The ITIL Business CaseJuly 2007

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Introduction

• Structure– Not a presentation but interactive– Stop for discussion and questions after each

section

• Business Case Activities– Baseline Current Service Management– Define Future Service Delivery and Support– Plan ITIL Implementation– Estimate Benefits and Costs

• Production of the Business Case• Next Steps

Business Case Activities

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Baseline Current Service Management

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Baseline Current Service Management• Identify who will conduct the assessment

– Internal Staff– Use of an external assessor or specialist resource

• Conduct assessment– Gather documentation

• Procedures, Reports, Meeting minutes

– Initial assessment using source material & available documentation

– Confirm using Surveys/ Interviews / Workshops

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ISS4PS Alignment Catalogue

• Service Management section only– Identifies ideal to be achieved (unrealistic to

expect complete conformance)– Describes evidence that is required– For example question 1 asks

• Whether roles and responsibilities are defined for ITIL activities

• To provide job descriptions which align with ITIL responsibilities as evidence

• If this cannot be provided then it is recorded as a deficiency

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itSMF Self Assessment

• Download from http://www.itsmf.com/bestpractice/selfassessment.asp

• Simple questionnaire but more difficult to apply

• Identifies process maturity– Documentation & procedures must not only be

in place but used correctly

• Identify deficiencies

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Process maturity

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Maturity level Requirement

1 Acknowledgement of problems / issue but no procedures available. Prerequisites exist to support the procedure

1.5 Governance and management intent exists for the procedure

2 Procedure available which covers minimum set of activities

2.5 Procedure available which includes integration with other activities

3 Procedure available and repeatable which includes production of required output information

3.5 Working repeatable process includes adequate quality control

4 Adequate timely management information available

4.5 All external and internal interfaces with the process defined and working

5 Fully optimised process which meets customer needs

Impact Assessment

• Assess each deficiency noted– Consequence of deficiency e.g. additional

resource, increased risk, poor customer satisfaction

– Identify related deficiencies– Obtain examples of what has occurred in

operation– Identify tangible and intangible benefits of

rectification– Assess overall cost of rectification & difficulty

• High / Medium / Low

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Identify KPIs

• Establish basic KPIs – Number & Type of Incidents reported– Average Incident Resolution Time – How many unresolved / outstanding Incidents at

the end of a period– Number / type of changes raised / implemented– Number and impact of system outages– Customer satisfaction

• Measure initial KPI baseline then Periodic KPI measurement– Used to measure improvement

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Baseline Current Service Management• Break• Questions / discussion

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Define Future Delivery & Support

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Define Future Delivery & Support – Interim Goals• Long Term Programme not Short Term Fix• Set Measurable Interim Goals

• Illustrate specific achievements (may be small)• Limit desire for a perfect solution – initially aim at 80%• Measure using KPIs

• Generate visible business benefits in year 1• Obtain staff commitment• May require short term tactical approach

• Iterative approach – improve in year 2 and beyond– Build upon success

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Define Future Delivery & Support – Governance

• Define project organisation for the ITIL Implementation project– The Senior Responsible Owner (SRO)– The project manager– The main stakeholders– Key members of the project board– Key project staff including but not restricted to

provision of technical assurance

• Detailed ITIL roles and responsibilities - part of ITIL implementation

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Define Future Delivery & Support• Break• Questions / discussion

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Plan ITIL Implementation

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Plan ITIL Implementation – Triage• ITIL is descriptive not prescriptive

– Misses prioritisation

• Not cherry picking high priority processes– Define work to migrate to future system– Must consider dependencies

• Two basic approaches– Commence with Change Management, slimmed

down CM followed by Release Management– Stabilise via Service Desk/Incident/Problem

approach

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Plan ITIL Implementation – Triage

• Which approach is best ?– Sort list of deficiencies according to severity and

business benefit– Objective is to establish greatest benefit and

business ‘pain’

• Identify quick ‘wins’ as a separate exercise• Consider inter-related dependencies

– CM provides the basis for other disciplines– Build in interface requirements

• No overall winner – adopt Change /CM approach

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Plan ITIL Implementation – Single or multi process• Single process implementation

– Only one discipline at a time– Less resource over a longer period– Cannot deliver significant benefits quickly– More difficult to implement process

dependencies

• Multi process– Concurrent process implementation– Requires more resources, coordination and

planning– Improvements delivered quickly

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Plan ITIL Implementation – Single or multi process• Decision depends on

– The senior management commitment– Budget– Resource availability– The skills and knowledge within the

organisation– The culture and organisational structure– The tools and technology– The demands for 'business as usual‘

• CANNOT DO EVERYTHING ALL AT ONCE

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Plan ITIL Implementation – Single or multi process• Decision depends on

