2 Service Lifecycle

ITIL Version 3 Foundation Certificate EX0-101: Service Lifecycle

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Lesson 1. Course Introduction

Hi! My name is Rusty Reese and I'll be your instructor for Service Lifecycle. This course is one of a series of lectures on ITIL Version 3 Foundation Certificate EX0-101. In this lecture, I'll discuss the features of the Service Lifecycle. Remember to use the Course Tools tab if you want to:

� View or print a complete transcript of my lecture � Download the PowerPoint presentation I use in this lecture � View or print takeaways and reference materials from this lecture � View flashcards or play a match game to check your understanding of this lecture

When you exit this course, be sure to view my other lectures in ITIL Version 3 Foundation Certificate EX0-101.

Lesson 2. Service Lifecycle

After completing this lesson, you should be able to:

� Describe the structure and scope of the ITIL library � Describe the goals and objectives of Service Strategy, Service Design, Service Transition, Service Operation, and Continual Service Improvement

Topic 2.1 Instruction Presentation

Slide 1 The ITIL core consists of five publications which are Service Strategy, Service Design, Service Transition, Service Operation, and Continual Service Improvement. These publications are considered the ITIL Core and best practice guidance on how to manage IT service delivery. The core structure as depicted in the drawing forms a lifecycle. Using the ITIL core ensures that an organization is using the best of breed tools, best practice methodologies and standards to protect an organizations investments and provide services that could be measurable.rvice improvement on customer needs. The core allows an organization to be flexible in its activities and processes to provide the best

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possible output to the customer or business partner to ensure continued Service Delivery. Slide 2 The business requirements are documented in the Service Strategy stage in the Service Level Package (SLP) which also contains the customer output they requested. The next stage in the lifecycle is the Service Design stage. The completed Service Level Package is than passed to the Service Design stage where the output of this stage is the Service Design Package (SDP) which details the solution the customer is requesting and ensures that the solution meets all requirements throughout the lifecycle. Slide 3 The next Stage in the lifecycle is the Service Transition stage. The Service Design Package passes next through the Service Transition stage, where it is evaluated, tested and validated. During this stage of the lifecycle the Service Knowledge Management System (SKMS) is updated and backed up, and the service is approved by the Change Advisory Board (CAB) and passed onto the Service Operation stage which is the next stage in the lifecycle and known as the production environment. All stages constantly monitor for Continuous Service Improvement opportunities for improvement of anomalies within any of the lifecycle stages. Slide 4 In the European theater the library is pronounced like idle but with a 't' (itle) and within the United States it is pronounced with a "I" (ITIL). ITIL was developed in the 1980's to be used in the British government departments and has been recognized as a best practice in global Service Management. It was first developed by the British CCTA (Central Computer and Telecommunications Agency) and late changed its name to OGC (Office of Government Commerce. Slide 5 The ITIL library is the most widely used IT Service Management standard which establishes a standard set of terms to be used consistently throughout the organization improving known problems recognized in Service Delivery. Adopting ITIL guidance can provide the following benefits to the organization: Streamline cost delivery Use compensating controls from other best practices to improve IT service delivery Improve customer awareness and satisfaction through a more recognized framework and standards for service delivery Use formal best practice standards and guidance Improved internal productivity by streamlining processes and activities through the use of automated tools and metrics Improve the skill-set of leverage on experience of the work-force Slide 6 The ISO 9000, ISO 20000, ISO 27002 and CobiT best practices are used as compensating controls to develop, define, assess and improve the quality in systems and their output. The ITIL lifecycle uses four steps identified in the Deming Quality Circle: Plan: What the organization needs to do, identify who should do it, when, how and using what process capabilities and process resources? Do: Ensure that the plan is carried through to the end. Check: Perform a check to see if the desired outcome is what was expected, Act: Make continuous improvements to the plan from the analysis identified during the check.



