V2, V3 and BSM why should

normaldeerManagement

Nov 20, 2013 (3 years and 4 months ago)

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V2, V3 and BSM why should
I

care?

Malcolm Fry

IT Progression

Back
Office

Business
Operations

Front
Office

Front
of the
Front
Office

The Risk Factor

The Impact Factor

The Cost of Failure Factor

The Visibility Factor

V2 to V3 Comparison

Service Strategy

Service Design

Service Operation

Service Transition

Continual Service Improvement

Service Support

Service Delivery

Planning to Implement SM

The Business Perspective

ICT Infrastructure Management

Application Management

Security Management

2

3

Integration of IT and

the organization

IT Organization

Tasks and actions

Incidents

Changes

Capacity

Problems

Availability

Configuration

Fusion of IT and

the organization

IT Organization

Tasks and actions

Incidents

Changes

Capacity

Problems

Availability

Configuration

Customer Fusion

BSM has arrived


BSM is a term that has been flittering around IT Service
Management (ITSM) for quite some time but for many has
remained a species without a clear definition


As a result BSM has been the subject of much discussion but not
many concrete deliverables


This may be the reason why many IT professionals have dismissed
BSM at worst as a fad or at best a good idea but without substance.


This has all changed with the advent of ITIL v3 which includes and
quantifies BSM in the ITIL ‘Service Strategy’ and ‘Service Design’
books


It also has a brief description in the ITIL Glossary:

“An
approach
to the management of IT Services that
considers
the

Business Processes supported and the Business Value provided.”


Glossary


ITIL Service Design

ITIL v3 Progression

Strategic


Business Service
Availability
Requirements
are quantified
with the
Customer

Design


ITSM works with
the Business
Customers to
design Service
Availability to
meet their
requirements
and stay within
Business Value
expenditure

Transition


Technologies and
processes are
put in place to
meet Service
Availability
Requirements

Operation


Availability
Targets are
measured,
monitored and
reported

Contiunal Service
Improvement


Constantly
striving to
improve Service
Availability
without
detracting from
the Customer
Business Value

Progression

ITIL V3 BSM Enablers

BSM

Align IT service
provision with business
goals and objectives

Prioritize all IT activities
and business impact
and urgency, ensuring
critical business
processes and services
receive the most
attention

Increase business
productivity and
profitability through the
increased efficiency and
effectiveness of IT
processes

Improve service quality,
customer satisfaction
and user perception

Create competitive
advantage through the
exploitation and
innovation of IT
infrastructure as a
whole

Ensure regulatory and
legislative compliance

Ensure appropriate
levels of protection on
all IT and information
assets

Ensure that IT services
are aligned and
continue to be aligned
with changing business
needs

Support the
requirements to
corporate governance
with appropriate IT
governance and
controls

BSM

Align IT service
provision with business
goals and objectives

Prioritize all IT activities
and business impact
and urgency, ensuring
critical business
processes and services
receive the most
attention

Increase business
productivity and
profitability through the
increased efficiency and
effectiveness of IT
processes

Improve service quality,
customer satisfaction
and user perception

Create competitive
advantage through the
exploitation and
innovation of IT
infrastructure as a
whole

Ensure regulatory and
legislative compliance

Ensure appropriate
levels of protection on
all IT and information
assets

Ensure that IT services
are aligned and
continue to be aligned
with changing business
needs

Support the
requirements to
corporate governance
with appropriate IT
governance and
controls

Align IT service
provision with
business goals and
objectives

IMPACT OF NOT HAVING ENABLERS


Failure to align will result in IT


concentrating resources in the wrong
places


cause business managers to lose faith in
IT because the important business
processes are not being supported
appropriately


The greatest impact could come from
business managers who are not
confident in IT and therefore do not
exploit potential business
opportunities as a result

BSM ROLE


One of the first steps
towards BSM is to


identify the business goals


map them to the existing
services provided by ITSM


then perform the alignment

Align IT service
provision with
business goals and
objectives

ITIL V3 BSM Enablers

BSM

Align IT service
provision with business
goals and objectives

Prioritize all IT activities
and business impact
and urgency, ensuring
critical business
processes and services
receive the most
attention

Increase business
productivity and
profitability through the
increased efficiency and
effectiveness of IT
processes

Improve service quality,
customer satisfaction
and user perception

Create competitive
advantage through the
exploitation and
innovation of IT
infrastructure as a
whole

