IT SERVICE

MANAGEMENT
INTRODUCTION
Krisztina Erdlyi
John von Neumann Faculty of IT, University of buda,
Hungary

ITSM

Krisztina Erdlyi

What do you do on an average

day?
Collecting information.

Eating.

Working.

Travelling.
Shopping.
Keeping touch.

Having fun.
Administration.
Sleeping.
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Krisztina Erdlyi

When do you use IT?

Paying by card,
depot registration
Information for
passengers.
Downloading
films, buying
tickets

Office applications,
payroll
calculations

Customer service systems.

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Krisztina Erdlyi

What is important from it?

it?
Being able to buy the
suitable clothes.
Knowing when
the bus comes.
Having
fun.

Being able to work

effectivly.

Solving problems.

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Krisztina Erdlyi

Hence

These days IT systems are primarily

observed as sets of services.
Bank services can be accessed via
Internet
Providing web hosting is a good business

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Krisztina Erdlyi

Demand from the Customer

We perceive and adjudge IT more
and more through its provided
services and we not at all want to
know how and what kind of devices
are operated to implement these sorts
of services.

http://www.itsmf.hu/tudasbazis_modszertan_itil.php
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Krisztina Erdlyi

Demand from the Provider

However form the point of view of
the operator it is important that the
expected services can be guaranteed
in the defined quality and in case of
incidents to restore the services as
fast as possible, and moreover to be
able control the operation processes
in order to accomplish the aims of the
services.
http://www.itsmf.hu/tudasbazis_modszertan_itil.php
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Service
A means of deliver value to customers

by facilitating outcomes that
customers want to achieve

without the ownership of specific costs
and risks.

Example:
Sales people spending more time interacting with customers
facilitated by
a remote access service that enables reliable access to corporate
sales systems from sales peoples laptop
IT Service Management Forum (2002). van Bon, J.. ed. IT Service Management: An Introduction. Van
Haren Publishing. ISBN 90-806713-4-7

ITSM

Krisztina Erdlyi

Brain storming
Choose two services related to IT.
(Web hosting, payroll calculation )

How can you measure their quality?

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Krisztina Erdlyi

Measuring Service Quality

Service quality is more difficult for consumer to

evaluate than goods quality
Knowledge about goods quality is insufficient to
understand service quality
Crosby (1979) said Quality is ballet, not hockey,
quality is an elusive (intangible) & indistinct
(obscure) construct
Service quality is a measure of how well the
service level delivered matches customer
expectations
Delivering quality service means conforming to
customer expectations on a consistent basis
(Lewis & Booms, 1983)

http://www.aesl.nccu.edu.tw/paper_reading/2006/Katrina_2006_09_25.pdf

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Determinants of Service Quality

Reliability: consistency of performance and

dependability
Responsiveness: willingness or readiness of employees
to provide service
Competence: required skill and knowledge to perform
the service
Access: approachability and ease of contact
Courtesy: politeness, respect, consideration, and
friendliness
Communication: keeping customers informed in
language they can understand
Credibility: trustworthiness, believability, honesty
Security: freedom from danger, risk, or doubt
Understanding/knowing: understand customers need
Tangible: physical evidence of the service

http://www.aesl.nccu.edu.tw/paper_reading/2006/Katrina_2006_09_25.pdf

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Brain storming
Dear Alice,
I was looking for someone in the telephone book of the
university. And I entered my name as well. The result was my
previous occupation. It was the same situation with John and
Mary.
I do not know whether it is a problem or not, but a foreigner
gets false information about the school.
Best regards,
Bob
Dear Bob,
The phonebook retrieves the data from the central
repository, in which most of the colleges are entered when
they are started to employed. Data are not changed while
What is your
one does not write from what change to what.
opinion
Whether it is a problem? Everyone should know it by its own.
Ones indicate every change while others are not sensitive for
about Alices
it.
answer?
Best regards,
Alice
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Service Management
The core of service management is the
act of transforming resources into
valuable services.

It helps:

Understand the services that are provided

Ensure that the services really do facilitates
the outcomes
Understand the value of the services to the
customers
Manage all of the costs and risks associated
with the services
IT Service Management Forum (2002). van Bon, J.. ed. IT Service Management: An Introduction. Van
Haren Publishing. ISBN 90-806713-4-7

ITSM

Krisztina Erdlyi

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IT Service Management
Discipline for managing and operating
IT systems

Centres customers

Its most important principle is to
determine what IT can contribute to
the success of business
Service

Management
IT
Service
Manage
-ment
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The greatest challenge of IT executive

managers is to cooperate with the
business managers so that provide high
quality IT services.

