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									                                      Oct03-23-05
                                          14, 2006



ITIL Essentials (Foundation) Course

Aroonrat Chinwonno
Sakul Tunboonek


                                            page 1
      What is ITIL ?

     ITIL (Information Technology Infrastructure Library) is
     - Documentation for IT Server Management Best Practice
     - Framework for any IT organization to develop its support
       model


     ITIL is NOT a technology specific


     ITIL has been well established in UK and Europe, and was used
       as a groundwork in developing BS15000/ISO20000*


     BS15000/ISO20000 is (the first) worldwide standard for IT service management


     ITIL recommends “ADOPT AND ADAPT” approach



ITIL Essentials (Foundations)                Oct 14, 2006      page 2
      What companies ADOPT and ADAPT ITIL ?
      Microsoft “ADOPT and ADAPT” ITIL into its Microsoft’s Operations
        Framework (MOF)


      HP “ADOPT and ADAPT” ITIL into its HP’s IT Service Management
       Reference Model


      In US, implementing of ITIL provides an acceptable structure to
        meet many of Sarbanes-Oxley Act audit requirements


      Many companies are now regularly requesting ITIL compliance in
       bids and requests for service improvement


      Forrester Research reports that 13% of corporations with revenue
        exceeding $1 billion had adopted ITIL by the end of 2005. By late
        2006, that will have expanded to 40%, then to as high as 80% by
        2008.


ITIL Essentials (Foundations)             Oct 14, 2006     page 3
      What ITIL can mean to us ?
      • Understand what ITIL is
      • What are the (ITM Objectives) we want to implement ITIL

      To reduce unexpected system downtime            - Implement Change Mgnt to ensure that
                                                      system changes are properly plan
                                                      - Implement Incident Mgnt to ensure
                                                      minimum business impact
                                                      - Implement Problem Mgnt to develop
                                                      known error database
      To increase user satisfaction level             - Implement Service Desk SPOC with SLA
                                                      , and metric
      To find more time to do IT planning             - Implement ITIL as a whole
      (80/20), Difficult to get control
                                                      - Each module is able to be measured*
                                                      You cannot control what you cannot measure.


        • However the ultimate is to serve the Corporate Business goals (CEO) to
                 – Increase efficiency and create value to Business
                 – Reduce cost




ITIL Essentials (Foundations)                            Oct 14, 2006            page 4
      ITIL Elements
      • Service Support concentrates on day to day operation and support


      • Service Delivery looks at planning and improvement of IT service



                                Service Support     Service Delivery

                                 Service Desk             SLM

                                 Incident Mgnt       Financial Mgnt

                                Problem Mgnt         Capacity Mgnt

                           Configuration Mgnt     IT Service Cont Mgnt

                                 Change Mgnt        Availability Mgnt

                                 Release Mgnt        Security Mgnt




ITIL Essentials (Foundations)                            Oct 14, 2006    page 5
      Standard Definitions

      Customer: recipient of a service; usually Customer
       management has responsibility for the funding of the service


      Provider: the unit responsibility for the provision of IT
           services


      Supplier : a 3rd party responsible for supplying or supporting
       of underpinning elements of the IT services


      User: the person using the service on a daily basis




ITIL Essentials (Foundations)           Oct 14, 2006    page 6
           What
           questions
           do you
           have?
ITIL Essentials (Foundations)   Oct 14, 2006   page 7
                                       Oct03-23-05
                                           14, 2006



ITIL Essentials (Foundations) Course

First Part: Service Support


                                             page 8
      Service Delivery Agenda



                                 Service Support       Service Delivery
                                  Service Desk                 SLM
                                  Incident Mgnt         Financial Mgnt
                                  Problem Mgnt          Capacity Mgnt
                                Configuration Mgnt   IT Service Cont Mgnt
                                  Change Mgnt          Availability Mgnt

                                  Release Mgnt          Security Mgnt




ITIL Essentials (Foundations)                           Oct 14, 2006        page 9
               Oct03-23-05
                   14, 2006



Service Desk




                    page 10
      Service Desk - Roles

      • ITIL views Service Desk as a Vital function rather than as a
        process

      • Service Desk is the “Central Point of Contact” between users
        and the IT service model

      • A first positive or negative impression is perceived upon
        Service Desk performance and attitude

      • Service Desk in ITIL is more than just a Helpdesk. Service
        Desk has broader role of the front line support – with more
        organizations looking to radically increase the percentage of
        calls closed at first point of contact – FIXED ON FIRST -


ITIL Essentials (Foundations)           Oct 14, 2006   page 11
      Service Desk - Responsibilities
      • Receive and Record all calls from Users (a ticket created);
        deal directly with simple requests and complaints
             - Incident calls
             - Service requests
             - IT service information, FAQ such as how to order
               equipment, how to request a software installation

      • Provide initial assessment of all incidents; make first
        attempt at Incident resolution and/or escalate to 2nd level
        support, based on agreed SLA

      • Once escalated, monitor the tickets according to SLA
        and Keep users informed on the status and progress




ITIL Essentials (Foundations)           Oct 14, 2006   page 12
      Service Desk - Responsibilities

      • Produce Service Desk Management reports

      • Highlighting user requirements such as training to assist
        with service improvement

      • Perform basic operational functions such as password resets,
        backup and restore

      • Perform Infrastructure monitoring such as Data Center
        environmental check, System backup status, Server-LAN-
        WAN status (receiving alerts from automated tools)




ITIL Essentials (Foundations)          Oct 14, 2006    page 13
      Service Desk - Tools

      • Remedy (BMC), Tivoli (IBM), Openview (HP)
      • Knowledge base
      • ACD (Automated Call Distribution)
      • IVR (Interactive Voice Response)