Slide 7 All five publications in the ITIL library deal with services outlined in the Service Level Management Agreement and supporting and protecting the IT network IT infrastructure. Three of the publications (Service Design, Service Operation, and Service Strategy) deal with Service Support managing the supporting IT network infrastructure. Service Support and Service Delivery contain a number of standard processes and activities which makes these three the most widely used publications in the library Slide 8 Service Desk is not a process but a function. The Service Desk's objective is to identify a single point of contact in the organization for customers and business partners to notify for service delivery support. The ITIL framework provides guidance implementing a Service Desk (Help Desk) to support the production environment by providing a direct communication line between the customer and business units producing the desired need of the customer or business partner. Slide 9 Incident Management is a Service Support process. The Incident Management process goal is to restore the production environment back to its original state as quickly as possible and minimize any further malicious activity or anomalies that could impact business operations. Incidents and breaches can compromise the integrity and security of both the organization providing services and its customers' information if stored onsite. The Incident Management process ensures the documentation of detailed procedures to ensure the timely and effective response to identify, isolate, correct and resolve incidents to minimize the compromise and/or disclosure of information and protect the services to the customers or business partners. Slide 10 Incident handling procedures must include the following criteria, for all identified types of incidents: Assessment Procedure Evidence Collection Procedure Containment Procedure Incident Notification Procedure Incident Recovery Procedure Slide 11 The first line of defense within an organization is the Service Desk which receives the first call or query of an incident and follows predefined steps to document and possibly isolate the incident prior to notifying the Computer Security Incident Management Team (CSIRT). The Service Desk has the Incident Management procedures outlining the classification of incidents and what actions are to be followed when the query is received. The Computer Security Incident Management Team takes over all activities and processes to resolve the incident and reports it to senior management. Some incidents are properly resolved by the Service Desk but still must be reported to the Computer Security Incident Management Team. Slide 12 Problem Management is a Service Support process. The process of Problem Management is getting to the underlying cause of the incidents identified by the Service Desk. Problem Management is proactive trying to correct problems in the current state and prevent them from the future state. Slide 13 It is important that you understand the difference between Problem Management and Incident Management. Problem Management analysis deals with analyzing down to the root of the problem so that improvements could be made to prevent any future occurrences. Incident Management deals with restoring the service or system so that normal operations can resume as soon as possible and



does not take into account the root cause. Slide 14 Change Management is a Service Support process. The Change Management process ensures that a structured approach is used for all changes in the organization. Change Management protects the integrity of the data in the IT environment by minimizing the impact of change related incidents through detailed integration testing in a test environment. The Change Management process is defined in the Change Management policy and detailed steps are documented in the Change Management procedures. Slide 15 Through changes continual improvement is made to the day-to-day operations resulting in improved quality of service to the customer or business partner. It is imperative that no changes are allowed to be implemented that have not been carefully considered, budgeted, planned and tested. The Change Management process is associated with changes that are identified in the Configuration Management process and Release Management process. Slide 16 Release Management is a Service Support process. Release Management is properly executed through proper resource planning, procedures, and management. If these three components are managed properly the release will be distributed successfully with no impact on the production environment and customer service output. In order for Release Management to be effective a total view or holistic view of an IT service change is performed to identify any impact to the production environment and to ensure that all aspects of a release, technical and non-technical are considered together. Slide 17 The goal of Release Management is to protect the confidentiality, integrity, and availability of the production environment. Detailed procedures need to be documented to achieve this protection from the development of a release, from initial planning through implementation. Integration testing in a test environment separate from the production environment is performed to identify any impacts to operations before it is released to production. Release Management interfaces with Change Management and Configuration Management. Changes are identified and go through a formal Change Control process before it is released. Configuration Management can either initiate a change or implement a change to the production environment. Slide 18 Configuration Management is a Service Support process. To effectively manage information resources, initial or baseline configurations of the information resources must be established prior to deployment. The Configuration Management process controls, identifies, maintains, and verifies all the Configuration Items in the in the IT infrastructure. Configuration Management is an integral part of the ten ITIL processes because of the data and information it provides. Slide 19 The Configuration Management Database (CMDB) contains all the Configuration Items required for the effective running of each of the processes. Configuration Management is associated with Change Management and Release Management.



