Service Delivery Quick Reference

1. Service Level Management Financial Management for IT services Capacity Management IT Service Continuity Management Availability Management
GOALS GOALS GOALS GOALS GOALS
To maintain and gradually improve IT service quality To provide cost-effective stewardship of the IT assets To ensure that cost-justifiable IT capacity always The goal for ITSCM is to support the overall Satisfy Business objectives
trough a constant cycle of agreeing monitoring and and resources used in providing IT Services exist and that it is matched to the current and future Business Continuity Management process by Achieve sustained level of availability
reporting upon IT service achievement and identified business needs ensuring that the required IT technical and services Ensure cost effectiveness
instigation of actions to eradicate poor service or facilities can be recovered within required, and Optimize the capability of services and components
agreed, business timescales
Having the appropriate IT capacity and making best
use of it
OBJECTIVES OBJECTIVES OBJECTIVES OBJECTIVES OBJECTIVES
High quality, cost effective, value-adding IT services To manage the financial aspects of IT assets and
that underpin the organization’s business needs resources cost-effectively
Play a key role in ascertaining the business To account fully for the total spend on the provision
requirements of IT Services and to attribute the cost to the services
delivered
SLA is written agreement between the customer and
the IT service provider, defining key targets and To advise management on IT investment matters by
responsibilities on both sides providing detailed business cases
PROCESS – sub-processes
PROCESS PROCESS PROCESS PROCESS
Established Function Stage 1- Initiation ACTIVITIES
Budgeting Business Capacity Management
Initial Planning activities and Implementation Initiate BCM determining the Availability requirements from the business for
Setting the budget Service Capacity Management
Stage2 – Requirements and Strategy a new or enhanced IT Service and formulating the Availability
Implement SLAs IT Accounting Resource Capacity Management
and recovery design criteria for the IT Infrastructure
Compile a service catalogue Business impact analysis
Building a Cost Model
in conjunction with ITSCM determining the vital business
Establish SLA structure Risk assessment
ACTIVITIES
Charging
functions and impact arising from IT component failure
Establish overview of Service Level Requirements Monitoring Business Continuity Strategy
Setting the Price
defining the targets for Availability, reliability and
(SLRs) Stage3 - implementation
Analysis
Pricing methods
maintainability for the IT Infrastructure components
Plan UCs and OLAs Organizational and implementation planning
Tuning
Differential Charging
establishing measures and reporting of Availability, Reliability
Draft and agree SLAs Implement stand-by arrangements
Implementation
Billing
and Maintainability that reflects the business, User and IT
Storage of Capacity Management data – the CDB
Manage The Ongoing Process Develop Recovery Plans
support organisation perspectives
Monitor and report SLA achievements Implement Risk reduction Measures
Demand Management
monitoring and trend analysis of the Availability, Reliability
Review SLA achievements Develop Procedures
Modeling
and Maintainability of IT components
Identify Service improvements (SIP) Initial testing
Application sizing
reviewing IT Service and component Availability and
Stage4 – Operational Management
Periodic Reviews Producing of the capacity Plan
identifying unacceptable levels
Review and update SLAs, UCs and OLAs Education and awareness
investigating the underlying reasons for unacceptable
Review SLM process for efficiency and effectiveness Review and audit
Availability
Testing
producing and maintaining an Availability Plan which prioritises
Change Management
and plans IT Availability improvements.
Training
Assurance
DEFS DEFS INPUTS Recovery Types INPUTS
Cost Model: by service, location, customer (for
Service Catalog: defines services with default levels Technology Do nothing - Few, if any, organisations can function Business availability requirements
charging)
and options. Gives a profile of IT service provider to effectively without IT Services. Even if there is a
SLA, SLR and Service Catalogue Business impact assessment
Cost Types: HW, SW, People, Accommodation,
org. and overview of services provided to users. requirement for stand-alone PC processing, there is
Business plans and strategy Availability, Maintainability and Reliability requirements
External services, Transfer costs still a need for recovery to be supported.
SLR-Service Level Requirements: list of clients reqs. IS/IT plans and strategy Impact assessment for Vital Business Functions
Cost Elements: Sub elements of Cost Types, like HW = Manual Work-arounds - manual Work-arounds can
OLA-Operational Level Agreements: Between 2 Operational schedules Incident and problem data
NW, Server, Office be an effective interim measure until the IT Service is
intern IT departments Deployment and development plans and programs Configuration and monitoring targets
Cost Category resumed wherever they are practical and possible.