ITIL Essentials (Foundations)         Oct 14, 2006   page 14
      Service Desk - Types

      • Local Service Desk
        - Distributed Service Desk on each site


      • Central Service Desk
        - Centralized, or Regional Helpdesk

      • Virtual Service Desk
        - Global, Follow the Sun concept




ITIL Essentials (Foundations)          Oct 14, 2006   page 15
           What
           questions
           do you
           have?
ITIL Essentials (Foundations)   Oct 14, 2006   page 16
                      Oct03-23-05
                          14, 2006



Incident Management




                           page 17
      Incident Management
      Purpose:
      • To restore normal service operation as quickly as possible
        with minimal disruption to the business


      Definition:
      • Incident is an event which is not part of standard operation
        service and cause interruption or reduction in quality of
        service


      Incident Management process is usually owned by Service Desk
        ,and later can transferred to Incident Manager (IM)




ITIL Essentials (Foundations)          Oct 14, 2006    page 18
      Incident Management
      Incident Priorities: ITIL defines


      Priority = Urgency + Impact


      Urgency = How soon the problem needs resolution
      Impact = How many or how large business service is effected


      Priority in many practical term is called “Severity”




ITIL Essentials (Foundations)             Oct 14, 2006   page 19
      Incident Management – Severity Level
         <<Company Name>>Incident Severity Definition:




              * Incident Manager (IM) should be identified and
              on board to take over the Sev1 and/or Sev2 incidents


ITIL Essentials (Foundations)              Oct 14, 2006   page 20
      Incident Management – Incident Manager

     IM’s roles
              – Arrange a formal meeting of “Support Group” which are
                usually Problem Management, and Service Desk teams
              – Make common understanding of this incident
                management objectives:
                       • To restore the service ASAP (also communicate SLA)
                       • To minimize the business disruption (consider workaround)
              – Arrange any additional resources if required
              – Be a communicator between “Support Group” and the
                “Customer”, so that the “Support Group” do not receive
                mixed directions




ITIL Essentials (Foundations)                      Oct 14, 2006    page 21
      Incident Management - Escalation

      There are 2 types of escalation:
      • Functional escalation – involving more specialist to help
      • Hierarchical escalation – means a vertical move is made
        through the organization because the authority are required




ITIL Essentials (Foundations)            Oct 14, 2006   page 22
           What
           questions
           do you
           have?
ITIL Essentials (Foundations)   Oct 14, 2006   page 23
                     Oct03-23-05
                         14, 2006



Problem Management




                          page 24
      Problem Management
   Purpose:
   - To minimize the adverse effect on the business of Incidents and
     problems cause by error in the infrastructure
   - To proactively prevent the occurrence of incidents and problems


   Role:
   - To diagnose the root cause of the incidents and to identify a
        permanent solution


   Definition:
   Incident is an abnormal event which cause interrupt or impact
   Problem is an Unknown underlying cause of the incident
   Known Error is an problem which root cause has been determined




ITIL Essentials (Foundations)            Oct 14, 2006     page 25
      Problem Management - Definition
                                                 Error in Infrastructure



                                                          Incident
                                      is an abnormal event which cause interrupt or impact




                                                          Problem:
      A problem describes an undesirable situation, indicating the unknown root cause of the Incident




                                                       Known Error
                                A known error is a problem whose root cause has been determined




                                              Request for Change (RFC)
                                  An RFC proposes a change. Eg. To eliminate the known error



ITIL Essentials (Foundations)                                     Oct 14, 2006           page 26
      Problem Management – Responsibilities

      • Identify problems
      • Investigate problems to resolution or error identification
      • Raise RFC to clear error
      • Advise IM of workaround for incidents for known errors
      • Assist in Major incident to identify root cause
      • Prevent the replication of problems across multiple system




ITIL Essentials (Foundations)            Oct 14, 2006     page 27
      Problem Management

      • Problem Control – Focus on transforming Problems into
        Known Error

      • Error Control – Focus on resolving Known errors via the
        Change Management process


                    Incident     Configuration     Service Level     Availability
                    Management   Management        Management        Management

                                                       Information

                                      Problem Management
                 Workaround      Problem Control -> Error Control
                                                  RFC

                                             Change
                                          Management



ITIL Essentials (Foundations)                         Oct 14, 2006     page 28
           What
           questions
           do you
           have?
ITIL Essentials (Foundations)   Oct 14, 2006   page 29
                           Oct03-23-05
                               14, 2006



Configuration Management




                                page 30
      Configuration Management

      • Asset Management
      • Assurance the recorded CIs (Configuration Item) from
        receipt to disposal
      • Not only Asset Management but also provide relationship
        among CIs


      CMDB (Configuration Management Database)

           is a single repository of information will be accessed across
           the Service Management process, and is a major driver of
           consistency between processes




ITIL Essentials (Foundations)              Oct 14, 2006    page 31
      Configuration Management

      Remedy ITSM 6.0
      - Remedy Helpdesk 5.6
      - Remedy Asset Management 5.6
      - Remedy Change Management 5.6
      - Remedy SLA 5.6


      BMC Atrium 6.3 = CDMB




ITIL Essentials (Foundations)         Oct 14, 2006   page 32
      Configuration Management

      Configuration Baseline
      is a configuration of a system established at a specific point in
        time, and capturing both structure and details


      - Created first time as a baseline
      - Updated of CIs affected as changed by RFC
      - Use as a point to fall back to if things go wrong




ITIL Essentials (Foundations)              Oct 14, 2006   page 33
      Configuration Management – Relationship with others

