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IBM Global Technology Services

Best Practices for Service Management - The IBM Approach

itSMF Conference 2011 Hong Kong

17 January 2011
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IBM Global Technology Services

Agenda
Brief Introduction IBMs ITSM Approach to ISO20000 Commitment in ITIL / ISO20000 IBM HK Certification Experience Sharing

Business depends on quality service delivery

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What does ISO 20000 include?


Specifications and guidance aligned to ITIL Part 1 is ISO/IEC 20000-1:2005
Information technology service management - Specification for Service Management Provides requirements for IT service management and is relevant to those responsible for initiating, implementing or maintaining IT service management in their organization. Organizations can have their IT service management systems independently certified as conforming to the requirements of ISO/IEC 20000-1:2005

Part 2 is ISO/IEC 20000-2:2005


Information technology service management - Code of Practice for Service Management Gives guidance to internal auditors and assistance to service providers planning service improvements or preparing for audits against ISO/IEC 20000-1:2005

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ISO/IEC 20000 consists of consists of 3 core principles and 13 service management processes

Service Delivery Processes 1. Requirement for a management system 2. Planning and implementing service management 3. Planning and implementing new or changed services Release Processes
9. Release Management 1. Capacity Management 2. Service Continuity & Availability Management 3. Service Level Management 4. Service Reporting 5. Information Security Management 6. Budgeting & Accounting for IT Services

Control Processes
7. Configuration Management 8. Change Management

Relationship Processes Resolution Processes


10. Incident Management 11. Problem Management 12. Business Relationship Management 13. Supplier Management

Certification also includes proving compliance with requirements for Document Control, Training and Competence

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What are the aims of ISO 20000?


A process-based Standard that has relationships to other publications The aims of the Standard are:
To provide a business focused road map for implementing and maintaining an integrated Service Management strategy To provide a non-proprietary, publicly available set of guidance to the service industry To define processes, resources and cost required to identify and manage the level of quality of service being provided to customers (avoid reinventing the wheel) To provide a closer alignment of IT with the business; and to move from being reactive to being proactive

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What are the benefits of ISO 20000 Accreditation?


Recognition of quality standards, procedures and business controls Certificate of compliance demonstrates independent assessment / confirmation of:
Controls and procedures in place for organizations internal or outsourced Service Management capability Ability to consistently deliver quality services that satisfy requirements of the Standard Service maturity

Compliance covers all ITIL IT Service Management processes with the addition of key Management System processes:
Business Relationships Supplier Relationships Security Management Service Reporting

Compliance certification audits are performed against the Part 1 Specification only by independent and approved Registered Certification Bodies (RCBs)
It is clarified in ISO 20000 that Notes in Part 1 are not obligatory requirements This is important, as it was previously left at the discretion of the auditor for BS 15000
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IBMs ITSM Approach to ISO 20000

Business depends on quality service delivery

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My company is planning to improve our IT Service Management and acquire ISO20000, but dont know how to
Typical questions from customer:

What capabilities are required and what strategies should be employed to improve service management effectiveness? What governance and organisational changes are required to improve service management at my organization? What does my organization need to do in order to improve cost effectiveness on service management and monitoring infrastructure?

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So, how do you respond to these existing and new management challenges?
If youre about to take a trip in unfamiliar territory, you need to know three things 2. Where do I want to be? 3. Whats the best way to get there?

1. Where am I now?

A well defined IT management system helps answer all three


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IBM can help to set out the right path


Proposed Approach

A Service Management Strategy and Planning initiative to rapidly establish the strategic direction for service management at clients and to develop a program to improve the current service management capabilities Utilise a joint IBM and client workshop-based approach to ensure maximum involvement and buy-in Leverage IBM unique techniques and frameworks to rapidly establish the baseline and define the required capabilities

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Service Management Strategy and Planning develops a strategic roadmap for implementing or improving IT service management
IBM Service Management Strategy and Planning Approach
1. Transition Planning 2. Orientation 3. Scoping & Preparation
Technology