UC-Underpinning Contract: With an external Forward schedule of change Service Level Targets
Capital or Operational Reciprocal arrangements - Entering into an
supplier. Incidents and problems
Direct/Indirect agreement with another organisation using similar
SLA Service reviews
Absorbed/Unabsorbed Indirect technology. Benefits can exist, in maintaining some
SIP-Service Improvement Program: SLM with PM SLA breaches
Fixed/Variable reciprocal arrangements, for example, in the off-site
and AM starts a formal project focusing on user Budget
storage of backups and other critical information.
satisfaction
Gradual Recovery (cold standby) - up to 72 hours,
Service Catalog Contents CHARGING OUTPUTS OUTPUTS
without a re-establishment of full IT facilities.
Version number, date created, date amended; TOC; Notional (Invoiced, not payed), Communication of Info Capacity plan Availability and recovery design criteria
Accommodation fully equipped with power and local
Foreword from CIO; IT Service provider profile; Service (customer informed of charges to be aware), Pricing CDB Agreed targets of availability, rel., maintainability
network cabling Infrastructure, telecom connections.
times and accessibility of IT Service Provider; Overview Flexibility (Rates charged annually) Baselines and profiles Reports on achieved A.R.M
Fixed or portable facility.
of services and products; Customer focused Thresholds and alarms Availability monitoring
When opting for a gradual recovery, consideration
service/product description; Specs; Deliverables; Service Pricing Method/Policy Capacity reports (regular, at hock and Exception) Availability improvements plans
must be given to highly customised items of
Cost Plus – cost + profit rate
times; Maintenance times; Support times; Delivery SLA and SLR recommendations hardware or equipment that will be difficult, if not
Going Rate – comparable to other dept services
times; Quality targets (availability, usability, reliability,
Costing and Charging recommendations impossible, to replace.
priority); Requirements; Request & Change procedure; Market Price – match external supplier price Proactive changes and service improvements Intermediate Recovery (warm standby) 24 to 72 hour
Contigency policy; Pricing & Charging; Index & Negotiated Contract Price Revised operational schedule period. It is usually far away (logistics) and shared
Definitions
Effectiveness reviews with 20 to 30 other companies. Use 6-12 weeks. Can
Audit reports be portable, in a trailer.
Immediate Recovery (hot standby) provides for
immediate restoration. Application systems and
communications already available and data mirrored
from the operational servers. In the event of a system
failure, the Customers can immediately switch to the
backup facility with little or no loss of service.
System can be used as backup and reporting resource.

2. Service Level Management Financial Management for IT services Capacity Management IT Service Continuity Management Availability Management
BENEFITS BENEFITS BENEFITS BENEFITS BENEFITS
Customer and IT service provider have a clearer Increased Confidence in budgets Minimize risk of failing to meet SLAs and SLRs The annual spend on ITSM can be controlled A single point of accountability for availability is established
view of requirements and responsibilities within the organization
Accurate information supplied for investment and More confident forecasting Cost justifiable risk reduction measures can be
Commitment on both sides TCO purposes implemented IT Services are designed to meet the IT Availability
Value to the applications lifecycle
requirements of the business
Specific targets to aim for Increased professionalism and efficiency The ability to recover in a controlled manner
Increased efficiency
the levels of IT Availability provided are cost justified
Week areas will be identified Warning over or under usage of service All staff aware of their role relating to ITSCM
Cost savings and cost avoidance
the levels of Availability required are agreed, measured and
Supports supplier management (internal and Sound business method of balancing IT service Potential lower insurance premiums
Timely enhancements and upgrades
monitored to fully support Service Level Management
external) provision with business requirements Meetings regulatory requirements
shortfalls in the provision of the required levels of Availability
Demonstrable performance indicators The cost of doing or not doing a Change Better business relationships
are recognised and appropriate corrective actions identified and
Gradual improvements in service quality Positive marketing of contingency capabilities
implemented
Better forward planning / both customers and IT Organizational credibility
a business and User perspective of IT Service Availability is
Will show where customer/user actions are causing Competitive advantage
taken to ensure optimal usage and performance of the IT
difficulty and identify where working practice need
Infrastructure is achieved to deliver maximum benefit
to be improved
the frequency and duration of IT Service failures is reduced
IT service will be defined to meet Service Level
over time
Requirements
IT support organisation mindset moves from error correction to
SLAs can be used as a basis for charging
service enhancement; from reactive to proactive attitude
Improved communication between IT and customers
the IT support organisation is seen to 'add value' to the
Better value for money
business.