                                  ERROR


                                 INCIDENT


                                 PROBLEM


                                KNOWN ERROR




                                                             CDMB
                                   RFC


                                   CHANGE
                                 AUTHORIZED


                                  CHANGE
                                IMPLEMENTED




ITIL Essentials (Foundations)                 Oct 14, 2006          page 34
           What
           questions
           do you
           have?
ITIL Essentials (Foundations)   Oct 14, 2006   page 35
                    Oct03-23-05
                        14, 2006



Change Management




                         page 36
      Change Management
      Purpose
          To ensure that standardize method and procedure are used
          to handle all changes in order to minimize the impact of
          change-related incidents, and the improve the day-to-day
          operation of the organizations

      Input of RFC
      - Required resolution of an incident or problem
      - A proposed to add/change/remove a CI
      - A proposed to upgrade the infrastructure
      - Changes in business requirement or Policy
      - Product or service changes from vendors/suppliers



ITIL Essentials (Foundations)           Oct 14, 2006    page 37
      Change Management - Roles
      • Change Manager Roles
               – Receive, Log, Assign priority to RFCs
               – Reject RFCs which are impractical
               – Consolidate, issue agenda of RFCs to CAB
               – Chair CAB meeting
               – Update authorized change status (post implementation)
               – Produce Change Management report


      • CAB (Change Advisory Board) Roles
               – Review RFCs, ensure to evaluate of RFCs’ impact,
                 implementation plan, resource plan, UAT, and Rollback plan
               – Provide approval or not approval for the RFCs




ITIL Essentials (Foundations)                   Oct 14, 2006     page 38
      Change Management - Types

      • Standard pre-approved Changes
               – An accepted solution to an identifiable and relatively common
                 set of requirements, where authority is effectively in advance
                 of implementation. E.g. setting up access profiles for a new
                 employee
      • Urgent Changes
               – A change that requires immediate action in the managed IT
                 environment and cannot be executed through the normal
                 change/authorization process
               – Most of urgent changes are reactive changes E.g. Urgent RFCs
                 from Problem Management to fix error (during the incidents)

                     IT organization should also identify process to handle such
                     urgent change such as who can be CAB to approve the urgent
                     changes, a minimum steps qualifying to approve such urgent
                     changes


ITIL Essentials (Foundations)                     Oct 14, 2006   page 39
      Change Management – Abuse of Urgent change

      Do NOT request Urgent Change for …

               – Would be nice to have completed early
               – Was accidentally submitted too late for the CAB
               – Attempting to avoid all of the planning processes
               – To compensate for poor planning


      Note: An Urgent Change should be avoided if possible and used only when
       required. Urgent Changes skip the normal planning and communication
       process, many urgent changes request for approval over the telephone.
       Approval of the RFCs in such situation can cause instability in the
       production environment.




ITIL Essentials (Foundations)                Oct 14, 2006      page 40
           What
           questions
           do you
           have?
ITIL Essentials (Foundations)   Oct 14, 2006   page 41
                     Oct03-23-05
                         14, 2006



Release Management




                          page 42
      Release Management - Purpose



                To take a holistic view of a change to an IT service and
                 ensure that all aspects of a release, both technical and
                 non-technical, are considered together.




                •PROTECTS THE PRODUCTION
                 ENVIRONMENT



ITIL Essentials (Foundations)                Oct 14, 2006   page 43
      Release Management

      Usually Release Management will be used for
      - Large or critical hardware / software roll out
      - Bundle relates set of changes


      Release Management
      • is concerned with implementation, unlike Change
        Management, which is concerned with verification
      • particularly useful in distributed multi-tier environments,
        where an implementation may consist of a number of
        different components supported by different technology
        domains, which need to be coordinated




ITIL Essentials (Foundations)           Oct 14, 2006     page 44
      Release Management

                Responsibilities:

                • Plan the rollout of software and related hardware.
                • Create procedures for the distribution and installation
                  of changes to IT systems
                • Communicate and manage customer expectations
                  during the planning and rollout of releases
                • Implementing new releases into the operational
                  environment using the controlling processes of
                  Configuration and Change Management.
                • Ensuring that master copies of all software are secured
                  in the Definitive Software Library (DSL) and that the
                  Configuration Management Database (CMDB) is
                  updated




ITIL Essentials (Foundations)                Oct 14, 2006   page 45
      Release Management – Functions and Roles

                Release Management staff
                In most of companies the Release Management function
                  may well be combined with several other Service
                  Management disciplines, in particular Change
                  Management and Configuration Management.
                • In a larger organization there may be dedicated
                  Release Management staff for particular systems.




ITIL Essentials (Foundations)               Oct 14, 2006   page 46
      Release Management - Activities


   A Release is
   a collection of
   authorized
   changes into
   an IT
   environment




ITIL Essentials (Foundations)    Oct 14, 2006   page 47
      Release Management –
      Process Relationships

           Incident                               Problem           RFC
          Management                             Management                 Change       Approved
                                                                          Management     RFC
                                                                                         New projects
                            Incidents             Release                                HW and SW
                                                  schedules

                Service                            Release
                 Desk                            Management
                                    Release
                                    schedules                                           Configuration
                                                                          Configuration
                                                                                        -assets
                                                                          Management
                                                                                        -relationships
                                            Release
                                            schedules

                                                                            Service      -Monitoring
                                           CpM                               Level       -software
                                                   Service                Management     -availability
                                           AvM     Delivery
                                           SCM
ITIL Essentials (Foundations)                            Oct 14, 2006          page 48
      Release, Change and Configuration Management

                      Change mgnt ensures
                      that new/modified CIs are
                      implemented to Production     Change
                      environment properly        Management




                                                                 Change Mgnt ensures
                Release                                          that Configuration Items
              Management                                         are accurate due to changes



         Configuration Mgnt ensures
         that Release Mgnt use the
         correct CIs version                       Configuration
                                                   Management




