IT Service Management
CHAPTER 1: INTRODUCTION
IT Service Management
2 OUTLINE
Overview of ITSM
Foundation Concepts of ITSM
Information Technology Infrastructure Library (ITIL)
The basic concepts of Service Science, Management and
Engineering
IT Service Management
3 DISCUSSION POINTS
• Have you ever had experience managing IT Services?
• As Network Administrator, Database Administrator, Help desk …
• What are the major challenges in address your customers’ need?
• How do you manage requirements received from clients?
• What are services?
• What is IT?
• Are Managing IT vs IT Service Management the same, or different?
• What is IT Service Management?
• What does ITIL (Information Technology Infrastructure Library) mean?
IT Service Management
4 OVERVIEW OF ITSM
• Nowadays, Managing IT involves significantly more than
just managing the technology within IT
• Businesses are demanding more from IT services
• IT service management provides a distinct perspective
on managing IT
• Rather than simply managing Information Technology (IT),
IT Service Management involves organizing IT as a set of
services that are aligned to the business needs
IT Service Management
5 OVERVIEW OF ITSM…
• From the business perspective, IT does not provide what the business
needs(requires)
• Without IT’s involvement, understanding the business’s needs is
difficult, and consequently , those needs cannot be met
• The constant and continual advancement of technology leads to business
increasingly wanting more from IT
• In order to be competent (even to sustain) in business ,the support
of IT to the business is required (MUST)
• As IT organizations mature, they become better aligned with the
business and begin to consistently meet the business’s need
IT Service Management
6 OVERVIEW OF ITSM…
• Business doesn’t inherently want technology
• The business wants the service that is enabled by
technology
• Reading Assignment
• SIDEBAR: Services and the Dry Cleaner, page 26-29
IT Service Management
7 OVERVIEW OF ITSM…
• The services that business wants must be aligned to their
business desired outcomes in order to have any perceived
value to the business
• Services are focused on the value provided to the customer
• Services include the ability to achieve the business desired
outcomes but also the activities and processes that the
business doesn’t see that support a service
• These processes include the design processes, transition
processes, operational processes and improvement
processes to support that service
IT Service Management
8 OVERVIEW OF ITSM…
Discussion Point
• Is email service or application? Justify your answer
IT Service Management
9 OVERVIEW OF ITSM…
• For example, business does not really want e-mail.
• While every organization makes considerable use of e-mail, e-mail
is not a service, just an application.
• The ability to communicate within the organization, as well as
external to the organization, is the service the business
wants.
• Today, we just happen to provide this service through e-mail.
• Tomorrow, we may provide this service through some completely
different mechanism (such as telepathy)!
IT Service Management
10 DISCUSSION POINTS…
• What are Services?
• What are the characteristics of service?
IT Service Management
11 OVERVIEW OF ITSM…
• What are Services?
• A service is a means of delivering value to
customers by facilitating outcomes customers want
to achieve without the ownership of specific costs
and risks
IT Service Management
12 OVERVIEW OF ITSM…
• Specific characteristics of services:
• Services create value
• Services remove the risk of ownership from customers
• Services facilitate outcomes that customers want to achieve
• Services reduce the effect of constraints
• “a means of delivering value to customers by facilitating
outcomes customers want to achieve without the ownership of
specific costs and risks.”
IT Service Management
13 OVERVIEW OF ITSM…
• What is Service Management?
• “set of specialized organizational capabilities for providing
value to customers in the form of services.”
• Service management is the result of focusing an organization’s
capabilities and resources to produce value in the form of
services.
• This desired outcome should meet the business needs
• If appropriately focused and executed, value is created for the
business
IT Service Management
14 OVERVIEW OF ITSM…
• What is IT Service Management?
• is a collection of shared responsibilities, plus interrelated disciplines and
processes, that enable an organization to measure, control, and
ultimately manage the IT infrastructure to deliver high-quality, cost-
effective services to meet both short- and long-term business
requirements.
• This can involve supporting one or more business areas
• ranging from single-application access to
• a complex set of facilities spread across a number of differing
platforms
IT Service Management
15 OVERVIEW OF ITSM…
• What is IT Service Management?
• “is a discipline for managing information technology
systems, philosophically centered on the customer’s
perspective of IT’s contribution to the business.”
- Wikipedia
IT Service Management
16 OVERVIEW OF ITSM
• What is ITIL ?
• “ is a set of detailed practices for IT activities such as IT
service management and IT asset management that
focus on aligning IT services with the needs of business”
Wikipedia
• ITIL is a framework of best practices for providing many
different processes – the processes intersect and integrate
to provide IT Service Management as a whole
IT Service Management
17 OVERVIEW OF ITSM …
• ITSM - and ITIL, upon which it is based - are an integrated, process-
based, set of best practices to manage IT services.
• Whereas ITIL defines and documents the best practices, ITSM
employs them to meet unique customer requirements and
priorities
• There are two components to IT Service Management
• the agreed-upon process for providing IT services, and
• the ITSM tool in which that process is operationalized
IT Service Management
18 OVERVIEW OF ITSM…
IT Service Management
19 OVERVIEW OF ITSM…
IT Service Management
20 OVERVIEW OF ITSM …
• ITSM Goals
• Build credibility through operational excellence.
