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1 IT Service Management Trends and Challenges BCS Service Management Specialist Group 2009-11-30 Chris Finden-Browne IBM Distinguished Engineer Chair, SMSG [email protected] Good evening. This session is another chance to air a presentation first delivered earlier this year at the Swedish itSMF Conference. There’s a lot to cover, so let’s go straight to session objectives and agenda.

IT Service Management Trends and Challenges 2009-11-30 Service Management Trends and Challenges 5 A focus upon improved management practices is the key to improving productivity and

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1

IT Service Management Trends and Challenges

BCS Service Management Specialist Group2009-11-30

Chris Finden-BrowneIBM Distinguished Engineer

Chair, [email protected]

Good evening. This session is another chance to air a presentation first delivered earlier this year at the Swedish itSMF Conference. There’s a lot to cover, so let’s go straight to session objectives and agenda.

2

2009-11-30 Service Management Trends and Challenges 2

IntroductionObjectives

Review the factors shaping IT Service Management now and for the near futureProvoke ideas for the next phase of ITSM

Agenda1. Service Management Adoption Trends2. Impact of Financial Turmoil on ITSM3. Service Management Challenges and

Innovations

My objectives are twofold:• First, my aim is to identify, present and explore the directions of, and

influences on, ITSM.• Secondly, I hope to trigger and stimulate your own ideas on the next phase

of developments in Service Management.

[CLICK]My presentation is in three parts:1. Discuss SM adoption trends, nearly two years into the ITIL V3 era.2. Consider how the current financial turmoil is impacting those trends.3. Looking further ahead, the main section identifies four challenge areas and

reviews how SM needs to respond.

3

Service Management Adoption Trends

Stages in the Adoption of ITIL –Putting Theory into Practice

Including extracts from a 2008 survey in itSMF Asian chapters

1

Let’s start with a brief examination of ITIL adoption. In this section, I have borrowed some charts from a survey published in the second half of 2008 by itSMF Asian.

4

2009-11-30 Service Management Trends and Challenges 4

There is no single right way to go about adopting ITIL – but there are some common patterns

There is no single right way to adopt ITIL nor an ideal sequence to go throughThe right way for you will always depend on your starting point and the goals you are trying to achieveHowever we do see common patterns in the stages that many organisations go through:

Wave 1 – Service Support Wave 2 – Service DeliveryWave 3 – Service Design Wave 4 – Business Integration

Common Stages in the Adoption of ITIL

Here’s the management summary, if you like, because I believe that you will all be comfortable with the messages.

Each project circumstance will be different and will have an implementation journey with its own scope, timing and sequence. Nevertheless, the pattern we see – and of course it pre-dates ITIL V3 – is reasonably consistent. Using a mix of V2 and V3 terminology:

•Wave 1 focuses on Service Support, with Incident, Problem and Change in the lead and a Service Desk a clear outcome. Frequently, however, Problem Management is not followed up sufficiently, and so the cycle of removing and eliminating causes is not completed.•Wave 2 tackles Service Level Management and the monitoring and reporting aspects of supporting processes like Capacity and Availability. Additional aspects such as Continuity and Security are frequently covered.•Wave 3 brings more of a V3 focus. Service Catalogue is prominent here, and the aspects of Capacity, Availability, etc. related to the earlier Design stage of the lifecycle are now included.•Finally, Wave 4 is a more holistic linkage between Systems Management and Business Service Management, by using Event Management data to provide real-time views of service and even business process status and KPIs.

5

2009-11-30 Service Management Trends and Challenges 5

A focus upon improved management practices is the key to improving productivity and service quality

Source: London School of Economics – McKinsey survey and analysis of 100 companies in France, Germany, UK and US

Per cent Increase in Total Factor

Productivity

+ 8%

Intensity of IT Deployment

25th

per

cent

ile

and

belo

w75

th p

erce

ntile

an

d ab

ove

Man

agem

ent P

ract

ices

Sco

re

-

+

+

+ 20%

0% + 2%

25th percentile and below

75th percentile and above

Impact of Management Practices on Productivity

… while doing both yields highest increase

Improving management practices increases productivity more than investing in IT…

“IT expenditures have little impact on productivity unless they are accompanied by first rate management practices.Indeed, companies can significantly raise their productivity solely by improving the way they operate.”

– Stephen Dorgan and John Dowdy“When IT Lifts Productivity”

McKinsey Quarterly, 2004

This is an important chart to convey the key message that the way in which you adopt SM has a big influence on the benefit you achieve. This chart –which applies to all types of management practice, not just SM – requires some explanation. (Apologies for the small text – readable if you obtain the softcopy of this presentation.)The ‘x’ axis looks at the degree (‘intensity’) of the use of information technology to support the practice area. 100 companies were surveyed. The left half represents the lowest quartile (so the bottom 25) and the right half is the highest quartile. The bottom row shows that if you have a poor approach the benefit of implementing a tool is limited to a 2% productivity improvement.The ‘y’ axis measures the “management practice” score, again showing lowest quartile and highest quartile. So, improving the practices – from, for example, continual improvement – offers 4 times the potential productivity gain of “automating” existing sub-optimal process or practices. When management practice and IT deployment are both addressed, the greatest return – of the order of 20% - can be achieved.So, as this community has long known, we should be working on process, organisation, data and the SM tooling solution together, and not the tool in isolation.

6

2009-11-30 Service Management Trends and Challenges

6ititSMFSMF

Implementation of ITIL processes (Implemented or In Progress)

• The top 7 processes implemented or in progress include:

– ITIL v2 Service Support processes of Incident, Problem, and Change Management

– ITIL v2 Service Delivery processes of Service Level Management (including Service Reporting) and IT Service Continuity

– Security Management

• ITIL v2 processes of Configuration, Capacity, Release, Availability and Financial Management seem to be either a lower priority or less well understood.

• New ITIL v3 processes have low levels of implementation (as expected).

0 20 40 60 80 100

Incident ManagementInformation Security Management

Problem ManagementService Level Management

Change ManagementService Reporting

IT Service Continuity ManagementService Asset and Configuration Mgmt

Service MeasurementCapacity Management

Release and Deployment ManagementKnowledge Management

Access ManagementAvailability Management

Service Catalogue ManagementEvent ManagementRequest Fulfilment

Financial ManagementSupplier Management

Service Validation and TestingService Portfolio Management

Transition Planning and SupportEvaluation

Strategy GenerationDemand Management

Fully implemented Partially implemented Project in progress

itSMF Asian Region Survey 2008 Results

Now, a few charts from the itSMF Asia survey. They ARE detailed, so let me summarise some key data points to support the management summary.First, a look at SM disciplines implemented or already underway.

•3 of the top 5 processes are incident, problem, change.•Not surprisingly, Security comes very high. It can be considered as an honorary ‘V2 Service delivery’ process.•It is joined in the top 7 by Service Level Management/Service Reporting and Service Continuity Management.•At the other end, newer processes from ITIL V3 – such as Service Portfolio and Demand Management – have lower penetration.