Configurations of information resources must be periodically reviewed to identify new vulnerabilities and security requirements and continuous improvement of IT services. Slide 20 Availability Management is a Service Delivery process. Availability Management is a process that optimizes the production environment activities and the services supporting the organization to successfully meet its mission objectives. Although the other nine ITIL processes interact with system availability the following three processes interact more to protect the confidentiality, integrity, and availability: Incident Management Problem Management Capacity Management Slide 21 Service Level Agreements are supported by availability of the IT organization to perform the activities and services and document the progress through the Service Level Management reporting process. Availability Management is supported by the function of the Service Desk Change Management process and Security Management process. Slide 22 Capacity Management is a Service Delivery process. The IT organization must configure the system with adequate capacity to fulfill the functional requirements to ensure it fulfills the requirements stated in the Service Level Agreement. Capacity Management enables an organization to manage information systems, applications and network resources by regular monitoring to ensure adequate capacity loading, system performance and efficiency. Slide 23 The goal of Capacity Management is to understand the capacity requirements of the business by conducting a Capacity Projection Analysis; taking into account new business and system requirements, current and projected usage trends, software or hardware changes, and potential business process changes. New applications or systems should be tested for capacity, peak loading and stress testing. They must demonstrate a level of performance and resilience, which meets or exceeds the technical and business needs and requirements of the organization, per the System Acceptance criteria established for that application or system. Slide 24 IT Service Continuity Management is a Service Delivery process. IT Service Continuity Management describes the process by which an IT organization manages continuity of operations through a combination of comprehensive assessment of business critical operations and threats, as well as a robust strategy of vigilance and monitoring. Continuity of the IT internal services and operations should be supported by a formal IT Service Continuity plan, to provide for temporary or extended relocation of services, personnel and equipment in the event of disasters, loss of critical support systems or other reasons for loss of service. Slide 25 The IT Service Continuity plan should be developed using a formal Risk Assessment process, identifying all business critical processes, including: systems, applications, services and operations;



as well as the information assets involved to include the potential threats to processes and their likelihood. Other ITIL processes interact with IT Service Continuity to ensure that sufficient financial, organizational, technical and environmental resources are made available to management in order to develop, maintain, test and implement (if necessary) the IT Service Continuity plan to ensure continuous customer support. Slide 26 The most common element of Service Level Management is the Service Level Agreement (SLA) identifying the services, all security and service controls, service definitions, agreed service levels and availability requirements with the customer or business partner Service level management concepts are applied to all deliveries of services to maintain and improve services to customers by implementing monitoring and reporting capabilities for continuing improvements. Service Level Management interacts with all of the ITIL processes within Service Management. Slide 27 The Financial Management process is an integral part to support an IT organization by reporting on the budget, IT accounting, and IT charging of internal and external customers. The Service Level Agreement is also supported by the Financial Management process providing pricing, cost, and charging of services. The accounting aspect of Financial Management can report metrics on which services are the most cost effective for the IT organization so that continual improvements can be made to support the Service Level Agreement. Slide 28 Service Strategy sits at the core of the lifecycle. It defines the value creating structure and integrity of service management that shapes strategic business strategies and direction, sets policies, reviews, process capabilities and process resources across the ITIL Service Lifecycle. Service Strategy prioritizes services and makes decisions on funding services that are working. Service Strategy directs the organization to make rationale decisions based on competitive analysis of their competitors. This Service Strategy analysis will allow the organization to set the overall strategic and operational direction of its services and its implementation strategies; and engage at any point on any level for issues related to services that may have a negative impact on the service output. Service Strategy introduces functions such as Marketing, Organization Development, Service Portfolio Management, Financial Management, and Strategic Risks. Slide 29 Service Strategy value is what the customer receives from the IT organization knowing that the organization has used multiple processes, resources and capabilities to produce a output that meets their expectations and is of the highest quality that could be produced. Service Strategy value is also seen through the interdependence between services such as Asset Management, strategies or objectives they support. Slide 30 Service Design ensures that services are aligned with current state and future state requirements to meet the organizations business strategy. Service Design also takes into perspective the implementation of new services or approved changes to existing services into the production environment.



