustomerviewsProvideservicelevel,financial,andserviceperformancedata.ITtoITcustomerviewsProvidetechnical,security,andprocessinformationforuseinservicedelivery.

Whilemultipleviewsoftheservicecataloguearepossible,thecreationofseparateorisolatedservicecatalogueswithindifferenttechnologysystemsshouldbeavoidedifpossibleasthiswillpromotesegregation,variability,andcomplexity.

FortheservicecataloguetobeperceivedasusefulbythecustomerorganizationitmustdomorethanprovideastaticplatformforpublishinginformationaboutITservices.Unlesstheservicecatalogueenablescustomerengagementbysupportingdiscussionsrelatedtostandardandnon-standardserviceofferingsand/orautomatesrequestandorderfulfilmentprocesses,thechancesofitsongoingadoptionasausefulandmeaningfulresourceareminimal.Forthisreason,theviewsofmanyorganizationsontheservicecataloguearefocusedontheconsumableororderableelementsofserviceofferings.Theseareoftencalledrequestcatalogues.

Definition:RequestcatalogueAviewoftheservicecatalogue,providingdetailsonservicerequestsforexistingandnewservices,whichismadeavailablefortheuser.

Figure5.28showsthecontributionofservicecataloguemanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechain

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activities:

PlanTheservicecatalogueenablesstrategyandserviceportfolioinvestmentdecisionsbyprovidingdetailsoncurrentservicescopeandofferings.ImproveServicecataloguedescriptionsanddemandpatternsareconstantlymonitoredandevaluatedtosupportcontinualimprovement,alignment,andvaluecreation.EngageTheservicecatalogueenablesstrategic,tactical,andoperationalrelationshipswithcustomersandusersbyenablingandpotentiallyautomatingvariousaspectsofpracticessuchasrelationshipmanagement,requestmanagement,andtheservicedesk.

Figure5.28Heatmapofthecontributionofservicecataloguemanagementtovaluechainactivities

DesignandtransitionTheservicecatalogueensuresboththeutilityandwarrantyaspectsofservicesareconsideredandpublished,includingtheinformationsecuritypolicy,ITservicecontinuitylevels,servicelevelagreements,andserviceofferings.Additionalactivitiesincludethedefinitionandcreationofservicedescriptions,request

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models,andviewstobepublished.Obtain/buildServicecataloguemanagementsupportsthisvaluechainactivitybyprovidingservicecatalogueviewsforprocurementofcomponentsandservices.DeliverandsupportTheservicecatalogueprovidescontextforhowtheservicewillbedeliveredandsupported,andpublishesexpectationsrelatedtoagreementsandperformance.

5.2.11 Serviceconfigurationmanagement

KeymessageThepurposeoftheserviceconfigurationmanagementpracticeistoensurethataccurateandreliableinformationabouttheconfigurationofservices,andtheCIsthatsupportthem,isavailablewhenandwhereitisneeded.ThisincludesinformationonhowCIsareconfiguredandtherelationshipsbetweenthem.

Definition:ConfigurationitemAnycomponentthatneedstobemanagedinordertodeliveranITservice.

ServiceconfigurationmanagementcollectsandmanagesinformationaboutawidevarietyofCIs,typicallyincludinghardware,software,networks,buildings,people,suppliers,anddocumentation.ServicesarealsotreatedasCIs,andconfigurationmanagementhelpstheorganizationtounderstandhowthemanyCIsthatcontributetoeachserviceworktogether.Figure5.29isasimplifieddiagramshowinghowmultipleCIscontributetoanITservice.

ConfigurationmanagementprovidesinformationontheCIsthatcontributetoeachserviceandtheirrelationships:howtheyinteract,relate,anddependoneachothertocreatevalueforcustomersandusers.Thisincludesinformationaboutdependenciesbetweenservices.Thishigh-levelviewisoftencalledaservicemaporservicemodel,andformspartoftheservicearchitecture.

Itisimportantthattheeffortneededtocollectandmaintainconfigurationinformationisbalancedwiththevaluethattheinformationcreates.Maintaininglargeamountsofdetailedinformationabouteverycomponent,anditsrelationshipstoothercomponents,canbecostly,andmaydeliververylittlevalue.Therequirementsforconfigurationmanagementmustbebasedonanunderstandingoftheorganization’sgoals,andhowconfigurationmanagementcontributestovaluecreation.

Thevaluecreatedbyconfigurationmanagementisindirect,butenablesmanyotherpracticestoworkefficientlyandeffectively.Assuch,planningforconfigurationmanagementshouldstartbyunderstandingwhoneedstheconfigurationinformation,howitwillbeused,whatisthebestwayforthemtoobtainit,andwhocanmaintainandupdatethisinformation.Sometimesitcanbemoreefficienttosimplycollecttheinformationwhenitisneeded,ratherthantohaveitcollectedinadvanceandmaintained,butonotheroccasionsitisessentialtohaveinformationavailableinaconfigurationmanagementsystem(CMS).ThetypeandamountofinformationrecordedforeachtypeofCIshouldbebasedonthevalueofthatinformation,thecostofmaintainingit,andhowtheinformationwillbeused.

Figure5.29SimplifiedservicemodelforatypicalITservice

Definition:ConfigurationmanagementsystemAsetoftools,data,andinformationthatisusedtosupportserviceconfigurationmanagement.

Configurationinformationshouldbesharedinacontrolledway.Someinformationcouldbesensitive;forexample,itcouldbeusefultosomeonetryingtobreachsecuritycontrols,oritcouldincludepersonalinformationaboutusers,suchasphonenumbersandhomeaddresses.

Configurationinformationcanbestoredandpublishedinasingleconfigurationmanagementdatabase(CMDB)forthewholeorganization,butitismorecommonforittobedistributedacrossseveralsources.Ineithercaseitisimportanttomaintainlinksbetweenconfiguration

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records,sothatpeoplecanseethefullsetofinformationtheyneed,andhowthevariousCIsworktogether.SomeorganizationsfederateCMDBstoprovideanintegratedview.Othersmaymaintaindifferenttypesofdata;forexample,havingseparatedatastoresforassetmanagementdata(seesection5.2.6),configurationdetails,servicecatalogueinformation,andhigh-levelservicemodels.

Toolsthatareusedtologincidents,problems,andchangesneedaccesstoconfigurationrecords.Forexample,anorganizationtryingtoidentifyproblemswithaservicemayneedtofindincidentsrelatedtoaspecificsoftwareversion,ormodelofdiskdrive.TheunderstandingoftheneedforthisinformationhelpstoestablishwhatCIattributesshouldbestoredforthisorganization;inthiscasesoftwareversionsanddiskdrivemodels.Todiagnoseincidents,visibilityofrecentchangestotheaffectedCIsmaybeneeded,sorelationshipsbetweenCIsandchangesmustbemaintained.

Manyorganizationsusedatacollectiontoolstogatherdetailedconfigurationinformationfrominfrastructureandapplications,andusethistopopulateaCMS.Thiscanbeeffective,butcanalsoencouragethecollectionoftoomuchdatawithoutsufficientinformationonrelationships,andhowthecomponentsworktogethertocreateaservice.SometimesconfigurationinformationisusedtoactuallycreatetheCI,ratherthanjusttodocumentit.Thisapproachisusedfor‘infrastructureasacode’,whereinformationontheinfrastructureismanagedinadatarepositoryandusedtoautomaticallyconfiguretheenvironment.

Alargeorganizationmayhaveateamthatisdedicatedtoconfigurationmanagement.Inotherorganizationsthispracticecanbecombinedwithchangecontrol,ortherecanbeateamresponsibleforchange,configuration,andreleasemanagement.SomeorganizationsapplyadistributedmodelwherefunctionalteamstakeownershipofupdatingandmaintainingtheCIswithintheircontrolandoversight.

Configurationmanagementtypicallyneedsprocessesto:

identifynewCIs,andaddthemtotheCMSupdateconfigurationdatawhenchangesaredeployed

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verifythatconfigurationrecordsarecorrectauditapplicationsandinfrastructuretoidentifyanythatarenotdocumented.

Figure5.30showsthecontributionofconfigurationmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanConfigurationmanagementisusedforplanningneworchangedservices.ImproveConfigurationmanagement,likeeveryotheraspectofservicemanagement,shouldbesubjecttomeasurementandcontinualimprovement.Sincethevalueofconfigurationmanagementtypicallycomesfromhowitfacilitatesotherpractices,itisimportanttounderstandwhatusethesepracticesaremakingofconfigurationinformation,andthenidentifyhowthiscanbeimproved.EngageSomestakeholders(partnersandsuppliers,consumers,regulators,etc.)mayrequireanduseconfigurationinformation,orprovidetheirconfigurationinformationtotheorganization.DesignandtransitionConfigurationmanagementdocumentshowassetsworktogethertocreateaservice.Thisinformationisusedtosupportmanyvaluechainactivities,andisupdatedaspartofthetransitionactivity.Obtain/buildConfigurationrecordsmaybecreatedduringthisvaluechainactivity,describingneworchangedservicesandcomponents.Sometimesconfigurationrecordsareusedtocreatethecodeorartefactthatisbeingbuilt.DeliverandsupportInformationonCIsisessentialtosupportservicerestoration.Configurationinformationisusedtosupportactivitiesoftheincidentmanagementandproblemmanagementpractices.

Figure5.30Heatmapofthecontributionofserviceconfigurationmanagementtovaluechainactivities

5.2.12 Servicecontinuitymanagement

KeymessageThepurposeoftheservicecontinuitymanagementpracticeistoensurethattheavailabilityandperformanceofaservicearemaintainedatsufficientlevelsincaseofadisaster.Thepracticeprovidesaframeworkforbuildingorganizationalresiliencewiththecapabilityofproducinganeffectiveresponsethatsafeguardstheinterestsofkeystakeholdersandtheorganization’sreputation,brand,andvalue-creatingactivities.

Servicecontinuitymanagementsupportsanoverallbusinesscontinuitymanagement(BCM)andplanningcapabilitybyensuringthatITandservicescanberesumedwithinrequiredandagreedbusinesstimescalesfollowingadisasterorcrisis.Itistriggeredwhenaservicedisruptionororganizationalriskoccursonascalethatisgreaterthantheorganization’sabilitytohandleitwithnormalresponseandrecoverypracticessuchasincidentandmajorincidentmanagement.Anorganizationaleventofthismagnitudeistypicallyreferredtoasadisaster.

Eachorganizationneedstounderstandwhatconstitutesadisasterinitsowncontext.Establishingwhatismeantbyadisastermustbeconsideredanddefinedpriortoatriggereventatbothanorganizationalandonaper-servicelevelusingabusinessimpactanalysis.TheBusinessContinuityInstitutedefinesadisasteras:

‘…asuddenunplannedeventthatcausesgreatdamageorseriouslosstoanorganization.Itresultsinanorganizationfailingtoprovidecriticalbusinessfunctionsforsomepredeterminedminimumperiodoftime.’

Thesourcesthattriggeradisasterresponseandrecoveryarevariedandcomplex,asarethenumberofstakeholdersandthedifferentaspectsofpotentialorganizationalimpact.ThecomplexriskmanagementconditionsrelatedtotheexamplesinTable5.3makeitimperativethattheservicecontinuitymanagementpracticebethoroughlythoughtout,designedforflexibility,andtestedonaregularbasistoensurethatservicescanberecoveredataspeednecessaryforbusinesssurvival.

Table5.3Examplesofdisastersources,stakeholdersinvolved,andorganizationalimpact

Disastersources Stakeholdersinvolved OrganizationalimpactSupplychainfailureTerrorismWeatherCyberattackHealthemergencyPoliticaloreconomiceventTechnologyfailurePubliccrisis

EmployeesExecutivesGoverningbodySuppliersITteamsCustomersUsersCommunities

LostincomeDamagedreputationLossofcompetitiveadvantageBreachoflaw,healthandsafetyregulationsRisktopersonalsafetyImmediateandlong-termlossofmarketshare

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DefinitionsRecoverytimeobjective(RTO)Themaximumacceptableperiodoftimefollowingaservicedisruptionthatcanelapsebeforethelackofbusinessfunctionalityseverelyimpactstheorganization.Thisrepresentsthemaximumagreedtimewithinwhichaproductoranactivitymustberesumed,orresourcesmustberecovered.Recoverypointobjective(RPO)Thepointtowhichinformationusedbyanactivitymustberestoredtoenabletheactivitytooperateonresumption.DisasterrecoveryplansAsetofclearlydefinedplansrelatedtohowanorganizationwillrecoverfromadisasteraswellasreturntoapre-disastercondition,consideringthefourdimensionsofservicemanagement.Businessimpactanalysis(BIA)Akeyactivityinthepracticeofservicecontinuitymanagementthatidentifiesvitalbusinessfunctions(VBFs)andtheirdependencies.Thesedependenciesmayincludesuppliers,people,otherbusinessprocesses,andITservices.BIAdefinestherecoveryrequirementsforITservices.TheserequirementsincludeRTOs,RPOs,andminimumtargetservicelevelsforeachITservice.

Servicecontinuitymanagementversusincidentmanagement

Servicecontinuitymanagementfocusesonthoseeventsthatthebusinessconsiderssignificantenoughtobetreatedasadisaster.Lesssignificanteventswillbedealtwithaspartofincident

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managementormajorincidentmanagement.Thedistinctionbetweendisasters,majorincidents,andincidentsneedstobepre-defined,agreed,anddocumentedwithclearthresholdsandtriggersforcallingthenexttierofresponseandrecoveryintoactionwithoutunnecessarydelayandrisk.

Asorganizationshavebecomeincreasinglydependentontechnology-enabledservices,theneedforhigh-availabilitysolutionshasbecomecriticaltoorganizationalresilienceandcompetitiveness.Organizationsachievehighavailabilitythroughacombinationofbusinessplanning,technicalarchitectureresilience,availabilityplanning,proactiverisk,andinformationsecuritymanagement,aswellasthroughincidentmanagementandproblemmanagement.

