ITIL STRATEGY - DESIGN - OPERATION PROCESS

INTRODUCTION
ITIL is part of a suite of best-practice publications for IT service management (ITSM).1 ITIL provides guidance
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to service providers on the provision of quality IT services, and on the processes, functions and other
capabilities needed to support them. ITIL is used by many hundreds of organizations around the world and
offers best-practice guidance applicable to all types of organization that provide services.
ITIL best practices and to adapt them to work in their specific environments in ways that meet their needs. d.
While ISO/IEC 20000 is a standard to be achieved and maintained, ITIL offers a body of knowledge useful for
achieving the standard.
The ITIL framework is based on the five stages of the service lifecycle as shown in Figure 1.1, with a core
publication providing best-practice guidance for each stage. This guidance includes key principles, required
processes and activities, organization and roles, technology, associated challenges, critical success factors
and risks. The service lifecycle uses a hub-and-spoke design, with service strategy at the hub, and service
design, transition and operation as the revolving lifecycle stages or spokes.
Continual service improvement surrounds and supports all stages of the service lifecycle.
WHAT IS SERVCE STRATEGY

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ITIL Service Strategy helps organizations understand the merits of using a market-driven
approach. To succeed organizations must deliver and support services and products that their
customers need. Service Strategy helps them to do this by encouraging a practice of service
management for managing IT services.
No organization acts in a vacuum. Customers always have alternatives. Even government and
nonprofits where social services compete for tax dollars and contributions.
Competitive forces demand that an IT organization do its job better than the alternatives.
What service strategy is about is positioning your organization as non-optional.

Service Strategy process areas include:

Service portfolio management

Financial management for IT services
Demand management
Business relationship management
Strategy management for IT services
Service Portfolio Management

Service portfolio management (SPM) is a means by which you can dynamically and transparently
govern resource investment. The goal of SPM is to maximize value to the business while managing
risks and costs. We do this by ensuring that the content of the service portfolio is in line with the
organizations service management strategy.
In cooperation with the change management process it evaluates proposed services. As well as major
changes to existing services.
Service Portfolio Management is a cradle to grave process.
It monitors services in the pipeline. First as they proceed through funding, then through design,
development, testing, and deployment. Once operational it monitors to ensure we are
achieving expected returns. And finally, when the service has reached the end of its useful life, it
works with Service Transition processes to ensure an orderly retirement and preservation of essential
records and assets.

Financial Management for IT

Service
Financial management for IT services ensures we track and associate IT investment and
spending with the services provided.
Why do we need to do this? We want to deliver the best quality service at the lowest possible cost.
We want to create business value and increase the opportunity to take on extra projects that result in
even greater value to the business.
The three major activities which take place within financial management for IT services are:
Accounting
Budgeting
Charging

(the ABCs of financial management).

Accounting involves applying cost accounting principles to IT spending. We do this to answer

the question, What does it cost to provide each service?
We use Budgeting to show the funding required to support the defined services at a given level of
business activity. The budget assures that IT Service Management will have adequate funding to
deliver promised services.
Charging is the process of assuring that IT Service Management will capture value. That is, that
the consumers of services are aware of the cost of providing services to them.
Financial Management for IT is one of five components in the ITIL Service Delivery area. It
determines the costs of services and provides financial accounting support to ensure expenditures fall
within approved plans and that funds are well-spent.
The role of Financial Management varies depending upon the view of IT within the company. Some
companies view IT as an expense center, some as a profit center, and some as a cost-recovery center.
However, in all cases, Financial Management supports the "business" of IT.
 Financial Management activities include:
Providing oversight of all IT expenditures
Ensuring funds are available for planned events
Providing detailed financial information for proposed initiatives
Influencing the use of IT assets to maximize the return on IT investments through chargeback systems
Tracking current expenditures against the budget

WHY SHOULD I IMPLEMENT FINANCIAL MANAGEMENT?

Financial Management processes allow you to:

Plan and predict IT expenditures required to maintain or improve services
Ensure expenditures fall within approved plan guidelines and that money is well-spent
Assist senior management in understanding the ongoing total cost of a proposed IT initiative
Promote a better understanding of the costs associated with providing specific services
Foster an environment of control to ensure IT services are effectively and efficiently used

Financial Management has close ties to Service Level Management, Capacity Management,
and Configuration Management areas, as well as the Corporate Finance Department.

ITIL Demand Management

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Service

At some point during the service design or service strategy phase, someone may ask what services your
organization actually needs and uses. Or perhaps the statement of work is coming up for renewal, requiring
a new service level agreement (SLA). Reevaluating your services is also important when an organization has
been financially burdened by inadequately planning for an influx of tickets or service usage. To determine
"how much" service is enough, decisions should be based on data rather than gut feeling. Fortunately, ITIL
has defined the IT service management strategies needed to identify, analyze, and plan for changes in usage
patterns. This process is called demand management.
 What is ITIL Demand Management?