(Link to next chart)When already implemented disciplines are removed, the forward-looking picture is somewhat different.We do this by removing the light blue and the purple sections of the bars above.

7

2009-11-30 Service Management Trends and Challenges

7ititSMFSMF

Implementation of ITIL processes (In Progress)

• In the top 9 most common processes currently being implemented, there are a number of processes related to managing the Business/IT relationship:

– This includes Portfolio Mgmt., Catalogue Mgmt., SLM, Service Reporting, Financial Mgmt and Strategy Generation

• In addition, there is a strong emphasis on Knowledge Management, Security and IT Service Continuity

2525

2019

1818

171616

1514141414

1313131313

1212

1010

98

0 10 20 30

Knowledge ManagementService Portfolio Management

Financial ManagementInformation Security ManagementIT Service Continuity Management

Service Catalogue ManagementStrategy Generation

Service Level ManagementService Reporting

Service Asset and Configuration MgmtChange ManagementService Measurement

Release and Deployment ManagementSupplier ManagementIncident ManagementProblem Management

Availability ManagementEvent ManagementRequest Fulfilment

Access ManagementDemand ManagementCapacity Management

Service Validation and TestingEvaluation

Transition Planning and Support

itSMF Asian Region Survey 2008 Results

First, Security and Service Continuity remain focus items (#4 and #5)

Secondly, Knowledge Management – which we all now understand to be a key enabler – comes to the fore.

Finally, aspects of managing the Business/IT relationship show the greatest change.

•Portfolio, Catalogue, SLM and Reporting, Financial Management, and Strategy Generation are all in the top 9.

8

2009-11-30 Service Management Trends and Challenges

8ititSMFSMF

ITSM program / project benefits

94162633813.57Reduced cost of IT services95162427723.59Too early to recognize benefits94133928313.71Improved IT resource utilization94144420413.80Improved business to IT alignment94184221313.86Improved IT staff productivity

94214317513.90Improved incident/event/request response; resolution

94234216423.92Improved IT service reliability (fewer failures in prod. env.)

93214613413.96Improved management of change requests (timeliness and quality)

94244315413.98Delivery of IT services in accordance with agreed service levels

94313515314.08Improved customer satisfaction

Response Count54321

Rating AverageBenefits

Top 5 Benefits

3.8 3.9 4 4.1

Improved customer satisfaction

Delivery of IT services in accordance with agreedservice levels

Improved management of change requests(timeliness and quality)

Improved IT service reliability (fewer failures inprod. env.)

Improved incident/event/request response;resolution

• The top benefit is improved customer satisfaction (31 respondents). This is in line with the top driver, which was to “Improve the quality and efficiency of IT services”.

• Other top benefits include delivery of IT Services in accordance with agreed service levels, improved management of change requests, improved IT service reliability and improved incident resolution.

• Reduced cost of IT services was the lowest prioritized benefit

itSMF Asian Region Survey 2008 Results

[CHART HAS BUILD]Why is this work done? What drives this investment?[CLICK]The top benefit “Improved Customer Satisfaction” can be linked to the top driver – a chart not included here – of “Improve the Quality and Efficiency of IT Services.”Note that ‘top’ and ‘bottom’ rating is a relative one – if you look closely at the scale used you’ll see quite a narrow absolute gap.[CLICK]However, the benefit “Reduced cost of IT services” has the lowest rating. This reflects my personal experience that the efficiency driver just mentioned has usually led to higher responsiveness and/or doing more with the same resources rather than to direct cost cuts.The recent (or current?) global financial turmoil has occurred since this survey – what is its impact?

9

Impact of Financial Turmoil on ITSM

Survey on the effect upon

service management plans

110 US IT Organisations, December 2008-January 2009

2

In this section I will very briefly present some extracts from an IBM survey of 110 US organisations over the last year end.

10

2009-11-30 Service Management Trends and Challenges 10

5%9%

86%

Significantly increaseSignificantly decrease

Slight change or remain flat

Expect to have more than enough budget

Expect to have just enough budget

Will have to reprioritize

Many projectswill be deferred

9%

21%

46%

24%Projects are being prioritized to meet strained budgets

Expected change in 2009 budget in comparison to 2008

Which of the following best characterizes your total external IT budget in the next 12 months?

Source: IBM Market Intelligence, Service Management In an Uncertain Economy, January 2009.

Flat budgets and changing business requirements are causing most IT organizations to reprioritize

There are two main items here:•The LH pie chart shows most IT budgets (86%) as having little or no change. Of the rest, the number with significant cuts is 2 times those with significant increase.•The RH pie shows the impact on IT budget priorities. The orange and blue segments – deferring or replanning projects – added together are 70% of the total.

The survey shows that the impact – on budgets, timing, scope – depends upon the type of project being put forward.ADDITIONAL NOTES:Significant new business challengesIT - generally flat budget - 86% of IT budgets are the same or have slight increases or decreases. 9% have a significant decrease and 5% have a significant increase. A slight skew towards slight decline overall. Since no one is average individually – you might be different – but this seems to be the overall pattern.

Business to IT – ok IT – you have a relatively flat budget because we need you to help the business succeed. In the past, approaches might have been “IT cut everything across the board. Today – Business activities are dependant on the quality of IT services and it is a business priority to maintain investment in IT even in the midst of significant economic downturn and new business challenges.

CIO challenge – with a flat budget and new business priorities – re prioritizing is the first action. Some things will not be optional. So after we work through what is not optional, given the flat budget – we have a limited investment to deal with new challenges. Some existing plans will be cut, some will be maintained and their maybe some new things we did not plan before.

Background:Gartner - Instead, 2009 is looking more like a ham and cheese sandwich — appealing or lousy, depending on the quality of the meat and cheese, but with room for little flourishes like hot mustard and a pickle on the side. The good news? It isn’t bread and water.How IT can help the company improve business operational efficiency and reduce business operational costs greater than what theywould get by cutting the IT department by 10%

The Gartner 2009 CIO Study identifies the same priorities we are seeing (summary, paraphrase)•IT contribution to business process improvements through the quality and reliability of IT services•Reducing enterprise costs through improved quality and reliability of IT services•Improve enterprise workforce effectiveness through improved quality and reliability of IT services•IT to support attracting and retaining new customers through the quality and reliability of IT services•Technology priority – realize more value from existing assets. •Focus on improving workforce effectiveness of sales and operational performance within regulatory and financial reporting requirements•Minimize, standardize, consolidate, rationalize, simplify vendors, technologies and configurations•Be resourceful in restructuring IT to raise productivity and agility, because the business will not reduce its demand for IT just because CIOs have fewer resources. •Modernize the technical infrastructure, as new technologies offer lower cost, use less energy, deliver better performance and provide greater capacity;

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2009-11-30 Service Management Trends and Challenges 11

Projects expanded/ newly initiated/continuedProjects cancelled/delayed

0% 20% 40% 60% 80% 100%

47%40%Reducing capital costs

15%80%Improving efficiency and reducing costs

11%76%Accelerating workforce productivity

21%45%Adapting to consolidations, layoffs and restructuring

29%42%Improving cash position

11%75%Improving access to and the leveraging of information

19%47%Changing business model

Increasing customer retention/loyalty

10%52%Changing mix of products and services

19%28%Adapting to a conservative customer credit environment

15%56%Improving asset management

10%30%Adapting to a conservative supplier credit environment

69%Improving sales 6%

37%Managing supply-chain risks 9%

68% 9%

Source: IBM Market Intelligence, Service Management In an Uncertain Economy, January 2009.