• Improved client experience through focus on the client
perspective
• Efficiency, with a goal of ability to redirect additional
resources to projects
• Job satisfaction for IT staff
IT Service Management
21 OVERVIEW OF ITSM …
Move From: To:
Chaos Order
Reactive Proactive
Unplanned Planned
Random Efforts Predictable quality
Best Efforts Optimization
IT Service Management
22 OVERVIEW OF ITSM …
WHERE WE STARTED
IT Service Management
23 WHERE WE ARE GOING
IT Service Management
24 OVERVIEW OF ITSM …
• From Geppetto Garcia, and his company. (page 8-13)
• What do you understand about the concepts of service
• How Geppetto Garcia’s integrated the concepts of service into the corporation’s IT
department
IT Service Management
25
THE BASIC CONCEPTS OF SERVICE
SCIENCE, MANAGEMENT AND
ENGINEERING
IT Service Management
26
HOLISTIC TRINITY OF SERVICES
SCIENCES:
MANAGEMENT, SOCIAL, AND
ENGINEERING SCIENCES
RICHARD C. LARSON
MASSACHUSETTS INSTITUTE OF TECHNOLOGY
IT Service Management
27 SERVICE SCIENCE
• Services industries comprise about 75% of the economy of
developed nations
• Requires a new type of engineer who focuses not on manufacturing
but on services.
• Such an engineer must be able to integrate 3 sciences -
management, social and engineering – into services systems
• Newly emerging services systems require such a 3-way holistic
analysis
IT Service Management
28
• Research conducted by MIT team shows the intersection of a ‘Venn
diagram’ whose overlapping circles represent traditional engineering,
management and social sciences
• Services system design and operation require attention to all three
circles of the Venn diagram
• Purely technocratic solutions are not adequate for services systems
• Since the research applying the full range of scientific methods to the
analysis and synthesis of services systems, labeled as science not only
social science but also management science and engineering science
IT Service Management
29 DEMAND MANAGEMENT FOR CRITICAL
INFRASTRUCTURES
• The case of ‘rush hours’ in infrastructure systems
• What an infrastructure systems are?
• Infrastructure systems are connected networks delivering
services and/or products from point to point along the
network
• They include transportation networks, telecommunication
networks, and utilities.
• Each is a fixed capacity system having marked time-of-day
and day-of-week demand patterns.
IT Service Management
30 DEMAND MANAGEMENT FOR CRITICAL
INFRASTRUCTURES…
• Usually, the statistics of demand, including hourly
patterns, are well known and often correlated with
outside factors such as weather (short term) and the
general economy (longer term)
IT Service Management
31 DEMAND MANAGEMENT FOR CRITICAL
INFRASTRUCTURES…
• An infrastructure system is difficult and expensive
to design and construct
• Once built, it can have a mean lifetime of 20 years
(telecommunications) to over 100 years (water)
• As populations grow and the economy improves,
increasingly large demands are being placed on
infrastructure systems
IT Service Management
32 DEMAND MANAGEMENT FOR CRITICAL
INFRASTRUCTURES…
• Eventually they must be upgraded with additional capacity.
• However, if capacity upgrades can be delayed, huge cost
savings are possible.
• One attempts to do this by ‘managing demands’ for
service away from peak periods, in essence by ‘shaving
the peaks’ and ‘filling in the valleys’ of demand
DYNAMIC PROVISIONING OF
SERVICES
• What is dynamic provisioning ?
• Dynamic Provisioning is a simplified way to explain a complex networked server
computing environment where server computing instances are provisioned or
deployed from a administrative console or client application by the server
administrator, network administrator, or any other enabled user
DYNAMIC PROVISIONING OF
SERVICES
• In traditional service delivery model, two common
problems :
• Underestimate system utilization which result in under
Loss Revenue
provision
Resources
Capacity
Demand
Resources
Capacity
1 2 3
Demand Loss Users
Resources
1 2 3 Capacity
Time (days)
Demand
1 2 3
DYNAMIC PROVISIONING OF SERVICES
• Overestimate system utilization which result in low utilization
Capacity
Resources
Unused resources
Demand
Time
• How to solve this problem ??
• Dynamically provision resources
DYNAMIC PROVISIONING OF SERVICES…
• Services should be provisioned dynamically
• Meet seasonal demand variations
• Meet demand variations between different industries
• Meet burst demand for some extraordinary events
Resources
Capacity
Resources
Capacity
Demand Demand
Time Time
IT Service Management
37 DEMAND MANAGEMENT FOR CRITICAL
INFRASTRUCTURES…
• Some current examples
• time-of-day congestion pricing for vehicles to go into city centers in Singapore and
London;
• for-profit ‘toll-ways’ adjacent to freeways;
• time-of-day pricing for electricity;
• time-of-day pricing for long distance telephone calls;
• use of revenue management in airlines to balance travel demands over the course of a
week and over the year;
• auction type bidding for some infrastructure services, with higher prices paid for
congestion periods.
IT Service Management
38 DEMAND MANAGEMENT FOR CRITICAL
INFRASTRUCTURES…
• Traditional engineering can be found everywhere in the
design and operation of critical networked infrastructure
• Where is the social science?
• It is in understanding the cost/benefit relationships that would
make users willing to defer services consumption at times of
peak demands
• often life style issues – when to travel or when to do the laundry
IT Service Management
39 DEMAND MANAGEMENT FOR CRITICAL
INFRASTRUCTURES…
• Where is the management?
• It is in the planning and managing of large
infrastructure capital investment projects
• the management of dynamic pricing and related
strategies for shaving peak demands and deferring
them to off-peak times
IT Service Management
40 DEMAND MANAGEMENT FOR CRITICAL
INFRASTRUCTURES…
• Engineering
• Electrical & Systems Engineering
• Management
• Planning large capital investment projects; maintaining systems
• Social Sciences
• Understanding cost/benefit relationships for users in order to shave peak demands
IT Service Management
41 SOME MORE CASES
• Voting in U.S. Presidential Elections
• Social Distancing in an Influenza Pandemic
• Hurricane Preparedness & Response
• Water Systems
• MIT LINC Teaching Initiative in the Middle East
• From Holistic Trinity of Services Sciences: Management, Social, and
Engineering Sciences . By Richard C. Larson