ITIL Demand Management helps a business understand and predict customer demand for services.
Every business is subject to cyclical behavior. This means that demand for services can grow or
shrink with the business cycle. In deciding whether to provide a service, IT Service Management
must understand the patterns of business activity (PBAs) related to the service. While it is important
to avoid having inadequate capacity, excess capacity is also a business risk, involving expense which
typically cannot be recovered, since customers cannot be expected to pay for capacity they are not
using.
PBAs are typically thought of in terms of transaction volumes. ITIL suggests other factors be
considered as well, such as the source of the demand, special needs such as enhanced security, and
tolerance for delay. The job of demand management is to identify appropriate PBAs and to associate
them with user profiles (UPs). This becomes important input to the capacity management process in
the Service Design lifecycle phase.
According to ITIL, the purpose of demand management is to understand, anticipate, and influence
customer demand for services. As a process, it is part of the ITIL service strategy stage of the ITIL
lifecycle. Service strategy determines which services to offer to prospective customers or markets.
The decisions that are made in the service strategy stage affect the service catalog, the business
processes, the service desk, the required capacity, and the financial requirements of the service
provider.
As part of the service strategy stage, demand management rationalizes and optimizes the use of IT
resources. It ensures that the amount of technical and human resources that has been budgeted
matches the expected demand for the service. If the prediction is too low, the agreed-upon service
levels may not be delivered. If the predictions are too high, resources will have been allocated to a
service that will not be used (or paid for). Demand management bridges the gap between service
design, capacity management, and business relationship management to ensure that the predictions
are accurate.
Demand management is a process within ITIL that is more supportive of other processes than a self-
contained process. Unlike incident management, for example, the activities inside demand
management are not visible to the customer. When service demand is not properly balanced, it
affects nearly every part of the ITIL lifecycle.

Demand Management Roles

Like every process within the ITIL framework, demand management has a chain of responsibility and
ownership. Here, the owners are called business relationship managers. Business relationship
management creates and grows the connection between the customer and the service provider.

Demand Management Objectives and Activities

The purpose of demand management is to detect and influence the demand that customers have
on IT services. This process involves three main actions:

1. Analyzing current customer usage of IT services: The easiest way to do this is to analyze service
desk data regarding incidents, requests, and problems. Network usage and uptime can be measured
via a service dashboard, such as the kind used in a network operations center (NOC) environment.
2. Anticipating future customer demands for IT services: Here, the business relationship manager
comes into play. He or she may speak with the customer directly about forecasted needs, will
analyze trends in usage or tickets, and will make educated projections about future usage based on
similar customers trends.
3. Influencing consumption as necessary by financial or technical means: For example, if a customer
uses more service than anticipated in the SLA, a service provider may charge fees for the excessive
consumption to offset the costs of the unforeseen demand. Demand management also makes sure
that the appropriate costs are included in the service design. Formally, this involves two processes:
 Demand Prognosis
In demand prognosis, the business relationship manager analyzes IT service consumption. This
individual will also forecast future consumption based on known information, such as consumption
trends and service-quality feedback from the customer. Sometimes, the customer will directly
indicate when more capacity or a great number of services are needed. In ITIL, this is called the
Pattern of Business Activity (PBA). According to ITIL, the PBA is a workload profile of one or more
business activities that helps service providers establish usage patterns.

The pattern of business activity measures the following aspects of customer service usage:

Frequency
Volume
Duration
Location

The duration of usage is how long the pattern of business usage lasts. Does peak database
usage occur only during business hours, for example, or only during certain months? How
long ago did the increase or decrease in usage begin?
The volume of usage is the amount of activity. For example, this could be the number of
transactions processed or a service desk ticket number. Volume can increase or decrease.

The frequency of usage is how often the volume of usage occurs.

The location of usage is where the business usage occurred. Is it in the service desk or the
sales department, for example?

The PBA also includes a user profile, which is a pattern of service usage that is tied to a type
of user. For example, developers may have a higher database usage pattern than business
users.

Demand Control
Demand control is the way that providers control IT service consumption. This can be done through
technical means (such as network throttling) or financial means (such as increased charges for usage
higher than the agreed-upon levels). The control is implemented until the capacity for greater demand is
implemented into the service catalog.

Developing differentiated offerings and service packages also controls demand. Differentiated
offerings and service packages control demand and cost while providing the customer with the
services they use and value most.

The ITIL Demand Management Communication Flow

Unlike other processes within the ITIL lifecycle, demand management relies on communication between
different processes rather than on a self-contained set of procedures. Unlike some other processes,
demand management interfaces with the other service strategy lifecycle processes. On one side,
demand management receives customer feedback from the business relationship manager and the PBA.
On the other side, demand management informs many other processes based on the information
obtained and the conclusions drawn.