Service Information Management

People

Process

Discuss transition planning by customer internally

Promote Management & Team awareness

Evaluate Current State to Identify Capability Gaps and Improvements

4. Execute

5. Integration

6. Readiness Assessment

Process & Tools Development

Deployment of new processes & tools

Internal audit & self-declaration

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Our first priority will be to confirm the scope and objectives of the project and define a detailed engagement plan
Stage 1 - Transition Planning
Purpose
To confirm scope and objectives of the project To set expectations, schedule meetings and workshops, and identify personnel involved
Plan the Engagement Design data collection package Hold Initial Kick-Off Meeting Engagemen t Objectives and scope

Key Activities and Tasks


Identify what data is readily available and sources for remaining data Tailor data collection instruments and arrange their distribution Develop a detailed engagement plan Conduct project kick-off workshop

Schedule Meetings

Develop issues for further examination

Develop detailed schedule for engagement

Data Collectio n Plant

Engagement Schedule & Interviewee List

Identify personnel required to complete survey questionnaire

Distribute survey Questionnaires


Staffing Systems

Applications

Outputs
Detailed engagement plan
Summary

IBM Solution
IBM ITSM S&P framework IBM Project Management

Technology Areas General Information

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We will gather sufficient information to understand the managed environment, priorities and current capabilities
Stage 2 - Orientation
Purpose
To prepare both management & IT team on upcoming project & expectations for service management To promote ITIL awareness via trainings

Key Activities and Tasks


Management training sessions (what it means for my organization) Staff training sessions (what it means for me and my job)

Outputs
Feedback forms

IBM Solution
ITIL v3 foundation trainings (certificate) ITIL Practitioner/Expert trainings (certificate) ITIL awareness workshop

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We would assess the current environment to develop a baseline, identify priorities and build the case for actions Stage 3 Scoping & Preparation
Purpose
To analyse current management capabilities and evaluate the degree to which they are adequate to meet future requirements To establish and gain agreement to the priorities for improvement

Key Activities and Tasks


Assess current IT infrastructure and management characteristics Assess current IT management processes
Process priority Process maturity

IBM Service Management Assessment Tool


Approximately half RHBs IT management processes have some level of formality, the other half is performed on an Ad-Hoc basis
IT Security Management has low maturity and is perceived as a lower priority by senior management, however the requirement is increasing

IBM Component Infrastructure Roadmap


Service Level Management is the least mature process and is a major prerequisite for improving other processes
Service Level Mgt Process
RHB Infrastructure Stabilisation Project
5

ITIL Process Maturity


CDHB Infrastructure Stabilisation Project

Release Management is perceived as a sub-process of Change Management and quite effective, requiring minor refinement Change Management appears the most mature of the process surveyed, however improving the level of automation is now a priority Configuration Management has the largest gap to target of the surveyed processes

Drivers
A required competency for improving the business relationship SLAs are a fundamental enabler for other ITIL process i.e. Capacity management, Change Management, Availability Management A basis for continuous improvement

Potential Quick-Wins
Appoint a business owner to facilitate SLA negotiations Use the ITIL Framework project to get agreement of an initial service portfolio Run awareness raising sessions to promote SLA concepts including OLA, Ucs Review current 3rd party contracts to determine is service levels have been defined in these - incorporate in the SLA development Assign ownership of the process

World-Class Target Current

Overall

Maturity

Problem Management is not perceived as a discrete process but is key to driving a more proactive approach to service support

Security Management Change Management Release Management Problem Management: Incident Management Configuration Management
Current Sum Target delta

Mature

Key Issues
3

Capable

Least mature of all processes surveyed


No agreed SLAs No concept of OLAs and UCs Viewed more as a project than a process no owners

Evaluate current management tools and automation Records Non-conformances for each Gap Assessment

Tool/Method Elements

Measure. & Control

Orgnl. Elements

Foundation

Delivery

Interfaces

1.00

2.00 Aware

3.00 Capable

4.00 Mature

5.00 World-class

Overall

Incident Management Service Level Management does not acknowledge all inter-process linkages IT Service Continuity Management and does not see all Availability Management incidents that enter the Capacity Management management environment IT Financial Management Service Level Management is the least mature process and is a major prerequisite for improving other processes
Unfocused

IT Finance Management process an area where RHB has some level of expertise, although some parts of this process are not performed

Aware

A Service Portfolio has yet to be agreed upon which SLAs can confidently evolve
1

