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L’approccio Gartnerall’analisi e al miglioramento dei processi ICT
Mariagrazia La Rosa
Gartner Italia, Solution Director
Convention itSMF Italia
Genova, 14 dicembre 2004
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Client Issues
What converging global trends are encouraging IS organizations to adopt ITIL?
What best practices can accelerate ITIL implementation and help to successfully deliver benefits?
How can we combine and leverage different models?
How can we use ITIL as a basis for IT optimization?
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Cost
Best Practiceon the Efficient
Frontier
Quality Low High
Low
B
Less ThanBest Practice
High
Source: Adapted from Michael Porter, "What is Strategy?” Harvard Business Review, November-December 1996
Michael Porter's "Efficient Frontier"
A
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IS/ITRelevance
TCOITIL CMM
COBIT
Six Sigma
ISO 9000
National Awards(e.g., Baldrige)
Scorecards
Specific
Holistic
Low HighLevel of Abstraction
CMM = Capability Maturity Model
COBIT = Control Obj. for Information and Related Technology
eTOM = enhanced Telecom Op. Map
ITIL = IT Infrastructure Library
MOF = Microsoft Op. Framework
TCO = Total Cost of Ownership
BS15000 = IT svc. mgmt. standard
ISO 9000 = quality mgmt. standard
People CMM
BS15000
Lean (Toyota)
MOFeTOM
Which Process Improvement Model?
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Why ITIL?
Mature, best practice framework A "de facto standard " (almost) Integrated, holistic set of processes Well-established training programs Corporate certification (BS15000) Support infrastructure in itSMF and consulting
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Gartner View of ITIL
ITIL is a well established, easily accessible, affordable process model for IT service management that is built around a set of best practices. A well-established service and consulting industry has been built around ITIL, especially in Europe. ITIL is better known for its back-office operational process definitions than for its application management processes.
ITIL is based on defining best-practice processes for IT service delivery and support, rather than defining a broad-based control framework. ITIL is more-prescriptive about the tasks involved in those processes and, as such, its primary target audience is IT and service management. ITIL's structure enables incremental adoption, which facilitates continuous improvement.
ITIL has a much narrower scope than CobiT (Control Objectives for Information and Related Technology), but CobiT and ITIL are not mutually exclusive and can be combined to provide a powerful IT governance, control and best-practice framework in IT service management.
Source: Gartner Research
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ResultProcess Step 1 Step 2 Step 3
… to a focus on end-to-end service delivery
Application Development DBAs
Network Technicians
Production Control
Desktop Technicians
Help Desk
From silos ...
Oops Break Missed Kludge Blame
Collaboration Consistency Reliability Efficiency
Multidisciplinary Team
Processes and Structure — Getting Focused on the Customer
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Where Does IT Service Management Save You Money?
Direct Reduced cost of incident
resolution Reduced self-inflicted incidents
via integrated and reliable change
Increased productivity of IT staff Improved asset utilization and
life cycle management Reduced service cycle times End-to-end service cost
optimization Automation Improved risk management
Indirect Reduced peer support Standardization Consolidation Non-IT staff more productive Improved availability Managing appropriate
expectations Improved efficiency of security
and business continuity planning processes
Targeted training of users Improved IT governance Drives continual improvement
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Combine CobiT and ITIL for Powerful IT Governance
Control Objectives for Information and Related Technology (CobiT) was originally an IS audit tool oriented to risk mitigation.
CobiT establishes what formal IS processes, practices and controls should be in place, and the minimum results they should predictably deliver.
ITIL and CobiT can combine well together. ITIL maps reasonably neatly into the CobiT high-level governance and audit framework, but although they are trying to achieve different things, they are not contradictory and have few interface problems.
CobiT is a complementary framework to ITIL. CobiT's processes and control objectives are segmented into four domains
– Planning and Organization – Acquisition and Implementation – Delivery and Support – Monitoring.
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CobiT is based on established frameworks, such as the Software Engineering Institute's Capability Maturity Model, ISO 9000 and the Information Technology Infrastructure Library (ITIL).
Unlike ITIL, CobiT does not include process steps and tasks because it is a control framework rather than a process framework. CobiT focuses on what an enterprise needs to do, not how it needs to do it.
ITIL is based on defining best-practice processes for IT service delivery and support, rather than defining a broad-based control framework. ITIL is more-prescriptive about the tasks involved in those processes and, as such, its primary target audience is IT and service management.
Many of the CobiT processes — particularly those in the delivery and support domain — map well onto one or more ITIL processes, such as service level, configuration, problem, incident, or financial management.
The development processes of the two frameworks are not linked and both would benefit from closer collaboration. However, they are unlikely to contradict each other in any substantive way.
Combine CobiT and ITIL for Powerful IT Governance
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Level 2: Repeatable• Solve problems based on experience• Heroic efforts
Level 3: Definable• Focus on defined processes• Problems viewed as unforeseen
circumstances Level 4: Manageable• Metrics and monitoring• Integrity of processes is audited
Level 5: Optimal• Processes are self-tuning• Training replacements is critical
Level 1: Ad Hoc• Problems come from
outside• Change is the enemy
Capability Maturity Model
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CMM Assessment Key Process Area Rating
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Gartner ICT Process Model
ICT Strategy Membership Integration EquityProgram Management
Relationship -Account Management
DemandManagement
Application SW ProductEngineering
Infrastructure Development & Support
Network & Systems Management
OperationsManagement
ICT Asset Management
Service DeskService LevelManagement
ProblemManagement
ICT Governance
Relationship and Demand Management
Service & System Integration
Application & Maintenance
Infrastructure & Operation Management
Service Management
SolutionIntegrationManagement
Service &System Integration
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IT Optimization Assessment Processes and Costs
Program Management
Costs and Service Assessment
for IT Infrastructure
Process Assessment
Costs and Service Assessment
for Application Development and Support
Roadmap for
Impro-vement
Gap
Analysis
“As Is”
to Best
Practice
Recom-mendations
for
Impro-
vement
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$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
XYZ Peer - Avg Peer - Pctl_25 Peer - Pctl_75
Th
ou
san
ds
MPN
Unix
NT
Mainframe
ICT Infrastructure CostsTotal Spending
Total Spend for XYZ is $24.3M. This compares with a total spend of $18.8M for the peer, $18.0M for the Top Quartile and $29.1M for the bottom quartile.