Figure5.31showsthecontributionofservicecontinuitymanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanTheorganization’sleadershipandgoverningbodyestablishaninitialriskappetitefortheorganizationwithdefinedscope,policies,supplierstrategies,andinvestmentinrecoveryoptions.Servicecontinuitymanagementsupportsthiswithrelevantinformationaboutthecurrentcontinuitystatusoftheorganizationandwithtoolsandmethodsforplanningandforecasting.ImproveServicecontinuitymanagementensuresthatcontinuityplans,measures,andmechanismsarecontinuallymonitoredandimprovedinlinewithchanginginternalandexternalcircumstances.EngageEngagementwithvariousstakeholderstoprovideassurancewithregardtoanorganization’sreadinessfordisastersissupportedbythispractice.DesignandtransitionServicecontinuitymanagementensuresthatproductsandservicesaredesignedandtestedaccordingtotheorganization’scontinuityrequirements.

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Figure5.31Heatmapofthecontributionofservicecontinuitymanagementtovaluechainactivities

Obtain/buildServicecontinuitymanagementensuresthatcontinuityisbuiltintotheorganization’sservicesandcomponents,andthatprocuredcomponentsandservicesmeettheorganization’scontinuityrequirements.DeliverandsupportOngoingdelivery,operations,andsupportareperformedinaccordancewithcontinuityrequirementsandpolicies.

5.2.13 Servicedesign

KeymessageThepurposeoftheservicedesignpracticeistodesignproducts

andservicesthatarefitforpurpose,fitforuse,andthatcanbedeliveredbytheorganizationanditsecosystem.Thisincludesplanningandorganizingpeople,partnersandsuppliers,information,communication,technology,andpracticesforneworchangedproductsandservices,andtheinteractionbetweentheorganizationanditscustomers.

Ifproducts,services,orpracticesarenotdesignedproperly,theywillnotnecessarilyfulfilcustomerneedsorfacilitatevaluecreation.Iftheyevolvewithoutproperarchitecture,interfacesorcontrols,theyarelessabletodelivertheoverallvisionandneedsoftheorganizationanditsinternalandexternalcustomers.

Evenwhenaproductorserviceiswelldesigned,deliveringasolutionthataddressestheneedsofboththeorganizationandcustomerinacost-effectiveandresilientwaycanbedifficult.Itisthereforeimportanttoconsideriterativeandincrementalapproachestoservicedesign,whichcanensurethatproductsandservicesintroducedtoliveoperationcancontinuallyadaptinalignmentwiththeevolvingneedsoftheorganizationanditscustomers.

Intheabsenceofformalizedservicedesign,productsandservicescanbeundulyexpensivetorunandpronetofailure,resultinginresourcesbeingwastedandtheproductorservicenotbeingcustomer-centredordesignedholistically.Itisunlikelythatanyimprovementprogrammewilleverbeabletoachievewhatproperdesigncouldhaveachievedinthefirstplace.Withoutservicedesign,cost-effectiveproductsandservicesthatdeliverwhatcustomersneedandexpectareextremelyhardtoachieve.

Servicedesignpracticeshouldalsoensurethatthecustomer’sjourneyfromdemandthroughtovaluerealizationisaspleasantandfrictionlessasitcanbe,anddeliversthebestcustomeroutcomepossible.Thisisachievedbyfocusingoncustomerexperience(CX)anduserexperience(UX).

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AdoptingandimplementingaservicedesignpracticefocusedonCXandUXwill:

resultincustomer-centredproductsandservicesthatincludestakeholdersindesignactivitiesconsidertheentireenvironmentofaproductorserviceenableprojectstoestimatethecost,timing,resourcerequirement,andrisksassociatedwithservicedesignmoreaccuratelyresultinhighervolumesofsuccessfulchangemakedesignmethodseasierforpeopletoadoptandfollowenableservicedesignassetstobesharedandre-usedacrossprojectsandservicesincreaseconfidencethattheneworchangedproductorservicecanbedeliveredtospecificationwithoutunexpectedlyaffectingotherproducts,services,orstakeholdersensurethatneworchangedproductsandserviceswillbemaintainableandcost-effective.

Itisimportantthataholistic,results-drivenapproachtoallaspectsofservicedesignisadopted,andthatwhenchangingoramendinganyoftheindividualelementsofaservicedesign,allotheraspectsareconsidered.Itisforthisreasonthatthecoordinationaspectofservicedesignwiththewholeorganization’sSVSisessential.Designinganddevelopinganeworchangedproductorserviceshouldnotbedoneinisolation,butshouldconsidertheimpactitwillhaveon:

otherproductsandservicesallrelevantparties,includingcustomersandsupplierstheexistingarchitecturestherequiredtechnologytheservicemanagementpracticesthenecessarymeasurementsandmetrics.

Considerationofthesefactorswillnotonlyensurethatthedesignaddressesthefunctionalelementsoftheservice,butalsothatthe

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managementandoperationalrequirementsareregardedasafundamentalpartofthedesign,andarenotaddedasanafterthought.

Servicedesignshouldalsobeusedwhenthechangebeingmadetotheproductorserviceisitsretirement.Unlesstheretirementofaproduct/serviceiscarefullyplanned,itcouldcauseunexpectednegativeeffectsoncustomersortheorganizationthatmightotherwisehavebeenavoided.

Noteverychangetoaproductorservicewillrequirethesamelevelofservicedesignactivity.Everychange,nomatterhowsmall,willneedsomedegreeofdesignwork,butthescaleoftheactivitynecessarytoensuresuccesswillvarygreatlyfromonechangetypetoanother.Organizationsmustdefinewhatlevelofdesignactivityisrequiredforeachcategoryofchange,andensurethateveryonewithintheorganizationisclearonthesecriteria.

Servicedesignsupportsproductsandservicesthat:

arebusiness-andcustomer-oriented,focused,anddrivenarecost-effectivemeettheinformationandphysicalsecurityrequirementsoftheorganizationandanyexternalcustomersareflexibleandadaptable,yetfitforpurposeatthepointofdeliverycanabsorbanever-increasingdemandinthevolumeandspeedofchangemeetincreasingorganizationalandcustomerdemandsforcontinuousoperationaremanagedandoperatedtoanacceptablelevelofrisk.

Withmanypressuresontheorganization,therecanbeatemptationto‘cutcorners’onthecoordinationofpracticesandrelevantpartiesforservicedesignactivities,ortoignorethemcompletely.Thisshouldbeavoided,asintegrationandcoordinationareessentialtotheoverallqualityoftheproductsandservicesthataredelivered.

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5.2.13.1Designthinking

Designthinkingisapracticalandhuman-centredapproachthatacceleratesinnovation.Itisusedbyproductandservicedesignersaswellasorganizationstosolvecomplexproblemsandfindpractical,creativesolutionsthatmeettheneedsoftheorganizationanditscustomers.ItcanbeviewedasacomplementaryapproachtoLeanandAgilemethodologies.Designthinkingdrawsuponlogic,imagination,intuition,andsystemsthinkingtoexplorepossibilitiesandtocreatedesiredoutcomesthatbenefitcustomers.

Designthinkingincludesaseriesofactivities:

Inspirationandempathy,throughdirectobservationofpeopleandhowtheyworkorinteractwithproductsandservices,aswellasidentifyinghowtheymightinteractdifferentlywithothersolutions.Ideation,whichcombinesdivergentandconvergentthinking.Divergentthinkingistheabilitytoofferdifferent,unique,orvariantideas,whileconvergentthinkingistheabilitytofindthepreferredsolutiontoagivenproblem.Divergentthinkingensuresthatmanypossiblesolutionsareexplored,andconvergentthinkingnarrowsthesedowntoafinalpreferredsolution.Prototyping,wheretheseideasaretestedearly,iterated,andrefined.Aprototypehelpstogatherfeedbackandimproveanidea.Prototypesspeeduptheprocessofinnovationbyallowingservicedesignerstobetterunderstandthestrengthsandweaknessesofnewsolutions.Implementation,wheretheconceptsarebroughttolife.Thisshouldbecoordinatedwithallrelevantservicemanagementpracticesandotherparties.Agilemethodologycanbeemployedtodevelopandimplementthesolutioninaniterativeway.Evaluation(inconjunctionwithotherpractices,includingprojectmanagementandreleasemanagement)measurestheactualperformanceofproductorserviceimplementationtoensureacceptancecriteriaaremet,andtofindanyopportunitiesforimprovement.

Designthinkingisbestappliedbymulti-disciplinaryteams;becauseitbalancestheperspectivesofcustomers,technology,theorganization,partners,andsuppliers,itishighlyintegrative,alignswellwiththeorganization’sSVS,andcanbeakeyenablerofdigitaltransformation.

5.2.13.2Customeranduserexperience

TheCXandUXaspectsofservicedesignareessentialtoensuringproductsandservicesdeliverthedesiredvalueforcustomersandtheorganization.CXdesignisfocusedonmanagingeveryaspectofthecompleteCX,includingtime,quality,cost,reliability,andeffectiveness.UXlooksspecificallyattheeaseofuseoftheproductorserviceandhowthecustomerinteractswithit.

Leanuserexperience

Leanuserexperience(LeanUX)designisamindset,aculture,andaprocessthatembracesLean–Agilemethods.Itimplementsfunctionalityinminimumviableincrements,anddeterminessuccessbymeasuringresultsagainstanoutcomehypothesis.LeanUXisincrediblyusefulwhenworkingonprojectswhereAgiledevelopmentmethodsareused.Thecoreobjectiveistofocusonobtainingfeedbackasearlyaspossiblesothatitcanbeusedtomakequickdecisions.

TypicalquestionsforLeanUXmightinclude:Whoarethecustomersofthisproduct/serviceandwhatwillitbeusedfor?Whenisitusedandunderwhatcircumstances?Whatwillbethemostimportantfunctionality?Whatarethebiggestrisks?

Theremaybemorethanoneanswertoeachquestion,whichcreatesagreaternumberofassumptionsthanitmightbepracticaltohandle.Theteamwillthenprioritizetheseassumptionsbytheriskstheyrepresenttotheorganizationanditscustomers.

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Figure5.32Heatmapofthecontributionofservicedesigntovaluechainactivities

Riskidentification,assessment,andtreatmentarekeyrequirementswithinalldesignactivities;thereforeriskmanagementmustbeincludedasanintegratedaspectofservicedesign.Thiswillensurethattherisksinvolvedintheprovisionofproductsandservicesandtheoperationofpractices,technology,andmeasurementmethodsarealignedwithorganizationalriskandimpact,becauseriskmanagementisembeddedwithinalldesignprocessesandactivities.

Figure5.32showsthecontributionofservicedesigntotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:

PlanTheservicedesignpracticeincludesplanningandorganizingthepeople,partnersandsuppliers,information,communication,technology,andpracticesforneworchangedproductsandservices,andtheinteractionbetweentheorganizationanditscustomers.ImproveServicedesigncanbeusedtoimproveanexistingserviceaswellastocreateanewservicefromscratch.Servicescanbedesignedasaminimumviableservice,deployed,andtheniteratedandimprovedtoaddfurthervaluebasedonfeedback.

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EngageServicedesignincorporatesCXandUX,whicharequintessentialexamplesofengagement.DesignandtransitionThepurposeofservicedesignistodesignproductsandservicesthatareeasytouse,desirable,andthatcanbedeliveredbytheorganization.Obtain/buildServicedesignincludestheidentificationofproducts,services,andservicecomponentsthatneedtobeobtainedorbuiltfortheneworchangedservice.DeliverandsupportServicedesignmanagestheuser’sfulljourney,throughoperation,restoration,andmaintenanceoftheservice.

5.2.14 Servicedesk

KeymessageThepurposeoftheservicedeskpracticeistocapturedemandforincidentresolutionandservicerequests.Itshouldalsobetheentrypointandsinglepointofcontactfortheserviceproviderwithallofitsusers.

Servicedesksprovideaclearpathforuserstoreportissues,queries,andrequests,andhavethemacknowledged,classified,owned,andactioned.Howthispracticeismanagedanddeliveredmayvaryfromaphysicalteamofpeopleonshiftworktoadistributedmixofpeopleconnectedvirtually,orautomatedtechnologyandbots.Thefunctionandvalueremainthesame,regardlessofthemodel.

Withincreasedautomationandthegradualremovaloftechnicaldebt,the

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focusoftheservicedeskistoprovidesupportfor‘peopleandbusiness’ratherthansimplytechnicalissues.Servicedesksareincreasinglybeingusedtogetvariousmattersarranged,explained,andcoordinated,ratherthanjusttogetbrokentechnologyfixed,andtheservicedeskhasbecomeavitalpartofanyserviceoperation.

Akeypointtobeunderstoodisthat,nomatterhowefficienttheservicedeskanditspeopleare,therewillalwaysbeissuesthatneedescalationandunderpinningsupportfromotherteams.Supportanddevelopmentteamsneedtoworkinclosecollaborationwiththeservicedesktopresentanddelivera‘joinedup’approachtousersandcustomers.

Theservicedeskmaynotneedtobehighlytechnical,althoughsomeare.However,eveniftheservicedeskisfairlysimple,itstillplaysavitalroleinthedeliveryofservices,andmustbeactivelysupportedbyitspeergroups.Itisalsoessentialtounderstandthattheservicedeskhasamajorinfluenceonuserexperienceandhowtheserviceproviderisperceivedbytheusers.

Anotherkeyaspectofagoodservicedeskisitspracticalunderstandingofthewiderbusinesscontext,thebusinessprocesses,andtheusers.Servicedesksaddvaluenotsimplythroughthetransactionalactsof,forexample,incidentlogging,butalsobyunderstandingandactingonthebusinesscontextofthisaction.Theservicedeskshouldbetheempatheticandinformedlinkbetweentheserviceprovideranditsusers.

Withincreasedautomation,AI,roboticprocessautomation(RPA),andchatbots,servicedesksaremovingtoprovidemoreself-serviceloggingandresolutiondirectlyviaonlineportalsandmobileapplications.Theimpactonservicedesksisreducedphonecontact,lesslow-levelwork,andagreaterabilitytofocusonexcellentCXwhenpersonalcontactisneeded.