ITIL Essentials (Foundations)                     Oct 14, 2006            page 49
           What
           questions
           do you
           have?
ITIL Essentials (Foundations)   Oct 14, 2006   page 50
                                       Oct03-23-05
                                           14, 2006



ITIL Essentials (Foundations) Course

Second Part: Service Delivery


                                            page 51
      Service Delivery Agenda



                                 Service Support       Service Delivery
                                  Service Desk                 SLM
                                  Incident Mgnt         Financial Mgnt
                                  Problem Mgnt          Capacity Mgnt
                                Configuration Mgnt   IT Service Cont Mgnt
                                  Change Mgnt          Availability Mgnt

                                  Release Mgnt          Security Mgnt




ITIL Essentials (Foundations)                           Oct 14, 2006        page 52
               Service Delivery - Overview
                   BUSINESS /
                   USERS


                                                     Service
                                                      Level
                                                   Management

                                                                             IT Service
COSTS                            Financial
                                Management
                                             SERVICE                         Continuity
                                                                            Management
                                                                                              RISK
                                             DELIVERY                         Security
                                                                            Management


                                              Capacity   Availability
                                             Management Management




                                                TECHNOLOGY
ITIL Essentials (Foundations)                                Oct 14, 2006           page 53
      Service Delivery


                Service Delivery looks at the long term planning and
                  improvement of IT service provision, which will also improve
                  efficiency and the achievement of business goals.
                There are five processes within the Service Delivery umbrella
                  and they are:
                         – Service Level Management
                         – Financial Management for IT Services
                         – Capacity Management
                         – IT Service Continuity Management
                         – Availability Management.
                Security Management sits under the Information Security
                  umbrella but will be addressed today due to the criticality of
                  information security in today’s IT environment.



ITIL Essentials (Foundations)                          Oct 14, 2006   page 54
      Service Level Management - Purpose




               To maintain and improve IT service quality through a
                constant cycle of agreeing, monitoring and reporting
                upon IT Service achievements and the instigation of
                actions to eradicate poor service, in line with business
                or cost justification.



               •SERVICE DEFINITION AND
                STANDARDS


ITIL Essentials (Foundations)                Oct 14, 2006   page 55
      Service Level Management - Role

                Service Level Management
                • is essential in any organization so that the level of IT
                  service needed to support the business can be
                  determined, and monitoring can be initiated to identify
                  whether the required service levels are being met.
                • is a client facing role, where regular lines of
                  communication are maintained between the IT service
                  provider and the IT customer
                • process is responsible for ensuring Service Level
                  Agreements (SLAs) and Operational Level Agreements
                  (OLAs) or underpinning contracts (UCs) are met




ITIL Essentials (Foundations)                 Oct 14, 2006   page 56
      Types of Agreements and Contracts


                                       Internal/External
                  Service Level           Customers
                  Agreements


                      (Business
                      Language)


                                        IT Service Level
     Operational                                                           Underpinning
        Level
                                          Management                        Contracts
     Agreements                                                            (supporting)
                                                                                  (Technical
        (Technical                                                                Language)
        Language)


                          Internal Suppliers                     External Suppliers
                          and Maintenance                        and Maintenance
                              Personnel                              Personnel
ITIL Essentials (Foundations)                     Oct 14, 2006          page 57
      Service Level Management - Activities
                                CustomerDemand


                                    Identify:                     Service Level
                                     needs                        Requirements


                                     Define:                      Service Spec
                                  Internally and                    Sheets
                                    Externally
                                                                  Service Quality
                                                                       Plan
                                     Contract:
                                 - Negotiate                         Service
                                 - Draft                            Catalogue
                                 - Amend
                                - Conclude                        Service Level
                                                                   Agreement

                                                                   Operational
                                                                     Level
                                                                   Agreement


                                                                  Underpinning
                                                                    Contract

                                  Monitoring:                     Service Level
                                 Service Levels                   Achievement


                                     Report                       Service Level
                                                                    Reports

                                                                    Service
                                     Review                       Improvement
                                                                    Program




ITIL Essentials (Foundations)                      Oct 14, 2006           page 58
       Service Catalogue


           • A list of all services
           • The characteristics of each service
           • Information on the use of the service




ITIL Essentials (Foundations)              Oct 14, 2006   page 59
       Contents of a Service Level Agreement


            • Scope of the agreement   • Functionality
            • Service description      • Charges
            • Signatories              • Change procedure
            • Date of next review      • Contingency
            • Service hours            • Anticipated growth
            • Service availability     • Restrictions
            • Support levels           • Training
            • Performance              • Change procedure for the
            • Security                   Service Level Agreement




ITIL Essentials (Foundations)          Oct 14, 2006      page 60
      Service Level Management - Benefits

                • IT services are designed to meet expectations outlined
                  in SLRs
                • Service performance can be measured
                  *Reporting is Critical to the success of Service Level
                     Agreements
                • If charged, customers can draw a balance between
                  service costs and required quality
                • The IT organization can control resource management
                  and reduce costs in the long term as the organization
                  can specify the required services and components
                • Improved customer relationships and satisfaction




ITIL Essentials (Foundations)                   Oct 14, 2006     page 61
      Service Level Management –
      Process Relationships


                Service
                                    Incidents    Incident                                 Problem
                 Desk
                                                Management                                Release
                                    RFC
                                                                          Service
                                                                          Support
                                                  Change                             Configuration
                                                Management                           Management

                                                                                       Service
                                                    SLAs                               definitions
                                                    OLAs

                                     SLAs         Service                                            Third
              Customer                             Level                                             Party
                                     SLRs       Management                       UCs                 Suppliers
                                                     SLAs
                                                     OLAs