Demand management is seen in service strategy when the pattern of business activity is used
alongside service portfolio management to invest in new services and increased capacity.

It is seen in service transition when the data collected is used to validate that the new service
catalog meets the projected needs of the pattern of business activity.
 It is used in service operation as the end point for feedback from the service desk. The service
desk detects trends in service usage and sends that information to demand management, which
alerts capacity management to increase or decrease resources as needed.

Finally, demand management is seen in continual service improvement (CSI) when the data
from demand management and the PBA is used to proactively improve services based on usage
forecasts.

Why is ITIL Demand Management So Important?

Demand management is essential for one simple reason: It is impossible to adequately plan for and meet
service demands based on gut check alone. Predicting how much service will increase based on what you
think you remember about current demand versus the demand of other similar customers results in
inaccurate data at best and expensive overstaffing at worst. Accurate planning requires analyzing the
data gathered and client feedback, as seen in the demand prognosis process. Inaccurate estimates have
negative impacts on:

SLA metrics
KPIs
Customer satisfaction
Financial management
Incident management
Business relationship management
Service strategy

Poorly managed service demand is a huge risk for organizations. Inadequately planning for increases in
service usage could mean missed service levels and poor service quality across the entire service catalog.
For businesses, that could mean anything from financial implications to lost business altogether.

Related ITIL Stages and Processes

Demand management interfaces with many ITIL processes. As a part of service strategy stage, it is closely
aligned with service portfolio management, financial management for IT services, and business
relationship management. This is because the question of "how much" service is enough is integral to
those processes. In financial management, for example, the question of how much of a service to
provide directly impacts the IT budget and the costs passed on to the service customer. In service
portfolio management, demand directly impacts which services are offered in the customer service
catalog. service operations is thus also impacted, since it relies on the service catalog for its range of
services, as well as on the associated capacity and asset management of operations.

Demand management is a small but important component within ITIL. Getting demand management
wrong impacts the entire organization and the services rendered. Read on to learn about the other
processes within service strategy.

Business Relationship
Management
Process ensures good relationship between service provider and the customer. It is generally achieved by
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identifying, understanding, and supporting customers need and appropriate services are developed to meet
Service
those needs.

ITIL business relationship management works closely with service portfolio management and
strategy management. It helps IT services to inform and implement the strategy and service
selection.
 Participants in this process seek to form a relationship with customers to understand their needs for
service. This involves:

ensuring that services provided are delivering the value expected by the customer
understanding the customers environment well enough to identify opportunities for new services or
new applications of existing services
being aware of changes in the customers business environment which may impact service needs

The most important key performance indicator (KPI) for business relationship management is customer
satisfaction.

Strategy Management for IT Services

ITIL strategy management for IT services seeks to enable IT Service Management to become a
strategic asset to the organization. Its not enough to align IT with the business; IT should
also integrate with the business.
Any service provider, to be successful, must have a thorough understanding of the market space in
which they operate. They must know what their strengths and weaknesses as a provider are, as well
as what opportunities are available. Strategy management for IT services seeks to answer questions
such as the following:

Who are our customers?

What business outcomes do they need?
How do the services we provide support those outcomes?
How can we position ourselves to be the only logical provider of these services?
What market spaces do we operate in?
Are there ways to expand our current service offerings into new markets?
Are there unmet needs in our current market spaces for which we can develop services?

These are the Strategy Management for IT Services sub-processes and their process objectives:

Strategic Service Assessment

Process Objective: To assess the present situation of the service provider within its current
market spaces. This includes an assessment of current service offerings, customer needs and
competing offers from other service providers.

Service Strategy Definition

Process Objective: To define the overall goals the service provider should pursue in its
development, and to identify what services will be offered to what customers or customer
segments, based on the results of the Strategic Service Assessment.

Service Strategy Execution

Process Objective: To define and plan strategic initiatives, and ensure the implementation of
those initiatives.
 Why Design?

Why bother? Why dont we let the operation people introduce new services into the Operation stage,
as surely they know best what the customer needs? They are there in the trenches all the time, after
all. Well, this was done many, many times in the early days of IT Service Management. And it has
been recognized as a bad practice. ITIL and ISO/IEC20000 are about good and best practices.
A quick example: a part of a customers organization declares a need for a, say, project management
system. Their number of projects has risen and they want to manage them more effectively.
Operations offers them our in-house solution, which covers our basic needs. It is implemented
quickly and after some initial adoption problems it seems to work OK for some time. Later, it starts
to show some flaws. The customer needs new functionalities to keep it alive, our development team
is cluttered with other projects and cant help, the database is under-capacitated, GUI is unacceptably
slow (remember Utility and Warranty from Service Strategy?), and everyone is disappointed. Parallel
to this, our other department was negotiating with a vendor of a similar product which is much more
aligned with the customers business needs, and is integrated with the existing customer
infrastructure. Tough luck.
This is why we need an organized set of skills, knowledge and processes that will help us create
efficient, effective services aligned with the big picture.
To be able to do that, Service Design must have in mind the effective and efficient use of the four
Ps:

People human resources involved

Processes what and how
Products services, technology and tools
Partners suppliers, manufacturers and vendors

As a curiosity, it was People, Process and Technology in ITIL V2. It is now enriched with the
Products bubble, and in the meantime the need to address suppliers, manufacturers and vendors is
recognized.