Service Design provides guidance to the IT organization on developing and maintaining IT policies, procedures, standards, architectures, process capabilities, process resources, systems and documents to support IT services designed for a customer or business partner. Slide 31 Organizations need to take a holistic view when designing or developing a new application to take into account changes, design elements, impact on services, the management systems, tools, and metrics. Any significant change should require an assessment of the impact on Service Design to determine if the change should require Service Design processes and activities. Service Design processes and activities consist of Capacity Management, Availability Management, IT Service Continuity Management, Information Security Management and Supplier Management. Slide 32 To deliver more effective and efficient IT and business solutions the business objectives need to be based on quality, regulatory compliance, risk, and security requirements aligned to the business needs. Services need to be managed throughout their service lifecycle by ensuring the services are designed efficiently and effectively. All risks should be identified and mitigated or removed before services are moved into the production environment. If a risk cannot be moved or mitigated it should be documented as a residual risk which identifies that management has accepted the risk and is willing.erating with the risk. Slide 33 Design measurements and metrics need to be incorporated into the services to assess the effectiveness and efficiency of the design processes and their deliverables. Policies, procedures, and standards need to be documented and implemented to ensure the design of quality IT solutions to meet current and future business needs. To ensure quality IT service is proposed within the proposed design constraints continuous improvements need to be contributed in the test environment through integration testing and approved production environment. Slide 34 Service Design ensures continuous quality service to the business throughout each stage of the lifecycle. Business values of Service Design would include: The Service Catalog being viewed by a new customer to understand what IT services are available, costs, process flow and reporting on the status of services being produced to the customer Capacity Management reporting on resources hardware for current state and future state to meet Service Level Agreement objectives agreed upon with a customer or business partner. Slide 35 Availability Management providing reports on availability of the resources to perform the capabilities for customer output and the availability of the IT organization to meet customer demand and serviceability in supporting vital functions. Service Design includes a series of capabilities throughout the lifecycle to ensure that business continuity and disaster recovery plans are developed and maintained through proper testing, training



and maintenance. Slide 36 Service Transition provides guidance on delivering change to the service portfolio and through the service lifecycle. The goals and objectives focus on the broader, long-term change management role and release practices, so that risks, benefits, delivery mechanism and the ease of ongoing operations of service are considered. Service Transition provides guidance for an organization to transition its process activities into the production environment to include: Ensuring customer expectations have been set on implementing a new change into the production environment and the impact of the change to the customer and the services they currently are receiving are documented accordingly Ensuring there is no deviation from the Service Level Agreement with the customer Ensuring performance measures can be streamlined as services are transitioned into the production environment after formal acceptance Ensuring service requirements have been met and incorporating them into the production environment are within the requirement specifications and constraints identified Ensuring a risk analysis has been informed identifying risk and having the organization mitigate those risks prior to implementing the change into the production environment Slide 37 Service Transition objectives include: Minimizing Service Operations risk and the possibility of a Denial of Service or malicious activity to the production environment, current operations and service support. Ensuring training is provided to staff, knowledge transfer of change to staff, change is communicated throughout organization and to customers, and documentation regarding the change prior to incorporating change into the Service Operation production environment Ensuring that the Service Transition plans aligned with process activities and can be performed with process resources and documented in detail in a business project plan The success of Service Transition is the acceptance of the change and the smooth transition of the change into the Service Operation production environment and monitoring the change in the production environment to measure its effectiveness and efficiency and provide Continual Service Improvement if needed. Slide 38 Service Transition values to the business include: Staying one-step-ahead of competitors by being in a position to make any change based on new compliance requirements and market predictions and adhere to the change more quickly than their competitors Ensuring a high success rate of implementation by minimizing the downtime when moving the change from the test environment into the production environment Assurance that all regulatory compliance requirements are met on all changes prior to implementing the change into the production environment Assurance that the staff understands the change and its impact and supports the change resulting in higher productivity and customer satisfaction of their deliverables. Ensures that Asset Management tracking of cancellations, changes to maintenance contracts, hardware and software process activities are documented in procedures to streamline media being disposed of or de-commissioned Ensure that the impact of risk is well understood to include such things as service outages, minor disruptions or total re-work during integration testing and implementing the change into the production environment Slide 39