What impact are these business objectives/actions having on associated IT programs and projects?

Business priorities causing changes to IT programs and project plans

We now see efficiency improvement/cost reduction at the top of the list. This is pervasive across the whole business and not just IT. Each business case must be convincing to the Chief Financial Officer. Many, many organisations are reporting that project funding requests that must be referred to the CFO are now at much lower financial clip levels than previously. The top factors to be demonstrated are efficiency, cost reduction, productivity.

ADDITIONAL NOTES:Business efficiency, reduce business costs. Accelerate business workforce productivity, access to information and of course reduce capital expense.

Reduce capital expense – with the constraints we are facing that is clear.

We are being faced with what is primarily a business challenge. This is not an IT issue. Its not Y2K. This is a bushiness issue. We will be changing some things on the business side and we need improved business efficiency, improved business workforce productivity. We need better access to information to enable us to be more productive.

12

2009-11-30 Service Management Trends and Challenges 12

Projects continued, expanded or newly initiated

72%

66%

65%

65%

63%

61%

60%

59%

58%

57%

55%

53%

35%

27%

15%

27%

28%

23%

19%

15%

32%

23%

30%

30%

26%

23%

19%

15%

16%

21%

26%

10%

20%

15%

17%

39%

50%

8%

9%

13%

0% 20% 40% 60% 80% 100%

Security

Compliance

IT systems management

Service management

Server deployment/consolidation

Network changes and convergence

Virtualization

Business performance management

Desktop management

Enterprise mobility

Storage deployment/consolidation

Data center facilities

Energy efficiency

SOA/middleware

Projects cancelled or delayed No IT programs or projects

Current priorities for IT programs and projects

How has the current economic/business environment impacted projects in the following IT areas?

Source: IBM Market Intelligence, Service Management In an Uncertain Economy, January 2009.

15%

20%

Top priorities for IT project investments are now security, compliance and improved management

This chart shows the consequences on types of project. Security and Compliance are MUST DO’S, not optional. In more discretionary work, we see Systems Management and Service Management as key priority areas. Compared with previous economic downturns this reflects the reliance that the Business now has on its IT services – better management of those services has a direct impact on business activity.

ADDITIONAL NOTES:Security and compliance are MUST dos – not optional. Once we get past that, we need better management practices because we need IT services to enable better access to information and enable more productivity on the business side. We need IT to help the business workforce get more out of our existing resources and capabilities.

More than 6 out of 10 are moving down the path of some sort of service management project – shows that that service management projects have greater priority.

Systems management might get cut back, but service management is not. Overall – better management of IT is an investment that most businesses have at the top of the list of priorities. We need smarter management of the IT services and systems we rely on because the IT services enable the business activities to be productive – or they can actually hurt our productivity.

Technology investments are more about standardization, consolidation, rationalization – smarter approaches to the core technologies – network, server, storage, desktop and middleware - the emphasis is on standardization, rationalization and consolidation.

There is also a new focus on smarter devices, interconnected, instrumented and devices that enable mobile business workforces – all this technology change has to be managed – and it has to have a service orientation to the management. Its not just that the individual pieces of technology are working – but that overall the business workforce is more productive and better access to information to – IT needs to enable the business workforce to do its job. – Better, more reliable access to information and automation to allow people to focus on higher value activities.

SOA note – What we are seeing is that as SOA deployments are beginning that organizations are realizing they need service driven infrastructure planning and then the critical aspects of service management to ensure that the original objective of lower costs and more business agility are not stymied by reduction on operational service quality and spiking operational service costs. So fulfilling the promise of SOA ends with service management. It begins with new approaches in application designs driven by business needs, but ends with service management.

13

2009-11-30 Service Management Trends and Challenges 13

Percent selected (Note: Respondents could select multiple objectives.)

5%

9%

20%

22%

35%

37%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Other

Free up labor

Support a specific business function

Increase workforce productivity

Reduce/control costs

Improve quality or value

Business objectives for service management programs and projects that have been continued, expanded or newly initiated

What is the key business objective for the service management programs/projects you are continuing, expanding or initiating?

Source: IBM Market Intelligence, Service Management In an Uncertain Economy, January 2009.

Key business drivers for the service management projects that have been continued, expanded or newly initiated

The result is that reduction or control of costs now has nearly the same focus as improving quality (compare with the itSMF Asian survey). I suggest that this focus, for any business case, is always most compelling when tied to business, not IT, activity.Hence, we need better understanding of that business activity to be able to identify those impacts.ADDITIONAL NOTES:The business driver being handed to IT is to improve quality of IT services to improve business efficiency and cut business costs. It’s a new focus on optimizing the IT enabled business activity by improving the quality and reliability of IT services from a business workforce perspective. It is not about optimizing a particular IT system or technology platform. The need is to look at the business activity, the business service and optimize that. What we are experiencing is that the current levels of quality and reliability of IT services are negatively impacting business workforce productivity. So the result is that there is a current clear pattern of business asking IT to improve the quality and reliability of IT services.

Part of that will mean getting more efficient within IT but the overall driver is to have a positive impact on IT enabled business activities.

Aligning IT budget with business priorities means investing in •Quality and reliability of services

•Reducing overall business expenses and improving workforce productivity

14

2009-11-30 Service Management Trends and Challenges 14

Objective Priority projectsImprove thequality of ITservices

Event management and monitoringIncident, problem and service deskImprovements in governance of service managementService catalog and service requestsService level and availability

Reduce orcontrol costs

Chargeback and accountingAsset and configuration/change mgmtCapacity (and performance) management

Source: IBM Market Intelligence, Service Management In an Uncertain Economy, January 2009.

Common patterns for the service management projects that have been continued, expanded or newly initiated

What is the key business objective for the service management programs/projects you are continuing, expanding or initiating?

Final chart from this survey. Projects related to service quality follow the pattern described earlier in the first section. For costs reduction or control, projects with a more direct financial linkage emerge:•Understanding and managing real usage costs through chargeback and accounting•Tracking hardware and software assets operationally (and their usage via configuration management) so that existing resources can be better exploited.•More effective capacity management so that capital expenditures can be minimised by matching workloads to unused capacity.ADDITIONAL NOTES:Primary focus of the projects that have been continued, expanded or newly initiated is on improving the quality and reliability of IT services. There is also concern to ensure efficiency of IT activities.