PRINCIPLES SERVCE DESIGN

To form a quick picture about Design, let us walk briefly through its five key aspects:
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Designing service solutions we need a formal iterative approach to create services with the right
balance of functionality and cost, on time. Services must be aligned with often-changing business
needs. In order to accomplish this, we have to analyze business requirements properly and create a
set of Service Acceptance Criteria (SAC) to define and analyze budgets, costs and deadlines. Also,
we need to align services with our strategic goals, policies, infrastructure and changing business
requirements.
 Designing management information systems and tools ITIL defines quite a few management
systems; let me mention the most important: service portfolio, configuration management system
(CMS), capacity management information system (CMIS), availability management system (AMS)
and security management information system (SMIS). Using and maintaining these systems is the
most effective way of managing services. From a Service Design standpoint, the most critical system
here is service portfolio, since it supports all processes.
Designing technology and management architectures This is all about technology architectures
and management architectures, the two seemingly opposed approaches that complement each other
well. Technology architectures bring in technological competencies, which are bottom-up powered
by their nature, and take care of designs, plans and processes but also their relations to IT policies,
strategies and architectures. It is about their relations and interactions. Management
architectures introduce a top-down approach, avoiding a technology-driven paradigm and thinking
more of business alignment.
Designing processes The processes model is the one of the most elaborated paradigms in the ITIL
world. Processes have their inputs, activities and outputs. Every process has its owner, who is
responsible for it. The two words people hear the most and understand the least
are effectiveness and efficiency. Effective process produces output according to specifications, and if
the result is optimal concerning usage of resources, it is efficient. Simple as that.
Designing measurement methods and metrics This is a very important area that can be very
dependent upon the scope, size goals and objectives of a service. An often-omitted aspect of the
metric is the behavioral change of the employees. Quick example: if the main metric in Incident
Management is number of open incidents by employee, then people are driven to keep as many of
their incidents as possible in some kind of pending status, looking busy. If you change the main
metric to the number of resolved incidents, they will tend to grab simpler incidents in order to
resolve them quickly. Selecting the simple and obvious metrics will often lead to behavioral changes
that are poorly aligned to the strategic and tactical goals of the organization. Process metrics should
be aligned with organizational goals, and drilled down to each individual role as in balanced
scorecard metrics.

DESIGN PROCESS

Design is a serious business; it defines eight processes, more than any other stage. Key design
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processes rely on their additional definition from the Strategy stage. Let us mention them only
briefly, since most of them will be described in separate posts:

Design Coordination is a new process in ITIL 2011; it acts as the central point of communication and
control for all processes in the Design stage. It is in charge of all design activities, and it ensures
consistent design of services aligned with Strategy and their proper preparation for Transition.
Service Catalogue Management management of information about all live services. These are
mature operational services, services which are being introduced into operation through Transition,
and old services which are in the process of retirement. Provides accurate info to business about
services, how and where they are used and which business processes they support.
Service Level Management (SLM) this is a key Design process. It ensures that all services are
delivered according to agreement with the business. It is aligned with other processes emerged from
the Service Delivery group, especially Availability and Capacity. The main mission of SLM is to
improve communication and understanding of Service Provider and Business.
Availability Management one of the oldest ITIL service delivery processes. Ensures that the
availability of delivered services is in alignment with the agreed levels, in a cost-effective, timely
manner.
Capacity Management another mature process; ensures that IT infrastructure and services meet
the agreed requirements in a cost-effective and timely manner. Capacity management spans
through all ITIL lifecycles.
IT Service Continuity Management the IT Service Continuity Management (ITSCM) process is
responsible for the alignment of IT services to Business Continuity Management.
 Information Security Management (ISM) ensures that information security policy is aligned with
business security. ISM maintains and enforces the security policy.
Supplier Management ensures getting value for money from suppliers. Activities included are:
negotiation, agreements, supplier performance management, seamless integration of underpinning
contracts and delivered services.

From the above brief example it is obvious that if we let services grow organically, they will respond
to particular obvious short-term customer needs, without taking into account strategic business
needs. In that way, a service organization will waste resources and services will be expensive to run
and maintain.
Designing services according to the five design principles, while respecting the rules of the eight
mentioned processes will enable the organization to create business-/customer-oriented, efficient and
cost-effective services. Such services will be able to absorb frequent changes in demand, and they
will be responsive, with availability and capacity aligned to business needs. Whats not to like?