Servicedesksprovideavarietyofchannelsforaccess.Theseinclude:

phonecalls,whichcanincludespecializedtechnology,suchasinteractivevoiceresponse(IVR),conferencecalls,voicerecognition,andothers

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serviceportalsandmobileapplications,supportedbyserviceandrequestcatalogues,andknowledgebaseschat,throughlivechatandchatbotsemailforloggingandupdating,andforfollow-upsurveysandconfirmations.Unstructuredemailscanbedifficulttoprocess,butemergingtechnologiesbasedonAIandmachinelearningarestartingtoaddressthiswalk-inservicedesksarebecomingmoreprevalentinsomesectors,e.g.highereducation,wheretherearehighpeaksofactivitythatdemandphysicalpresencetextandsocialmediamessaging,whichareusefulfornotificationsincaseofmajorincidentsandforcontactingspecificstakeholdergroups,butcanalsobeusedtoallowuserstorequestsupportpublicandcorporatesocialmediaanddiscussionforumsforcontactingtheserviceproviderandforpeer-to-peersupport.

Someservicedeskshavealimitedsupportwindowwhereservicecoverisavailable(forexample,08.00–20.00,Monday–Friday).Staffarethereforeexpectedtoworkinshiftpatternstoprovideconsistentsupportlevels.

Insomecases,theservicedeskisatangibleteam,workinginasinglelocation.Acentralizedservicedeskrequiressupportingtechnologies,suchas:

intelligenttelephonysystems,incorporatingcomputer-telephonyintegration,IVR,andautomaticcalldistributionworkflowsystemsforroutingandescalationworkforcemanagementandresourceplanningsystemsaknowledgebasecallrecordingandqualitycontrolremoteaccesstoolsdashboardandmonitoringtoolsconfigurationmanagementsystems.

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Inothercases,avirtualservicedeskallowsagentstoworkfrommultiplelocations,geographicallydispersed.Avirtualservicedeskrequiresmoresophisticatedsupportingtechnology,involvingmorecomplexroutingandescalation;thesesolutionsareoftencloud-based.

Figure5.33Heatmapofthecontributionoftheservicedesktovaluechainactivities

Servicedeskstaffrequiretrainingandcompetencyacrossanumberofbroadtechnicalandbusinessareas.Inparticular,theyneedtodemonstrateexcellentcustomerserviceskillssuchasempathy,incidentanalysisandprioritization,effectivecommunication,andemotionalintelligence.Thekeyskillistobeabletofullyunderstandanddiagnoseaspecificincidentintermsofbusinesspriority,andtotakeappropriateactiontogetthisresolved,usingavailableskills,knowledge,people,andprocesses.

Figure5.33showsthecontributionoftheservicedesktotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivitiesexceptplan:

ImproveServicedeskactivitiesareconstantlymonitoredandevaluatedtosupportcontinualimprovement,alignment,andvalue

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creation.Feedbackfromusersiscollectedbytheservicedesktosupportcontinualimprovement.EngageTheservicedeskisthemainchannelfortacticalandoperationalengagementwithusers.DesignandtransitionTheservicedeskprovidesachannelforcommunicatingwithusersaboutnewandchangedservices.Servicedeskstaffparticipateinreleaseplanning,testing,andearlylifesupport.Obtain/buildServicedeskstaffcanbeinvolvedinacquiringservicecomponentsusedtofulfilservicerequestsandresolveincidents.DeliverandsupportTheservicedeskisthecoordinationpointformanagingincidentsandservicerequests.

5.2.15 Servicelevelmanagement

KeymessageThepurposeoftheservicelevelmanagementpracticeistosetclearbusiness-basedtargetsforservicelevels,andtoensurethatdeliveryofservicesisproperlyassessed,monitored,andmanagedagainstthesetargets.

Definition:Servicelevel

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Oneormoremetricsthatdefineexpectedorachievedservicequality.

Servicelevelmanagementprovidestheend-to-endvisibilityoftheorganization’sservices.Toachievethis,servicelevelmanagement:

establishesasharedviewoftheservicesandtargetservicelevelswithcustomersensurestheorganizationmeetsthedefinedservicelevelsthroughthecollection,analysis,storage,andreportingoftherelevantmetricsfortheidentifiedservicesperformsservicereviewstoensurethatthecurrentsetofservicescontinuestomeettheneedsoftheorganizationanditscustomerscapturesandreportsonserviceissues,includingperformanceagainstdefinedservicelevels.

Theskillsandcompetenciesforservicelevelmanagementincluderelationshipmanagement,businessliaison,businessanalysis,andcommercial/suppliermanagement.Thepracticerequirespragmaticfocusonthewholeserviceandnotsimplyitsconstituentparts;forexample,simpleindividualmetrics(suchaspercentagesystemavailability)shouldnotbetakentorepresentthewholeservice.

5.2.15.1Servicelevelagreements

Definition:ServicelevelagreementAdocumentedagreementbetweenaserviceproviderandacustomerthatidentifiesbothservicesrequiredandtheexpected

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Servicelevelagreements(SLAs)havelongbeenusedasatooltomeasuretheperformanceofservicesfromthecustomer’spointofview,anditisimportantthattheyareagreedinthewiderbusinesscontext.UsingSLAsmaypresentmanychallenges;oftentheydonotfullyreflectthewiderserviceperformanceandtheuserexperience.

SomeofthekeyrequirementsforsuccessfulSLAsinclude:

Theymustberelatedtoadefined‘service’intheservicecatalogue;otherwisetheyaresimplyindividualmetricswithoutapurpose,thatdonotprovideadequatevisibilityorreflecttheserviceperspective.Theyshouldrelatetodefinedoutcomesandnotsimplyoperationalmetrics.Thiscanbeachievedwithbalancedbundlesofmetrics,suchascustomersatisfactionandkeybusinessoutcomes.Theyshouldreflectan‘agreement’,i.e.engagementanddiscussionbetweentheserviceproviderandtheserviceconsumer.Itisimportanttoinvolveallstakeholders,includingpartners,sponsors,users,andcustomers.Theymustbesimplywrittenandeasytounderstandanduseforallparties.

Inmanycases,usingsingle-system-basedmetricsastargetscanresultinmisalignmentandadisconnectbetweenservicepartnersregardingthesuccessoftheservicedeliveryandtheuserexperience.Forexample,ifanSLAisbasedonlyonthepercentageofuptimeofaservice,itcanbedeemedtobesuccessfulbytheprovider,yetstillmissoutonsignificantbusinessfunctionalitiesandoutcomeswhichareimportanttotheconsumer.Thisisreferredtoasthe‘watermelonSLA’effect.

ThewatermelonSLAeffect

TraditionalSLAshavebeenbasedonindividualactivitiessuchas

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incidentresolutiontimes,systemavailability(‘99.9’),andvolumemetrics(e.g.numberofincidentsorrequestshandled).Withoutabusinesscontextthesemetricsareoftenmeaningless.Forexample,althoughasystemavailabilityof99.6%isimpressive,thisstillneedstoalignwithkeybusinessrequirements.Thesystemmayhaveanacceptableunavailabilityof0.4%,butifthattimefallswhenthereisanimportantprocesshappening(suchasacommercialtransaction,anoperatingtheatreinuse,orpoint-of-saletillsinuse),thencustomer/usersatisfactionwillbelow,regardlessofwhethertheSLAhasbeenmet.

Thiscanbeproblematicfortheserviceproviderifitthinksitisdoingagreatjob(thereportsareallgreen),wheninfactitscustomersaredissatisfiedwiththeservicereceivedandalsofrustratedthattheproviderdoesn’tnoticethis.ThisisknownasthewatermelonSLAeffect,becauselikeawatermelon,theSLAmayappeargreenontheoutside,butisactuallyredinside.

Servicelevelmanagementidentifiesmetricsandmeasuresthatareatruthfulreflectionofthecustomer’sactualexperienceandlevelofsatisfactionwiththewholeservice.Thesewillvaryacrossorganizationsandtheonlywaytolearnwhattheseareistofindoutdirectlyfromcustomers.

Servicelevelmanagementrequiresfocusandefforttoengageandlistentotherequirements,issues,concerns,anddailyneedsofcustomers:

Engagementisneededtounderstandandconfirmtheactualongoingneedsandrequirementsofcustomers,notsimplywhatisinterpretedbytheserviceproviderorhasbeenagreedseveralyearsbefore.Listeningisimportantasarelationship-buildingandtrust-buildingactivity,toshowcustomersthattheyarevaluedandunderstood.Thishelpstomovetheproviderawayfromalwaysbeingin‘solutionmode’andtobuildnew,moreconstructivepartnerships.

Theactivitiesofengagingandlisteningprovideagreatopportunityto

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buildimprovedrelationshipsandtofocusonwhatreallyneedstobedelivered.Italsogivesservicedeliverystaffanexperience-basedunderstandingoftheday-to-dayworkthatisdonewiththeirtechnology,enablingthemtodeliveramorebusiness-focusedservice.

Servicelevelmanagementinvolvescollatingandanalysinginformationfromanumberofsources,including:

CustomerengagementThisinvolvesinitiallistening,discovery,andinformationcaptureonwhichtobasemetrics,measurement,andongoingprogressdiscussions.Consideraskingcustomerssomesimpleopenquestionssuchas:

Whatdoesyourworkinvolve?Howdoestechnologyhelpyou?Whatareyourkeybusinesstimes,areas,people,andactivities?Whatdifferentiatesagooddayfromabaddayforyou?Whichoftheseactivitiesismostimportanttoyou?Whatareyourgoals,objectives,andmeasurementsforthisyear?Whatisthebestmeasureofyoursuccess?OnwhatdoyoubaseyouropinionandevaluationofaserviceorIT/technology?Howcanwehelpyoumore?

CustomerfeedbackThisisideallygatheredfromanumberofsources,bothformalandinformal,including:

SurveysThesecanbefromimmediatefeedbacksuchasfollow-upquestionstoincidents,orfrommorereflectiveperiodicsurveysthatgaugefeedbackontheoverallserviceexperience.Bothareevent-based.Keybusiness-relatedmeasuresThesearemeasuresagreedbetweentheserviceprovideranditscustomer,basedonwhatthecustomervaluesasimportant.ThiscouldbeabundleofSLAmetricsoraveryspecificbusinessactivitysuchasasalestransaction,projectcompletion,oroperationalfunctionsuchasgettinganambulancetothesiteofanaccidentwithinxminutes.

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OperationalmetricsThesearethelow-levelindicatorsofvariousoperationalactivitiesandmayincludesystemavailability,incidentresponseandfixtimes,changeandrequestprocessingtimes,andsystemresponsetimes.BusinessmetricsThesecanbeanybusinessactivitythatisdeemedusefulorvaluablebythecustomerandusedasameansofgaugingthesuccessoftheservice.ThesecanvaryfromsomesimpletransactionalbinarymeasuressuchasATMorPOSterminalavailabilityduringbusinesshours(09:00–17:00daily)orsuccessfulcompletionofbusinessactivitiessuchaspassengercheck-in.

Oncethisfeedbackisgatheredandcollatedforongoingreview,itcanbeusedasinputtodesignsuitablemeasurementandreportingmodelsandpractices.

Figure5.34showsthecontributionofservicelevelmanagementtotheservicevaluechain,withthepracticebeingappliedmainlytotheplanandengageactivities:

PlanServicelevelmanagementsupportsplanningoftheproductandserviceportfolioandserviceofferingswithinformationabouttheactualserviceperformanceandtrends.ImproveServicefeedbackfromusers,aswellasrequirementsfromcustomers,canbeadrivingforceforserviceimprovement.EngageServicelevelmanagementensuresongoingengagementwithcustomersandusersthroughfeedbackprocessingandcontinualservicereview.DesignandtransitionThedesignanddevelopmentofnewandchangedservicesreceivesinputfromthispractice,boththroughinteractionwithcustomersandaspartofthefeedbackloopintransition.Obtain/buildServicelevelmanagementprovidesobjectivesforcomponentsandserviceperformance,aswellasformeasurementandreportingcapabilitiesoftheproductsandservices.DeliverandsupportServicelevelmanagementcommunicatesserviceperformanceobjectivestotheoperationsandsupportteams

andcollectstheirfeedbackasaninputforserviceimprovement.

Figure5.34Heatmapofthecontributionofservicelevelmanagementtovaluechainactivities

TheITILstory:Axle’sservicelevelmanagement

Su:Weregularlygatherfeedbackfromourcustomerstoanalysetheirrequirementsandneeds,andupdateourserviceofferingstomatchtheirexpectations.

Radhika:Wecan’tputeverysinglecustomerexpectationintoourrentalagreements,butwecareaboutallofthemanddoourbesttomeetthem.

Su:Wealsomonitorthequalityoftheservicesprovidedbyourpartnersandsuppliers,suchastheworkdoneforusbyCraig’sCleaning.Whendoingthis,weneedtobesurethatthequalityofeverypartofourservicesmeetsorexceedstheexpectationsofourusers.

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5.2.16 Servicerequestmanagement

KeymessageThepurposeoftheservicerequestmanagementpracticeistosupporttheagreedqualityofaservicebyhandlingallpre-defined,user-initiatedservicerequestsinaneffectiveanduser-friendlymanner.

Definition:ServicerequestArequestfromauserorauser’sauthorizedrepresentativethatinitiatesaserviceactionwhichhasbeenagreedasanormalpartofservicedelivery.

Eachservicerequestmayincludeoneormoreofthefollowing:

arequestforaservicedeliveryaction(forexample,providingareportorreplacingatonercartridge)arequestforinformation(forexample,howtocreateadocumentorwhatthehoursoftheofficeare)arequestforprovisionofaresourceorservice(forexample,providingaphoneorlaptoptoauser,orprovidingavirtualserverfora

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developmentteam)arequestforaccesstoaresourceorservice(forexample,providingaccesstoafileorfolder)feedback,compliments,andcomplaints(forexample,complaintsaboutanewinterfaceorcomplimentstoasupportteam).

Fulfilmentofservicerequestsmayincludechangestoservicesortheircomponents;usuallythesearestandardchanges.Servicerequestsareanormalpartofservicedeliveryandarenotafailureordegradationofservice,whicharehandledasincidents.Sinceservicerequestsarepre-definedandpre-agreedasanormalpartofservicedelivery,theycanusuallybeformalized,withaclear,standardprocedureforinitiation,approval,fulfilment,andmanagement.Someservicerequestshaveverysimpleworkflows,suchasarequestforinformation.Others,suchasthesetupofanewemployee,maybequitecomplexandrequirecontributionsfrommanyteamsandsystemsforfulfilment.Regardlessofthecomplexity,thestepstofulfiltherequestshouldbewell-knownandproven.Thisallowstheserviceprovidertoagreetimesforfulfilmentandtoprovideclearcommunicationofthestatusoftherequesttousers.