                                                 Capacity                                 Finance
                                                                          Service
                         Planning                Availability
                                                                          Delivery
                                                 Continuity

ITIL Essentials (Foundations)                              Oct 14, 2006                page 62
      Service Level Management
  SLR - Service
  Level
                                                                          COMPANY




                                                           SERVICE MGMT
  Requirement                                  FIN
  SLA - Service                                SCM                        METRICS

  Level Agreement                              AVM                                            CEO
                                                                          SLR
                                  UC           CAP                        SLA
                                               SLM
                                Suppliers
                                                                                      SLR
Suppliers
 Suppliers                                     OLA
  Suppliers



                                                           SERVICE DESK
                                                IM
                                                PM                                        End
  OLA - Operational                            CHG                                        User
  Level Agreement                              CFG
  UC - Underpinning
                                               REL
  Contract                                  IT ORGANISATION

ITIL Essentials (Foundations)                         Oct 14, 2006                  page 63
           What
           questions
           do you
           have?
ITIL Essentials (Foundations)   Oct 14, 2006   page 64
                                       Oct03-23-05
                                           14, 2006



Financial Management for IT Services




                                            page 65
      Financial Management for IT Services
      - Purpose


               To provide cost effective stewardship of the IT assets
                and the financial resources used in the IT services
                provided.



               •CONTROL AND RECOVER IT
                COSTS




ITIL Essentials (Foundations)                Oct 14, 2006   page 66
      Financial Management for IT Services –
      Role


                Financial Management is responsible for
                • Accounting for the costs (costing) and return
                  on IT service investments (IT portfolio
                  management), and
                • Budgeting – defining and implementing IT
                  budgetary process
                • Charging - for any aspects of recovering
                  costs from the customers (charging).




ITIL Essentials (Foundations)           Oct 14, 2006   page 67
      Financial Management for IT Services –
      Functions and Roles

                Finance Manager
                Responsibility for:
                • Managing the IT budget
                • Gathering suitable cost data to develop a cost model
                • Preparing regular bills for the customer
                Note:
                • The Finance Manager for IT Services may not necessarily be
                  a dedicated resource.
                • The process may have an owner within the IT department
                  who liaises with the Finance department of the organization
                  and senior IT managers, particularly those responsible for
                  service level management.




ITIL Essentials (Foundations)                   Oct 14, 2006    page 68
               The Costing, Charging and Budgeting Cycle
 Business IT                    IT operational plan          Cost analysis             Charges
requirements                       (inc. Budgets)            (Accounting)




                                     Financial targets




                                           Costing models
           Feedback of proposed                          Charging policies
            charges to business

ITIL Essentials (Foundations)                                 Oct 14, 2006   page 69
       Cost Model


           • A framework in which all known costs can be recorded and allocated to
             specific Customers, activities or other categories
           • Several types
                    – Cost-by-service, activity (Activity Based Costing), Customer or location
           • Define the Cost Unit for services or activities (transaction, minute, CPU-
             seconds, storage, incident, change, etc.)




ITIL Essentials (Foundations)                              Oct 14, 2006          page 70
       Pricing Policy


         • Market price – the price charged by external suppliers
         • Going rate – comparable to other internal organizations
         • Cost plus – input cost plus uplift
         • Cost – total cost of ownership
         • Fixed price – negotiated price for a fixed period




ITIL Essentials (Foundations)                   Oct 14, 2006   page 71
      Financial Management –                                                          •
                                                                                      •
                                                                                          Purpose
                                                                                          …


      Process Relationships
                                                                                      •   Activities
                                                                                      •   Benefits
                                                                                      •   Relationships Between Processes
                                                                                      •   Potential Challenges/Problems
                                                                                      •   KPIs


                                     Services       Service
              Customer                               Level
                                                  Management
                                                                        Performance
                                           Cost                         Usage                    Service
                            Budget         model                                                 Support
                            Spend          Charging
                                                                                          Configuration
                                                                                          Management
           Business
          Relationship                             Financial            Changes with
          Management                 Cost model   Management            cost affects
                                     Charges                                                Capacity
                                                                                           Management

                                                                                                 Service
                                                                                                 Delivery
                                                                        Performance
                                                                        Usage




ITIL Essentials (Foundations)                            Oct 14, 2006             page 72
           What
           questions
           do you
           have?
ITIL Essentials (Foundations)   Oct 14, 2006   page 73
                      Oct03-23-05
                          14, 2006



Capacity Management




                           page 74
      Capacity Management - Purpose



                To ensure that cost justifiable IT capacity always exists
                 and that it is matched to the current and future
                 identified needs of the business.




ITIL Essentials (Foundations)                 Oct 14, 2006   page 75
      Capacity Management –
      Functions and Roles

                Capacity Manager
                • Reporting on current usage of resources, trending and
                  forecasts for future usage
                • Identifying needs for increases or reductions in
                  hardware based on SLR and cost
                • Performance testing of new systems
                • Sizing all proposed new systems to determine
                  resources required.
                • Assessing new technology or products which may
                  improve efficiency of the capacity process.