ITIL v3 Basics: Strategy, Design, Transition, Operations, and Improvement

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There are 5 ITIL Lifecycle Phases as prescribed in ITIL v3: Service Strategy, Service Design, Service
Transition, Service Operations, and Continual Service Improvement.These lifecycles define what IT has to
do to deliver value to the business and/or customers. ITIL v3 advises you to change your IT organizational
functions and processes in this manner to deliver IT services and value to your customers. If your company
makes the decision to launch an ITIL initiative, you have decided to introduce the necessary change to your
current organizational structure and processes to align with ITIL advised structure and processes. Our
intent is to help you understand what that really means!!

What is the ITIL v3 structure? ITILv3 defines 5 IT Lifecycle Phases with the following Goals:

1. Service Strategy: build a cost effective IT strategy. Find the right balance between performance and
cost. Defines what to build and why it is needed. Its output is a business approved, business funded
IT strategy.
2. Service Design: design IT services in alignment with Service Strategy. Defines how IT services will be
built. Its output is a Service Design Package.
3. Service Transition: build and deploy IT services as specified by Service Design. Build and deploy
services with minimal impact to the Production environment. Its output is a Live Application/Service
that functions as expected.
4. Service Operations: Deliver and manage services at the agreed levels to business users/customers.
Its expected output is managed services with happy customers.
5. Continual Service Improvement: Continual improvement of IT processes and metrics. Prioritize and
initiate improvement projects. Its expected output is better metrics of all IT processes - cheaper,
faster, better IT services.
 Point Guard ITILv3 Presentation

o The subprocesses and functions within each of the ITILv3 Lifecycles are:

1. Service Strategy:
1. Strategy Generation
2. Demand Management
3. Service Portfolio Management
4. Financial Management
2. Service Design:
1. Supplier Management
2. Service Catalog Management
3. Information Security Management
4. Capacity Management
5. Availability Management
6. Service Level Management
7. IT Service continuity Management
8. Design Coordination

WHAT IS SERVCE DESIGN?

Service Design covers the fundamentals of designing services and processes. It provides a holistic
design approach to help an organization deliver better services.
Designing a service to meet an organizations strategic and customer needs requires coordination and
collaboration. Aim for high service maturity when designing services rather than the completion of
an IT project. The higher the service maturity the higher customer and user satisfaction will be.

SERVCE DESIGN

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 The five key aspects of Service Design are:
1. Designing the service solution
2. Management information systems and tools
3. Technology
4. Processes
5. Measurements and metrics

Approach all aspects with service oriented thinking and decision making.

Service Level Management

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ITIL Service Level Management aims to negotiate Service Level Agreements with the customers and
to design services in accordance with the agreed service level targets. Service Level Management is
also responsible for ensuring that all Operational Level Agreements and Underpinning Contracts are
appropriate, and to monitor and report on service levels.
Service Level Management has been completely redesigned in ITIL 2011 following the introduction
of the Design Coordination process.

Service Level Management

Coordinating activities have been removed.

Service Level Management is now mainly responsible for gathering service requirements, as well as
monitoring and reporting with regards to agreed service levels.
The process overview of Service Level Management (.JPG) is showing the most important interfaces
(see Figure 1).
Sub-Processes

These are the Service Level Management sub-processes and their process objectives:
Maintenance of the SLM Framework
Process Objective: To design and maintain the underlying structure of the Customer Agreement Portfolio,
and to provide templates for the various SLM documents.
Identification of Service Requirements
Process Objective: To capture desired outcomes (requirements from the customer viewpoint) for new
services or major service modifications. The service requirements are to be documented and submitted to
an initial evaluation, so that alternatives may be sought at an early stage for requirements which are not
technically or economically feasible.
Agreements Sign-Off and Service Activation
o Process Objective: To have all relevant contracts signed off after completion of Service Transition,
and to check if Service Acceptance Criteria are fulfilled. In particular, this process makes sure that all
relevant OLAs are signed off by their Service Owners, and that the SLA is signed off by the customer.
Service Level Monitoring and Reporting
o Process Objective: To monitor achieved service levels and compare them with agreed service level
targets ("Service Level Report"). This information is circulated to customers and all other relevant
parties, as a basis for measures to improve service quality.
o The service level management (SLM) process focuses on researching and understanding
requirements. Areas include:
o defining, negotiating, agreeing upon and documenting IT service targets
o monitoring, measuring and reporting on how well the service provider delivered the agreed upon
targets
o When targets are appropriate and met, then the business and IT have a better chance of
becoming aligned.
o Agreed upon targets are often spelled out in service level agreements (SLAs). Monitoring,
measuring and reporting on SLA's in this way provides close links to Continual Service
Improvement (CSI).
o SLAs are agreements to provide specific services at a defined level of quality (warranty) for a
specific price. SLAs typically need negotiation of agreements with other internal
organizations (OLA's) or external suppliers (Underpinning Contracts).
o Negotiating SLAs to ensure service commitments are met, service level management
works with the following warranty processes:
capacity management
availability management
security management
service continuity management
o Service level management is accountable for monitoring conformance to the SLAs and take
action if there is a breach of the SLA. This means working with the service desk, incident
management, and problem management.
o Customer satisfaction is not determined only by SLA performance. Therefore service level
management should meet with customers face-to-face on a regular basis. This helps to
maintain a positive relationship address any concerns the customer may have.