PROBLEMS PROBLEMS PROBLEMS Contingency Plan PROBLEMS
ensuring targets are achievable (use existing Lack of understanding leading to inefficient, overlay Unrealistic expectations IT infrastructure, comprising the replacement system, Defining availability levels that are meaningful to the business
achievements if known) expensive or over-complex systems plus contracts/agreements necessary for recovery
Vendor influence Managing internal and external providers is made difficult by
lack of agreed availability targets
verifying targets prior to agreement (prior Monitoring tools inaccurate or too expensive IT Infrastructure Management and operating
Lack of accurate information
monitoring, pilot SLAs) agreements/procedures during a disaster
- business data
Delay in obtaining, or inaccurate, information Assessing achievable and cost-effective levels of IT service
Monitoring of actual achievement (only agree what - technical data Personnel - details of those needed at contingency availability
Difficulty in recruiting staff with accountancy and IT
can be monitored) site plus accommodation required
skills Distributed environments New services are implemented without full consideration of
availability requirements
Inadequate resources and time (process must be Security instructions, emergency contacts and items
Unable to respond to changes quickly enough Level of monitoring to be implemented
properly staffed and resourced for home site Loss of business and reputation due to unstable IT services
Lack of management understanding and support
Lack of understanding (educations) Contingency site: location, people, facilities, security Lack of accountability
and transport arrangements
Differences in perceptions within the customer
community (need to agree relevant targets at all Return to normal - dependencies affecting the return
levels)
Not enough seniority (give Service Level Manager
the appropriate authority)
SLA may not be supported by adequate underpinning
agreements/contracts (review OLAs and contracts)
KEY PERFORMANCE INDICATORS KEY PERFORMANCE INDICATORS KEY PERFORMANCE INDICATORS KEY PERFORMANCE INDICATORS DEFINITIONS
Availability – Ability of an IT Service or CI to perform its
what number or percentage of Services are covered Overall cost of delivery per customer Resource forecasts Percentage of Vital Business Functions covered by IT
required function at a stated instant or over a stated period of time
by SLAs - timely production of forecasts Service Continuity Plans
Percentage of IT costs not accounted for
Reliability – freedom from operational failure. Rel. of an IT
- accurate forecasts if trends in resource util.
are Underpinning contracts and OLAs in place for all Percentage of Vital Business Functions covered by
Dollar value of budget variances/adjustments
service is determined by rel. of each component delivering the
- incorporation of business plans into cap. plan
SLAs and for what percentage? annual IT Continuity tests
Percentage of IT financial objectives met
service.
Technology
are SLAs being monitored and are regular reports Number of annual IT Service Continuity Plan testing
IT Service Headcount
Maintainability – ability of a CI to be kept in, or to be restored to
- ability to monitor perf and troughput
being produced? failures
an operational state.
- impl. Of new tech. in line with business
are review meetings being held on time and correctly Number of 3rd party recovery support contracts not
Serviceability – describes contractual arrangements made with 3rd
requirements (time cost functionality)
minuted? agreed
party IT service providers to assure Avail., Rel. and
- use of old technology does not result in breached
is there documentary evidence that issues raised at Number of audits performed on IT Service
Maintainability. of IT services and their CIs.
SLa due to problems
reviews are being followed up and resolved (e.g. via Continuity Plan
Resilience – capacity of an IT service to allow continued operation
Cost effectiveness
an SIP) Number of business issues logged against IT Service
of IT despite the failure of one or more sub-systems.
- a reduction in panic buying
what number or percentage of Service targets are Continuity.
Vital Business Function – business critical element of business
- not significant over-capacity
being met and what is the number and severity of
process.
- accurate forecasts of planned expenditure
service breaches?
Security – deals with confidentiality, integrity and availability of
Plan and implement the appropriate IT capacity to
are service breaches being followed up effectively?
data.
match business needs
are service level achievements improving
AMDB – record & store info reqd. for support of key activities:
- reduction in lost reduction in the incidents due to
are Customer perception statistics improving? reporting, analysis and availability forecasting...
poor performance
are IT costs decreasing for services with stable Service Window – period in which maintenance can be completed
- reduction in lost business due to inadequate
(acceptable but not improving) service level on a service
capacity
achievements?
- new services are implemented which match SLR
are SLAs, OLAs and underpinning contracts current
-recommendation made by capacity mgt. are acted
and what percentage are in need of review and
upon
update?