Inhibitors
SLAs perceived to be a "stick" to punish the IT service provider Current state of the infrastructure is a barrier to SLA achievement
The ISP will address some of the desktop issues

Unfocused

Negotiating the SLAs is proving timeconsuming and challenging


Business expectations for SLAs exceed current ability to deliver The process is protracted

Availability Management occurs on an as-required basis SLAs and improved monitoring tools are prerequisites for process improvement

Capacity Management process is performed on a Ad-Hoc basis and RHB does no realise the benefits it could deliver

IT Service Continuity is currently receiving some attention, but efforts are directed towards a point-in-time solution rather than a capable process

A large portion of the business and the majority of IS have yet to be engaged

Current IT Organisation
Management layer of uncertain value
Trish Morton Alan Spaul Joel Williams Steve Ahern

Customer Satisfaction with IT Services


GM Retail Bra nds/Corp. Mktg

GM IT & Logistics

Satisfaction with the Process

Separation of organisation into IT and IS works against a holistic view of operations


Most IT processes have multiple owners Barriers t o communicat io ns inhibit acting as one organisation

1) Satisfy Customer Relationships


Difficulties in accessing support User must understand the IT organisation to obtain support Poor understanding of IT services Insufficient customer focus

8) Manage IT Assets and Infrastructure


Scarcity of skills, particularly business analysts Access control/security management effectiveness

Peter O liver

Debbie Asplet

IT Administrator

Divisiona l Mana ger IT

Manag er Str ategic Information Systems

National Re tail Ser vices Manager

4
8

IBM Solution
IT Service Management Assessment Report

Michael Vaz

Jim Sabine

Warren Sharpe

Business S ystems Manag er

Systems Develop me nt Manag er

IT Technical S ervice Manag er

Janita Baldwin

Networ k Administrator

Semi IT resources within the business

Brett Hart

Robert Mashiah

2) Provide Enterprise IT Management System


Wilfred Riddles Shalvin Mani Kora Harvey

3
2

7) Support IT Services and Solutions 4 1


Data recovery time consuming and cumbersome Capacity limits encountered

Pro ject Manager


Craig Fell

Ana lyst Pr ogrammer


Yapa Seneviratna

Systems Prgmr

Ana lyst Pr ogrammer


Elizabeth McIlwaine

Computer room supervisor

Business Analyst/ Ana lyst Pr ogrammer


Uday Barua

Sam Drubetsky

Mahmud Haque

Ana lyst Pr ogrammer Sen ior Ana lyst Pr ogrammer


St ephen Norman Douglas Coster

Input/Output Clerk

Assistant Opera tion s Sup ervisor

Developing helpdesk focused on desktop only

PC/Network S upport Spe cialist

Denis Webst er

Rodney Scheffer

LAN Co -ordina tor

PC/Network S upport Co-ord inator

Perceived inability to respond to change

2 1

Tikak Ilangasinghe Megan Duval

Key User Support


Tamwo rth Or ange Wagga Wollong ong Kempsey Newcastle ACT Victoria South Aus. West Aus Brisban e - Toowoomba - Cairns

Responsibilities mix day-to-day and project responsibilities impacting ability to achieve change
FTE = 2 % - A lan Ray FTE = 2 % - Ray Lane FTE = 5 % - G ail Post FTE = 5 % - Mar k Davie s FTE = 2 % - S ue Ma rtin FTE = 5 % - G ail Elbourn e FTE = 2 0% - Shirley Ma keh am FTE = 5 0% - Peter Bateup FTE = 1 0% - Heid i Fry FTE = 3 0% - Jea nne De G raaf FTE = 6 0% - Alex Br atic

3) Manage IT Business Value


The value of IT is not articulated nor understood Poor coordination between business and IT in setting priorities

6) Deliver Operational Services

Ana lyst Pr ogrammer

Computer Oper ato r


Bert Gumogda

Input/Output Clerk
John Murphy

Senior Analyst/ Programmer

Jomark Domin go

Computer Oper ato r


David Noyes

0
Low

5
High

Ana lyst Pr ogrammer

Potential Outputs
IT Service Management Assessment Report
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Communicatio ns Co-ord inator