Service Catalog Management

Service catalog management ensures that an accurate and up-to-date service catalog is available to all
parties authorized to see it. All parts of IT Service Management, as well as customers and users, use
the service catalog. Accuracy and availability are essential.
Service catalog management must work closely with service portfolio management as new services
move from the pipeline into the catalog and older services are retired. It also helps define how
services can be requested and what options are available (gold/silver levels, for instance). The
service catalog should document all defined services.
 The service catalog generally comprises two views:
o a business service view that is visible to the customer
o a technical service view that is visible only to IT personnel.
This enables the customer to choose services based on their business requirements. At the same IT
personnel can use their view to determine what technical services they need to support a given
business service.
Service Catalogue Composition
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Each service in the catalogue contains the following elements:
A identification label for the service
Description of services
Related service request types
Any supporting or underpinning services
Service categorization or type that allows it to be grouped with other similar services
Interfaces and dependencies between all services, and supporting components and
configuration items (CIs) within the service catalogue and the CMS
Clear ownership of and accountability for the service
Associated costs
How to request the service and how its delivery is fulfilled
Escalation points and key contracts
Service level agreement (SLA) data

Service Catalogue Aspects

Service catalogue has two aspects:
Business Service Catalogue

It contains all the IT services delivered to the customer, together with their relationship to the
business units and the business process that rely on the IT services.

Technical Service Catalogue

It contains all the IT services delivered to the customer, together with their relationship with
supporting services, shared services, components, and CIs necessary to support the provision of
the service to the business.
Service catalogue management process is responsible for providing information regarding all
agreed services to all authorized persons. This process also takes care of creation and
maintenance of service catalogue with correct and updated information.
Service Catalogue Manager is the process owner of this process.
Any change to service portfolio or service catalogue is subject to Change Management process.
OVERVIEW SERVCE DESIGN

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ITIL Service Design provides best-practice guidance for the service design stage of the ITIL service lifecycle.
PURPOSE AND OBJECTVE OF SERVCE DESIGN
The purpose of the service design stage of the lifecycle is to design IT services, together with the governing IT
practices, processes and policies, to realize the service providers strategy and to facilitate the introduction
of these services into supported environments ensuring quality service delivery, customer satisfaction and
cost-effective service provision.
The objective of service design is to design IT services so effectively that minimal improvement during their
lifecycle will be required.

SCOPE SERVCE DESIGN

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ITIL Service Design provides guidance for the design of appropriate and innovative IT services to meet
current and future agreed business requirements. It describes the principles of service design and looks at
identifying, defining and aligning the IT solution with the business requirement.
ITIL Service Design enforces the principle that the initial service design should be driven by a number of
factors, including the functional requirements, the requirements within service level agreements (SLAs), the
business benefits and the overall design constraints.
The processes considered important to successful service design are design coordination, service catalogue
management, service level management, availability management, capacity management, IT service
continuity management, information security management and supplier management.

USAGE SERVCE DESIGN

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ITIL Service Design provides access to proven best practice based on the skill and knowledge of experienced
industry practitioners in adopting a standardized and controlled approach to service management.

VALUE TO BUSINESS SERVCE DESIGN

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Adopting and implementing standard and consistent approaches for service design will:

Reduce total cost of ownership (TCO) Cost of ownership can only be minimized if all aspects of services,
processes and technology are designed properly and implemented against the design.

Improve quality of service Both service and operational quality will be enhanced through services that are
better designed to meet the required outcomes of the customer.

Improve consistency of service This will be achieved by designing services within the corporate strategy,
architectures and constraints.

Ease the implementation of new or changed services Integrated and full service designs and the
production of comprehensive service design packages will support effective and efficient transitions.
 Improve service alignment Involvement of service design from the conception of the service will ensure
that new or changed services match business needs, with services designed to meet service level
requirements.

Improve service performance Performance will be enhanced if services are designed to meet specific
performance criteria and if capacity, availability, IT service continuity and financial plans are recognized and
incorporated.

Improve IT governance By building controls into designs, service design can contribute towards the
effective governance of IT.

Improve effectiveness of service management and IT processes Processes will be designed with optimal
quality and cost effectiveness.