ITIL Essentials (Foundations)                 Oct 14, 2006   page 76
                Input and Output Data Requirements

                  Inputs            Sub-process                Outputs


    Technology
                                                             Capacity plan
    SLAs, SLRs and Service         Business                Capacity Database
     Catalogue
                                     Capacity                Baselines and profiles
    Business plans and strategy
                                     Management              Thresholds and alarms
    IS/IT plans and strategy
                                                             Capacity reports (regular, ad
    Business requirements and
                                                              hoc and exception)
     volumes
                                                             SLA and SLR
    Operational schedules          Service
                                                              recommendations
    Deployment and development      Capacity                Costing and charging
     plans and programs              Management               recommendations
    Forward Schedule of Change
                                                             Proactive changes and service
    Incidents and Problems
                                    Resource                 improvements
    Service Reviews
                                     Capacity                Revised operational schedule
    SLA breaches
                                     Management              Effectiveness reviews
    Financial plans
                                                             Audit reports
    Budgets


ITIL Essentials (Foundations)              Oct 14, 2006               page 77
       Sub-Processes


           • Resource Capacity Management
                    – Monitor, analyze, run and report on the utilization of
                      components, establish baselines and profiles of use
                      of components
           • Service Capacity Management
                    – Monitor, analyze, tune, and report on service
                      performance, establish baselines and profiles of use
                      for services, manage demand for services
           • Business Capacity Management
                    – Trend, forecast, model, prototype, size and
                      document future business requirements




ITIL Essentials (Foundations)                   Oct 14, 2006    page 78
      Capacity Management –
      Process Relationships


            Service
             Level                             Monitoring               Incident
          Management                           Reporting               Management


                                                       Requirements     Problem       Service
         SLR                                                           Management     Support
                                 Plans

                                Requirements                             Change
             Customer                           Capacity               Management

                                  Plans        Management Plans




                                                                       Availability   Service
                                                                       Continuity     Delivery
                                                            Planning



ITIL Essentials (Foundations)                           Oct 14, 2006      page 79
           What
           questions
           do you
           have?
ITIL Essentials (Foundations)   Oct 14, 2006   page 80
                                   Oct03-23-05
                                       14, 2006



IT Service Continuity Management




                                        page 81
      IT Service Continuity Management –
      Purpose

                To support the overall Business Continuity Management
                 process by ensuring that the required IT technical and
                 services facilities can be recovered within required and
                 agreed business timescales.



                •KEEP THE BUSINESS IN
                 BUSINESS




ITIL Essentials (Foundations)                Oct 14, 2006   page 82
      IT Service Continuity Management –
      Functions and Roles

                The primary goal of ITSCM Manager is to implement and
                 maintain the ITSCM process in accordance with the
                 overall requirements of the organization's Business
                 Continuity Management (BCM), and to represent the
                 IT services within the BCM function.




ITIL Essentials (Foundations)              Oct 14, 2006   page 83
      Thoughts that should avoid…
      • Too expensive
      • Disaster unlikely to happen
      • More important things to do
      • We will „muddle through‟
      • Unaware of the business risks




      Thought that should have….
      MURPHY LAW……Anything can go wrong , will go wrong


      You cannot control what you cannot measure,
      You cannot recover what you have not planned.

ITIL Essentials (Foundations)           Oct 14, 2006   page 84
      IT Service Continuity Management –
      Functions and Roles

   Role                         Roles in Normal Operation                    Roles in Crisis Situation


   Board Level                  Initiate IT Service Continuity, set          Crisis Management,
                                policy, allocate responsibilities, direct    corporate decisions,
                                and authorize                                external affairs

   Senior                       Manage IT Service Continuity, accept         Co- ordination, direction
   Management                   deliverables, communicate and                and arbitration, resource
                                maintain awareness, integrate across         authorization
                                organization
   Junior                       Undertake IT Service Continuity              Invocation, team
   Management                   analysis, define deliverables,               leadership, site
                                contract for services, manage testing        management, liaison and
                                and assurance                                reporting
   Supervisors                  Develop deliverables, negotiate              Task execution, team
   and Staff                    services, perform testing, develop           membership liaison
                                and operate processes and
                                procedures


ITIL Essentials (Foundations)                                 Oct 14, 2006           page 85
      IT Service Continuity Management –
      Activities

  Stage 1 - Initiation                                      Initiate BCM


Stage 2 –                                             Business Impact Analysis
Requirements &
strategy                                                  Risk Assessment

                                                      Business Continuity Mgt


Stage 3 -                                                Organization and
Implementation                                        Implementation Planning

                                Implement Stand-by         Develop Recovery           Implement Risk
                                  Arrangements                  Plans               Reduction Measures
                                                         Develop Procedures

                                                           Initial Testing



                                                              Testing
                                           Review &                               Change
                                           Audit                                  Management
  Stage 4 – Operational
  Management                     Education &                                                   Training
                                 Awareness
                                                             Assurance

ITIL Essentials (Foundations)                                                Oct 14, 2006                 page 86
      IT Service Continuity Management –
      Risk Reduction and Recovery Options

                It is rare that an organization will choose only risk reduction
                   (prevention measures) or recovery options. Generally a
                   combination of reducing risks to assets with greatest
                   vulnerability or with higher business impact with a recovery
                   plan will be implemented.
                Recovery Options
                         Do nothing
                         Return to manual systems
                         Gradual recovery (cold stand-by) (72 hrs)
                         Intermediate recovery (warm stand-by) (24-72 hrs)
                         Immediate recovery (hot start, hot stand-by) (<24 hrs)
                         Combinations




ITIL Essentials (Foundations)                           Oct 14, 2006      page 87
       Gradual Recovery Facilities
       (cold standby 72+ hours)

           • Accommodations
           • Power
           • Environmental controls
           • Network cabling infrastructure
           • Telecommunications




           Does not include ANY computing equipment




ITIL Essentials (Foundations)                 Oct 14, 2006   page 88
       Intermediate Recovery Facilities
       (warm standby 24-72 hours)

           • Accommodations
           • Power
           • Environmental controls
           • Network cabling infrastructure
           • Telecommunications
           • Operations, system management and technical support
           • Processors, peripherals, communications equipment and / or
             operating systems




ITIL Essentials (Foundations)                   Oct 14, 2006       page 89
       Immediate Recovery Facilities
       (hot standby <24 hours)