Someservicerequestsrequireauthorizationaccordingtofinancial,informationsecurity,orotherpolicies,whileothersmaynotneedany.Tobehandledsuccessfully,servicerequestmanagementshouldfollowtheseguidelines:

Servicerequestsandtheirfulfilmentshouldbestandardizedandautomatedtothegreatestdegreepossible.Policiesshouldbeestablishedregardingwhatservicerequestswillbefulfilledwithlimitedorevennoadditionalapprovalssothatfulfilmentcanbestreamlined.Theexpectationsofusersregardingfulfilmenttimesshouldbeclearlyset,basedonwhattheorganizationcanrealisticallydeliver.

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Figure5.35Heatmapofthecontributionofservicerequestmanagementtovaluechainactivities

Opportunitiesforimprovementshouldbeidentifiedandimplementedtoproducefasterfulfilmenttimesandtakeadvantageofautomation.Policiesandworkflowsshouldbeincludedforthedocumentingandredirectingofanyrequeststhataresubmittedasservicerequests,butwhichshouldactuallybemanagedasincidentsorchanges.

Someservicerequestscanbecompletelyfulfilledbyautomationfromsubmissiontoclosure,allowingforacompleteself-serviceexperience.Examplesincludeclientsoftwareinstallationorprovisionofvirtualservers.

Servicerequestmanagementisdependentuponwell-designedprocessesandprocedures,whichareoperationalizedthroughtrackingandautomationtoolstomaximizetheefficiencyofthepractice.Differenttypesofservicerequestwillhavedifferentfulfilmentworkflows,butbothefficiencyandmaintainabilitywillbeimprovedifalimitednumberofworkflowmodelsareidentified.Whennewservicerequestsneedtobeaddedtotheservicecatalogue,existingworkflowmodelsshouldbeleveragedwheneverpossible.

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Figure5.35showsthecontributionofservicerequestmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallservicevaluechainactivitiesexcepttheplanactivity:

ImproveServicerequestmanagementcanprovideachannelforimprovementinitiatives,compliments,andcomplaintsfromusers.Italsocontributestoimprovementbyprovidingtrend,quality,andfeedbackinformationaboutfulfilmentofrequests.EngageServicerequestmanagementincludesregularcommunicationtocollectuser-specificrequirements,setexpectations,andtoprovidestatusupdates.DesignandtransitionStandardservicecomponentsmaybetransitionedtotheliveenvironmentthroughservicerequestfulfilment.Obtain/buildAcquisitionofpre-approvedservicecomponentsmaybefulfilledthroughservicerequests.DeliverandsupportServicerequestmanagementmakesasignificantcontributiontonormalservicedelivery.Thisactivityofthevaluechainismostlyconcernedwithensuringuserscontinuetobeproductive,andsometimesdependsheavilyonfulfilmentoftheirrequests.

5.2.17 Servicevalidationandtesting

KeymessageThepurposeoftheservicevalidationandtestingpracticeistoensurethatneworchangedproductsandservicesmeetdefinedrequirements.Thedefinitionofservicevalueisbasedoninputfromcustomers,businessobjectives,andregulatoryrequirements,

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andisdocumentedaspartofthevaluechainactivityofdesignandtransition.Theseinputsareusedtoestablishmeasurablequalityandperformanceindicatorsthatsupportthedefinitionofassurancecriteriaandtestingrequirements.

5.2.17.1Servicevalidation

Servicevalidationfocusesonestablishingdeploymentandreleasemanagementacceptancecriteria(conditionsthatmustbemetforproductionreadiness),whichareverifiedthroughtesting.Acceptancecriteriacanbeeitherutility-orwarranty-focused,andaredefinedthroughunderstandingcustomer,regulatory,business,riskmanagement,andsecurityrequirements.

Theservicevalidationactivitiesofthispracticeestablish,verify,anddocumentbothutility-andwarranty-focusedserviceassurancecriteriaandformthebasisforthescopeandfocusoftestingactivities.

5.2.17.2Testing

Ateststrategydefinesanoverallapproachtotesting.Itcanapplytoanenvironment,aplatform,asetofservices,oranindividualservice.Testingshouldbecarriedoutequallyonbothin-housedevelopedsystemsandexternallydevelopedsolutions.Theteststrategyisbasedontheserviceacceptancecriteria,andshouldalignwiththerequirementsofappropriatestakeholderstoensuretestingmatchestheriskappetiteandisfitforpurpose.

Typicaltesttypesinclude:

Utility/functionaltests:UnittestAtestofasinglesystemcomponentSystemtestOveralltestingofthesystem,includingsoftwareandplatforms

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IntegrationtestTestingagroupofdependentsoftwaremodulestogether

RegressiontestTestingwhetherpreviouslyworkingfunctionswereimpacted.Warranty/non-functionaltests:

PerformanceandcapacitytestCheckingspeedandcapacityunderloadSecuritytestTestingvulnerability,policycompliance,penetration,anddenialofserviceriskCompliancetestCheckingthatlegalandregulatoryrequirementshavebeenmetOperationaltestTestingforbackup,eventmonitoring,failover,recovery,andreportingWarrantyrequirementstestCheckingforverificationofnecessarydocumentation,training,supportmodeldefinition,andknowledgetransferUseracceptancetestThetestperformedbyusersofaneworchangedsystemtoapprovearelease.

Figure5.36showsthecontributionofservicevalidationandtestingtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivitiesexcepttheplanactivity:

ImproveMetricsofservicevalidationandtesting,suchasescapeddefects,testcoverage,andserviceperformanceagainstSLAsarecriticalsuccessmeasuresrequiredtoimproveCXandlowerrisk.EngageInvolvementofsomestakeholdersinservicevalidationandtestingactivitieshelpstoengagethemandimprovesvisibilityandadoptionoftheservices.DesignandtransitionServicedesign,knowledgemanagement,performancemanagement,deploymentmanagement,andreleasemanagementarealltightlyintegratedwiththeservicevalidationandtestingpractice.Obtain/buildServicevalidationandtestingactivitiesarecloselylinkedtoallpracticesrelatedtoobtainingservicesfromexternalserviceproviders,aswellastoprojectmanagementandsoftware

•developmentactivitiesinbothwaterfallandAgilemethods.DeliverandsupportKnownerrorsarecapturedbyservicevalidationandtestingandsharedwiththeservicedeskandincidentmanagementpracticestoenablefasterservicerestorationtimeframes.Likewise,informationregardingservicedisruptionorescapeddefectsarefedbackintoservicevalidationandtestingtoincreasetheeffectivenessandcoverageofacceptancecriteriaandtestingactivities.

Figure5.36Heatmapofthecontributionofservicevalidationandtestingtovaluechainactivities

5.3Technicalmanagementpractices

5.3.1 Deploymentmanagement

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KeymessageThepurposeofthedeploymentmanagementpracticeistomoveneworchangedhardware,software,documentation,processes,oranyothercomponenttoliveenvironments.Itmayalsobeinvolvedindeployingcomponentstootherenvironmentsfortestingorstaging.

Deploymentmanagementworkscloselywithreleasemanagementandchangecontrol,butisaseparatepractice.Insomeorganizationstheterm‘provisioning’isusedtodescribethedeploymentofinfrastructure,anddeploymentisonlyusedtomeansoftwaredeployment,butinthiscasethetermdeploymentisusedtomeanboth.

Thereareanumberofdistinctapproachesthatcanbeusedfordeployment.Manyorganizationsuseacombinationoftheseapproaches,dependingontheirspecificservicesandrequirementsaswellasthereleasesizes,types,andimpact.

PhaseddeploymentTheneworchangedcomponentsaredeployedtojustpartoftheproductionenvironmentatatime,forexampletousersinoneoffice,oronecountry.Thisoperationisrepeatedasmanytimesasneededuntilthedeploymentiscomplete.ContinuousdeliveryComponentsareintegrated,tested,anddeployedwhentheyareneeded,providingfrequentopportunitiesforcustomerfeedbackloops.BigbangdeploymentNeworchangedcomponentsaredeployedtoalltargetsatthesametime.Thisapproachissometimesneededwhendependenciespreventthesimultaneoususeofboththeoldandnewcomponents.Forexample,therecouldbeadatabaseschemachangethatisnotcompatiblewithpreviousversionsofsome

•components.PulldeploymentNeworchangedsoftwareismadeavailableinacontrolledrepository,andusersdownloadthesoftwaretoclientdeviceswhentheychoose.Thisallowsuserstocontrolthetimingofupdates,andcanbeintegratedwithservicerequestmanagementtoenableuserstorequestsoftwareonlywhenitisneeded.

Componentsthatareavailablefordeploymentshouldbemaintainedinoneormoresecurelocationstoensurethattheyarenotmodifiedbeforedeployment.Theselocationsarecollectivelyreferredtoasadefinitivemedialibraryforsoftwareanddocumentation,andadefinitivehardwarestoreforhardwarecomponents.

Toolsthatsupportdeploymentaremanyandvaried.Theyareoftenintegratedwithconfigurationmanagementtools,andcanprovidesupportforauditandchangemanagement.Mostorganizationshavetoolsfordeployingclientsoftware,andthesemaybeintegratedwithaserviceportaltosupportarequestmanagementpractice.

Communicationarounddeploymentsispartofreleasemanagement.Individualdeploymentsarenotgenerallyofinteresttousersandcustomersuntiltheyarereleased.

Ifinfrastructureisprovidedasaservice,thendeploymentofneworchangedservers,storage,ornetworkingistypicallymanagedbytheorganization,oftentreatingtheinfrastructureasacode,sothattheorganizationcanautomatedeployment.Intheseenvironmentsitispossiblethatsomedeploymentsmaybeunderthecontrolofthesupplier,suchastheinstallationoffirmwareupdates,oriftheyprovidetheoperatingsystemaswellastheinfrastructuretheymaydeployoperatingsystempatches.TheITorganizationmustensurethattheyknowwhatdeploymentsareplanned,andwhichhavehappened,tomaintainacontrolledenvironment.

Figure5.37Heatmapofthecontributionofdeploymentmanagementtovaluechainactivities

Ifapplicationdevelopmentisprovidedasaservice,thendeploymentmaybecarriedoutbytheexternalapplicationdeveloper,bythein-houseITdepartment,orbyaserviceintegrator.Again,itisessentialthattheorganizationisawareofalldeploymentssothatacontrolledenvironmentcanbemaintained.

Inanenvironmentwithmultiplesuppliersitisimportanttounderstandthescopeandboundariesofeachorganization’sdeploymentactivities,andhowthesewillinteract.Mostorganizationshaveaprocessfordeployment,andthisisoftensupportedwithstandardtoolsanddetailedprocedurestoensurethatsoftwareisdeployedinaconsistentway.Itiscommontohavedifferentprocessesfordifferentenvironments.Forexample,theremaybeoneprocessforthedeploymentofclientapplicationsoftware,andacompletelydifferentprocessforthedeploymentofserveroperatingsystempatches.

Figure5.37showsthecontributionofdeploymentmanagementtotheservicevaluechain,withthepracticebeingappliedmainlytothedesignandtransition,andobtain/buildvaluechainactivities,butalsotothe

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improveactivity:

ImproveSomeimprovementsmayrequirecomponentstobedeployedbeforetheycanbedelivered,andtheseshouldbeplannedandmanagedinthesamewayasanyotherdeployment.DesignandtransitionDeploymentmanagementmovesnewandchangedcomponentstoliveenvironments,soitisavitalelementofthisvaluechainactivity.Obtain/buildChangescanbedeployedincrementallyaspartofthisvaluechainactivity.ThisisespeciallycommoninDevOpsenvironmentsusingacompleteautomatedtoolchainforcontinuousintegration,delivery,anddeployment.

TheITILstory:Axle’sdeploymentmanagementMarco:Beforewedeploychangestoourbookingapp,wereleasethechangestoatestenvironment.Afterthoroughtesting,wemakethechangesavailabletoourusersandcustomers.

Radhika:Werecentlyrealizedthatthesamelogiccanbeappliedtosomeofournon-digitalservicesandcomponents.Forexample,lastmonthweintroducedtwobrandnewhybridmodelsforhireinsomebiggercities.Wecreatedapromotionalserviceofferingforthenewcars,updatedourmarketingmaterials,trainedourtechnicianstoworkwiththenewmodels,anddeployedeverythinginadvance–includingthevehicles.Thishappenedbeforetheofficiallaunchofthehybridcarsbythemanufacturer.Andofcourse,ithappenedwiththeirpermission.Su:Bythetimethelaunchdatearrived,wewerereadytogo.Wemadethecarsavailabletohirethatveryday.

Henri:Partneringwithourmanufacturermeantwehadasuccessfulandwell-preparedlaunchthatcreatedabuzzwithourcustomersandwiththeirs.

5.3.2 Infrastructureandplatform

management

KeymessageThepurposeoftheinfrastructureandplatformmanagementpracticeistooverseetheinfrastructureandplatformsusedbyanorganization.Whencarriedoutproperly,thispracticeenablesthemonitoringoftechnologysolutionsavailabletotheorganization,includingthetechnologyofexternalserviceproviders.

ITinfrastructureisthephysicaland/orvirtualtechnologyresources,suchasservers,storage,networks,clienthardware,middleware,andoperatingsystemssoftware,thatprovidetheenvironmentsneededtodeliverITservices.ThisincludesanyCIacustomerusestoaccesstheserviceorconsumeaproduct.ITinfrastructuremaybemanagedbytheserviceproviderorbyanexternalsupplierasdedicated,shared,orcloudservices.InfrastructureandplatformmanagementmayalsoincludethebuildingsandfacilitiesanorganizationusestorunitsITinfrastructure.

Theinfrastructureandplatformmanagementpracticeincludestheprovisionoftechnologyneededtosupportactivitiesthatcreatevaluefortheorganizationanditsstakeholders.Thiscanincludebeingreadytoadoptnewtechnologiessuchasmachinelearning,chatbots,artificialintelligence,mobiledevicemanagement,andenterprisemobilitymanagement.

Itisimportanttoconsiderthateverysingleorganizationmustdevelopitsownstrategytoachievetheintendedoutcomewithanytypeofinfrastructureorplatform.Eachorganizationshoulddesignitsowncloudmanagementsystemtoorchestratealltheinterrelatedcomponentsof

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infrastructureandplatformwithitsbusinessgoalsandtheintendedservicequalityandoperationalefficiency.