Improve information and decision-making Comprehensive and effective measurements and metrics will
enable better decision-making and continual improvement of services and service management practices
throughout the service lifecycle.

Improve alignment with customer values and strategies For organizations with commitments to concepts
such as green IT or that establish strategies such as the use of cloud technologies, service design will ensure
that all areas of services and service management are aligned with these values and strategies.

TARGET AUDIENCE SERVCE DESIGN

OCESS
ITIL Service Design is relevant to organizations involved in the development, delivery or support of services,
including:
Service providers, both internal and external
Organizations that aim to improve services through the effective application of service management
principles and a service lifecycle approach
Organizations that require a consistent managed approach across all service providers in a supply chain or
value network
Organizations that are going out to tender for their services.

CONTEXT ITIL SERVCE LIFE CYCLE

OCESS
The ITIL core consists of five lifecycle publications. Each provides part of the guidance necessary for an
integrated approach as required by the ISO/IEC 20000 standard specification. The five publications are:

ITIL Service Strategy

ITIL Service Design

ITIL Service Transition

ITIL Service Operation

ITIL Continual Service Improvement

SUMMARY FOR SERVCE STRATEGY

OCESS
ITIL Service Strategy provides guidance on how to view service management not only as an organizational
capability but as a strategic asset. It describes the principles underpinning the practice of service
management which are useful for developing service management policies, guidelines and processes across
the ITIL service lifecycle.
Topics covered in ITIL Service Strategy include the development of market spaces, characteristics of internal
and external provider types, service assets, the service portfolio and implementation of strategy through the
service lifecycle. Business relationship management, demand management, financial management,
organizational development and strategic risks are among the other major topics.
Organizations should use ITIL Service Strategy to set objectives and expectations of performance towards
serving customers and market spaces, and to identify, select and prioritize opportunities. Service strategy is
about ensuring that organizations are in a position to handle the costs and risks associated with their service
portfolios, and are set up not just for operational effectiveness but for distinctive performance.
Organizations already practising ITIL can use ITIL Service Strategy to guide a strategic review of their ITIL-
based service management capabilities and to improve the alignment between those capabilities and their
business strategies. ITIL Service Strategy will encourage readers to stop and think about why something is to
be done before thinking of how.

SUMMARY FOR SERVCE DESGN

OCESS
ITIL Service Design (this publication) provides guidance for the design and development of services and
service management practices.
The scope of ITIL Service Design is not limited to new services. It includes the changes and improvements
necessary to increase or maintain value to customers over the lifecycle of services, the continuity of services,
achievement of service levels, and conformance to standards and regulations.
Other topics in ITIL Service Design include design coordination, service catalogue management, service level
management, availability management, capacity management, IT service continuity management,
information security management and supplier management.

SUMMARY FOR SERVCE TRANSITION

OCESS
ITIL Service Transition provides guidance for the development and improvement of capabilities for
introducing new and changed services into supported environments. It describes how to transition an
organization from one state to another while controlling risk and supporting organizational knowledge for
decision support. It ensures that the value(s) identified in the service strategy, and encoded in service
design, are effectively transitioned so that they can be realized in service operation.
ITIL Service Transition describes best practice in transition planning and support, change management,
service asset and configuration management, release and deployment management, service validation and
testing, change evaluation and knowledge management. It provides guidance on managing the complexity
related to changes to services and service management processes, preventing undesired consequences
while allowing for innovation.
ITIL Service Transition also introduces the service knowledge management system, which can support
organizational learning and help to improve the overall efficiency and effectiveness of all stages of the
service lifecycle.
SUMMARY FOR SERVCE OPERATION

OCESS
ITIL Service Operation describes best practice for managing services in supported environments. It includes
guidance on achieving effectiveness and efficiency in the delivery and support of services to ensure value for
the customer, the users and the service provider.
ITIL Service Operation provides guidance on how to maintain stability in service operation, allowing for
changes in design, scale, scope and service levels. Organizations are provided with detailed process
guidelines, methods and tools for use in two major control perspectives: reactive and proactive.
Other topics in ITIL Service Operation include event management, incident management, request fulfilment,
problem management and access management processes; as well as the service desk, technical
management, IT operations management and application management functions.

SUMMARY CONTINUAL SERVICE IMPROVEMENT

OCESS
ITIL Continual Service Improvement provides guidance on creating and maintaining value for customers
through better strategy, design, transition and operation of services. It combines principles, practices and
methods from quality management, change management and capability improvement.
ITIL Continual Service Improvement describes best practice for achieving incremental and largescale
improvements in service quality, operational efficiency and business continuity, and for ensuring that the
service portfolio continues to be aligned to business needs.
Other topics in ITIL Continual Service Improvement include service measurement, demonstrating value with
metrics, developing baselines and maturity assessments.

