14 Foundations of IT Service Management Based on ITIL V3

Management System
Management Responsibility Documentation Requirements

Competence, Awareness and Training

Plan
Plan
Planning and
Planning and
Implementing
Act
Act Do Implementing New
Service
or Changed Services
Management
Check
Check

Service Delivery Processes

• Service Level Management
• Capacity Management • Service Reporting
• Information Security Management
• Service Continuity &
• Budgetting & Accounting for
Availability Management
IT Services
Control Processes
• Configuration Management
• Change Management

Release Process Relationship Processes

• Release Resolution Processes • Business Relationsship Mgmt

Management • Incident Management • Supplier Management
• Problem Management

Figure 2.2 Overview of the ISO/IEC 20000 Service Management System

horizontal communication

miscom
munica
tion
on
ati
unic
comm y
m

mis rit
at

u
at
ur
ity

Business IT Service Provider

Figure 2.3 Communication and maturity levels: customer and provider

2.4 Benefits and risks of ITSM frameworks

The list below identifies some benefits and possible problems of using IT Service Management
best practices. This list is not intended to be definitive, but is provided here as a basis for
considering some of the benefits that can be achieved and some of the mistakes that can be made
when using common process-based IT Service Management frameworks:
Introduction to the Service Lifecycle 15

Benefits to the customer/user:

• the provision of IT services becomes more customer-focused and agreements about service
quality improve the relationship
• the services are described better, in customer language, and in more appropriate detail
• better management of the quality, availability, reliability and cost of the services are managed
better
• communication with the IT organization is improved by agreeing on the points of contact

Benefits to the IT organization:

• the IT organization develops a clearer structure, becomes more efficient, and is more focused
on the corporate objectives
• the IT organization is more in control of the infrastructure and services it has responsibility for,
and changes become easier to manage
• an effective process structure provides a framework for the effective outsourcing of elements of
the IT services
• following best practices encourages a cultural change towards providing service, and supports
the introduction of quality management systems based on the ISO 9000 series or on ISO/IEC
20000
• frameworks can provide coherent frames of reference for internal communication and
communication with suppliers, and for the standardization and identification of procedures

Potential problems/mistakes:
• the introduction can take a long time and require significant effort, and may require a change
of culture in the organization; an overambitious introduction can lead to frustration because
the objectives are never met
• if process structures become an objective in themselves, the service quality may be adversely
affected; in this scenario, unnecessary or over-engineered procedures are seen as bureaucratic
obstacles, which are to be avoided where possible
• there is no improvement in IT services due a fundamental lack of understanding about what
the relevant processes should provide, what the appropriate performance indicators are, and
how processes can be controlled
• improvement in the provision of services and cost reductions are insufficiently visible, because
no baseline data was available for comparison and/or the wrong targets were identified
• a successful implementation requires the involvement and commitment of personnel at all
levels in the organization; leaving the development of the process structures to a specialist
department may isolate that department in the organization and it may set a direction that is
not accepted by other departments
• if there is insufficient investment in appropriate training and support tools, justice will not be
done to the processes and the service will not be improved; additional resources and personnel
may be needed in the short term if the organization is already overloaded by routine IT Service
Management activities which may not be using 'best practices'
16 Foundations of IT Service Management Based on ITIL V3

2.5 Service Lifecycle: concept and overview

The information provision role and system has grown and changed since the launch of ITIL
version 2 (in 2000/02). IT supports and is part of an increasing number of goods and services. In
the business world, the information provision role has changed as well: IT’s role is no longer just
supporting, but has become the baseline for the creation of business value.
ITIL version 3 intends to include and provide insight into IT’s new role in all its complexity and
dynamics. To that end, a new service management approach has been chosen that does not center
around processes, but focuses on the Service Lifecycle.

Basic concepts
Before we describe the Service Lifecycle, we need to define some basic concepts.

Good practice
ITIL is presented as a good practice (literally: correct method). This is an approach or method
that has proven itself in practice. These good practices can be a solid backing for organizations
that want to improve their IT services. In such cases, the best thing to do is to select a generic
standard or method that is accessible to everyone, ITIL, COBIT, CMMI, PRINCE2® and ISO/
IEC 20000, for example. One of the benefits of these freely accessible generic standards is that
they can be applied to several real-life environments and situations. There is also ample training
available for open standards. This makes it much easier to train staff.

Another source for good practice is proprietary knowledge. A disadvantage of this kind of
knowledge is that it may be customized for the context and needs of a specific organization.
Therefore, it may be difficult to adopt or replicate and it may not be as effective in use.

Service
A service is about creating value for the customer. ITIL defines a service as follows:

A service is a means of delivering value to customers by facilitating outcomes the customers want
to achieve without the ownership of specific costs or risks.

Outcomes are possible from the performance of tasks, and they are limited by a number of
constraints. Services enhance performance and reduce the pressure of constraints. This increases
the chances of the desired outcomes being realized.

Value
Value is the core of the service concept. From the customer’s perspective value consists of two
core components: utility and warranty. Utility is what the customer receives, and warranty is how
it is provided. The concepts utility and warranty are described in the Section ‘Service Strategy’.