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(In-House Only)
Company Code
UnitCost
Full DB
XYZ
DB Avg
Industry Peer
PS
DS
TL
HP
GK
EB
CA
GG
BF
DW
FD
RF
TJ
AB
TH
YB
AH
FJ
WA
SK
JE
BL
DL
ET
PA
AA
BB
IB
AL
MB
FZ
JB
HB
AP
BH
SB
WF
WK
TC
KC
WR
PM
SH
BJ
TK
AD
SM
JN
JG
HJ
RD
PB
SL
JW
LA
AVG
TR
PN
SD
LB
JC
CY
JS
JT
JI
EP
HH
RJ
BS
TW
AZ
MR
CE
RR
KG
OR
GA
DR
BW
IND
LW
NL
BG
RH
FM
AC
GC
AE
WJ
RB
HF
EL
FC
SS
HW
JH
MM
0
500
1,000
1,500
2,000
2,500
1991 1992 1993 1994 1995 1996
Company Code
UnitCost
Full DB
XYZ
DB Avg
Industry Peer
TLFZ
BHRH
BFDW
TKRJ
EBJS
JBCA
AHGK
FDSB
APHF
IBSS
WJWK
PSDL
ORLW
HHFC
MBEP
THTJ
GABJ
PNTW
ALPM
ADJE
NLFM
YBAA
AVGJH
GGBL
RFFJ
PBSH
WALA
LBTC
KGJI
MRKC
GCJW
BSJN
JGSM
ABHB
INDDR
CEMM
RBSK
HJJC
HWCY
ELBG
AESL
0
500
1,000
1,500
2,000
Companies not using
packages for delivery
are excluded.
1991 1992 1993 1994 1995 1996
(Packages Only)
Company Code
UnitCost
XYZ
DB Avg
RBAL
AAAZ
MMHJ
JSRF
BLKG
AVGMR
GAWF
INDSL
CYGC
DRRR
SSEP
NLLB
TCTJ
JI
0
500
1,000
1,500
2,000
2,500
3,000
Companies not using
custom development for
delivery are excluded.
(Custom Developed Only)
Company Code
Full DB
XYZ
DB Avg
Industry Peer
UnitFP
FZ
JB
PS
TL
EB
BF
MB
CA
FD
GK
DS
HP
DW
GG
EP
TK
BH
RF
AL
AA
YB
DL
FJ
AH
TJ
TH
WK
HH
WA
AB
BJ
JE
BL
ET
IB
FC
SB
PA
SS
AP
PM
BB
HB
AD
MM
WF
SH
PN
KC
WR
HJ
TW
AVG
NL
JS
LA
PB
JG
SM
JN
LW
SK
JW
RD
RJ
KG
OR
MR
TR
SL
FM
SD
WJ
BS
JT
JI
AZ
JC
RH
GA
CE
DR
RR
CY
IND
BW
BG
RB
HF
LB
GC
AC
AE
TC
EL
HW
JH
0
200
400
600
800
1,000
1,200
1,400
1,600
1991 1992 1993 1994 1995 1996
(In-House, Packages and Custom Developed)
Application Development and SupportUnit Costs
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0%
5%
10%
15%
20%
25%
30%
35%
Train
ing
Servi
ce M
odelSLM
Config. M
gmt.
Servi
ce D
esk
Tool
Other
Pro
cess
es
Servi
ces
Portfolio
Proje
ct M
anag
emen
t
Tools (software and hardware)
Consultants and Trainers
Internal People Costs
Case Study: ITIL Implementation Costs and Savings
■ The case focuses on a European IS organization. It has more than 300 IS staff, started its two-year program in 2001 and has spent around 2.6 million euros on it.
■ Results included a savings of nearly 3.5 million euros a year (approximately 7 percent of IS operating costs) through the identification of unused or underutilized resources like software licenses. This represented about 90 percent of the tangible savings formally identified to date.
■ The IS organization is now billing around 1 million euros (approximately 2 percent of total billings) for services that were being delivered but were not being charged for.
■ The IS organization's customer satisfaction rating went up from 6.8 to 7.6 out of 10.
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Seek opportunities to learn from and copy best-practice processes.
IT service management will be a prerequisite for demonstrating business value. Success requires commitment and perseverance. Start now!
IT service management requires fundamental cultural and behavioral change. Pay careful attention to organizational change management issues.
Success in IT service management is based on repeatable processes. Use ITIL as the basis for IT operational processes and then focus on continually improving them.
Recommendations
Measure ICT costs and relate results to process analysis to find saving and improvement opportunities for optimization.
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L’approccio Gartnerall’analisi e al miglioramento dei processi ICT
Mariagrazia La Rosa
Gartner Italia, Solution Director
Convention itSMF Italia
Genova, 14 dicembre 2004