– The senior management commitment– Budget– Resource availability– The skills and knowledge within the

organisation– The culture and organisational structure– The tools and technology– The demands for 'business as usual‘

• CANNOT DO EVERYTHING ALL AT ONCE

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Plan ITIL Implementation – Software Support• Mandatory Requirement

– Total set of functionality to support best practice• No single tool

– CM Database• Central Data repository• Support & enable other disciplines• Single source of Asset Management data

– Service Desk • Interface to CMDB

– Event Management• Review current tools & confirm requirement

– Estimate £100K - £150K• Plan procurement & implementation

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Plan ITIL Implementation – Communication Strategy• Underpins successful ITIL Implementation

– Engage stakeholders, senior management & staff

– Communicate throughout– Include training

• ITIL• Specific

• Produce communications strategy and include activities in plan

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Plan ITIL Implementation- Implementation Plan 1• No Standard Plan but outline provided• State assumptions e.g.

– Dedicated skilled staff available– External Consultancy Support– Timescale estimates

• Identify checkpoints, major activities & dependencies– Then decompose– Bottom level in a Business Case must last no more than

6 months (preferably 2-3 months)• Automate early

– This will effect how procedures are implemented• Ensure communication tasks includedTHIS PROVIDES LOGICAL FLOW & IS NOT A PLAN YET

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Plan ITIL Implementation- Implementation Plan 2• Add Resources

– Initial Resourcing should represent what you would like– Add required external consultancy support– Should also be realistic– Don’t worry about overall timescales too much

• Expect a 3-4 year programme at least• Don’t attempt to compromise activity durations• If you make everything too stringent plan will fail !!

– Result should be recommended option• Do additional variants (options comparison)

– A minimal resourced plan (longest possible timescale)– A maximum resourced plan (shortest possible timescale)

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Plan ITIL Implementation- Implementation Plan 3• Identify delivery of benefits against each

planning option– Different benefit profile for each option– Input into Cost / Benefit Analysis

• Identify risks– Typical risks documented– Identify risks specific to your implementation

• Identify how risks will be monitored and managed– Should be a standard Risk Management procedure

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Plan ITIL Implementation

• Break• Questions / discussion

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Benefits and Costs - Benefits

• Must be real £ and convincing– Not a religious decision

• Three sources of benefit– Benefits experienced by external companies– Benefits experienced by Police Service – Estimated specific organisational benefits

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Benefits and Costs - Benefits

• Identify assumptions e.g– No of users– Average cost of an employee– Total no of incidents per year & average fix time– No of releases per year

• Examine impact analysis statements for each ITIL discipline– Business impact - analyse operational examples– Estimate tangible costs and intangible benefits– Document benefits clearly

• Where possible include operational examples

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Benefits and Costs – CM Benefits• Better overall Knowledge & Control

– Asset inventory & System Configuration• Typical tangible benefits

– Reduce costs of maintenance renewals• 2 - 5% on current maintenance

– Maximise current investments through re-allocation of existing resources

– Reduce resources in Incident Matching & Change Control through automated impact assessment

• Typical intangible benefits– Improved support of users generating increased customer

satisfaction– Reduced Risk by ensuring accurate information available

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Benefits and Costs – Change Management Benefits

• Increased ability to control changes and implement changes efficiently• Typical tangible benefits

– Decreased costs failed changes or those which could have been implemented

• Increased development time due to incomplete / poor assessments (with resultant retesting)

• Failure to identify impact on existing infrastructure– Increased network usage– Lack of power supply– Increased air conditioning requirements

– Plan & manage change implementation• Failure due to concurrent implementation of changes

• Typical intangible benefits– Better alignment of IT services to business– An enhanced business perception of IT

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Benefits and Costs – Release Management Benefits• Perceived benefits

– Greater release success rate– Minimise service disruption– Error reduction– Ability to support consistent over multiple locations

• Typical tangible benefits– Reduce time to release and fewer delays– Fewer releases rolled out to customers– Smoother transition of releases to customers– Few / No releases backed out

• Typical intangible benefits– Higher quality of service– Reduced Risk to the operational service– Increased customer satisfaction

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Benefits and Costs – Incident Management Benefits• Perceived benefits

– Timely Incident Resolution– Proactive identification of beneficial enhancements– Better staff utilisation

• Typical tangible benefits– Reduce time to resolve Incidents– Identification of system enhancements e.g. improved training

saving x no of Incidents per day• Typical intangible benefits

– Better staff utilisation– Improved staff satisfaction– Increased customer satisfaction

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Benefits and Costs – Problem Management Benefits• Perceived benefits