Figure5.38Heatmapofthecontributionofinfrastructureandplatformmanagementtovaluechainactivities

Figure5.38showsthecontributionofinfrastructureandplatformmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivitiesexcepttheengageactivity:

PlanInfrastructureandplatformmanagementprovidesinformationabouttechnologyopportunitiesandconstraintsthatisusedfortheorganization’sstrategicandtacticalplanning.ImproveInformationabouttechnologyopportunitiesthatcansupportcontinualimprovement,andanyconstraintsofthetechnologiesinuse,isprovidedbythispractice.DesignandtransitionProductandservicedesignbenefitsfromtheinformationprovidedabouttechnologyopportunitiesandconstraints.Obtain/buildInfrastructureandplatformmanagementisacriticalcontributortothisactivityasitprovidesnecessaryinformationaboutthecomponentstobeobtained.

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DeliverandsupportAttheoperationallevel,infrastructureandplatformmanagementsupportsongoingmaintenanceoftheservicesandtheinfrastructure,includinganyexecutionsofpatchmanagement,backups,etc.

Cloudservicemodels

Cloudservicemodelsinclude:

Softwareasaservice(SaaS)Theconsumercanusetheapplicationsrunninginthecloudinfrastructurewithouthavingtocontrolorevenmanagetheunderlyingcloudinfrastructure.Platformasaservice(PaaS)Theconsumercandeployontothecloudacquiredapplicationscreatedusingprogramminglanguages,services,libraries,and/ortoolssupportedbythesupplierwithouthavingtocontrolorevenmanagetheunderlyingcloudinfrastructure.Theyhavecontroloverthedeployedapplicationsandsometimestheconfigurationsettingsfortheapplicationandhostingenvironment.Infrastructureasaservice(IaaS)Theconsumercangetprocessing,storage,and/oranyothercomputingresourceswithouthavingtocontroltheunderlyinginfrastructure.

Cloudservicedeploymentmodels

Everyservicemodelcanbedeployedinseveralways,eitherindependentlyorusingamixofthefollowing:

PrivatecloudThistypeofcloudmaybelocatedwithintheorganization’spremisesoroutsideofit.Itisacloudinfrastructureorplatformtobeusedexclusivelybyaspecificorganizationwhich,atthesametime,canhaveoneorseveralconsumers.Thiscloudisnormallymanagedandownedbyan

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organization,aprovider,oracombinationofboth.PubliccloudThistypeofcloudislocatedonthecloudproviderpremises.Itisprovisionedforopenuseandmaybeowned,managed,andoperatedbyanytypeoforganizationinterestedinusingit.CommunitycloudAcommunitycloudmaybeowned,managed,andoperatedbyoneormoreofthestakeholdersinthecommunity,anditmayexistonorofftheorganization’spremises.Thisclouddeploymentmodelconsistsofseveralcloudservicesthataremeanttosupportandshareacollectionofcloudservicecustomerswiththesamerequirementsandwhohavearelationshipwithoneanother.HybridcloudThiscloudinfrastructureisacompositionoftwoormoredistinctcloudinfrastructures(private,community,orpublic)thatremainuniqueentities,butareboundtogetherbystandardizedorproprietarytechnologythatenablesdataandapplicationportability.

ITILpracticesandcloudcomputing

TheadventofthecloudhasbeenoneofthegreatestchallengesandopportunitieswithintheITworldfordecades.Thepromiseofrapid,elasticstorageandITservicesavailableatthetouchofabuttonisonethatmanyorganizationsstruggletodeliverinternally,notbecausethebenefitsarenottheretobehad,butratherbecausetheirownITSMprocessesandcontrolshavenotbeenadaptedtosupportaradicallydifferentwayofworking.

ThemanagementandcontrolofITservicesisakeyskillofITdepartmentsnomatterwherethoseservicesarephysicallylocated,andtheprocessesandcontrolsofferedbyITILarereadilyadaptabletosupportthemanagementofthosecloudservices.

Acoordinatedresponsetothemanagementofcloudservicesis

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essential.Organizationsthatattempttoaddressonlyacloudserviceprovisionasanoperationalissuewillsufferonthetacticalfront,justasanorganizationthatattemptstocontrolcloudservicesonatacticalfrontwillsufferatthestrategiclevel.Ajoined-upapproachcoveringallthreelevels,strategic,tactical,andoperational,isrequired.

Apartfromtheinfrastructureandplatformmanagementpractice,theoperationandmanagementofcloud-basedservicesinvolvesmanyotherpractices.Itshouldbenotedthatthisisnotacomprehensivelist:

ServicefinancialmanagementOneoftheadjustmentsthatITdepartmentsoftenhavetomakeforcloudcomputingistotheirfiscalplanning,whichtypicallyusesbothtraditionalcapitalexpenditure(CAPEX)andoperationalexpenditure(OPEX).Withtheadventofcloudcomputing,OPEXispreferredoverCAPEX,ascloudservicesareoftenconsumedasutilitiesandpaidoutoftheoperationalbudget.Ifcloudservicesarequickerandeasiertoaccessthanin-houseservices,thecostsassociatedwiththemwillgrowasmorepartsofthebusinessusethem.TheITcostmodelmustbeadjusted,andtheservicefinancialmanagementpracticecanhelptodeterminethetechniquesandcontrolsrequiredtoensurethattheorganizationdoesnotrunoutofOPEXunexpectedly.SuppliermanagementThefocusofthispracticewillneedtochangefromsimplyselectingsuppliersandonboardingthemtoactingasthefrontendforafull-onreleasemanagementprocess.ThiswillensurethatareassuchasITsecurity,dataprotection,andregulatorycomplianceareroutinelyassessedpriortotheonboardingofanewcloudoffering.CapacityandperformancemanagementCoupledwithservicefinancialmanagement,thispracticeshouldestablishandmonitorbudgets,withthresholdstrackedandwarningspublishedifanupswingindemandleadstoanincreaseinthecostofcloudservices.ChangecontrolTheboundariesofthispracticewillhavetobe

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redefined,ascloudserviceprovidersoftenmakechangeswithminimalcustomerinvolvement,andalmostnocustomerapproval.Productsandservicesbuiltontopofcloudserviceswillneedtomakefargreateruseofstandardchangestounlockthebenefitsthatcloudplatforms(andassociatedbusinessmodels)provide.IncidentmanagementThefocusofthispracticewillchangefromknowinghowtofixin-houseissues,toknowingwhichserviceissupportedbywhichcloudprovider,andwhatinformationtheywillrequiretoresolveanissue.Greatercarewillbeneededtosupportimpactedcustomersandteams.DeploymentmanagementThispracticewillcontinuetobecriticaltoITdepartments,buttheabilitytosafelyonboardoroffboardacloudproviderwillbecomeacommonrequirementforITdepartments.DeploymentmanagementwillbeakeycapabilityforsuccessfulITorganizations,toensurenewcloudcapabilitiesarerapidlydeployedandembeddedwithinthein-houseserviceofferings.

5.3.3 Softwaredevelopmentandmanagement

KeymessageThepurposeofthesoftwaredevelopmentandmanagementpracticeistoensurethatapplicationsmeetinternalandexternalstakeholderneeds,intermsoffunctionality,reliability,maintainability,compliance,andauditability.

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Theterm‘software’canbeusedtodescribeanythingfromasingleprogram(orsuiteofprograms)tolargerconstructs(suchasanoperatingsystem,anoperatingenvironment,oradatabase)onwhichvarioussmallerapplicationprograms,processes,orworkflowscanrun.Thereforethetermincludes,butisnotlimitedto,desktopapplications,ormobileapps,embeddedsoftware(controllingmachinesanddevices),andwebsites.

Softwareapplications,whetherdevelopedinhouseorbyapartnerorvendor,areofcriticalimportanceinthedeliveryofcustomervalueintechnology-enabledbusinessservices.Asaresult,softwaredevelopmentandmanagementisakeypracticeineverymodernITorganization,ensuringthatapplicationsarefitforpurposeanduse.

Thesoftwaredevelopmentandmanagementpracticeencompassesactivitiessuchas:

solutionarchitecturesolutiondesign(userinterface,CX,servicedesign,etc.)softwaredevelopmentsoftwaretesting(whichcanincludeseveralcomponents,suchasunittesting,integrationtesting,regressiontesting,informationsecuritytesting,anduseracceptancetesting)managementofcoderepositoriesorlibrariestomaintainintegrityofartefactspackagecreation,fortheeffectiveandefficientdeploymentoftheapplicationversioncontrol,sharing,andongoingmanagementofsmallerblocksofcode.

ThetwogenerallyacceptedapproachestosoftwaredevelopmentarereferredtoasthewaterfallandAgilemethods(seesection5.1.8formoreinformationonthesemethods).

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Softwaremanagementisawiderpractice,encompassingtheongoingactivitiesofdesigning,testing,operating,andimprovingsoftwareapplicationssotheycontinuetofacilitatevaluecreation.Softwarecomponentscanbecontinuallyevaluatedusingalifecyclethattracksthecomponentfromideationthroughtoongoingimprovement,andeventuallyretirement.ThislifecycleisrepresentedinFigure5.39.

Figure5.39Thesoftwarelifecycle

Figure5.40showsthecontributionofsoftwaredevelopmentandmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivitiesexcepttheengageactivity:

PlanSoftwaredevelopmentandmanagementprovidesinformationaboutopportunitiesandconstraintsrelatedtothecreationandchangingoftheorganization’ssoftware.ImproveServiceimprovementsinvolvingsoftwarecomponentsoftheservices,especiallythosedevelopedinhouse,relyonthispractice.DesignandtransitionSoftwaredevelopmentandmanagementallowstheorganizationtoholisticallydesignandmanagechangestoproductsandservices.Obtain/buildThecreationofin-houseproductsandtheconfigurationofproductsdevelopedbypartnersandsuppliersdependonthis

•practice.DeliverandsupportSoftwaredevelopmentandmanagementprovidesdeliveryandsupportteamswithdocumentationneededtouseproductsthatfacilitatetheco-creationofvalue.

Figure5.40Heatmapofthecontributionofsoftwaredevelopmentandmanagementtovaluechainactivities

ENDNOTE

THEITILSTORY,ONEYEARON

EndnoteTheITILstory,oneyearon

IthasbeenayearsinceHenrijoinedAxleCarHire.Therehasbeensignificantpositivechangeduringthisperiod.Newservices,suchasbiometricsandtheadvanceddriverassistancesystem,arebeingwidelyadoptedbyAxle’sconsumers,andthecompanycontinuestogainareputationforfastandreliableservice.

Customerloyaltyhasimproved,withalargeincreaseinthenumberofrepeatbookings.AxlehasalsobeenawardedPartneroftheYearbytwomajorclients,includingFoodforFuel.

TheAxleGreenimprovementinitiativeiswellunderway,withmanytargetstomakethecompanymoreenvironmentallyfriendlyalreadymet.EffortstomakeuphalfoftheAxlefleetwithelectriccarsarealsogoingwell,andthecompanyhasmadegreatprogresstowardshittingthistarget.Henri’svisiontobecomethemostrecognizedcar-hirebrandintheworld,offeringafulltravelexperience,iswithinreach.

AxleseeshowtheconceptsofITILarehelpingittofulfilitsobjectives.TheadoptionandadaptationofITILguidancehelpsAxletodeliverhigh-qualityservicesandcreatevalueforitselfanditscustomers.

APPENDIXA

EXAMPLESOFVALUESTREAMS

AExamplesofvaluestreamsThissectiondemonstrateshowtheservicevaluechaincanbeappliedtopracticalsituationsandprovidesexamplesofvaluestreams.Thesevaluestreamsshowhowactivitymightflowthroughthevaluechain.Thesearenotmodelstobecopied,butsimplyexamplestogiveanunderstandingofhowthevaluechainshouldbeused.

Theexamplesincludesomesamplejobroles.Thesearejustrolesthatmightexistinthefictionalorganizationbeingdescribedandarenotrecommendedrolesforeveryorganization.Toaidunderstanding,thefirstvaluestreamisdescribedinsomedetail;insubsequentexamplesonlyatablehasbeenprovided.

A.1AuserneedsanincidenttoberesolvedInthisfirstexampleofavaluestream,theWiFiinawarehouseisnotworkingproperlybecauseawirelessaccesspointhasfailed.Thishasasignificantimpactonthebusinessbecausetheforkliftdrivercannotreceiveinstructionsquicklyenough,andassuchthereisariskthatabusinessdeadlinewillbemissed.Thismayseemlikearelativelystraightforwardincident;however,itcan’tberesolvedbysimplymechanicallyfollowingthestepsofapredeterminedincidentmanagementprocedure.

First,someonemustnoticethatthereisanincidentandknowhowtoreportit,anditmustbepossibleforthatpersontocommunicatetheurgencyofthesituationaccuratelysothatitcanbeprioritizedcorrectly.Thepersonreceivingthereportmusthaveboththeauthoritytoescalatetheincidentandtheproceduresfordoingso,andformonitoringtheprogressoftheincident.Resourcesmustbeinplacetoallowfora

sufficientlyrapidescalation;someonemusthavetheskills,knowledge,andtoolsrequiredtoinvestigatetheincident;andtherehavetobeproceduresinplacethatallowstandardchangestobeimplementedwithoutarequirementtoobtainadditionalapproval.Itmustbepossibleforsomeonetoaccessaccurateconfigurationinformationandtologtherepaironceithasbeencompleted.Itmustalsobepossibletologthataspareparthasbeenconsumedandtore-orderitagainstfutureneed.Iftherepairistobeofanyvalue,however,thewarehouseneedstobetoldwhathashappened,sothatnormalworkingcanberesumed.Itisalsoimportanttocheckhowwelltheincidentwasresolved,toseeifthereareanylessonstobelearned.

TableA.1summarizesthedifferentactionsandresourcesrequiredtoresolvethisapparentlysimpleincident.Thetableshowshowmultiplepracticessupportthiswork,withsomepracticessupportingmultiplevaluechainactivitiesatdifferenttimes.

TableA.1Valuestreamsforincidentresolution

A.2Anerrorinthird-partysoftwarecreatesissuesforauser

Inthisexampleauserdiscoversanissuewhenusinganapplication.Thevendorhasapatchavailableandthisneedstobeinstalledtorectifythesituation.Notethatthisincidenttakesaverydifferentpaththroughtheservicevaluechain,andissupportedbyadifferentbalanceofpracticesthanthepreviousincident.