           • Accommodations
           • Power
           • Environmental controls
           • Network cabling infrastructure
           • Telecommunications
           • Operations, system management and technical support
           • Processors, peripherals and communications equipment
           • Operating systems, applications and data mirrored from the operational
             servers




ITIL Essentials (Foundations)                    Oct 14, 2006       page 90
      IT Service Continuity Management –
      Process Relationships


            Service                             Exercise /
             Level                              Service Recovery         Incident
          Management                                                    Management

                                                                         Problem
                                                                        Management      Service
         SLR                                                                            Support
                                 Plans                Requirements
                                                                          Change
                                Requirements     Service
                                                                        Management

             Customer                           Continuity
                                  Plans        Management               Configuration
                                                                        Management
                                                             Planning
Incidents

               Service
                Desk                                                    Capacity
                                Event                                   Availability
                                Monitoring                                              Service
                                                                                        Delivery
                                                          Planning



ITIL Essentials (Foundations)                         Oct 14, 2006         page 91
           What
           questions
           do you
           have?
ITIL Essentials (Foundations)   Oct 14, 2006   page 92
                          Oct03-23-05
                              14, 2006



Availability Management




                               page 93
      Availability Management - Purpose


                To optimize the capability of the IT infrastructure and
                 supporting organization to deliver a cost effective and
                 sustained level of availability that enables the business
                 to satisfy its business objectives.



                •ENSURE RESOURCES ARE
                 AVAILABLE AND
                 EFFECTIVE


ITIL Essentials (Foundations)                 Oct 14, 2006   page 94
               The Availability Management Process

                          INPUTS                              OUTPUTS
     Business availability                         Availability & recovery design
     requirements                                  criteria
                                       A
                                       V   M       IT infrastructure resilience
     Business impact assessment
                                       A   A       & assessment

                                       I   N
     Availability, reliability &                   Agreed targets for availability
                                       L   A
     maintainability requirements                  and maintainability
                                       A   G
                                       B   E
                                                   Reports of availability, reliability
     Incident and problem data         I   M       & maintainability achieved
                                       L   E
                                       I   N
     Configuration & monitoring data               Availability monitoring
                                       T   T
                                       Y
     Service level achievements                    Availability Plan
ITIL Essentials (Foundations)              Oct 14, 2006                page 95
       Availability Management Terminology
     • Availability - is the ability for an IT Service or component to perform
       its required function at a stated instant or over a stated period
     • Reliability – the tendency of an IT Service or component not to fail
       (i.e. how long can it perform)
     • Resilience – the ability of the component to continue providing the
       service even though some piece is no longer functioning (i.e. fault
       tolerance)
     • Maintainability - is the ability to retain or restore an IT Service or
       component to an operational state (internal)
     • Serviceability - as Maintainability but for external suppliers
     • Security - Confidentiality, Integrity and Availability of the services
       and associated data; an aspect of overall availability
           Confidentiality, Integrity and Availability (CIA) – the basis of
                                        security




ITIL Essentials (Foundations)               Oct 14, 2006     page 96
       Availability Management Terminology
       Basic Availability Calculation
                                                                                        (2 of 2)




                                (Agreed service time – downtime)
  Availability = ____________________________                         x 100
                                       Agreed service time




                Remember the definition of a "Service”


ITIL Essentials (Foundations)                          Oct 14, 2006           page 97
       Availability Management Activities


        • Designing for availability (Proactive perspective)
                 – The technical design of the IT infrastructure and the
                   alignment of the internal and external suppliers required
                   to meet the availability requirements of the service

        • Designing for recovery (Reactive perspective)
                 – The design points required to ensure that in the event of
                   an IT service failure, the service can be reinstated to
                   resume normal business operations as quickly as
                   possible




ITIL Essentials (Foundations)                 Oct 14, 2006   page 98
       The Monetary Impact of Unavailability

                 User productivity          Hourly cost of                  Hours of
                       loss            =    User affected
                                                                     X     disruption
                          +
                    IT productivity        Hourly cost of IT                Hours of
                                loss   =        staff                X     disruption
                                +          Lost revenue per                 Hours of
                     Lost revenue      =         hour
                                                                     X     disruption
                                +
                   Other business          (Overtime, wasted materials or goods, financial
                   losses incurred                       penalties or fines)

                                +
                    Impact on
                Customer Service               (Where / if known)
                  / Reputation

ITIL Essentials (Foundations)                         Oct 14, 2006          page 99
       Calculating Availability




ITIL Essentials (Foundations)     Oct 14, 2006   page 100
      Availability Management –
      Process Relationships


            Service                                         Downtime
             Level                 SLA                      Monitoring        Incident
          Management               Monitoring                                Management

                                                                    Cause     Problem
                                                                             Management      Service
         SLR                                                                                 Support
                                 Plans
                                                                               Change
                                Requirements                                 Management

             Customer                            Availability
                                                Management          Change
                                  Plans                                      Configuration
                                                                             Management
                                                                 Planning
Incidents

               Service
                Desk
                                Event
                                Monitoring of                                Capacity        Service
                                Downtime                                     Continuity      Delivery
                                                             Planning



ITIL Essentials (Foundations)                            Oct 14, 2006           page 101
           What
           questions
           do you
           have?
ITIL Essentials (Foundations)   Oct 14, 2006   page 102
                      Oct03-23-05
                          14, 2006



Security Management




                          page 103
      Security Management - Purpose


                Security Management is the process of managing a
                 defined level of security on information and IT
                 services. It has links with all processes
                It also includes managing the reaction to security
                  incidents.
                Security Management has two objectives:
                • To meet the security requirements of SLAs and other
                  external requirements further to contracts, legislation
                  and externally imposed policies.
                • To provide a basic level of security, independence and
                  external requirements.