Service Operation ensures that the output of the activities are within the requirement specifications that are outlined in the Service Level Agreement with the customer or business partner. A customer may be internal or external. An internal example would be the Mainframe Group having a Service Level Agreement with the Print Shop to run batch processing reports for them. An external example would be to Service Desk to provide IT service support to multiple field entities. Service Operations achieves success by ensuring that all people, processes, and IT services are working within the requirements documented in the Service Level Agreement and the objectives identified to complete that service. Slide 40 Service Operation ensures that deliverables based on the Service Level Management agreement is delivered as promised during the Strategy and Design phases of the Service Lifecycle. It achieves this by ensuring that the people, processes and technology delivering IT Services are all working to the same set of objectives to deliver and support services. In monitoring day-to-day performance, reviewing metrics and analyzing daily operations an organization should be able to manage services more effectively and efficiently. Service Operation integrates with the following process of the ITIL Lifecycle: Application Management Change Management Operations Management Control processes and functions Scalable practices Measurement and control Slide 41 Service Operation is where it all comes together as a result of Service Strategy, Service Design, Service Transition and Continual Improvement processes and value is shown both to the organization and the to the customer or business partner. By adhering to procedures the IT organization can ensure that IT staff have taken the values from Service Strategy, Service Design, Service Transition and Continual Improvement and incorporated them into the process activities to bring value to the output and that value is delivered to the customer. Slide 42 Key processes and activities include: Event Management processes that may indicate there is an anomaly that may require an incident to be logged Maintaining an Incident Management tracking database for recording and managing incident information Ensuring all request are logged and tracked including approval authority to fulfill the request Ensuring access rights are assigned accordingly taking into account Least Privilege and Separation of Duties to mange the confidentiality, availability, and integrity of data and intellectual property Identify problems, isolate problems, prevent problems, investigate problems, and eliminate problems through effective Problem Management process activities and procedures to minimize any Denial of Service or disruptions to the production environment. Slide 43 Additional process activities such as monitoring and control, auditing, capacity management, database queries, directory services, facility physical security and the data center operations provide assurance that value is constantly being reviewed to enhance improvement and that the output being delivered to the customer meets their expectations. Slide 44



An IT organization needs to be proactive during their process activities as opposed to a reactive response to a short or long term crisis. ITIL provides guidance to an organization on how to incorporate the ten process areas into their operations to deliver consistently and provide repeatable process activities as part of their service and strive to identify and implement continual improvements for quality assurance. Each Service Level Achievement should be reviewed and analyzed for continual improvement ensuring applicable quality management methods are used to support continual improvement activities The IT organization needs to ensure that they convey to the staff that everyone is responsible to improve the efficiency and effectiveness of lifecycle processes by suggesting recommendations on how they can improve opportunities in each lifecycle phase to optimize services also deal with issues pertaining to retiring the service. Slide 45 IT organizations are not always measured on the revenue that they generate but must demonstrate the value they bring to the organization in terms of service. This must happen as the IT organization continues to suffer cost reductions in services while dealing with increase IT service requests from customers or business partners. The value to the business will be identified through continuous monitoring and metrics by the IT department. For example, when an IT department makes a change to the production environment it can than be measured against the before state and the current state to see the difference in metrics and the percentage of improvement in efficiency and effectiveness. Slide 46 The value to business is not always expressed in monetary terms. For example, the IT department implemented a change to update significant patches in the Window environment which resulted in fixing 23 software fixes reducing Help Desk tickets by 44%. The Help Desk reported that the change resulted in 250 less calls a quarter allowing them to reduce staff by 1 and reduce overtime to zero saving the IT Department $120,000 this year. Slide 47 The value to business may be also be measured by the Return on Investment (ROI). The IT Department can measure the benefit of the change by calculating what the amount was expended to achieve the results identified after the change was made to the production environment. For the above example, if the IT Department spent 40 man hours to develop, test, and implement the change at a cost of $22,000 and the Help Desk reported a saving to the IT Department of $120,000 it will result in $98,000 on the ROI. Slide 48 The Value of Investment can be measured on the above example when the Help Desk responds to incidents more quickly because of the reduction in calls which frees up staff to work on other projects resulting in increasing market conditions and positions.

Topic 2.2 Exercises

Exercise 1 Try identifying the various items of the ITIL Service Lifecycle.



© 2008 MindLeaders, Inc. All Rights Reserved.

Step Action

1 Draw a diagram of the components of the Service Lifecycle.

2 Use the list below to identify where your organization is in compliance with ITIL. Identify which elements your organization has implemented in the production environment. Do you think the other elements are critical to meeting customer service requirements? Service Desk Incident Management Problem Management Change Management Release Management Configuration Management Availability Management Capacity Management Agreement IT Service Continuity Management Service Level Management Financial Management for IT Services

3 List six functions that the Service Strategy component of the Service Lifecycle introduces.

4 List five processes and activities of the Service Design.

5 Describe what is considered a success in the Service Transition component of the Service Lifecycle.

6 List four of the processes that integrate with the Service Operation component of the Service Lifecycle.

7 Describe the difference between Return on Investments (ROI) and Value of Investments (VOI) as they relate to Continual Service Improvement and the Service Lifecycle.



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2 Service Lifecycle