THE PROCESSESS DESCRIBED IN EACH CORE ITIL LIFE CYCLE

publicationOCESS
 Requirements of the service strategy, developed in service design, are effectively realized in service
operation while controlling the risks of failure and disruption.
The service operation stage of the service lifecycle carries out the activities and processes required to
deliver the agreed services. During this stage of the lifecycle, the value defined in the service strategy is
realized.
Continual service improvement acts in tandem with all the other lifecycle stages. All processes, activities,
roles, services and technology should be measured and subjected to continual improvement.
 SERVICE DESIGN PRINCIPLES

The main purpose of the service design stage of the lifecycle is the design of new or changed services for
introduction into the live environment.

SERVICE DESIGN BASICS

Designing to match the anticipated environment is much more effective and efficient, but often impossible
hence the need to consider iterative and incremental approaches to service design.

In the absence of formalized service design, services will often be unduly expensive to run, prone to failure,
resources will be wasted and services will not be fully aligned to business needs.

Adopting and implementing standardized and consistent approaches for service design will:

Enable projects to estimate the cost, timing, resource requirement and risks associated with the service
design stage more accurately.
Result in higher volumes of successful change
Make design methods easier for people to adopt and follow
Enable service design assets to be shared and reused across projects and services
Reduce delays from the need to redesign prior to completion of service transition
Improve management of expectations for all stakeholders involved in service design including customers,
users, suppliers, partners and projects
Increase confidence that the new or changed service can be delivered to specification without
unexpectedly affecting other services or stakeholders
Ensure that new or changed services will be maintainable and cost-effective.

IT SERVICE DESIGN & OVERALL BUSINESS

CHANGE
IT service design is a part of the overall business change process. This business change process and the role
of IT are illustrated in Figure 3.1. The diagram shows the overall flow of the process used to manage change
on the business side the business change process. The individual steps of the change process reflect that
when it is invoked, the element changing on the business side is most often a business process (a business
process change), resulting in the need for a supporting change in IT service.
SCOPE & FLOW OF SERVCE DESIGN

The service design stage of the lifecycle starts with a set of new or changed business requirements and ends
with the development of a service solution designed to meet the documented needs of the business.
The overall scope of service design and the five aspects of design are illustrated in Figure 3.2 within the
context of the IT service providers relationship to the business. Figure 3.2 shows how IT and the business
interact through the provision of service and how the work of service design is part of the complete service
lifecycle.
SERVCE DESIGN GOALS

The main goals and objectives of service design are to:

Design services to satisfy business objectives and align with business needs, based on the quality, compliance,
risk and security requirements, delivering more effective and efficient IT and business solutions by coordinating all
design activities for IT services to ensure consistency and business focus

Design services that can be easily and efficiently developed and enhanced within appropriate timescales and
costs, and, wherever possible, reduce, minimize or constrain the long-term costs of service provision

Design an efficient and effective service management system, including processes for the design, transition,
operation and improvement of high-quality IT services, together with the supporting tools, systems and information,
especially the service portfolio, to manage services through their lifecycle

Identify and manage risks so that they can be removed or mitigated before services go live

Design secure and resilient IT infrastructures, environments, applications and data/ information resources and
capability that meet the current and future needs of the business and customers

Design measurement methods and metrics for assessing the effectiveness and efficiency of the design
processes and their deliverables

Produce and maintain IT plans, processes, policies, architectures, frameworks and documents for the design of
quality IT solutions, to meet current and future agreed business needs

Assist in the development of policies and standards in all areas of design and planning of IT services and
processes, receiving and acting on feedback on design processes from all other areas and incorporating the actions
into a continual process of improvement

Develop the skills and capability within IT by moving strategy and design activities into operational tasks,
making effective and efficient use of all IT service resources.

Contribute to the improvement of the overall quality of IT service within the imposed design constraints,
especially by reducing the need for reworking and enhancing services once they have been implemented in the live
environment.

BALANCED DESIGN

For any new business requirements, the design of services is a delicate balancing act, ensuring that not only
the functional requirements but also the performance targets are met. In other words, ensuring that all
required utility and warranty can be delivered by the service being designed.
. All of this needs to be balanced with regard to the resources available within the required timescale and
the costs for the new services. Jim McCarthy, author of Dynamics of Software Development, 3 states that as
a development manager, you are working with only three things :

Functionality The service or product and everything that is part of the service and its provision
Resources The people, technology and money available for the effort
Schedule The timescales for completion.
DESIGN CONSTRAINTS
Service design inputs and outputs by lifecycle stage
SERVICE DESIGN PROCESS
ORGANIZING SERVICE DESIGN
SERVICE DESIGN TOOLS

There are many tools and techniques that can be used to assist with the design of services and their
associated components. These tools and techniques enable:

Hardware design

Software design

Environmental design

Process design

Data design.

IMPLEMENTING SERVICE DESIGN