Ensure regulatory and
legislative compliance

Ensure appropriate
levels of protection on
all IT and information
assets

Ensure that IT services
are aligned and
continue to be aligned
with changing business
needs

Support the
requirements to
corporate governance
with appropriate IT
governance and
controls

Prioritize all IT activities
and business impact and
urgency, ensuring critical
business processes and
services receive the most
attention

IMPACT OF NOT HAVING ENABLERS


Too often ITSM has worked at a generic
service level rather than business level


For example not all incidents are priority
one but very often for expediency ITSM
treats them all as Priority one to the
detriment of other services


By replacing these generic service levels
BSM provides the platform for business
oriented support and services

BSM ROLE


If critical business services and
processes do not receive the
correct level of attention:


Valuable time will be lost


Finance will be lost


Corporate image can be
harmed


For example treating a low
priority as a high priority can
delay work on a more serious
incident

Prioritize all IT activities
and business impact and
urgency, ensuring critical
business processes and
services receive the most
attention

ITIL V3 BSM Enablers

BSM

Align IT service
provision with business
goals and objectives

Prioritize all IT activities
and business impact
and urgency, ensuring
critical business
processes and services
receive the most
attention

Increase business
productivity and
profitability through the
increased efficiency and
effectiveness of IT
processes

Improve service quality,
customer satisfaction
and user perception

Create competitive
advantage through the
exploitation and
innovation of IT
infrastructure as a
whole

Ensure regulatory and
legislative compliance

Ensure appropriate
levels of protection on
all IT and information
assets

Ensure that IT services
are aligned and
continue to be aligned
with changing business
needs

Support the
requirements to
corporate governance
with appropriate IT
governance and
controls

Increase business
productivity and
profitability through the
increased efficiency and
effectiveness of IT
processes

IMPACT OF NOT HAVING ENABLERS


The alternative is to decrease business
productivity and profitability through
the increased inefficiency and
ineffectiveness of IT processes


Competitive edge can be lost when
providing Front Office services that do
not give business value, i.e. the service
is there but the cost of running and
supporting it are expensive

BSM ROLE


By looking at ITSM from the
business perspective BSM provides
the rationale to steer the IT
processes towards greater efficiency
and effectiveness


Looking from the IT viewpoint will
always create inward looking IT
processes that benefit IT and no
one else

Increase business
productivity and
profitability through the
increased efficiency and
effectiveness of IT
processes

ITIL V3 BSM Enablers

BSM

Align IT service
provision with business
goals and objectives

Prioritize all IT activities
and business impact
and urgency, ensuring
critical business
processes and services
receive the most
attention

Increase business
productivity and
profitability through the
increased efficiency and
effectiveness of IT
processes

Improve service quality,
customer satisfaction
and user perception

Create competitive
advantage through the
exploitation and
innovation of IT
infrastructure as a
whole

Ensure regulatory and
legislative compliance

Ensure appropriate
levels of protection on
all IT and information
assets

Ensure that IT services
are aligned and
continue to be aligned
with changing business
needs

Support the
requirements to
corporate governance
with appropriate IT
governance and
controls

Improve service quality,
customer satisfaction
and user perception

IMPACT OF NOT HAVING ENABLERS


Every time you improve service quality
you look for financial gain


Customers get satisfaction from quality


However this has to be measured from
the customer’s viewpoint not from
surveys created by IT for IT


Measuring and improving service
performance that means nothing to
the customer is expensive and
frustrates the customers

BSM ROLE


Sometimes this seems to occur
as a side effect of following a
BSM strategy


For example by reducing the
number of Incidents you will
automatically improve service
quality, customer satisfaction
and user perception


SLAs created from considering
the customer standpoint, as BSM
requires, will also contribute
here


Maybe also BLAs

Improve service quality,
customer satisfaction
and user perception

ITIL V3 BSM Enablers

BSM

Align IT service
provision with business
goals and objectives

Prioritize all IT activities
and business impact
and urgency, ensuring
critical business
processes and services
receive the most
attention

Increase business
productivity and
profitability through the
increased efficiency and
effectiveness of IT
processes

Improve service quality,
customer satisfaction
and user perception

Create competitive
advantage through the
exploitation and
innovation of IT
infrastructure as a
whole

Ensure regulatory and
legislative compliance

Ensure appropriate
levels of protection on
all IT and information
assets

Ensure that IT services
are aligned and
continue to be aligned
with changing business
needs

Support the
requirements to
corporate governance
with appropriate IT
governance and
controls

Create competitive
advantage through the
exploitation and
innovation of IT
infrastructure as a whole

IMPACT OF NOT HAVING ENABLERS


It is impossible to estimate the cost
of not creating competitive
advantage


Or even the cost of maintaining
status quo


Customers are very fickle nowadays
and will change suppliers quickly to
take advantage of the latest
technology enhancements


The
iPOD

is a good example what will
happen to music stores if we all
download rather than buy CDs?