TableA.2Valuestreamsforsoftwareissues

A.3BusinessrequirementforasignificantnewITservice

InthisexampletheinternalITdepartmentofashoemanufactureridentifiesaneedforanewITservice.

TableA.3ValuestreamsforcreationofanITservice

A.4Regulatorychangerequiresnewsoftwaredevelopment

Inthisexampleafinancialorganizationmustgetreadytomeetnewregulatoryrequirements.

TableA.4Valuestreamsfornewsoftwaredevelopment

FURTHERRESEARCH

FurtherresearchAXELOSpublicationsAXELOS(2018)AGuidetoAgileSHIFT™.TheStationeryOffice,London.AXELOS(2017)ManagingSuccessfulProjectswithPRINCE2®.TheStationeryOffice,London.AXELOS(2015)PRINCE2Agile®.TheStationeryOffice,London.AXELOS(2015)RESILIA®:CyberResilienceBestPractice.TheStationeryOffice,London.CabinetOffice(2011)ManagingSuccessfulProgrammes.TheStationeryOffice,London.OfficeofGovernmentCommerce(2010)ManagementofRisk:GuidanceforPractitioners.TheStationeryOffice,London.OfficeofGovernmentCommerce(2010)ManagementofValue.TheStationeryOffice,London.

OtherpublicationsGoldratt,E.andCox,J.(1992)TheGoal:AProcessofOngoingImprovement.NorthRiverPress.Hall,J.(2016).ITSM,DevOps,andwhythree-tiersupportshouldbereplacedwithSwarming.https://medium.com/@JonHall_/itsm-devops-and-why-the-three-tier-structure-must-be-replaced-with-swarming-91e76ba22304Humble,J.,Molesky,J.andO’Reilly,B.(2015)LeanEnterprise:HowHighPerformanceOrganizationsInnovateatScale.O’ReillyMedia.Kim,G.,Behr,K.andSpafford,G.(2013)ThePhoenixProject:ANovelAboutIT,DevOpsandHelpingYourBusinessWin.ITRevolutionPress.

Kim,G.,Debois,P.andWillis,J.(2016)TheDevOpsHandbook:HowtoCreateWorld-ClassAgility,Reliability,andSecurityinTechnologyOrganizations.ITRevolutionPress.Vargo,S.L.andLusch,R.F.(2016)Institutionsandaxioms:anextensionandupdateofservice-dominantlogic.JournaloftheAcademyofMarketingScience44(4),pp.5–23.Vargo,S.L.andLusch,R.F.(2011)Service-dominantlogic:anecessarystep.EuropeanJournalofMarketing45(7),pp.1289–1309.Vargo,S.L.andLusch,R.F.(2008)Service-dominantlogic:continuingtheevolution.JournaloftheAcademyofMarketingScience36,pp.1–10.

WebsitesAgileManifesto:http://www.agilemanifesto.orgCOBIT®2019:http://www.isaca.org/Cobit/pages/default.aspxCynefinFrameworkfordecisionmaking:https://cognitive-edge.comInternationalOrganizationforStandardization(ISO)20000:https://www.iso.org/standard/70636.htmlLeanIT:http://leanitassociation.comTheIT4IT™standards:https://publications.opengroup.org/standards/it4itTheOpenGroupArchitectureFramework(TOGAF®)standards:https://publications.opengroup.org/standards/togafTheStandard+Caseapproach:applyingCasemanagementtoITSM:http://www.itskeptic.org/standard-caseThreewaysofDevOps:https://itrevolution.com/?s=three+ways+of+devops

GLOSSARY

GlossaryacceptancecriteriaAlistofminimumrequirementsthataserviceorservicecomponentmustmeetforittobeacceptabletokeystakeholders.

AgileAnumbrellatermforacollectionofframeworksandtechniquesthattogetherenableteamsandindividualstoworkinawaythatistypifiedbycollaboration,prioritization,iterativeandincrementaldelivery,andtimeboxing.Thereareseveralspecificmethods(orframeworks)thatareclassedasAgile,suchasScrum,Lean,andKanban.

architecturemanagementpracticeThepracticeofprovidinganunderstandingofallthedifferentelementsthatmakeupanorganizationandhowthoseelementsrelatetooneanother.

assetregisterAdatabaseorlistofassets,capturingkeyattributessuchasownershipandfinancialvalue.

availabilityTheabilityofanITserviceorotherconfigurationitemtoperformitsagreedfunctionwhenrequired.

availabilitymanagementpracticeThepracticeofensuringthatservicesdeliveragreedlevelsofavailability

tomeettheneedsofcustomersandusers.

baselineAreportormetricthatservesasastartingpointagainstwhichprogressorchangecanbeassessed.

bestpracticeAwayofworkingthathasbeenproventobesuccessfulbymultipleorganizations.

bigdataTheuseofverylargevolumesofstructuredandunstructureddatafromavarietyofsourcestogainnewinsights.

businessanalysispracticeThepracticeofanalysingabusinessorsomeelementofabusiness,definingitsneedsandrecommendingsolutionstoaddresstheseneedsand/orsolveabusinessproblem,andcreatevalueforstakeholders.

businesscaseAjustificationforexpenditureoforganizationalresources,providinginformationaboutcosts,benefits,options,risks,andissues.

businessimpactanalysis(BIA)Akeyactivityinthepracticeofservicecontinuitymanagementthatidentifiesvitalbusinessfunctionsandtheirdependencies.

businessrelationshipmanager(BRM)Aroleresponsibleformaintaininggoodrelationshipswithoneormorecustomers.

callAninteraction(e.g.atelephonecall)withtheservicedesk.Acallcouldresultinanincidentoraservicerequestbeinglogged.

call/contactcentreAnorganizationorbusinessunitthathandleslargenumbersofincomingandoutgoingcallsandotherinteractions.

capabilityTheabilityofanorganization,person,process,application,configurationitem,orITservicetocarryoutanactivity.

capacityandperformancemanagementpracticeThepracticeofensuringthatservicesachieveagreedandexpectedperformancelevels,satisfyingcurrentandfuturedemandinacost-effectiveway.

capacityplanningTheactivityofcreatingaplanthatmanagesresourcestomeetdemandforservices.

changeTheaddition,modification,orremovalofanythingthatcouldhaveadirectorindirecteffectonservices.

changeauthorityApersonorgroupresponsibleforauthorizingachange.

changecontrolpracticeThepracticeofensuringthatrisksareproperlyassessed,authorizingchangestoproceedandmanagingachangescheduleinorderto

maximizethenumberofsuccessfulserviceandproductchanges.

changemodelArepeatableapproachtothemanagementofaparticulartypeofchange.

changescheduleAcalendarthatshowsplannedandhistoricalchanges.

chargingTheactivitythatassignsapriceforservices.

cloudcomputingAmodelforenablingon-demandnetworkaccesstoasharedpoolofconfigurablecomputingresourcesthatcanberapidlyprovidedwithminimalmanagementeffortorproviderinteraction.

complianceTheactofensuringthatastandardorsetofguidelinesisfollowed,orthatproper,consistentaccountingorotherpracticesarebeingemployed.

confidentialityAsecurityobjectivethatensuresinformationisnotmadeavailableordisclosedtounauthorizedentities.

configurationAnarrangementofconfigurationitems(CIs)orotherresourcesthatworktogethertodeliveraproductorservice.CanalsobeusedtodescribetheparametersettingsforoneormoreCIs.

configurationitem(CI)AnycomponentthatneedstobemanagedinordertodeliveranIT

service.

configurationmanagementdatabase(CMDB)Adatabaseusedtostoreconfigurationrecordsthroughouttheirlifecycle.TheCMDBalsomaintainstherelationshipsbetweenconfigurationrecords.

configurationmanagementsystem(CMS)Asetoftools,data,andinformationthatisusedtosupportserviceconfigurationmanagement.

configurationrecordArecordcontainingthedetailsofaconfigurationitem(CI).EachconfigurationrecorddocumentsthelifecycleofasingleCI.Configurationrecordsarestoredinaconfigurationmanagementdatabase.

continualimprovementpracticeThepracticeofaligninganorganization’spracticesandserviceswithchangingbusinessneedsthroughtheongoingidentificationandimprovementofallelementsinvolvedintheeffectivemanagementofproductsandservices.

continuousdeploymentAnintegratedsetofpracticesandtoolsusedtodeploysoftwarechangesintotheproductionenvironment.Thesesoftwarechangeshavealreadypassedpre-definedautomatedtests.

continuousintegration/continuousdeliveryAnintegratedsetofpracticesandtoolsusedtomergedevelopers’code,buildandtesttheresultingsoftware,andpackageitsothatitisreadyfordeployment.

controlThemeansofmanagingarisk,ensuringthatabusinessobjectiveisachieved,orthataprocessisfollowed.

costTheamountofmoneyspentonaspecificactivityorresource.

costcentreAbusinessunitorprojecttowhichcostsareassigned.

criticalsuccessfactor(CSF)Anecessarypreconditionfortheachievementofintendedresults.

cultureAsetofvaluesthatissharedbyagroupofpeople,includingexpectationsabouthowpeopleshouldbehave,ideas,beliefs,andpractices.

customerApersonwhodefinestherequirementsforaserviceandtakesresponsibilityfortheoutcomesofserviceconsumption.

customerexperience(CX)Thesumoffunctionalandemotionalinteractionswithaserviceandserviceproviderasperceivedbyaserviceconsumer.

dashboardAreal-timegraphicalrepresentationofdata.

deliverandsupport

Thevaluechainactivitythatensuresservicesaredeliveredandsupportedaccordingtoagreedspecificationsandstakeholders’expectations.

demandInputtotheservicevaluesystembasedonopportunitiesandneedsfrominternalandexternalstakeholders.

deploymentThemovementofanyservicecomponentintoanyenvironment.

deploymentmanagementpracticeThepracticeofmovingneworchangedhardware,software,documentation,processes,oranyotherservicecomponenttoliveenvironments.

designandtransitionThevaluechainactivitythatensuresproductsandservicescontinuallymeetstakeholderexpectationsforquality,costs,andtimetomarket.

designthinkingApracticalandhuman-centredapproachusedbyproductandservicedesignerstosolvecomplexproblemsandfindpracticalandcreativesolutionsthatmeettheneedsofanorganizationanditscustomers.

developmentenvironmentAnenvironmentusedtocreateormodifyITservicesorapplications.

DevOpsAnorganizationalculturethataimstoimprovetheflowofvaluetocustomers.DevOpsfocusesonculture,automation,Lean,measurement,

andsharing(CALMS).

digitaltransformationTheevolutionoftraditionalbusinessmodelstomeettheneedsofhighlyempoweredcustomers,withtechnologyplayinganenablingrole.

disasterAsuddenunplannedeventthatcausesgreatdamageorseriouslosstoanorganization.Adisasterresultsinanorganizationfailingtoprovidecriticalbusinessfunctionsforsomepredeterminedminimumperiodoftime.

disasterrecoveryplansAsetofclearlydefinedplansrelatedtohowanorganizationwillrecoverfromadisasteraswellasreturntoapre-disastercondition,consideringthefourdimensionsofservicemanagement.

driverSomethingthatinfluencesstrategy,objectives,orrequirements.

effectivenessAmeasureofwhethertheobjectivesofapractice,serviceoractivityhavebeenachieved.

efficiencyAmeasureofwhethertherightamountofresourceshavebeenusedbyapractice,service,oractivity.

emergencychangeAchangethatmustbeintroducedassoonaspossible.

engageThevaluechainactivitythatprovidesagoodunderstandingofstakeholderneeds,transparency,continualengagement,andgoodrelationshipswithallstakeholders.

environmentAsubsetoftheITinfrastructurethatisusedforaparticularpurpose,forexamplealiveenvironmentortestenvironment.Canalsomeantheexternalconditionsthatinfluenceoraffectsomething.

errorAflaworvulnerabilitythatmaycauseincidents.

errorcontrolProblemmanagementactivitiesusedtomanageknownerrors.

escalationTheactofsharingawarenessortransferringownershipofanissueorworkitem.

eventAnychangeofstatethathassignificanceforthemanagementofaserviceorotherconfigurationitem.

externalcustomerAcustomerwhoworksforanorganizationotherthantheserviceprovider.

failureAlossofabilitytooperatetospecification,ortodelivertherequiredoutputoroutcome.

fourdimensionsofservicemanagementThefourperspectivesthatarecriticaltotheeffectiveandefficientfacilitationofvalueforcustomersandotherstakeholdersintheformofproductsandservices.

goodsTangibleresourcesthataretransferredoravailablefortransferfromaserviceprovidertoaserviceconsumer,togetherwithownershipandassociatedrightsandresponsibilities.

governanceThemeansbywhichanorganizationisdirectedandcontrolled.

identityAuniquenamethatisusedtoidentifyandgrantsystemaccessrightstoauser,person,orrole.

improveThevaluechainactivitythatensurescontinualimprovementofproducts,services,andpracticesacrossallvaluechainactivitiesandthefourdimensionsofservicemanagement.

incidentAnunplannedinterruptiontoaserviceorreductioninthequalityofaservice.

incidentmanagementThepracticeofminimizingthenegativeimpactofincidentsbyrestoringnormalserviceoperationasquicklyaspossible.

informationandtechnology

Oneofthefourdimensionsofservicemanagement.Itincludestheinformationandknowledgeusedtodeliverservices,andtheinformationandtechnologiesusedtomanageallaspectsoftheservicevaluesystem.

informationsecuritymanagementpracticeThepracticeofprotectinganorganizationbyunderstandingandmanagingriskstotheconfidentiality,integrity,andavailabilityofinformation.

informationsecuritypolicyThepolicythatgovernsanorganization’sapproachtoinformationsecuritymanagement.

infrastructureandplatformmanagementpracticeThepracticeofoverseeingtheinfrastructureandplatformsusedbyanorganization.Thisenablesthemonitoringoftechnologysolutionsavailable,includingsolutionsfromthirdparties.

integrityAsecurityobjectivethatensuresinformationisonlymodifiedbyauthorizedpersonnelandactivities.

feedbackloopAtechniquewherebytheoutputsofonepartofasystemareusedasinputstothesamepartofthesystem.

internalcustomerAcustomerwhoworksforthesameorganizationastheserviceprovider.