The data gathered showed a clear pattern in these two types of projects.

Addressing the primary driver - improving the quality and reliability of IT services to support business workforce productivity resulted in these types of projects (chart):•Event and monitoring – avoiding green lights on , service down. Need to know what the business activity is, the configuration of the services and monitor them. •Event management – detect and resolve before people do – avoid the business workforce disruption in the first place when possible. This starts with better monitoring – what is the service configuration – we need to avoid green lights on service down conditions. So there is a dependency on new service configuration information to enable us to do this better. •Incident, problem, service desk – better response to service incidents – but with a new focus on getting the business workforce productive, rather than merely a technology orientation and restoring a server. We need to restore the service, but more importantly –get the business activity working. This is a mind set change.•Service catalog and requests – what are the services that matter the most to the business, communicating what they are in an understandable way and providing a foundation for actual service mgmt rather than a technology focused systems management. The challenge has been where do you start. Which requests are most important. The business issues right now and making it more clearwhich business functions are most dependant on IT services – and that is where to begin. •Service level and availability – what is the service and is the service available. New focus on the services – where in the past it has really been on systems and technology availability. Leading organizations are focusing on optimizing the IT enabled business services. Ensuring that the level of service provided matches the business need based on the business activity.

Addressing the cost control issue resulted in these types of projects. •Chargeback and accounting – cost and charge models for IT services- just knowing the cost of service is a leap forward in most shops. Understanding the service cost model and being able to measure costs is a focus area. •Asset – getting more from existing assets – This is a must do. The whole point of every business unit in the world is to provide value from the assets it has control of or access to through providers. That starts with managing the assets themselves and getting more from each one. But it now extends to more than just the asset lifecycle – but getting more value from each asset. This quickly turns to a service discussion. The connection from asset information to service information is configuration information. Configuration management tells you which assets are part of which service. So organizations are working to improve how well they manage the assets but also they need improved service configuration information to enable every service management capability to be effective. •Configuration – provides the information needed by all service management processes to be efficient and also to understand the configuration of the service that is being managed. Provides the information needed for IT people, tools and processes to be efficient•Capacity – smarter planning to reduce costs, consolidations

15

Service Management Challenges and

InnovationsClosing the Development-Operations Gap

Multiplicity of Service ProvidersIT/Non-IT Convergence

Technology Innovation and IT Delivery Models

Summary

3

I would now like to turn the focus onto Service Management as a subject in its own right, and review four topics:

1. Closing the Development-Operations Gap2. The Multiplicity of Service Providers3. Convergence of IT and non-IT4. Technology Innovations and their impact upon IT Delivery Models.Each of these provides challenges to Service Management and these

challenges drive its development and innovation.

16

2009-11-30 Service Management Trends and Challenges 16

Service Management: IT Services metamodel as a basis for viewing the challenges

Provides a high-level view of all the entities that need to be managed for effective IT Services Management

Service Provision

Service Offering

Organization Process Tools & Technology

Data & Information

External view of the available services appropriate to the needs of those buying

and selling the services

Internal view of available services appropriate to those who provide and

deliver the service

Describes the tasks, activities and processes needed to deliver IT

Service Management, and shows how they link together in specific flows

Describes thelocations, roles and

skills used to deliverservice

Describes the hardware and software tools and technologies used in the

delivery of service

Contains the entities for

the data and informationrequired to

supportIT Service

Management

An integration model for organizing IT service managementhttp://www.research.ibm.com/journal/sj/463/black.html

Before starting on these topics, I would like to introduce a simple framework that is useful for assessing these challenges.It decomposes Service Management into the six domains shown:•[CLICK] We split Service/Services into two domains. Service Offering provides the External view of the available services appropriate to the needs of those buying and selling the services•[CLICK] The Service Provider requires significantly more information on exactly how those services are delivered.•The other four domains contain the building blocks which provide the constituents of each service. [CLICK] Organisation covers roles, responsibilities and assignments, skills•[CLICK] Process contains activities and tasks for each chunk of work, together with an indication of inputs and outputs.•[CLICK] Tools and technology covers the specification, architecture and design of the tools used to carry out some or all of the Service Management work•[CLICK] Data and Information domain details the entities required to carry out the Service Management work for each service.The lower four domains equate to the ITIL V2 focus; V3 has brought “Services” more into prominence. You can think of everything below Service Offering as hidden to the Customer/User. Service Offering is the “what?” of services; Service Provision is the “how?”, configuring a combination of the enablers to deliver the services.The bottom right box contains live hyperlink to the paper where this model – a total of 38 entities within these six domains – is described.

17

2009-11-30 Service Management Trends and Challenges 17

Closing the Development-Operations Gap

Service Management penetration has long been held back by the “gap” between development and operations departments

Service Management has been too synonymous with OperationsWorking practices and tools have been incompatible

Have tooling advances enabled the gap to be narrowed?

3-1

I turn now to my first topic – a familiar one – the gap between development and operations. (I believe I am on safe ground here suggesting this…)Several issues come to mind. First, if you go back a few years it was likely that the Service management term automatically led to an association with Operations – it was seen as external to Applications Development/Maintenance (AD/M).Secondly, there have been (and still are) incompatibilities between the way these groups work. Development work is mostly project based – Operations work is more continuous production line. Two further simple examples:

•To Operations, configuration data is held in a CMDB whereas to Development the repository is in a CMVC tool, working at the module level.•A Release in development terms could become a shrink-wrapped box containing a CD whereas to Operations it is a unit of deployment.

In this section, I am going to suggest that tooling advances can be the trigger for narrowing this gap.

18

2009-11-30 Service Management Trends and Challenges 18

The lack of lifecycle integration between development and operations continues to drive costs up and operational service quality down

Quality service delivery depends on integration

Development View of IT Operations View of IT

Requirements

Analysis & Design

Implementation

Project Mgmt

Change Control

Documentation

Human Factors Test

PackagingArchitecture

Act Surprised

Installation

System Admin

Help Desk

Asset Mgmt

Capacity Planning

Deployment

Managing Changes

Availability Mgmt

Backup / Restore

IT Strategy

System Operation

Compliance Risk Mgmt Identity Mgmt

ContinuityFinancial Mgmt

Problem MgmtSecurity Mgmt

Development

Testing

Throw over Wall

The cartoon character view is something like this:•Development completes their work and, at the point of handover, Operations expresses surprise and shock at the operational implications•Operations feel that the developed material is “thrown over the wall”, giving them little or no time to prepare a robust operational environment.We all know – and ITIL V3 has done an excellent job here – that quality service requires integration across the lifecycle: not just from development to operations, but closing the loop with integration of operations into development phases. Increasingly, AD/M departments understand this but perhaps they need help to see real integration examples.