CRITICAL SUCCESS FACTORS CRITICAL SUCCESS FACTORS CRITICAL SUCCESS FACTORS CRITICAL SUCCESS FACTORS CRITICAL SUCCESS FACTORS
Meeting Customer Needs And Priorities Effective stewardship over IT finances Accurate business forecasts Ensuring IT Service Recovery Within Agreed
Timescales
Adherence To Service Levels knowledge of IT strategy and plans, and that the
Establishing Process
plans are accurate
Providing Services Cost Effectively Planning
an understanding of current and future technologies
Controlling Service Delivery Implementation
an ability to demonstrate cost effectiveness
Maintaining Recognized Industry Acceptance For IT Operational
Quality interaction with other effective Service Management
Managing change
processes
Maintaining An IT Service Culture
Managing variances
an ability to plan and implement the appropriate IT
Capacity to match business need

3. Service Level Management Financial Management for IT services Capacity Management IT Service Continuity Management Availability Management
RESPONSIBILITIES SLMgr RESPONSIBILITIES RESPONSIBILITIES RESPONSIBILITIES ITSC Manager RESPONSIBILITIES (A. Manager)
creates and maintains a catalogue of existing Budgeting: ensures that appropriate levels of monitoring of Develop and manage the ITSCM Plan to ensure that, to be accountable for the deployment of the AM process and
Services resources and system performance are set, and that at all times, the recovery objectives of the business associated methods and techniques
manage the IT organisation budget
the information recorded in a CBD is kept up-to-date can be achieved.
formulates, agrees and maintains an appropriate SLM to be responsible for ensuring the AM process is regularly
prepare budget forecasts and assist Customers in
and used by all parts of the Capacity Management
structure (SLA, OLA, Contracts, accommodating reviewed and audited, and that all of these are subject to cont.
Ensure that all IT Service areas are prepared and able
preparing IT elements of their budgets
process
service improvement plan within SLM) to respond to an Invocation of the Continuity plans. improvement and remain fit for purpose
report regularly to IT managers and Customers on
produces Capacity Plans in line with the
negotiates, agrees and maintains the Service Level Maintain a comprehensive IT testing schedule. to be responsible for determining the Av. requirements from the
conformance to budgets
organisation's business planning cycle, identifying
Agreements with the Customer business for new or enhanced IT Services
Undertake quality reviews of all procedures and
Accounting:
Capacity requirements early enough to take account ensure that these are incorporated into the testing
negotiates, agrees and maintains the Operational to be responsible for the creation of A and recovery design
select suitable tools and processes for gathering Cost
of procurement lead times
Level Agreements with the IT provider schedule. criteria to be applied to new or enhanced Infrastructure design
data
documents the need for any increase or reduction in
negotiates and agrees with both the Customer and IT Communicate and maintain awareness of ITSCM to be responsible for ensuring the levels of IT A. required are
develop suitable cost models
hardware based on SLRs and cost constraints
Provider any Service Level Requirements for any objectives within the business areas supported and IT cost justified
agree suitable IT Accounting policies, e.g.
produces regular management reports which include
proposed new/developing services Service areas. defining the targets of A. required for the IT Infrastructure and
Depreciation
current usage of resources, trends and forecasts
analyses and reviews service performance against the Undertake regular reviews, at least annually, of the its components that underpin a new or enhanced IT Service as
assist in developing cost-benefit cases for IT
sizes all proposed new systems to determine the
SLAs and OLAs Continuity plans with the business areas to ensure the basis for an SLA
investments
computer and network resources required, to that they accurately reflect the Business processing
produces regular reports on service performance and establishment of measures and reporting that reflect business,
advise senior management on the cost-effectiveness
determine hardware utilisation, performance service Environment.
achievement User and IT support org. requirements
of IT solutions
levels and cost implications Negotiate and manage contracts with providers of
organizes and maintains the regular Service Level responsible for the monitoring of actual IT A. achieved vs
Charging:
recommends resolutions to performance-related third party recovery services.
review process targets and to ensure shortfalls are addressed
identify methods of charging within the organisations
Incidents and Problems Manage the IT Service delivery during times of crisis
initiates any actions required to maintain or improve to be responsible for the production and maintenance of an A.
charging policy
recommends to IT management when to employ including:
service levels Plan which prioritises and plans IT A. improvements
provide justifications and comparisons for charges
o Co-ordination with the crisis control team
Demand Management, to dampen Customer
conducts annual (as appropriate) reviews of the entire to promote AM awareness and understanding within the IT
prepare regular bills for Customers
o Invocation of the appropriate recovery
demands on systems
Service Level process and negotiates, agrees and support organisation
prepare a price list of Services, if required
facilities
carries out ad-hoc performance and Capacity studies
controls any amendments necessary to maintain an awareness of technology advancements and IT
o Resource management, direction and
on request from IT management best practice, e.g. ITIL.
acts as co-ordination point for any temporary
arbitration
is represented on the CAB, assessing and authorising
Changes to service levels required
o Recovery site management.