Stephen Green

Computer Oper ato r


Christian Schweiger

Priority for Improvement


4) Realise Solutions
Lack of tools to enable user access to information Frustration with inability to influence function delivered Delayed solutions and poor quality Concerns over non-integrated solutions

Slow system response time (mainframe and network) Frequent system freezes Invoicing delays

Nghi Dinh

Pro grammer/ Ana lyst

Mark McCormick

Ana lyst Pr ogrammer

Customer Se rvice Office r

Computer Oper ato r


Mathew Liddell

Charle s Dilipkumar

Ana lyst Pr ogrammer

Trainee Computer Op erator

Guey Fen Chen

50% of IT resources committed to in-house development & maintenance

Ana lyst Pr ogrammer


Kate Howe

Duplication of helpdesk functionality and tools

X
Business unit resources acting as IT resources Absence of a function with responsibility for forward looking processes
inf rastructure architecture Justify of ferings & portfolio

Level of Satisfaction: 5 = Very Satisfied 4 = Satisfied 3 = Neither satisfied nor Dissatisfied 2 = Dissatisfied 1 = Very Dissatisfied

5) Deploy Solutions
No consistency of impact management Standards and documentation of change not apparent

Ana lyst Pr ogrammer


Glenda Riddles

Trainee Pr ogrammer

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The primary focus should be on defining the service management strategy and required management capabilities
Stage 4 - Execution
Purpose
Design & build processes/tools to tailor ITIL/ISO2000 requirements To address the NCFs from previous stage result

Key Activities and Tasks


Create Strategy Implement (i) Processes Establishment (ii) Automation Build Regular Tracking

IBM Service Request Manager


Service Name: S311 Identify Technology &
Architecture Options for Business Issues

Key Performance Indicators:


Average time to complete report Average number of options per business issue Average time to identify & research each option A411 - Review and Refine Project Scope and Objectives A412 - Understand Current and Proposed Solution Environments A313 - Determine and Interpret IT Value A321 - Select Areas for Research A322 - Investigate Research Areas A323 - Organize Research Information A324 - Analyze Research Information A325 - Document / Distribute Research Findings Service interfaces / dependencies: S121 - Manage User Requests required to receive request S231 Provide Contact Channel between IT & Business, S232 Manage Business-driven IT Requirements input needs S213 Provide Business-related Technology Intelligence input to assist in selecting areas to research S212 Develop IT Strategy input during analysis of research S312 Identify & Conceptualize Potential Solutions receives information to analyze and further refine

S122- Procure Hardware/ Software or Services

Service Category: Development Services Service Group: Solution Consulting Description & Scope:
Review business opportunity/problem and identify technology alternatives that should be considered. In IT enabler models, this happens proactively as IT presents technology opportunities to the business.

User

Processes Activities:

Approved vendor list

Received hardware, Software or Service

Vendor Performance Reports Flat cost Contract/relationship Maintenance Number of errors by vendor per period

Procurement Administrator

Outputs
Action Plan Process Design Documents Automation tools implementation

Value Proposition (Client Benefits):


Identification of technology options for implementing / supporting business strategy Review of new or different technology possibilities to support business opportunities and problems

A822 Administer Procurement Requests

Per each initial vendor setup

A824 Administer Supplier Contract/ Agreement

A825 Receive Procurements

A826 Manage Supplier Relationship

Procurement Analyst

Deliverables:
Scope of research Identified technology and architecture options

Per procurement request (or per request per asset)

A823 Select Supplier and Negotiate Contract

Average time to select new supplier

Average time to negotiate contract per period

Average time to process procurement per period

Service Interfaces

S121- Manage User Requests

Related Business Policies: Pricing Measurements:


Per business issue / opportunity Business Process Enabling Policies New Technology Evaluation and Selection Policies Architecture Policies and Standards Business Strategy

S214- Define Enterprise-wide Architecture and Standards

S416- Maintain and Manage an Asset Database

Tools

Contract Management Tool

Configuration/Asset Tool

IBM Solution
IBM PRM-IT process templates IBM Tivoli Service Request Manager (Maximo)

Service Definitions Service Levels

Service Workflows

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PRMIT provides detailed process guidance for ISO IEC 20000