Service management
ITIL defines service management as follows:

Service management is a set of specialized organizational capabilities for providing value to

customers in the form of services.
Introduction to the Service Lifecycle 17

ITIL discusses some of the fundamental principles of service management that supplement the
functions and processes in the ITIL core books. The next principles may help design a service
management system:
• Specialization & co-ordination - The goal of service management is to make capabilities
and resources available through services that are useful and acceptable to the customer with
regard to quality, costs and risks. The service provider takes the weight of responsibility and
resource management off the customer’s shoulders so that they can focus on the business’
core competence. Service management co-ordinates the business of service management
responsibility with regard to certain resources. Utility and warranty act as a guide.
• Agency principle - Service management always involves an agent and a principal that
seconds this agent to fulfill activities on their behalf. Agents may be consultants, advisors or
service providers. Service agents act as intermediary between service providers and customers
in conjunction with users. Usually, these agents are the service provider’s staff, but they can
also be self-service systems and processes for users. Value for the customer is created through
agreements between principals and agents.
• Encapsulation - The customer’s interest focuses on the value of use; he prefers to be spared
from any technical details and structure complexity. The ‘encapsulation principle’ is focused
on hiding what the customer does not need and showing what is valuable and useful to the
customer. Three principles are closely linked to this:
– separation of concerns
– modularity: a clear, modular structure
– loose coupling: reciprocal independence of resources and users

Systems
ITIL describes the organizational structure concepts which proceed from system theory. The
Service Lifecycle in ITIL version 3 is a system; however, a function, a process or an organization
is a system as well. The definition of a system:

A system is a group of interacting, interrelating, or interdependent components that form a unified

whole, operating together for a common purpose.

Feedback and learning are two key aspects in the performance of systems; they turn processes,
functions and organizations into dynamic systems. Feedback can lead to learning and growth,
not only within a process, but also within an organization in its entirety.
Within a process, for instance, the feedback about the performance of one cycle is, in its turn,
input for the next process cycle. Within organizations, there can be feedback between processes,
functions and lifecycle phases. Behind this feedback is the common goal: the customer’s
objectives.
18 Foundations of IT Service Management Based on ITIL V3

Functions and processes

The distinction between functions and processes is important in ITIL.

What is a function?

A function is a subdivision of an organization that is specialized in fulfilling a specified type of

work, and is responsible for specific end results.
Functions are independent subdivisions with capabilities and resources that are required for their
performance and results. They have their own practices and their own knowledge body.

What is a process?

A process is a structured set of activities designed to accomplish a defined objective.

Processes result in a goal-oriented change, and utilize feedback for self-enhancing and self-corrective
actions.

Processes possess the following characteristics:

• They are measurable - because they are performance-oriented.
• They have specific results.
• They provide results to customers or stakeholders.
• They respond to a specific event - a process is indeed continual and iterative, but is always
originating from a certain event.

It can be difficult to determine whether something is a function or a process. According to ITIL,

whether it is a function or process depends completely on the organizational design. A good
example of a function is a service desk, a good example of a process is change management.
The hierarchical structure of functions can lead to the rise of ‘silos’ in which each function is
very self-oriented. This does not benefit the success of the organization as a whole. Processes run
through the hierarchical structure of functions; functions often share some processes. This is how
processes suppress the rise of functional silos, and help to ensure an improved co-ordination in
between functions.

The Service Lifecycle

ITIL version 3 approaches service management from the lifecycle of a service. The Service
Lifecycle is an organization model providing insight into:
• the way service management is structured
• the way the various components are linked to each other
• the impact that changes in one component will have on other system components and on the
entire system

So the new ITIL version focuses on the Service Lifecycle, and the way service management
components are linked. The processes are also discussed (both the old familiar ones and the new
ones) in the cycle phases. They describe how things change.

The Service Lifecycle consists of five phases. Each volume of the new ITIL books describes one
of these phases:
Introduction to the Service Lifecycle 19

1. Service Strategy - the phase of designing, developing and implementing service management
as a strategic resource
2. Service Design - the design phase of developing appropriate IT services, including architecture,
processes, policy and documents; the design goal is to meet the current and future business
requirements
3. Service Transition - the phase of developing and improving capabilities for the transition of
new and modified services to production
4. Service Operation - the phase of achieving effectiveness and efficiency in providing and
supporting services in order to ensure value for the customer and the service provider
5. Continual Service Improvement - the phase of creating and maintaining the value for the
customer by design improvement, and service introduction and operation

Service Strategy is the axis of the Service Lifecycle (Figure 2.4) that ‘runs’ all other phases; it is
the phase of policymaking and objectives. The phases Service Design, Service Transition and
Service Operation implement this strategy, their continual theme is adjustment and change. The
Continual Service Improvement phase stands for learning and improving, and embraces all cycle
phases. This phase initiates improvement programs and projects, and prioritizes them based on
the strategic objectives of the organization.

Continual
Service Service
Improvement Transition

Service
Strategy

Service Service
Design Operation

Figure 2.4 The Service Lifecycle

The Service Lifecycle is a combination of many perspectives on the reality of organizations. This
offers more flexibility and control.

The dominant pattern in the Service Lifecycle is the succession of Service Strategy to Service
Design, to Service Transition and to Service Operation, and then, through Continual Service
Improvement, back to Service Strategy, and so on. The cycle encompasses, however, many
patterns. Depending on tasks and responsibilities, a manager can choose his own control