19

2009-11-30 Service Management Trends and Challenges 19

Integrated & Federated Data & Context

Integrated Development & Operational Tools

Integrated End-to-end Process Lifecycle & Governance

An Integrated Architectural View

OperationalModels, Data

&Stores

SoftwareModels, Data

&Stores

SoftwareDevelopmentProcesses

Service Delivery, Support & Operational

Processes

Improve time to develop, test & deploy, reduce operational risk , improve audit posture

DevelopmentTools

OperationalTools

Reduce cost & improve efficiency & accuracy of cross-domain tasks

Integrated Design/Transition Process Definition

Open APIs for Process Runtime Integration

Development Test Lab Management-Operational DeploymentDev’t Performance Tester-Live Monitoring

Dev’t Case Manager-Service Desk

Simplify deployment & reduce duplication and synchronization of data

Shared Context for Transformation, Reconciliation

& Federation

Single CMS as exemplar of single SKMS

I suggest that the key principle for this integration is that it does not mean “one way of working” or one tool, but follows the pattern of federation we see in the CMS and CMDBs. In other words, the principle is to recognise the differences and ensure that the points of connection interface properly.

So, as we generically look at the issue of integrating two or more established processes we need to understand where cross-unit awareness is needed, and then enable and implement it.

• The first step is to deal with terminology in order to communicate successfully, and then to enable the needed linkages.

• The architectural focus is to enable linkages between various data stores and supports key data interchange, rather than forcing centralized data consolidation and governance.

• Once terminology is common at the boundary, and artifact references are properly enabled, the tools can support role collaboration as each process requires.

• At this point the custom use of the process will dictate what data goes into which repository for the most optimal usage.

• Only after these things are in place and data redundancy has been reduced can reasonable federation take place.

This sounds rather abstract; I have two examples which indicate progress in achieving the round trip capability.

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2009-11-30 Service Management Trends and Challenges 20

Operations Development

Service Desk ToolDevelopment

Workbench

RequirementsControl

Operational Monitoring

SOA Application Manager

Trace problems from operations into development

Using open API linkage with development activity tracking products, operations tooling can create and track work items for the development organization

Helps in managing coordinated actions with development Data Centre

Incident and problem penetration in AD/M has often been limited by the requirement for the AD/M staff to work with the Service Desk tool. The main focus of the work for the AD/M staff is based on using their own workbench environment. If the error resolution plans for application problems can be set up in the Problem Management solution (usually the Service Desk) and then placed in a two-way update mode into the Development Workbench then an inhibitor to greater penetration will be removed.ADDITIONAL NOTES:When:- use this to create and maintain links between issues found in production and the fixes made in development to address them- use this to understand the status of problems which require development teams to provide fixesWhy:- it is very common for coordinated actions to be taken across development and operations. Linking respective work items increases efficiency of all collaborators- linking information can assist with problem analysis and troubleshooting of similar problems found by operations in the future.How:- background processes (tasks) are run which maintain synchronization of information between the Service Desk tool and the Development Workbench

21

2009-11-30 Service Management Trends and Challenges 21

Operations Development

Data Centre

Performance Test SuiteOperational Monitoring

SOA Application Manager

Development Test Quality

Control

Optimize application performance in production

Use real monitoring data from operations in application performance assessment, to understand resource capacity and optimize productivity

Re-using test scripts and monitoring data to validate applications for productionMinimizing risk by understanding performance characteristics prior to deployment Quickly diagnose and resolve problems in productionenvironments

Perhaps a better example of the benefits of this closed loop is seen in this example. Here, actual monitoring data, identified at a suitable development component level, is made available to and used in the Performance Test suite. It creates real end-user patterns so that you have an accurate workload model and enables focus on the critical business transactions.As a result, test cases – for performance issue resolution and for new releases – will be more accurate and realistic.

ADDITIONAL NOTES:Basic idea is to leverage your knowledge of what's going on in operations to influence how we look at the next release of the application.

• understanding real end user patterns to create an accurate workload model for future load tests

• identifying the critical business transactions that need to be the focus of test quality control

• improving the coverage of our testing based on typical issues in production

Basically help us understand what are the right things we should be looking at (across several dimensions) so we can apply the right focus and priorities and drive these as early as possible in the QA cycle to reduce risk. That becomes critical in today’s compressed QA and product delivery cycles.

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2009-11-30 Service Management Trends and Challenges 22

Closing the Development-Operations Gap

Progress across all of the enabling domains can lead to Development and Operations working together more effectively

Service Provision

Service Offering

Organization Process Tools & Technology

Data & Information

Thus, a “win-win” for Development and Operations can be created. By working on each of Process, [CLICK ONCE AND THE THREE YELLOW ARROWS APPEAR SUCCESSIVELY WITHIN A SECOND] Tools & Technology and Data & Information aspects we can enable [CLICK] the Organisation aspects to work together much more effectively.By making Service Management more relevant – that is, providing more value – we move nearer to the goal where Service management is a core competency of both parts of the organisation.

23

2009-11-30 Service Management Trends and Challenges 23

Multiplicity of Service Providers

It is now unusual for there to be a single provider for all IT services for a business

ITIL Service Strategy in ‘2.4 Principles of Service Management’ provides conceptual models of Customer (Service Consumer) : Service Provider relationshipsDraft revision of ISO/IEC 20000-1 adds a section “Governance of processes operated by other parties”

Effective operation of multiple service provider interfaces is now a Critical Success Factor

3-2

The second topic concerns the trend for Service Management to rely on multiple providers, where they are connected in a complex network of relationships; sometimes prime provider to secondary provider and sometimes peer to peer.The Service Strategy book in section 2.4 has valuable models of possible Customer (Consumer) to Provider relationships. It provides a conceptual start point or building block. However, that is as far as it goes.Interestingly (as at March 2009), the current draft update of ISO/IEC 20000-1 has a new section on “Governance of processes operated by other parties.”

24

2009-11-30 Service Management Trends and Challenges 24

Formalising a Service Integrator function helps mitigate complexity and improve performance

IT Operations

OLAs

Std. Interface

Integrator Function

Std. Interface

ITIL / CMMI / Cobit

Enterprise Business Units

Integrated Operations Environment Tools

Std. Interface

Enterprise

External Supplier

InternalAMD Service

Infrastr. Services

Localprocedures

Localprocedures

Std. Interface

Localprocedures

Service Desk

AA GG RREE

EEMM

EE

NNTT

SS

Integration

Localprocedures

ClientServices

Localprocedures

NetworkServices

Std. Interface

Localprocedures

Other ?…

Std. InterfaceStd. Interface

Localprocedures

Other AMDOther AMD

Other AMDServices

Localprocedures

§ Standard process interfaces§ Standard integration interfaces§ Standard KPIs

ETC…

Localprocedures

Integrated Governance

This chart – and apologies for its complexity – indicates one model laying out multiple provider relationships.The lower verticals represent a range of different pieces of the overall service, such as AD/M, Service Desk, Network Services, Infrastructure Services. Providers can be internal and external.This particular model suggests that there should be a focal point Integrator Function – again internal or external. Guided by a range of best practices –not just ITIL but also CMMI and CobiT, depending upon scope – the Integrator drives the OLAs, standard processes and other interfaces, and a system of standard and shared key performance indicators as the “nerve system”.