BSM ROLE


This enabler emerges from
understanding the broader picture
from adopting a BSM strategy


If you look at IT from an IT
perspective how can you create
competitive advantage and get to
the Front of the Front Office?


Exploitation and innovation can only
come from having a clear IT to
Business perspective supplemented
by immaculate Service Management


The byword is confidence

Create competitive
advantage through the
exploitation and
innovation of IT
infrastructure as a whole

ITIL V3 BSM Enablers

BSM

Align IT service
provision with business
goals and objectives

Prioritize all IT activities
and business impact
and urgency, ensuring
critical business
processes and services
receive the most
attention

Increase business
productivity and
profitability through the
increased efficiency and
effectiveness of IT
processes

Improve service quality,
customer satisfaction
and user perception

Create competitive
advantage through the
exploitation and
innovation of IT
infrastructure as a
whole

Ensure regulatory and
legislative compliance

Ensure appropriate
levels of protection on
all IT and information
assets

Ensure that IT services
are aligned and
continue to be aligned
with changing business
needs

Support the
requirements to
corporate governance
with appropriate IT
governance and
controls

Ensure regulatory and
legislative compliance

IMPACT OF NOT HAVING
ENABLERS


Regulatory and legislative
compliance is important
because failure to comply could
result in trade restrictions


Just like governance most of it is
just good housekeeping but
overkill can prove expensive


Not understanding customer
compliance and regulatory
constraints can cause
unintentional breaches

BSM ROLE


This enabler emerges from
understanding the broader picture from
adopting a BSM strategy


If you look at IT from an IT perspective
how can you create competitive
advantage and get to the Front of the
Front Office?


Exploitation and innovation can only
come from having a clear IT to Business
perspective supplemented by
immaculate Service Management


The byword is confidence

Ensure regulatory and
legislative compliance

ITIL V3 BSM Enablers

BSM

Align IT service
provision with business
goals and objectives

Prioritize all IT activities
and business impact
and urgency, ensuring
critical business
processes and services
receive the most
attention

Increase business
productivity and
profitability through the
increased efficiency and
effectiveness of IT
processes

Improve service quality,
customer satisfaction
and user perception

Create competitive
advantage through the
exploitation and
innovation of IT
infrastructure as a
whole

Ensure regulatory and
legislative compliance

Ensure appropriate
levels of protection on
all IT and information
assets

Ensure that IT services
are aligned and
continue to be aligned
with changing business
needs

Support the
requirements to
corporate governance
with appropriate IT
governance and
controls

Ensure appropriate levels
of protection on all IT
and information assets

IMPACT OF NOT HAVING ENABLERS


This is a simple formula because the less
protection the more likely it is that
criminal activity will occur


Then there is also the protection by
providing backups and recovery
procedures


Some organizations have gone bankrupt
because they were not protected and
couldn’t recover from a major disaster
such as a fire or a terrorist action.

BSM ROLE


The keyword here is
appropriate


This is another example where too
often ITSM has worked at a generic
service level rather than business
level


By understanding the nature of the
business processes the protection of
information and other assets can be
finely tuned

Ensure appropriate levels
of protection on all IT
and information assets

ITIL V3 BSM Enablers

BSM

Align IT service
provision with business
goals and objectives

Prioritize all IT activities
and business impact
and urgency, ensuring
critical business
processes and services
receive the most
attention

Increase business
productivity and
profitability through the
increased efficiency and
effectiveness of IT
processes

Improve service quality,
customer satisfaction
and user perception

Create competitive
advantage through the
exploitation and
innovation of IT
infrastructure as a
whole

Ensure regulatory and
legislative compliance

Ensure appropriate
levels of protection on
all IT and information
assets

Ensure that IT services
are aligned and
continue to be aligned
with changing business
needs

Support the
requirements to
corporate governance
with appropriate IT
governance and
controls

Ensure that IT services
are aligned and continue
to be aligned with
changing business needs

IMPACT OF NOT HAVING
ENABLERS


If IT cannot align and continue to
remain aligned then the result is
quite simple the customers will
look elsewhere for their IT Services


Failure to align will cause customer
confrontation

BSM ROLE


Traditionally IT has driven Change
Management for technology resources
but this picture is changing fast


More and more Business Managers are
requesting changes to help them meet
their business challenges


BSM focuses on not just the current
services but also on the future and
potential changes to those business
services.