InternetofThings

TheinterconnectionofdevicesviatheinternetthatwerenottraditionallythoughtofasITassets,butnowincludeembeddedcomputingcapabilityandnetworkconnectivity.

ITassetAnyfinanciallyvaluablecomponentthatcancontributetothedeliveryofanITproductorservice.

ITassetmanagementpracticeThepracticeofplanningandmanagingthefulllifecycleofallITassets.

ITinfrastructureAllofthehardware,software,networks,andfacilitiesthatarerequiredtodevelop,test,deliver,monitor,manage,andsupportITservices.

ITserviceAservicebasedontheuseofinformationtechnology.

ITILBest-practiceguidanceforITservicemanagement.

ITILguidingprinciplesRecommendationsthatcanguideanorganizationinallcircumstances,regardlessofchangesinitsgoals,strategies,typeofwork,ormanagementstructure.

ITILservicevaluechainAnoperatingmodelforserviceprovidersthatcoversallthekeyactivitiesrequiredtoeffectivelymanageproductsandservices.

Kanban

Amethodforvisualizingwork,identifyingpotentialblockagesandresourceconflicts,andmanagingworkinprogress.

keyperformanceindicator(KPI)Animportantmetricusedtoevaluatethesuccessinmeetinganobjective.

knowledgemanagementpracticeThepracticeofmaintainingandimprovingtheeffective,efficient,andconvenientuseofinformationandknowledgeacrossanorganization.

knownerrorAproblemthathasbeenanalysedbuthasnotbeenresolved.

LeanAnapproachthatfocusesonimprovingworkflowsbymaximizingvaluethroughtheeliminationofwaste.

lifecycleThefullsetofstages,transitions,andassociatedstatusesinthelifeofaservice,product,practice,orotherentity.

liveReferstoaserviceorotherconfigurationitemoperatingintheliveenvironment.

liveenvironmentAcontrolledenvironmentusedinthedeliveryofITservicestoserviceconsumers.

maintainability

Theeasewithwhichaserviceorotherentitycanberepairedormodified.

majorincidentAnincidentwithsignificantbusinessimpact,requiringanimmediatecoordinatedresolution.

managementsystemInterrelatedorinteractingelementsthatestablishpolicyandobjectivesandenabletheachievementofthoseobjectives.

maturityAmeasureofthereliability,efficiencyandeffectivenessofanorganization,practice,orprocess.

meantimebetweenfailures(MTBF)Ametricofhowfrequentlyaserviceorotherconfigurationitemfails.

meantimetorestoreservice(MTRS)Ametricofhowquicklyaserviceisrestoredafterafailure.

measurementandreportingThepracticeofsupportinggooddecision-makingandcontinualimprovementbydecreasinglevelsofuncertainty.

metricAmeasurementorcalculationthatismonitoredorreportedformanagementandimprovement.

minimumviableproduct(MVP)Aproductwithjustenoughfeaturestosatisfyearlycustomers,andtoprovidefeedbackforfutureproductdevelopment.

missionstatementAshortbutcompletedescriptionoftheoverallpurposeandintentionsofanorganization.Itstateswhatistobeachieved,butnothowthisshouldbedone.

modelArepresentationofasystem,practice,process,service,orotherentitythatisusedtounderstandandpredictitsbehaviourandrelationships.

modellingTheactivityofcreating,maintaining,andutilizingmodels.

monitoringRepeatedobservationofasystem,practice,process,service,orotherentitytodetecteventsandtoensurethatthecurrentstatusisknown.

monitoringandeventmanagementpracticeThepracticeofsystematicallyobservingservicesandservicecomponents,andrecordingandreportingselectedchangesofstateidentifiedasevents.

obtain/buildThevaluechainactivitythatensuresservicecomponentsareavailablewhenandwheretheyareneeded,andthattheymeetagreedspecifications.

operationTheroutinerunningandmanagementofanactivity,product,service,orotherconfigurationitem.

operationaltechnology

Thehardwareandsoftwaresolutionsthatdetectorcausechangesinphysicalprocessesthroughdirectmonitoringand/orcontrolofphysicaldevicessuchasvalves,pumps,etc.

organizationApersonoragroupofpeoplethathasitsownfunctionswithresponsibilities,authorities,andrelationshipstoachieveitsobjectives.

organizationalchangemanagementpracticeThepracticeofensuringthatchangesinanorganizationaresmoothlyandsuccessfullyimplementedandthatlastingbenefitsareachievedbymanagingthehumanaspectsofthechanges.

organizationalresilienceTheabilityofanorganizationtoanticipate,preparefor,respondto,andadapttounplannedexternalinfluences.

organizationalvelocityThespeed,effectiveness,andefficiencywithwhichanorganizationoperates.Organizationalvelocityinfluencestimetomarket,quality,safety,costs,andrisks.

organizationsandpeopleOneofthefourdimensionsofservicemanagement.Itensuresthatthewayanorganizationisstructuredandmanaged,aswellasitsroles,responsibilities,andsystemsofauthorityandcommunication,iswelldefinedandsupportsitsoverallstrategyandoperatingmodel.

outcomeAresultforastakeholderenabledbyoneormoreoutputs.

output

Atangibleorintangibledeliverableofanactivity.

outsourcingTheprocessofhavingexternalsuppliersprovideproductsandservicesthatwerepreviouslyprovidedinternally.

partnersandsuppliersOneofthefourdimensionsofservicemanagement.Itencompassestherelationshipsanorganizationhaswithotherorganizationsthatareinvolvedinthedesign,development,deployment,delivery,support,and/orcontinualimprovementofservices.

partnershipArelationshipbetweentwoorganizationsthatinvolvesworkingcloselytogethertoachievecommongoalsandobjectives.

performanceAmeasureofwhatisachievedordeliveredbyasystem,person,team,practice,orservice.

pilotAtestimplementationofaservicewithalimitedscopeinaliveenvironment.

planThevaluechainactivitythatensuresasharedunderstandingofthevision,currentstatus,andimprovementdirectionforallfourdimensionsandallproductsandservicesacrossanorganization.

policyFormallydocumentedmanagementexpectationsandintentions,usedto

directdecisionsandactivities.

portfoliomanagementpracticeThepracticeofensuringthatanorganizationhastherightmixofprogrammes,projects,products,andservicestoexecuteitsstrategywithinitsfundingandresourceconstraints.

post-implementationreview(PIR)Areviewaftertheimplementationofachange,toevaluatesuccessandidentifyopportunitiesforimprovement.

practiceAsetoforganizationalresourcesdesignedforperformingworkoraccomplishinganobjective.

problemAcause,orpotentialcause,ofoneormoreincidents.

problemmanagementpracticeThepracticeofreducingthelikelihoodandimpactofincidentsbyidentifyingactualandpotentialcausesofincidents,andmanagingworkaroundsandknownerrors.

procedureAdocumentedwaytocarryoutanactivityoraprocess.

processAsetofinterrelatedorinteractingactivitiesthattransforminputsintooutputs.Aprocesstakesoneormoredefinedinputsandturnsthemintodefinedoutputs.Processesdefinethesequenceofactionsandtheirdependencies.

productAconfigurationofanorganization’sresourcesdesignedtooffervalueforaconsumer.

productionenvironmentSeeliveenvironment.

programmeAsetofrelatedprojectsandactivities,andanorganizationstructurecreatedtodirectandoverseethem.

projectAtemporarystructurethatiscreatedforthepurposeofdeliveringoneormoreoutputs(orproducts)accordingtoanagreedbusinesscase.

projectmanagementpracticeThepracticeofensuringthatallanorganization’sprojectsaresuccessfullydelivered.

quickwinAnimprovementthatisexpectedtoprovideareturnoninvestmentinashortperiodoftimewithrelativelysmallcostandeffort.

recordAdocumentstatingresultsachievedandprovidingevidenceofactivitiesperformed.

recoveryTheactivityofreturningaconfigurationitemtonormaloperationafterafailure.

recoverypointobjective(RPO)Thepointtowhichinformationusedbyanactivitymustberestoredtoenabletheactivitytooperateonresumption.

recoverytimeobjective(RTO)Themaximumacceptableperiodoftimefollowingaservicedisruptionthatcanelapsebeforethelackofbusinessfunctionalityseverelyimpactstheorganization.

relationshipmanagementpracticeThepracticeofestablishingandnurturinglinksbetweenanorganizationanditsstakeholdersatstrategicandtacticallevels.

releaseAversionofaserviceorotherconfigurationitem,oracollectionofconfigurationitems,thatismadeavailableforuse.

releasemanagementpracticeThepracticeofmakingnewandchangedservicesandfeaturesavailableforuse.

reliabilityTheabilityofaproduct,service,orotherconfigurationitemtoperformitsintendedfunctionforaspecifiedperiodoftimeornumberofcycles.

requestcatalogueAviewoftheservicecatalogue,providingdetailsonservicerequestsforexistingandnewservices,whichismadeavailablefortheuser.

requestforchange(RFC)Adescriptionofaproposedchangeusedtoinitiatechangecontrol.

resolutionTheactionofsolvinganincidentorproblem.

resourceAperson,orotherentity,thatisrequiredfortheexecutionofanactivityortheachievementofanobjective.Resourcesusedbyanorganizationmaybeownedbytheorganizationorusedaccordingtoanagreementwiththeresourceowner.

retireTheactofpermanentlywithdrawingaproduct,service,orotherconfigurationitemfromuse.

riskApossibleeventthatcouldcauseharmorloss,ormakeitmoredifficulttoachieveobjectives.Canalsobedefinedasuncertaintyofoutcome,andcanbeusedinthecontextofmeasuringtheprobabilityofpositiveoutcomesaswellasnegativeoutcomes.

riskassessmentAnactivitytoidentify,analyse,andevaluaterisks.

riskmanagementpracticeThepracticeofensuringthatanorganizationunderstandsandeffectivelyhandlesrisks.

serviceAmeansofenablingvalueco-creationbyfacilitatingoutcomesthatcustomerswanttoachieve,withoutthecustomerhavingtomanagespecificcostsandrisks.

serviceactionAnyactionrequiredtodeliveraserviceoutputtoauser.Serviceactionsmaybeperformedbyaserviceproviderresource,byserviceusers,orjointly.

servicearchitectureAviewofalltheservicesprovidedbyanorganization.Itincludesinteractionsbetweentheservices,andservicemodelsthatdescribethestructureanddynamicsofeachservice.

servicecatalogueStructuredinformationaboutalltheservicesandserviceofferingsofaserviceprovider,relevantforaspecifictargetaudience.

servicecataloguemanagementpracticeThepracticeofprovidingasinglesourceofconsistentinformationonallservicesandserviceofferings,andensuringthatitisavailabletotherelevantaudience.

serviceconfigurationmanagementpracticeThepracticeofensuringthataccurateandreliableinformationabouttheconfigurationofservices,andtheconfigurationitemsthatsupportthem,isavailablewhenandwhereneeded.

serviceconsumptionActivitiesperformedbyanorganizationtoconsumeservices.Itincludesthemanagementoftheconsumer’sresourcesneededtousetheservice,serviceactionsperformedbyusers,andthereceiving(acquiring)ofgoods(ifrequired).

servicecontinuitymanagementpracticeThepracticeofensuringthatserviceavailabilityandperformanceare

maintainedatasufficientlevelincaseofadisaster.

servicedesignpracticeThepracticeofdesigningproductsandservicesthatarefitforpurpose,fitforuse,andthatcanbedeliveredbytheorganizationanditsecosystem.

servicedeskThepointofcommunicationbetweentheserviceproviderandallitsusers.

servicedeskpracticeThepracticeofcapturingdemandforincidentresolutionandservicerequests.

servicefinancialmanagementpracticeThepracticeofsupportinganorganization’sstrategiesandplansforservicemanagementbyensuringthattheorganization’sfinancialresourcesandinvestmentsarebeingusedeffectively.

servicelevelOneormoremetricsthatdefineexpectedorachievedservicequality.

servicelevelagreement(SLA)Adocumentedagreementbetweenaserviceproviderandacustomerthatidentifiesbothservicesrequiredandtheexpectedlevelofservice.

servicelevelmanagementpracticeThepracticeofsettingclearbusiness-basedtargetsforserviceperformancesothatthedeliveryofaservicecanbeproperlyassessed,monitored,andmanagedagainstthesetargets.

servicemanagementAsetofspecializedorganizationalcapabilitiesforenablingvalueforcustomersintheformofservices.

serviceofferingAformaldescriptionofoneormoreservices,designedtoaddresstheneedsofatargetconsumergroup.Aserviceofferingmayincludegoods,accesstoresources,andserviceactions.

serviceownerArolethatisaccountableforthedeliveryofaspecificservice.

serviceportfolioAcompletesetofproductsandservicesthataremanagedthroughouttheirlifecyclesbyanorganization.

serviceproviderAroleperformedbyanorganizationinaservicerelationshiptoprovideservicestoconsumers.

serviceprovisionActivitiesperformedbyanorganizationtoprovideservices.Itincludesmanagementoftheprovider’sresources,configuredtodelivertheservice;ensuringaccesstotheseresourcesforusers;fulfilmentoftheagreedserviceactions;servicelevelmanagement;andcontinualimprovement.Itmayalsoincludethesupplyofgoods.

servicerelationshipAcooperationbetweenaserviceproviderandserviceconsumer.Servicerelationshipsincludeserviceprovision,serviceconsumption,andservicerelationshipmanagement.

servicerelationshipmanagementJointactivitiesperformedbyaserviceproviderandaserviceconsumertoensurecontinualvalueco-creationbasedonagreedandavailableserviceofferings.

servicerequestArequestfromauserorauser’sauthorizedrepresentativethatinitiatesaserviceactionwhichhasbeenagreedasanormalpartofservicedelivery.

servicerequestmanagementpracticeThepracticeofsupportingtheagreedqualityofaservicebyhandlingallpre-defined,user-initiatedservicerequestsinaneffectiveanduser-friendlymanner.

servicevalidationandtestingpracticeThepracticeofensuringthatneworchangedproductsandservicesmeetdefinedrequirements.

servicevaluesystem(SVS)Amodelrepresentinghowallthecomponentsandactivitiesofanorganizationworktogethertofacilitatevaluecreation.