ADDITIONAL NOTES:PrinciplesClear internal and external accountability Industry standards for cross-party interfaces Operating Level Agreements to drive cooperation around end to end performanceA recognised Integrator role accountable for end to end performance

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2009-11-30 Service Management Trends and Challenges 25

Application Development – internal or external – is a Service Provider

Service Provision

Service Offering

Organization Process Tools & Technology

Data & Information

Service ProvisionService Provision

Service OfferingService Offering

Organization Process Tools & Technology

Data & InformationOrganizationOrganization ProcessProcess Tools &

TechnologyTools &

TechnologyData &

InformationData &

Information

Service Provision

Service Offering

Organization Process Tools & Technology

Data & Information

Service ProvisionService Provision

Service OfferingService Offering

Organization Process Tools & Technology

Data & InformationOrganizationOrganization ProcessProcess Tools &

TechnologyTools &

TechnologyData &

InformationData &

Information

ServiceIntegrator

ApplicationDevelopment

Customer

Customer:ProviderBoundary

Customer:ProviderBoundary

Each interface between Integrator and Service Provider requires more than Processes. It needs to cover all the domains of this metamodel.The foundational linkage is the integration between the higher level Service Provision and the lower level Service Offering. Once this is clear, the linkages – integrations, common definitions, interface points, etc. – between the four service enablers can be set up. All four are needed – let’s look at two of them.

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2009-11-30 Service Management Trends and Challenges 26

A “Technology Framework” is needed to minimize technology interdependencies

ENTERPRISE SERVICE BUS“Universal Translator”Bridge Building Tool Kit – adaptors based, avoids point:point bridgesIntegration by Standards – all tools, e.g. XML over SOAP

Enhanced AgilityNew suppliers can be inserted quicklyTools can be replaced as neededSuppliers can change tools without affecting function

WORKFLOW

DASHBOARDS

Enterprise Services Bus

User Administration

Application & Asset

DiscoveryMonitoring & Alerting

CMDB

Integrated IT Service Catalog

Service Management

Operational Reporting

Business IT -Visualization

SiloCMDBCMDB

Integrated Operations Environment

Silo

Federated

First, tools and technology.Here, the emergence of the Enterprise Service Bus, XML and the SOAP protocols provides a standard approach for sharing management information across responsibility boundaries. As an example, Monitoring and Alerting from the Infrastructure Services provider can feed the Business Visualisation dashboard, perhaps an Integrator responsibility. So, there is a need for us to apply SOA principles to Service Management.And – just like SOA in general – this depends on data definitions. We need to ask ourselves: “What progress have we made in the explicit data definitions for an object such as ‘change request’?”

27

2009-11-30 Service Management Trends and Challenges 27

IT BusinessManagement

IT Governance

IT DevelopmentIT Operations

The four domains of IT management are the rows of the ITSM adoption model

IT BusinessManagement

IT DevelopmentIT Operations

Business DrivenDevelopment

Business-IT Alignment

IT ServiceManagement

ITGovernance

Business

Business Processes

Similarly, process interdependencies must be resolved

See http://smsg.bcs.org/2009-02-23.php

The second example returns to the ITIL/CMMI/CobiT linkage.The backdrop on this chart is a simple representation of the full scope of IT Management, including its interface to the business it serves.[CLICK] We know that ITIL V3 has significantly expanded its scope – in fact, the arrows shown really extend further than shown – but we also know that it does not cover all activities. [CLICK] Here is a selection of the other frameworks that we need to work with. Briefly, they are:•CMMI provides guidance on software and system development•CobiT (from ISACA/IT Governance Institute) has origins from an audit perspective but now provides a broad basis for IT governance•TOGAF – The Open Group’s Architecture Framework – is a well established approach for enterprise architecture•ValIT is a more recent framework from the IT Governance Institute which assists the board and executive management in understanding and carrying out their roles related to IT-enabled business investments.•The central red ‘target’ icon is from the Open Compliance and Ethics Group. The OCEG (pronounced Oh-Seg) ‘Red Book’ covers risk management as well as compliance and ethics.•Finally, the somewhat strangely named e-Sourcing Capability Guide from the IT Services Qualification Center at Carnegie-Mellon provides best practices at several capability levels for both the service provider and the client in a (services) sourcing agreement.The link at the bottom gives access to a presentation for the British Computer Society which reviews each of these. Most are available free of charge – ITIL is the primary exception – and the presentation gives access details.[CLICK] We also need to remember our main reason for existence – linkage to the business. Here are two differing examples:•eTOM – the Enhanced Telecommunications Operations Map, from the Telecommunications Management Forum, was established to deliver a business process model or framework for use by service providers and others within the telecommunications and related sectors of industry.•BASEL II – the new Basel Capital Accord was introduced in 2004 by the Basel Committee of the Bank of International Settlements to describe a more comprehensive measure and minimum standard for capital adequacy in the banking system.

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2009-11-30 Service Management Trends and Challenges 28

Multiplicity of Service Providers

RequirementsThe ‘Service’ topic needs to mature

Definitions, descriptions, catalog formats and entries, measurements

Federated-but-integrated services enabled byCommon Information definitionsStandard tool interfacesClear agreement on process interface points

“Handovers”

Service Provision

Service Offering

Organization Process Tools & Technology

Data & Information

Service ProvisionService Provision

Service OfferingService Offering

Organization Process Tools & Technology

Data & InformationOrganizationOrganization ProcessProcess Tools &

TechnologyTools &

TechnologyData &

InformationData &

Information

To summarise this topic …. There is much, much more work to be done!First, we need more mature – and standardised – treatments of both Service domains. Service descriptions, qualities of service, measurements and many other aspects of Services need to be established.Whilst tool interfaces are becoming well developed, we also need to work on common definitions of the Service Management information objects.And, we must also work on the Service Management interface points. I have an example of this in a few slides.

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2009-11-30 Service Management Trends and Challenges 29

IT/Non-IT Convergence

Technology innovations push the boundaries for Service Management further into the overall business

Managing non-IT (operational) assetsBroader population of ‘developers’

Integration across Business and ITSM process models has to keep pace

3-3

My third topic on challenges and innovations for SM is a reminder that the scope of SM continues to grow – it’s not static.

I have two examples:• The increasing range of operational, but usually classified as non-IT,

assets which must be managed.• The influence of Web 2.0 and similar developments on enabling non-IT

professionals to create functionalityThey both result in additional requirements on SM capabilities.

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2009-11-30 Service Management Trends and Challenges 30

Managing non-IT (operational) assets

Summary: Business applications will increasingly expect to be “Real World Aware”, absorbing instantaneous information from, and providing control and guidance of, physical world devices.