                •PROTECT DATA
ITIL Essentials (Foundations)                 Oct 14, 2006   page 104
      The Cost of Security Incidents


                           Incident Type         1999                      2004


                           Proprietary            $1,847,652               $11,460,000
                           Information

                           Fraud                   1,470,592                  7,670,500


                           Denial of Service         116,250                 26,064,050


                           Virus                        45,465               55,053,900


                           Insider Access            142,680                  4,278,205


                           Laptop Theft                 86,920                6,734,500




                      Total losses reported in the 2004 report was: $141,496,560
                                                    Source: CSI/FBI Computer Crime and Security Survey
ITIL Essentials (Foundations)                           Oct 14, 2006           page 105
      Security Management - Role


                • Confidentiality
                         – protecting the business information from failure and
                           attack
                         – is more than locking server rooms or insisting on
                           password discipline.
                • Integrity
                         – timeliness or correctness require careful consideration
                           of information flows and
                         – safeguards against incorrect values
                • Availability
                         – maintaining the uninterrupted operation of the IT
                           organization
                         – also helps to simplify Information Security Service Level
                           Management, as it is much more difficult to manage a
                           large number of different SLAs than a limited one.
ITIL Essentials (Foundations)                        Oct 14, 2006     page 106
       Security Management Activities *
  • Plan
           –     Establish the structure of the Security section of the Service Level Agreements, Operational Level Agreements and
                 Underpinning Contracts
           –     Establish the security baseline (or minimum security standards)
  • Implement
           –     Establish and maintain security awareness
           –     Establish the procedures to identify and classify security incidents
           –     Establish the procedures to handle security incidents
  • Evaluate
           –     Conducting security audits
                    •    Using Internal resources
                    •    Using External resources
                    •    Self assessment (using Security Management resources)
           –     Ongoing review and analysis of security incidents
  • Control
           –     Establish the structure and controls for security functions
           –     Defines the roles & responsibilities (including the line of command)
  • Maintain
           –     Ensure the continuity of security measures
           –     Update to the security handbooks
  • Report
           –     Communicate the effectiveness and efficiency of the security management process and functions
           –     Communicate the number and type of security incidents
           –     Communicate the action plans to improve/correct security measures
           –     Communicate compliance with security policy




ITIL Essentials (Foundations)                                                  Oct 14, 2006           page 107
      Security Management –
      Process Relationships


            Service                                       Incidents
             Level                 SLA                                      Incident
          Management               Monitoring                              Management

                                                                  Virus     Problem
                                                                           Management      Service
         SLR                                                                               Support
                                 Plans
                                                                             Change
                                Requirements                               Management

             Customer                             Security
                                                Management        Change
                                  Plans                                    Configuration
                                                                           Management
                                                               Planning
Incidents                                                                    Release
                                                                           Management

               Service
                Desk
                                Attacks
                                                                           Capacity        Service
                                                                           Continuity      Delivery
                                                           Planning        Availability



ITIL Essentials (Foundations)                          Oct 14, 2006           page 108
               Oct03-23-05
                   14, 2006



Quick Review




                   page 109
       ITIL Process Linkages

                                                               IT Service
                                                               Continuity
                                                              Management



   Strong Relationship                        Availability                        Capacity
                                             Management                          Management
            Uses



   Communicates With




                                                        Configuration Management




                                  Change
                                Management
                                                                                      Financial   Service Level
                                                                                     Management   Management

             Problem
                                                  Release
            Management
                                                 Management


                                   Incident
                                Management and
                                 Service Desk

ITIL Essentials (Foundations)                                         Oct 14, 2006
     Attitude Change

                                                                                    The organization works better


                                                                                             We can learn

                                                                Recommending improvements


                                                                          Structure helps
      Understanding




                                                                    May have
                                                                    benefits

                                        Would be nice in a perfect world

                                                     Bureaucratic
                                                                              Time and Effort
                                              Too much
                                                delay

                                       Paper chase

                       It won't work for us

                       We already do
ITIL Essentials (Foundations)
                              that                             Oct 14, 2006                 page 111
       Roles that could be combined


           • Configuration Management and Release Management
           • Configuration Management and Change Management
           • Service Level Management and Financial Management for
             IT Services




                                                                           ?

ITIL Essentials (Foundations)                  Oct 14, 2006     page 112
       Roles that should not be combined



           • Problem Management and Incident Management
           • Problem Management and Change Management
           • Capacity Management and Availability Management




ITIL Essentials (Foundations)                  Oct 14, 2006    page 113
      Some Useful Websites

http://www.ogc.gov.uk                    The OGC – the organization that publishes the ITIL books



http://www.itil.co.uk                    ITIL UK – Official Web Site



http://www.itilexams.com/                Loyalist College [Belleville, Ontario]
                                         ITIL Certification Agent



http://www.itsmf.com                     The global IT Service Management Forum site



http://www.itsmfusa.org/mc/page.do       The ITSMF – US site



http://www.itsmf.ca/                     ItSMF Canada Site – IT Service Management Forum - check out
                                             Event/Presentation for local context and players.



http://www.pultorak.com/pcbit/itsm.htm   General ITSM information and white-papers



http://www.staytech.com/                 Ottawa based ITIL Services/Training provider
                                         “Links” contains a good selection of ITIL Information/Solution providers



http://www.nextslm.org/                  Tools, newsletters, and white-papers on ITSM




ITIL Essentials (Foundations)               Oct 14, 2006                          page 114
           What
           questions
           do you
           have?
ITIL Essentials (Foundations)   Oct 14, 2006   page 115
                                Go home!




ITIL Essentials (Foundations)   Oct 14, 2006   page 116

								
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