Ensure that IT services
are aligned and continue
to be aligned with
changing business needs

ITIL V3 BSM Enablers

BSM

Align IT service
provision with business
goals and objectives

Prioritize all IT activities
and business impact
and urgency, ensuring
critical business
processes and services
receive the most
attention

Increase business
productivity and
profitability through the
increased efficiency and
effectiveness of IT
processes

Improve service quality,
customer satisfaction
and user perception

Create competitive
advantage through the
exploitation and
innovation of IT
infrastructure as a
whole

Ensure regulatory and
legislative compliance

Ensure appropriate
levels of protection on
all IT and information
assets

Ensure that IT services
are aligned and
continue to be aligned
with changing business
needs

Support the
requirements to
corporate governance
with appropriate IT
governance and
controls

Support the
requirements to
corporate governance
with appropriate IT
governance and controls

IMPACT OF NOT HAVING ENABLERS


Corporate governance is now very
serious with legislation such as SOX
carrying prison sentences


Most governance is just good
housekeeping but it is expensive to
overkill too much just to be on the
safe side


Not knowing the full range of
governance is dangerous

BSM ROLE


Much of the governance levied on industry
is dependent upon IT resources


For example maintaining the correct data is
vital to meet Data Protection legislation
while Sarbanes
-
Oxley requires well kept
data on assets and the changes to those
assets


Part of the BSM remit is to work with
customers to ensure that all stored data
meets their government requirements

Support the
requirements to
corporate governance
with appropriate IT
governance and controls

ITIL V3 BSM Enablers

Many Tasks one objective


to support
BSM

Transition Planning and

Support

Change Management

Service Asset &
Configuration Management

Release and Deployment

Management

Service Validation and

Testing

Evaluation

Knowledge Management

Service Transition

Event Management

Incident Management

Request Fulfilment

Problem Management

Access Management

Operational Activities in

other Lifecycle Phases

Service Desk

Technical Management

IT Operations Management
(Control & Facilities)

Applications Management

Service Operation

Service
Catalog

Management

Service Level Management

Capacity Management

Availability Management

IT Service Continuity

Management

Information Security

Management

Supplier Management

Requirements Engineering

Data & Information

Management

Service Design

The 7
-
Step Improvement

Process

Service Reporting

Service Measurement

Return on Investment for

CSI

Business Questions for CSI

Continual Service

Improvement

Financial Management

Service Portfolio

Management

Demand Management

Service Strategy

Strategic

Tactical

(ROI)

Operational

(TCO)

IT Program
Manager

Project Manager

Services Manager

Coordinators

Security Officer

Purchasing Agent

Contracts Manager

Auditor

Accountant

Guardians

Corporate Topology

The

Organization

Top Executive

Financial
Controller

Legislator

Government

Rule

Providers

IT Capabilities
Portfolio Manager

Information
Systems Planner

Experts

External
Consultant

Business
Relationship
Manager

Advisors

Communications
Supplier

Software Developer

Software Supplier

In
-
House IT Service
Provider

External IT Service
Provider

IT Hardware
Supplier

Providers

Business
Operations
Manager

Business Function
Manager

Business Process
Manager

Business Unit
Manager

Customer

Change

Management

Strategic

Tactical

Operational

Corporate Topology meets V3

Information Security

Management

Supplier Management

Data & Information

Management

Event Management

Incident Management

Problem Management

Access Management

Operational Activities in

other Lifecycle Phases

Service Desk

Technical Management

IT Operations Management
(Control & Facilities)

Applications Management

Service Asset &
Configuration Management

Knowledge Management

Financial Management

Service Portfolio

Management

Demand Management

Service
Catalog

Management

Capacity Management

Availability Management

Requirements Engineering

Request Fulfilment

Transition Planning and

Support

Change Management

Release and Deployment

Management

Service Validation and

Testing

Evaluation

The 7
-
Step Improvement

Process

Business Questions for CSI

Service Level Management

IT Service Continuity

Management

Service Reporting

Service Measurement

Return on Investment for

CSI

Business Service

Management

The end

Thanks