As more physical assets are IT enabled, their management requirements will change

Today we record transformer overloads on paper; tomorrow the transformer will tell us about it electronicallyAlerts arrive for differing causes from multiple source types:

shipments gone astray transformers nearing overloadexceptions in data centre IT resources

with challenges to data management, customisable consolesMany systems will be structured around real-time real-world data flows with strict latency requirements, for example for process-wide analysisImpacts on volume of alerts generated and processed, with new models required

UPS: “From a trucking company without technology to a technology company with trucks”

We are already seeing many examples where IT service management has a direct involvement in the operation of non-IT assets or instrumentation. Let’s take the American UPS as an example – the quote at the bottom from their CIO says it all. We probably all know about the real-time tracking of parcels, and that data being available to customers as well as to UPS staff. Now, there are often examples where the delivery assets – in this case, it could be trucks, for example – are also providing data. This data covers performance characteristics as well as alerts, such as impending maintenance being indicated.So, the event management system will be handling the variety of event types shown, and is now business event management rather than just IT event management.These types of asset often have limited data storage and so the timescale – the latency – for data capture is limited else data will be lost. (The next chart in the file – hidden in this slideshow – contains some estimates of very significant data volumes that could easily be generated.)So, a current rather than future thought: Service Management must cover not just IT and nonITassets, but also IT and nonIT *services* beyond ITIL, to the management of ALL the services that the customer is delivering.As you might imagine, this has impacts throughout the service lifecycle: new data, technology, involved organisations, tighter integration with business processes. We’ll return to the business processes after the second example.ADDITIONAL NOTES:“non-IT” aka “operational”Extend IT management to other assets•“Cyber-physical business systems”, “The Internet of Things”•Electrical power transmission and distribution•Telephones, PDAs, other mobile devices•Lifecycle of critical manufactured components (aerospace, automotive…)•Many other industries: transport, military, manufacturing, health monitoring, retail, utilities(green), …•All need to be integrated into high-level (as well as resource-level) managementSecurity models must address threats across IT and physical assets / services•Consideration of operational as well as IT assets is key to risk management, compliance, security

31

2009-11-30 Service Management Trends and Challenges 31

Event /streamengine

100,000 vehicles • Engine temp / speed• Fuel / ammun• Systems • Location

30 sensors /vehicle100 bytes /sensor /20 secsActive fleet 1GB/min300 msgs /sec

Critical immediate risks 1KB/min

30 day maintenance data15 TB

1 GB/min

Mission plan/ safety info All commandcenters< 1 sec

Optimal maint-enance plan< 10 secs

30 day data = 15 TB

Example: Condition based Fleet management end to end scenario

Very high-rate dataflows from the physical worldStrong latency requirements: <1 second to alert command center when a vehicle is unavailableNew requirements on management: deployment (from end-sensors to analysis backends), monitoring, time-critical PD and responseNew end-to-end models of real-world aware systems, to unify design, development, QoS definition, runtime monitoring and control, entire lifecycleAlso applicable to mobile networks, many other kinds of devices

[HIDDEN CHARTS]

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2009-11-30 Service Management Trends and Challenges 32

Broader population of ‘developers’

Summary: Web 2.0 and 3D-internet technologies are changing the way that users interact with systems, raising user expectations and offering new ways of capturing and leveraging community knowledge

Web 2.0 and related technologies, including:rich internet applications based on AJAX, DHTML, Flash, etcstandards-based syndication feedsweblogs and collaborative tagging (“folksonomies”)widgetised customizable user interfacesImmersive virtual environments (“3D Internet”)

are emerging as important new parts of the internet landscape

personalization -- publication -- collaboration

mashupsQEDWiki

taggingfeedsvirtual worlds

blogswidgetsrating

In this example, the growth of capabilities like collaboration, wikis & blogs, virtual worlds and widgets (like the Google maps API) and the growing sophistication of non-IT staff means that there will be many developments around the edges of the managed set of applications and services. When the business comes to rely on them – and all previous waves of enabling users have followed this pattern – then the business will require formal quality of service and other service management support.

33

2009-11-30 Service Management Trends and Challenges 33

eTOM 8.0 now has a bridge between its Telco process model and ITIL

eTOM Release 8.0 Business Process Framework for Enterprise Management

Stakeholder & Ext. Relations Management

Community Relations

Management

Corporate Comms & Image Mgt

ShareholderRelations

Management

Regulatory Management

Legal Management

Information Security

Management

Enterprise Risk

Management

Security Management

Business Continuity

Management

Fraud Management

Insurance Management

Audit Management

Revenue Assurance

Management

Problem Management

www.tmforum.org

Business Development

Strategic Business Planning

Enterprise Architecture Management

GroupEnterprise

Management

Strategic & EnterprisePlanning

Release & Deployment Management

Change Management

Enterprise EffectivenessManagement

Knowledge & Research

Management

Knowledge Management

ResearchManagement

Technology Scanning

Service Catalogue

Management

Service Level Management

Availability Management

Capacity Management

Enterprise Quality

Management

Process Management

& Support

Enterprise Performance Assessment

Facilities Management

& Support

Event Management

Incident Management

Request Fulfillment

Program& Project

Management

Continual Service

Improvement

AssetManagement

Service/Asset Configuration Management

Financial Management

Organization Development

HR Policies& Practices

Workforce Strategy

Workforce Development

Human Resources

Management

Financial & Asset

Management

ProcurementManagement

Employee& Labor

Relations MgtBoard &

Shares/Secur.Management

Service Continuity

Management

Red = ITIL Processes

The leading example of IT and non-IT integration – and the underlying work effort needed to support it – comes from eTOM.Version 8.0, released in late 2008, now has clear inclusion of some ITIL processes. Shown here is one of the three main sections of the processes for the Telco business. This part – Enterprise Management – collects together the underlying processes for the two primary areas of Business Support and Operational Support. Here, rather than create their own version of Change, Incident and so on, the latest eTOM model directly plugs in the ITIL equivalent, with all the detailed text behind it in the formal ITIL texts.Work like this will be needed in other industry areas.The Telco industry is providing a signpost for us in another way: it has a formal data model as a peer asset alongside the process model.