softwaredevelopmentandmanagementpracticeThepracticeofensuringthatapplicationsmeetstakeholderneedsintermsoffunctionality,reliability,maintainability,compliance,andauditability.

sourcingTheactivityofplanningandobtainingresourcesfromaparticularsourcetype,whichcouldbeinternalorexternal,centralizedordistributed,andopenorproprietary.

specificationAdocumenteddescriptionofthepropertiesofaproduct,service,orotherconfigurationitem.

sponsorApersonwhoauthorizesbudgetforserviceconsumption.Canalsobeusedtodescribeanorganizationorindividualthatprovidesfinancialorothersupportforaninitiative.

stakeholderApersonororganizationthathasaninterestorinvolvementinanorganization,product,service,practice,orotherentity.

standardAdocument,establishedbyconsensusandapprovedbyarecognizedbody,thatprovidesforcommonandrepeateduse,mandatoryrequirements,guidelines,orcharacteristicsforitssubject.

standardchangeAlow-risk,pre-authorizedchangethatiswellunderstoodandfullydocumented,andwhichcanbeimplementedwithoutneedingadditionalauthorization.

statusAdescriptionofthespecificstatesanentitycanhaveatagiventime.

strategymanagementpracticeThepracticeofformulatingthegoalsofanorganizationandadoptingthecoursesofactionandallocationofresourcesnecessaryforachievingthosegoals.

supplierAstakeholderresponsibleforprovidingservicesthatareusedbyanorganization.

suppliermanagementpracticeThepracticeofensuringthatanorganization’ssuppliersandtheirperformancelevelsaremanagedappropriatelytosupporttheprovisionofseamlessqualityproductsandservices.

supportteamAteamwiththeresponsibilitytomaintainnormaloperations,addressusers’requests,andresolveincidentsandproblemsrelatedtospecifiedproducts,services,orotherconfigurationitems.

systemAcombinationofinteractingelementsorganizedandmaintainedtoachieveoneormorestatedpurposes.

systemsthinkingAholisticapproachtoanalysisthatfocusesonthewaythatasystem’sconstituentpartswork,interrelate,andinteractovertime,andwithinthecontextofothersystems.

technicaldebtThetotalreworkbacklogaccumulatedbychoosingworkaroundsinsteadofsystemsolutionsthatwouldtakelonger.

testenvironmentAcontrolledenvironmentestablishedtotestproducts,services,andotherconfigurationitems.

thirdpartyAstakeholderexternaltoanorganization.

throughputAmeasureoftheamountofworkperformedbyaproduct,service,orothersystemoveragivenperiodoftime.

transactionAunitofworkconsistingofanexchangebetweentwoormoreparticipantsorsystems.

usecaseAtechniqueusingrealisticpracticalscenariostodefinefunctionalrequirementsandtodesigntests.

userApersonwhousesservices.

utilityThefunctionalityofferedbyaproductorservicetomeetaparticularneed.Utilitycanbesummarizedas‘whattheservicedoes’andcanbeusedtodeterminewhetheraserviceis‘fitforpurpose’.Tohaveutility,aservicemusteithersupporttheperformanceoftheconsumerorremoveconstraintsfromtheconsumer.Manyservicesdoboth.

utilityrequirementsFunctionalrequirementswhichhavebeendefinedbythecustomerandareuniquetoaspecificproduct.

validationConfirmationthatthesystem,product,service,orotherentitymeetsthe

agreedspecification.

valueTheperceivedbenefits,usefulness,andimportanceofsomething.

valuestreamAseriesofstepsanorganizationundertakestocreateanddeliverproductsandservicestoconsumers.

valuestreamsandprocessesOneofthefourdimensionsofservicemanagement.Itdefinestheactivities,workflows,controls,andproceduresneededtoachievetheagreedobjectives.

visionAdefinedaspirationofwhatanorganizationwouldliketobecomeinthefuture.

warrantyAssurancethataproductorservicewillmeetagreedrequirements.Warrantycanbesummarizedas‘howtheserviceperforms’andcanbeusedtodeterminewhetheraserviceis‘fitforuse’.Warrantyoftenrelatestoservicelevelsalignedwiththeneedsofserviceconsumers.Thismaybebasedonaformalagreement,oritmaybeamarketingmessageorbrandimage.Warrantytypicallyaddressessuchareasastheavailabilityoftheservice,itscapacity,levelsofsecurity,andcontinuity.Aservicemaybesaidtoprovideacceptableassurance,or‘warranty’,ifalldefinedandagreedconditionsaremet.

warrantyrequirementsTypicallynon-functionalrequirementscapturedasinputsfromkeystakeholdersandotherpractices.

waterfallmethodAdevelopmentapproachthatislinearandsequentialwithdistinctobjectivesforeachphaseofdevelopment.

workinstructionAdetaileddescriptiontobefollowedinordertoperformanactivity.

workaroundAsolutionthatreducesoreliminatestheimpactofanincidentorproblemforwhichafullresolutionisnotyetavailable.Someworkaroundsreducethelikelihoodofincidents.

workforceandtalentmanagementpracticeThepracticeofensuringthatanorganizationhastherightpeoplewiththeappropriateskillsandknowledgeandinthecorrectrolestosupportitsbusinessobjectives.

ACKNOWLEDGEMENTS

AcknowledgementsAXELOSLtdisgratefultoeveryonewhohascontributedtothedevelopmentofthisguidanceandinparticularwouldliketothankthefollowingpeople.

Authoringteam

RomanJouravlev

RomanworksatAXELOSasaportfoliodevelopmentmanager,responsibleforthecontinualdevelopmentofITIL.HejoinedAXELOSin2016afterworkingformorethan15yearsinITSM,mostlyinRussia,asatrainer,consultant,qualitymanager,and(manyyearsago)servicedeskmanager.RomanhasauthoredandtranslatedseveralbooksandmanyarticlesonITservicemanagement.

AkshayAnand

AkshayisaproductambassadoratAXELOS,workingonthedevelopmentofnewguidanceandresearchwithintheITSMportfolio.WithexperiencefromtheUS,UK,andIndia,hepreviouslyadvisedFortune100clientsontheirITSMcapabilities,implementedtoolsetssuchasRemedyandServiceNow,andheadedupglobalITSMactivitiesatMacmillanPublishing.Morerecently,AkshayhasfocusedonbringingtogetherAgiledevelopmentteamsandITSMprofessionalstoaddressthechallengesposedbyemergingtechnologies.Hetweetsas@bloreboy.

JoséCarmonaOrbezo

JoséworksatAXELOSasheadofproductmanagement,responsibleforshapingthestrategyandvisionoftheAXELOSproductportfolio.HejoinedAXELOSin2016,aftercompletinghisMBAatManchesterBusinessSchool.Hisbackgroundasacommercialstrategistentailsproductmanagement,productlaunch,licensing,marketing,branding,andconsumerengagement.

ErinCasteel

Erinisaspecialistinservicemanagementandintegration,organizationalgovernance,andcybersecurity.Sheispassionateabouthelpingorganizationstobuild,run,andimproveintegrated,organizationalecosystemsthatenableincreasedagility,resilience,andvelocity.Erinisparticularlyfocusedonsystemsthinking,enterprisearchitecture,andorganizationalculturetosupportdigitaltransformation.Since2006,ErinhascontributedtothedevelopmentofISO/IEC20000,haschairedtheISO/IECworkinggroup,andhaseditedandcontributedtotheISO/IEC27000seriesofstandardsforinformationsecuritymanagement.

MauricioCorona

DrCoronaisanexperiencedITandITSMprofessional,consideredasoneofthetop25thoughtleadersintechnicalsupportandservicemanagement,andasoneofthetop100influencersinITservicemanagement.Heholds19ITILcertificationsaswellascertificationsinCOBIT,ISO20000and27000,PRINCE2,andMCP.Inadditiontoteachinggraduate-levelcoursesinMexicoandconductingscientificresearchrelatedtodigitaltransformation,DrCoronaisalsoawell-knowninternationalspeaker.In2018hewasappointedasamemberoftheSDIboardastheglobalchiefoftransformation.

TroyDuMoulin

TroyisaleadingITgovernanceandservicemanagementauthoritywith

morethan20years’experienceinexecutiveITservicemanagementtrainingandconsulting.Troyisafrequentpublicspeaker,andisapublishedauthorandcontributortomultipleITSMandLeanITbooks,suchasDefiningITSuccessthroughtheServiceCatalog(2007),ITILV3PlanningtoImplementITServiceManagement(2010)andITILContinualServiceImprovement(2011).Troywasrecentlynamedasoneofthetop25industryinfluencersintechsupport.

PhilipHearsum

PhilipjoinedtheOfficeofGovernmentCommerce(latertobecometheCabinetOffice)in2010.In2013,AXELOSwasbornasapartnershipbetweentheCabinetOfficeandCapita,andPhilipmovedintotheroleheholdstodayasITSMportfoliomanager.PhilipisamemberoftheUKworkinggroupforISO20000.HeholdstheITILV2Manager,V3Expert,PRINCE2Practitioner,RESILIA,M_O_R,ITILPractitionerandISO20000consultantcertifications.HewasalsoinvolvedintheITIL2011update,intheroleofprojectqualityassurance.

LouHunnebeck

AnITILexpertwithmorethan30years’experienceintheserviceindustries,LouisaprincipaladviseratDXCFruition.HerpassionforimprovinghowwedowhatwedohasledhertoITservicemanagementfromabackgroundofprocessconsulting,training,andservicemanagementsystemsconsulting.Devotedtoadvancingtheartandpracticeofservicemanagement,LouservedastheauthorofITILServiceDesign(2011),wasontheITILseniorexaminationpanel,servedonthearchitectteam,andwasco-authorforITILPractitionerGuidance(2016).LouspeaksregularlyatindustrymeetingstospreadthemessageofITSM.

MargoLeach

MargojoinedAXELOSin2016,bringingdiverseexperienceinnew

productdelivery,productmanagement,anddigitalandbusinesstransformation.Previouslyresponsibleformarket-leadingproductportfoliosandbusiness-widetransformations,MargohassincebeeninstrumentalinthedevelopmentandmanagementofthePPMandITSMportfoliosatAXELOS.Leadingtheentireproductfunction,recentsuccessesincludethereleaseofManagingSuccessfulProjectswithPRINCE2(2017),theongoingevolutionoftheITIL4programme,andthefurtherdevelopmentwithkeypartnersofglobalmarketsforAXELOS.

BarclayRae

BarclayisanexperiencedITSMconsultant,analyst,andwriter.Hehasworkedonapproximately700ITSMprojectsoverthelast25years,andwritesblogsandresearchandwhitepapersonITSMtopicsforavarietyofindustryorganizationsandvendors.BarclayisadirectorofEssentialSMandwasCEOofitSMFUKfrom2015to2018.Heisalsoaco-authoroftheSDISDCcertificationstandards,aparticipantinthecurrentISO/IEC20000revision,andaco-architectoftheITILPractitionerscheme.BarclayisanassociateofSDI(asaconsultantandauditor)andisamemberoftheSDIstrategicadvisoryboard.

StuartRance

Stuartisaconsultant,author,andexpertinITSMandinformationsecuritymanagement.HewasanauthorforITILPractitioner(2016),RESILIA™:CyberResilienceBestPractice(2015),andITILServiceTransition(2011).StuartisanexaminerforRESILIAandITIL,andteachestheseaswellasCISSPandothers.Stuartalsoprovidesconsultingtoorganizationsofallsizes,helpingthemuseideasfromITservicemanagementandinformationsecuritymanagementtoincreasethevaluetheycreateforthemselvesandtheircustomers.

TakashiYagi

TakashiisaservicemanagementprofessionalbasedinJapan,andwas

oneofthecoremembersofitSMFJapanthatwasestablishedin2003.HehasbeenproactiveinthepromotionofITservicemanagementbestpracticethroughthetranslationofITILbooks,includingITILV2,ITILV3,andtheITIL2011editions.TakashiisalsoactiveintheISOworld,workingastheconvenerfortheSpecialCommittee40WorkingGroup2inJapan,whichfocusesonthemaintenanceanddevelopmentofISO/IEC20000.Heservedastheco-editorfortherecentlypublishedISO/IEC20000-1.

TheITILstoryline

KatrinaMacdermid

KatrinaisanITIL4globalambassador,author,andcreatorofaninnovativeintegratedframework,human-centredITILservicedesign.SheisanITILMaster,withasolidbackgroundindesigningandimplementinginnovativeIToperatingmodelswhichputthecustomerexperienceattheheartofallITILprocesses.KatrinahasbeenresponsibleforthesuccessfulimplementationofkeystrategicprogrammesandintegratedservicemanagementinAustralia’slargestandiconicglobalorganizations.Sheisawell-knownconferencespeakeronhuman-centredITILservicedesign.

Projectteam

DavidAtkins Productionmanager

RachidaChekaf Headoftranslations

ClémenceCourt Productandcommunitycoordinator

AdrianCrago-Graham HeadofPMO

RickyElizabeth Brandanddesignmanager

JamesLord Examinationsofficer

MichaelMacgregor Projectmanager

JamesRobertson Examinationsofficer

HeigorSimõesdeFreitas ProductmanagerITSM

TomYoung Projecteditor

Contributors

LiefAndersson,VirginiaAraújo,CraigBennion,JosephCaudle,StefanCronholm,PavelDemin,DomitienDijon,MarieDiRuzza,PhyllisDrucker,JohnEdmonds,DouglasFidler,AlfonsoFigueroa,JamesGander,AnnGerwitz,HannesGöbel,BobGribben,DamianHarris,SimonHarris,DeniseHeinle,MatthewHelm,PeterHero,JessicaHinkal,FrantzHonegger,PeterHubbard,DmitriyIsaychenko,MarcusJackson,StéphaneJoret,MichaelKeeling,ClaudineKoers,ShirleyLacy,AntonLykov,CelisaManly,CasparMiller,JamesMonek,DavidMoskowitz,ChristianNissen,MarkO’Loughlin,TatianaOrlova,BenPage,MitchPautz,TatianaPeftieva,DonkaRaytcheva,NicolaReeves,FrancesScarff,NikolaiSchmidt-Ott,MarkSmalley,ChrisWhitehead,PaulWilkinson,MartinWolf,SarahWoodrow,UllaZeeberg