– Reduce number of Incidents– Quicker Incident Resolution

• Typical tangible benefits– Reduced number of Incidents (say 10%)– Quicker Incident Resolution– Improved User Productivity

• Typical intangible benefits– Improved IT service quality – Improved organisational learning through identification of

trends, preventing failures and reducing impact of failures

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Benefits and Costs – Service Level Benefits

• Defines and monitors the level of service to be provided– Provides basis for service improvement– Measures performance of suppliers (internal & external)

• Typical tangible benefits– Reduced no of Incidents due to clarity of Service provision (e.g.

improved efficiency of Service Desk staff by 5%– Improved contract management

• Levies for poor performance• Typical 2% increase in efficiency

– Greater business efficiency as part of an ongoing service improvement programme

• Typical intangible benefits– Increased customer satisfaction– Improvement in service quality though ongoing service

improvement programme

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Benefits and Costs – Availability Management Benefits

• Optimises capability to deliver a deliver a cost effective and sustained level of availability

• Typical tangible benefits– Identification of underperforming services

• Obtain refunds for poor performance– Avoiding or minimising the direct cost of unavailability e.g.

results of a disc crash• Typical intangible benefits

– Assisting effective change and release management– Identifying opportunities to optimise availability (e.g. reduced

availability of an MIS database which can then be specified with less redundant components & omitted from business continuity)

– Increased customer satisfaction

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Benefits and Costs – Capacity Management Benefits• Matches capacity to business need

– Ensure economic provision of services – Reduced risk of performance problems and failure

• Typical tangible benefits– Deferred expenditure – Economic provision of services – unnecessary spare capacity not

maintained, use of existing capacity optimised– Planned buying with potential for negotiating discounts

• Typical intangible benefits– Reduced risk to new applications through application sizing and

management– Reduction in urgent changes to increase capacity– Improved management information to support forecasting

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Benefits and Costs – Business Continuity Benefits• No immediate cost savings – an insurance premium• Difficult to estimate

– Cost of disaster * probability of occurrence• Cost = (Downtime * No of users * Hourly rate) + Rectification cost

– A reasonable assumption is that a significant disaster will occur once in 10 years (i.e. 10% pa)

• Typical tangible benefits – Compliance with the Civil Contingencies Act – a Legislative

Directive – Reduction / removal of risks associated with business continuity

• Typical intangible benefits– A continued guaranteed high level service to the business– Real-time alignment of IT with business needs and objectives

though improved management of critical business functions

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Benefits and Costs - Costs

• Cost resources on each project plan at appropriate rates– Add consultancy costs as appropriate– Identify different cost profiles

• Add software automation costs– Large Windows server– Software– Add maintenance (8% pa)– Probably £100-£150K

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Benefits & Costs

• Break• Questions / discussion

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Produce the Business Case

• Assemble previous products into the standard template (e.g. OGC Business Case)– The Strategic Case– The Economic Case– The Commercial Case– The Financial Case– The Project Management Case

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Produce the Business Case

• Assemble previous products into the standard template (e.g. OGC Business Case)– The Strategic Case– The Economic Case– The Commercial Case– The Financial Case– The Project Management Case

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Produce the Business Case

• The Strategic Case– Background & Business Drivers (ITIL Manuals &

ISS4PS)– Current Situation (Baseline Current System)– Benefits (Baseline Current System)– Risks (Plan ITIL Implementation)– Critical Success Factors (from KPIs, also

reference specific project checkpoints)

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Produce the Business Case

• The Economic Case (Plan ITIL Implementation) – Describe different planning options– Identify preferred option– State any ‘trade offs’

• Postponing some benefits in order to keep costs down• Tactical quick ‘wins’ which might need revisiting

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Produce the Business Case

• The Commercial Case– Describe potential commercial arrangements– Not significant

• External Consultancy• Software

– Should be through standard commercial contracts

– Note excludes outsourcing arrangements – specific to ITIL Implementation contract

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Produce the Business Case

• The Financial Case (from Costs & Benefits)– Produce detailed financial breakdown over

project life• The estimated costs• When they will occur• How they will be monitored (should be through

standard procedures• Any risk allowance that may be needed

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Produce the Business Case• The Project Management Case

– Describe project governance (Define Future Delivery & Support)

– Summarise preferred project plan (Plan ITIL Implementation)

– Summarise communication plan activities (Plan ITIL Implementation)

– Post Implementation Reviews and Project Evaluation Reviews

• When (From Plan ITIL Implementation)• How (PRINCE plus any existing procedures)• Produced by (Project Manager) & Reviewed by (Senior Management /

Stakeholders)

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Produce the Business Case

• You’ve Finished !!• Questions / discussion

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