Manage the Business of IT

IT Management System

IT Customer Relationships

IT Direction

Solution Development

Solution Deployment

Service Operations

IT Resilience

IT Administration

IT Management System

Stakeholder Requirements Management Service Marketing and Sales

IT Strategy

Solution Requirements

Change Management

Service Execution

Compliance Management

Financial Management

IT Management Framework Design, Development and Implementation IT Management System Operation IT Management System Evaluation

IT Research and Innovation

Solution Analysis and Design

Release Management

Data and Storage Management

Security Management

Asset Management

Service Level Management Customer Satisfaction Management

Architecture Management

Solution Build

Configuration Management

Event Management

Availability Management

Supplier Relationship Management Service Pricing and Contract Management

Risk Management

Solution Test

User Contact Management

Capacity Management

IT Portfolio Management

Solution Acceptance

Incident Management

Facility Management

Workforce Management

Project Management

Problem Management

IT Service Continuity Management

Knowledge Management

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Process Collateral Establishment Approach


1. Create type (no existing document)
IBM Process Template Analysis & Doc Customized Process Manual

Workshop

2. Enhance type
IBM Process Template

+
Customer Existing Manual

Revalidation Workshop

Analysis & Doc

Customized Process Manual

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IBMs process collaterals help kick-starting the development process so to save Customer effort defining requirements from scratch
Sample TOC (extracted from Change Management):
1. Introduction 2. Change Management Process Overview Mission Statement & Goals Scope Guiding Principles Process Flow Sub-process Activity Description Roles & Responsibilities Role Mapping Policies State Transitions Measurements/Reports Relationship with other processes
S122- Procure Hardware/ Software or Services
Vendor Performance Reports Flat cost Contract/relationship Maintenance Number of errors by vendor per period

3. Change Management Process

Procurement Administrator

User

Approved vendor list

Received hardware, Software or Service

A822 Administer Procurement Requests

Per each initial vendor setup

A824 Administer Supplier Contract/ Agreement

A825 Receive Procurements

A826 Manage Supplier Relationship

Procurement Analyst

Per procurement request (or per request per asset)

A823 Select Supplier and Negotiate Contract

Average time to select new supplier

Average time to negotiate contract per period

Average time to process procurement per period

Service Interfaces

S121- Manage User Requests

S214- Define Enterprise-wide Architecture and Standards

S416- Maintain and Manage an Asset Database

Tools

Contract Management Tool

Configuration/Asset Tool

4. Glossary

Workflows
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Roles & Responsibilities (extract)


1. Change Manager
Role Description The Change Manager (CHM) is primarily responsible for the day-to-day quality and integrity of the Change Management process. He/she is the main coordinator within this process and is the focal point regarding changes for both the customer and the IT organization. Therefore, all managers in the IT organization must support them in his/her role. Responsibilities/Tasks: Accountable for smooth day to day execution of the Change Management process Identifying required changes to the process and may implement authorized changes to the process Identifying exceptions and deviations, as well as management of these situations Monitors the effectiveness and efficiency of the Change Management Process and proposes improvements if required Communicating new and changed policies Ensuring the standards and procedures are being followed Facilitating resource commitment and allocation Chairs the Functional CAB meetings and is the final arbiter when consensus can not be reached Performs Change Management assessment and ensures implementation of the Change Management strategy Has the ability to review all planned changes Responsible for all communication with non-Change Management groups on Policy related issues Ensures post review of exception changes to evaluate if the change addressed a real or a perceived exception condition Proposes methods for minimizing exception changes Utilizes the Change Management reporting system to monitor and track changes Negotiates end-user down time for change implementation May create consolidated change schedule and resolves any scheduling conflicts Ensures that changes are communicated in a timely and adequate manner Ensures creation and distribution of Change Management reports Follows defined escalation path when needed, as defined in escalation policy Acts as a focal point for process, communicates with clients, service providers and management
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Tivoli Service Request Manager - ITSM Value Proposition

Tivoli ITSM enables IT organizations to manage, on a single unified platform, the critical IT business processes needed to deliver optimal service.