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Benefits of IT Service
Management
All organizations that use IT depend
on IT to be successful.

If IT processes and services are
implemented, managed and supported
in the appropriate way

the business will be more successful,

suffer less disruption and loss of
productive hours,
reduce costs, increase revenue, improve
public relations
IT Service Management Forum (2002). van Bon, J.. ed. IT Service Management: An Introduction. Van
Haren Publishing. ISBN 90-806713-4-7

ITSM

Krisztina Erdlyi

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Brain storming
Go to the website
http://media.bmc.com/outgoing/ITIL_Game/index.html
How much money can you earn?

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ITSM Frameworks

Many frameworks are developed to

implement IT service management
Collect together best practices
Help IT managers to understand the relationship
between business and IT
Provide guidance on organising, implementing
and measuring IT processes

Examples
CobiT (Control Objectives for Information and
related Technology)
ITIL (Information Technology Infrastructure
Library)
MOF (Microsoft Operations Framework)
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Why should you implement a

framework?
Improve the quality and efficiency of IT
Services

Comply with management or business
requirements

Follow global standards

Reduce IT costs

Achieve regulatory compliance, or
standards certification

Address a specific IT operational issue

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ITIL - Information Technology

Infrastructure Library
Guidance for control, development
and maintenance of IT infrastructures

It contains a set of descriptions of best
practices

A set of books that describe
internationally accepted best practices
for IT infrastructure management

A common language for IT
management

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ITIL

A framework that is independent of

organizational structures, architectures, or
technologies
Developed in the United Kingdom in the 1980s by
what is now called the Office of Government
Commerce (OGC)
Further development incorporated public and private
sector best practices (IBM, Microsoft, HP, and others)

Becomes a de facto standard by this time

ISO/IEC 20000 (the standard of ITSM) was
developed to reflect ITIL (among others)
ITIL v3 is the most currently version focuses on:
Sets of processes
The lifecycle of a service

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Five Stages of Service Lifecycle

Service Strategy

Service Design

Service Transition

Service Operation

Continual
Service Improvement

Quality and cost effectiveness are

essentials.
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Links between lifecycle stages

Implementing the strategy
Service Design
Service Portfolio,
Service Catalog
Service Strategy

Service Transition

Continual
Service
Improvement

Service Operation

Measuring and evaluation

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Service Strategy

To provide guidance on how to

design, develop and implement
Service Management
Its ultimate goal is to make the
IT organization think and act in
a strategic manner

Strategy requires knowledge from the

disciplines such as operations
management, marketing, finance,
information systems, organizational
development, systems dynamics, and
industrial engineering.
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Service Strategy seeks to

answer the questions

What services should we offer and to whom?

How do we differentiate ourselves from competing
alternatives?
How do we truly create value for our customers?
How do we capture value for our stakeholders?
How can we make a case for strategic investments?
How can financial management provide visibility and
control over value-creation?
How should we define service quality?
How do we choose among different paths for improving
service quality?
How do we efficiently allocate resources throughout a
portfolio of services?
How do we resolve conflicting demands for shared
resources?
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Service Design
To design and develop IT
services

Its scope includes the design
of new services, as well as
changes and improvements to
existing ones

To design

Processes to support the service lifecycle

Risk management
Secure IT infrastructures, environments, applications
and data/information resources
Measurement methods and metrics

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Service Transition
Delivers services that are
required by the business
into operational use

Focuses on implementing
all aspects of the service

Ensures that the new or changed

services can be used in accordance
with the requirements and constraints
specified within the service
requirements
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Service Operation
To make sure that IT services are
delivered effectively and efficiently

This includes

Fulfilling user requests,

Resolving service failures,
Fixing problems,
Carrying out routine operational
tasks.

Well designed and implemented processes will be of little value if the

day-to-day operation of those processes is not properly conducted,
controlled, and managed
Day-to-day activities: monitoring performance, assess metrics, and gathering
data

The purpose of Service Operations is to coordinate and to carry out

the activities and processes required to deliver and to manage
services at agreed upon levels to business users and customers

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Continual Service Improvement

Strives to make processes more effective and

efficient, as well as cost-effective

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7-Step Improvement Process

Define what you should measure

Define what you can measure

Gather the data

Process the data

Analyze the data

Present and use the Information

Implement corrective action

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Brain storming
What stage of lifecycle belongs to what
processes?
Availability Management
Capacity Management
Change Management
Event Management
Finance Management
Incident and Problem Management
Request Fulfillment
Service Asset and Configuration Management
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