Changes
ensures that regular and ad hoc audits are carried out
on the Capacity Management process
SMART: Specific- Measurable- Achievable- Realistic - INTERFACES INTERFACES INTERFACES INTERFACES
Time based CfgM: IM- scripts for diagnostics SD, IM, PM ChM
- manages assets and cost information - performance counters - Provides historical data - Input from AM is details of the planed maintenance regime
SLA STRUCTURES
Customer Based – With a customer group - Customer liaison - input to AM is schedule of planned maintenance activities
SLM : PM- scripts for diagnostics
Service Based – For customers of a service (e-mail) - cost provision impacts service..; - performance counters ChM SLM
Multi-Level SLAs - Supplied with cost of meeting current and new - Ensures the on-going accuracy of continuity plans - provide information what is availability of the system for SLA
ChM- assist in CAB assessing business impact
Corporate Level – cover generic SLM issues requirements - SLR provide availability requirements
- raise RFC if needed -
CM, AM: FM
Customer Level RM- helps with distribution strategy (network CfgM
- Supplied with cost of meeting cap. and avail. - input to FM is cost of nonavailability
bandwidth,..) - Identifies the core infrastructure
Service Level
- some data shared – e.g. Machine data sharing - output from FM cost associated with proposed upgrades to the
- after distribution capacity audits
Meeting Customer Needs and Priorities: Customer
infrastructure
CfgM- gets information about CIs SLM
satisfaction score/rating ; Average time to implement
ITSCM
- stores capacity information in CMDB - understands the obligations of IT service provision
SLA requests ; Number of SLAs in renegotiation ;
- output from ITSCM is business impact assessment
SLM - Perf. And capacity targets FM
Number of SLAs requiring changes (targets not
- Input from AM is the availability and design criteria tom
- assist SLM drafting OLAs -
attainable, etc.) ; Number of SLA issues logged
maintain “business as usual” by preventing or minimizing
FM - cost summary as part of capacity plan CM
Adherence To Service Levels: Number of SLA targets
impact of failure by use CFIA
- resource utilization basis for charging - ensure business requirements are fully supported
missed ; Number of SLA targets threatened
CM
trough the appropriate IT hardware resources
ITSCM - capacity needed for recovery options used
Providing Services Cost Effectively: Current cost per
- input from AM is completed CFIA
- maintain ITSCM capacity requirements in line with AM
customer for delivery of services ; Percentage
- input from CM is capacity plan
production - delivers risk reduction measures to maintain
improvement in delivery cost per customer
business-as-usual
AM - Share common goal slow performance is
Controlling Service Delivery: Number of OLA issues
effectively the same as unavailability
logged ; Number of Underpinning Contract issues
logged Cost types: AM methods and techniques
Maintaining Recognized Industry Acceptance For IT Hardware, Software, Employment, Accommodation, Redundancy and resilience
Quality: Number of ITs articles/white papers published ; External services and Transfer Component Failure Impact analysis (CFIA)
Percentage IT Operations staff in industry (i.e; itSMF) Cost Elements: Fault tree Analysis (FTA)
Breakdown of cost types (HW/ server/ NT/ HR server…)
programs ; Percentage progress towards industry CCTA Risk Analysis & Management Method (CRAMM)
certification (i.e; ISO9000) ; Dollars spent on external Service Outage Analysis (SOA)
communications activities
Technical Observation Post (TOP)
Maintaining an IT Service Culture: Percentage of IT
Incident Lifecycle Management
Operations staff ITIL-aware ; Number of IT Operations
Continuous Improvements
staff ITIL certified ; Number of IT Operations staff with
advanced ITIL certification ; Number Of Agreed SLAs
Not Supported By OLAs/UCs
SLA Content ELEMENTS of fin. management
General details Budgeting
Service hours Accounting
Roles and responsibilities Charging
Availability, Reliability, Maintainability & Fin Management Cycle
Serviceability Planning annual:
Service Performance Budgeting (agree overall expenditure)
Customer Support IT Accounting (Establish standard unit cost for each
Example incident targets IT resource)
Printing Charging (Establish Pricing policy, Publish price list)
Operational monthly:
IT Service Continuity
Budgeting (take actions to manage budget
Security
expectations or charged costs)
Change management Procedures
IT Accounting (Monitor Expenditure by cost-centre)
Charging
Charging (Compile and issue bills)
Quality / Customer perception
http://itservicemngmt.blogspot.com/
Administration (Reporting, service reviews,..)