PinkVERIFY

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Tivoli Service Request Manager (Service Desk )

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Seamless Management Tools Integration


Incident Initiated/ Closed HTTP Post Integration

Incident Ticket Maximo Enterprise Adapter

Record Updates TEC CLI Integration configured in MEA

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Tivoli Asset Management for IT

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Commitment in ITIL / ISO 20000

Business depends on quality service delivery

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IBMs history with ITIL


IBM has, and continues to significantly contribute ideas to the ongoing development of the ITIL books
- IBM led the project to write the Application Management book. - IBM performed a Quality Assurance review on the Software Asset Management Book - IBM is providing input on the requirements for ITIL V3

IBM is a certified ISO20000 / ISO9001 organization:


- 1998 - 2006 - 2007 - 2007 - 2007 IBM Hong Kong obtained ISO 9001 certification IBM Taiwan awarded with ISO 20000 certificate IBM China awarded with ISO 20000 certificate IBM Shenzhen Service Centre awarded with ISO 20000 certificate IBM Hong Kong awarded with ISO 20000 certificate

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IBMs commitment to ITIL


IBM has 5,000 ITIL-certified staff with a variety of skills, including expertise in financial management, service desk, service delivery, outsourced operations, capacity management; incident, problem, and change management IBM staff includes members of the ITIL Advisory Group within the U.K.s Office of Government Commerce (OGC), ITIL authors, members of various IT Service Management Forum (ITSMF) advisory boards and committee positions, education providers, consultants and developers IBM maintains strategic relationships with leading vendors in IT service management IBM has associations with industry-leading ITIL tool providers to support ITIL-based solutions

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Regional IBM Certified in ISO20000


IBM China / Hong Kong Limited - Hong Kong IBM Global Services (China) Company Limited - China IBM Solution & Services (Shenzhen) Co Ltd - China IBM Korea, Inc. - South Korea IBM Ltd France - France IBM Solutions Delivery Company Limited - Thailand IBM Taiwan Corporation - Taiwan IBM UK Ltd - MOD LITS Service Delivery - United Kingdom

Source from - http://www.apmg-international.com/home/Qualifications/ISOIEC20000/ISOCertifiedOrganizations/ISOListingsF-J.asp

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IBMs involvement with the IT Service Management Forum


IBM is active in organizations that promote ITIL and effective service management, such as the IT Service Management Forum (itSMF), of which IBM is a global member, with local participation in most chapters IBM and the ITSMF (IT Service Management Forum)
- IBM is a Global Member and sponsors or contributes to ITSMF events - In Asia Pacific IBM is active in the itSMF chapters in Australia, Japan, Singapore, Hong Kong and Korea

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IBM HK Certification Experience Sharing

Business depends on quality service delivery

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IBMs Roadmap to ISO20000 Accreditation


1 2 3 4 5 6 7

Transition Planning

Orientation

Scoping & Preparation

Readiness Execute Integration Assessment

Innovation

High level Deployment Plan

Review of ISO 20000

Pre-assessment Meeting

Create Plan based on Scope

Team Assessors training

Readiness Sign-off self-declaration

Process Improvement

Select Internal Auditors

Engage RCB Engage RCB (if required) (if required)

Gap Assessment

Implement Action Plan

Adoption

Metrics Collection & Review

Awareness

Gaps Assigned

Track Action Plan

Certification Audit

Customer Satisfaction

BAU Surveillance Assessments

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IBM HK achieves ISO/IEC20000 accreditation in 2008


Scope:
IT Infrastructure Support services IT Security & Risk Management Services End User Support Services Voice Telephony Support Services Service Management Call Centre Services

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Thank You

Business depends on quality service delivery

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Copyright information
Copyright IBM Corporation 2008 IBM Global Services Route 100 Somers, NY 10589 U.S.A. Produced in the United States of America 06-07 All Rights Reserved IBM and the IBM logo are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. ITIL is a registered trademark, and a registered community trademark of the Office of Government Commerce, and is registered in the U.S. Patent and Trademark Office. IT Infrastructure Library is a registered trademark of the Central Computer and Telecommunications Agency which is now part of the Office of Government Commerce. Other company, product and service names may be trademarks or service marks of others. Use of the information herein is at the recipient's own risk. Information herein may be changed or updated without notice. IBM may also make improvements and/or changes in the products and/or the programs described herein at any time without notice. References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates.

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