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2009-11-30 Service Management Trends and Challenges 34

Service Provision

Service Offering

Organization Process Tools & Technology

Data & Information

Service ProvisionService Provision

Service OfferingService Offering

Organization Process Tools & Technology

Data & InformationOrganizationOrganization ProcessProcess Tools &

TechnologyTools &

TechnologyData &

InformationData &

Information

Service Provision

Service Offering

Organization Process Tools & Technology

Data & Information

Service ProvisionService Provision

Service OfferingService Offering

Organization Process Tools & Technology

Data & InformationOrganizationOrganization ProcessProcess Tools &

TechnologyTools &

TechnologyData &

InformationData &

Information

RequirementsGreater focus on ‘embedded IT services’than on ‘enabling IT services’ (*)Service Management Architecture as a fully-fledged contributor to Enterprise ArchitectureApproaches for systems and service management of new development capabilities

IT/Non-IT Convergence

Service Provision

Service Offering

Organization Process Tools & Technology

Data & Information

Service ProvisionService Provision

Service OfferingService Offering

Organization Process Tools & Technology

Data & InformationOrganizationOrganization ProcessProcess Tools &

TechnologyTools &

TechnologyData &

InformationData &

Information

(*) Figure 2.8 Encapsulation based on separation of concerns and modularity – ITIL Service Strategy

ITServiceProvider

Service Provision

Service Offering

Organization Process Tools & Technology

Data & Information

Service ProvisionService Provision

Service OfferingService Offering

Organization Process Tools & Technology

Data & InformationOrganizationOrganization ProcessProcess Tools &

TechnologyTools &

TechnologyData &

InformationData &

Information

BusinessServiceProvider

So, a short summary of key points on this topic.1. In the past, we have put our attention on familiar services like Service Desk

and Deskside Support. I suggest the balance is now changing to what the Service Strategy book calls ‘embedded IT services’ and a better understanding of how these contribute to the business service.

2. [CLICK] The eTOM example highlights that we need more formal work on the architecture of Service Management – not just process as we already have, but Service Management Information Architecture and the other domains too. The collective Service Management architecture needs to sit alongside all the other architecture definitions – business process, information, application, infrastructure.

3. [CLICK] Lastly, let’s not forget the need for new approaches for managing the lifecycle of new developments related to Web 2.0 and similar.

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2009-11-30 Service Management Trends and Challenges 35

Technology Innovation and IT Delivery Models

The high pace of innovation in the base IT delivery technology continues through:

VirtualisationCloud Computing

Changes in delivery models (to exploit the innovations) will inevitably impact Service Management

3-4

My last topic brings us back to our home turf – the core areas around service delivery based on technology.

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2009-11-30 Service Management Trends and Challenges 36

Virtualisation is disruptive to Systems & Service Management

Decouple customer from the physical infrastructure

Metering, rating and billing across dynamic infrastructures?

Single ‘data centre’ as many logical ones

Future

Dynamic migration of workloads, dataConfiguration management of

physical/virtual relationships?

Multiple systems appear as one

Present

Workload cannot be migrated dynamically

Maximum capacity of a virtual system?

Server partitioning –single system as many

PastService ManagementVirtualisation

Virtualisation itself is not new, and even the current wave is already many years old. We can confidently say that it is set to continue.But I suggest there are many challenges in managing it that we have not yet addressed. Here are three examples:•Suppose a single physical server now supports four logical servers. What is the maximum capacity we can assume (for example for SLA purposes) for each logical server?

•Is it 100% of the physical server?•Is it 25%

•Today, we can move images and workloads dynamically across resource pools. First, we now have a complex mix of physical and logical relationships for our configuration. More significantly, most CMDBs do not contain a real-time reflection of the relationships – they rely on periodic scans. When an incident occurs, can we be confident we have an accurate picture of the configuration at the time of interest?•In the future, we will apply virtualisation to the full data centre mix of compute, storage and network. Different customers, on different commercial cntracts, will share the physical resources. Work will sometimes be performed on one type of server and then on a different type. We will need to reach and exceed the capabilities of the telcos in order to be successful in collecting usage data (metering), applying the correct price card (rating) and then billing each customer.

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2009-11-30 Service Management Trends and Challenges 37

Infrastructure as a Service

Platform as a Service

High VolumeTransactions

Software as a Service

Servers Networking Storage

Middleware

Collaboration

Business Processes

CRM/ERP/HRIndustry

Applications

Data Centre Fabric

Shared virtualised, dynamic provisioning

Database

Web 2.0 ApplicationRuntime

JavaRuntime

DevelopmentTooling

Cloud Computing – at whatever layer – depends on its ‘service’ packaging

Virtualisation is one of the primary enablers of the Cloud Computing approach.Cloud introduces many new aspects – here are a few:•Cloud Services can be offered at several layers. One provider will offer basic infrastructure resources – another will offer directly consumable end-user services such as e-mail or CRM or other primary business applications.•In every case, there is a need for ‘Service’ packaging. Without standardisation of the Service domain, will it be easy or difficult for a consumer to compare service offers?

38

2009-11-30 Service Management Trends and Challenges 38

Management aspects of Cloud Services

Consumer ViewEnterprise consumers will use multiple different Cloud Services from multiple different providersHow will the Enterprise provide integrated Service Management?

Provider ViewEach Cloud Services supplier has multiple (internal or external) consumer customersNeed for security isolation of each customerMonitoring, control, problem determination for each customer from cross-customer data

A provider of a service layer could be the consumer of a

lower service layer

In managing Cloud, most likely alongside non-Cloud services, here are some considerations:•If you are the IT section of an enterprise, you will start to use external providers for new services or even existing services for cost or quality reasons. Yet, your users will still look to you to meet overall service commitments – it is not their concern how you have chosen to configure service supply. Will you be able to manage this mixture?•If you are a provider to multiple consumers – the so-called multi-tenant environment:

•It will be mandatory to demonstrate and operate strict security isolation. This will place stringent requirements on managementpractices across a wide range of processes•In other operational aspects, you will need to understand which data (for example, for problem diagnosis) is particular to each consumer. There will be cases when relevant data must be shared with the consumer as part of end-to-end investigations.

[CLICK] Remember also, that a provider at a higher level will often be a consumer of lower level services. Hence the multiple service provider scenario covered earlier is highly relevant here.

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2009-11-30 Service Management Trends and Challenges 39

Technology Innovation and IT Delivery Models

The Cloud Computing delivery model creates requirements

for multi-provider managementfor multi-consumer managementfor service-oriented BSS/OSS (similar to Telcos)based on a mature service management architecture/framework

BSS – Business Support SystemsOSS – Operations Support Systems

To summarise this fourth topic, I suggest we will need to develop approaches for all of the requirements above.

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2009-11-30 Service Management Trends and Challenges 40

Service Management Challenges and Innovations - Summary

We (ITSM) have an increasinglyimportant role to playOur main challenge areas are:

To express ‘Services’ at a maturity equal to and beyond today’s treatment of ‘Process’To design and deploy standards for SM InformationTo establish SM Architecture alongside the existing Enterprise Architecture disciplines

3-5

Let me briefly attempt to pull these threads into a coherent summary.As I think you will have appreciated, the underlying theme is that I see ITSM as a discipline which is growing in both scope and importance.We – the ITSM community – cannot rely on product developers to provide all the answers. To be successful, we must tackle and make progress on several priority areas:•How we express ‘Services’•Establishing standard Service Management information and data objects•Elevating SM Architecture alongside other Enterprise Architecture disciplines.

41

Questions?

… and Thank You