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ITIL Version 3

Service Design

The ITIL Core consists of five publications. Each provides the guidance necessary for an integrated approach, as required by the ISO/IEC 20000 standard specification:

• Service Strategy
• Service Design
• Service Transition
• Service Operation
• Continual Service Improvement.

Foreword

OGC’s foreword

Since its creation, ITIL has grown to become the most widely accepted approach to IT Service Management in the world. However, along with this success comes the responsibility to ensure that the guidance keeps pace with a changing global business environment. Service Management requirements are inevitably shaped by the development of technology, revised business models and increasing customer expectations. Our latest version of ITIL has been created in response to these developments.

This is one of five core publications describing the IT Service Management practices that make up ITIL. They are the result of a two-year project to review and update the guidance. The number of Service Management professionals around the world who have helped to develop the content of these publications is impressive. Their experience and knowledge have contributed to the content to bring you a consistent set of high-quality guidance. This is supported by the ongoing development of a comprehensive qualifications scheme, along with accredited training and consultancy.

Whether you are part of a global company, a government department or a small business, ITIL gives you access to world-class Service Management expertise. Essentially, it puts IT services where they belong – at the heart of successful business operations.

Peter Fanning

Acting Chief Executive

Office of Government Commerce

Chief Architect’s foreword

Great services do not exist by accident. They have to be carefully planned and designed. Service Design is the means to achieve this. The best Service Strategy cannot be realized without well-designed services. Effective Service Design can lead organizations to greater gains in quality and cost- effectiveness. It reduces the risk of costly compensating for design flaws in the operational

environment and ensures that services will perform as they are intended and bring measurable value to the business objectives.

In the past, the IT world has been viewed in two parts – the development world and the operational world. A lack of synergy between these worlds often produces a serious side effect – the business objectives are not met.

A main objective of Service Design is to eliminate this old-world view and bring IT service into a single, consolidated view of designing services within the realities, constraints and opportunities of live operation.

The opportunity to take advantage of new technologies, maximize the use of existing infrastructure, applications, data and knowledge comes to life within the pages of this publication.

Service Design broadens our horizons and helps us to see a larger, more cohesive view of IT Service Management.

Any IT organization that wants to maximize its potential to meet business objectives and business value needs this publication in its arsenal of capabilities.

Service Design is powerful guidance and a cornerstone of practical skills, tools and methods for achieving service excellence.

Sharon Taylor

Chief Architect, ITIL Service Management Practices

Contact information

Full details of the range of material published under the ITIL banner can be found at www.best-management-practice.com/itil

If you would like to inform us of any changes that may be required to this publication, please log them at www.best-management-practice.com/changelog.

For further information on qualifications and training accreditation, please visit www.itil-officialsite.com. Alternatively, please contact:

APMG Service Desk Sword House Totteridge Road High Wycombe Buckinghamshire HP13 6DG

Tel: +44 (0) 1494 452450 Email: servicedesk@apmgroup.co.uk

Acknowledgements

Chief Architect and authors

Sharon Taylor (Aspect Group Inc) Chief Architect

Vernon Lloyd (Fox IT) Author

Colin Rudd (IT Enterprise Management Services Ltd – ITEMS) Author

ITIL authoring team

The ITIL authoring team contributed to this guide through commenting on content and alignment across the set. So thanks are also due to the other ITIL authors, specifically Jeroen Bronkhorst (HP), David Cannon (HP), Gary Case (Pink Elephant), Ashley Hanna (HP), Majid Iqbal (Carnegie Mellon University), Shirley Lacy (ConnectSphere), Ivor Macfarlane (Guillemot Rock), Michael Nieves (Accenture), Stuart Rance (HP), George Spalding (Pink Elephant) and David Wheeldon (HP).

Mentors

Tony Jenkins

Sergio Rubinato Filho

1 Introduction

The primary objective of Service Management is to ensure that the IT services are aligned to the business needs and actively support them. It is imperative that the IT services underpin the business processes, but it is also increasingly important that IT acts as an agent for change to facilitate business transformation.

All organizations that use IT will depend on IT to be successful. If IT processes and IT 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 and achieve its business objectives.

Most authorities now identify four types of IT assets that need to be acquired and managed in order to contribute to effective IT service provision. These are IT infrastructure, applications, information and people. Specifically there is a strong emphasis on the acquisition, management and integration of these assets throughout their ‘birth to retirement’ lifecycle. The delivery of quality IT services depends on the effective and efficient management of these assets.

These assets on their own, however, are not enough to meet the Service Management needs of the business. ITIL Service Management practices use these four asset types as part of a set of capabilities and resources called ‘service assets’.

Figure 1.1 Resources and capabilities are the basis for value creation

An IT service, used in support of business processes, is constructed from a combination of IT assets and externally provided ‘underpinning’ services. Once in place, an IT service must be supported throughout its ‘life’, during which time it may be modified many times, either through technological innovation, changing business environment, changing usage of the service, changing its service quality parameters, or changing its supporting IT assets or capabilities (e.g. a

change in an application software component to provide additional functionality). Eventually the IT service is retired, when business processes no longer have a use for it or it is no longer cost-effective to run. Service Transition is involved in the build and deployment of the service and day-to-day support, and delivery of the service is the role of Service Operation, while Continual Service Improvement implements best practice in the optimize and retire stages.

From this perspective, Service Design can be seen as gathering service needs and mapping them to requirements for integrated services, and creating the design specifications for the service assets needed to provide services. A particular feature of this approach is a strong emphasis on re-use during design.

The main aim of Service Design is to design IT services, together with the governing IT practices, processes and policies, to realize the strategy and to facilitate the introduction of these services into the live environment ensuring quality service delivery, customer satisfaction and cost-effective service provision. Service Design should also design the IT services effectively so that they don’t need a great deal of improvement during their lifecycle. However, continual improvement should be embedded in all Service Design activities to ensure that the solutions and designs become even more effective over time and to identify changing trends in the business that may offer improvement opportunities. Service Design activities can be periodic or exception-based when they may be triggered by a specific business need or event.

If services or processes are not designed they will evolve organically. If they evolve without proper controls, the tendency is simply to react to environmental conditions that have occurred rather than to understand clearly the overall vision and overall needs of the business. Designing to match the anticipated environment is much more effective and efficient, but often impossible – hence the need to consider iterative and incremental approaches to Service Design. Iterative and incremental approaches are essential to ensure that services introduced to the live environment adapt and continue to remain in line with evolving business needs. In the absence of formalized Service Design, services will often be unduly expensive to run, prone to failure, resources will be wasted and services will not be fully aligned to business needs. It is unlikely that any improvement programme will ever be able to achieve what proper design would achieve in the first place. Without Service Design, cost-effective service is not possible. The human aspects of Service Design are also of the utmost importance, and these will be explored in detail later in this publication.

1.1 Overview

This publication forms part of the overall ITIL Service Management practices and covers the design of appropriate and innovative IT services to meet current and future agreed business requirements. It describes the principles of Service Design and looks at identifying, defining and aligning the IT solution with the

1.2 Context

1.2.1 Service Management

Information technology (IT) is a commonly used term that changes meaning with context. From the first perspective, IT systems, applications, and infrastructure are components or sub-assemblies of a larger product. They enable or are embedded in processes and services. From the second perspective, IT is an organization with its own set of capabilities and resources. IT organizations can be of various types, such as business functions, shared services units, and enterprise-level core units.

From the third perspective, IT is a category of services utilized by business. They are typically IT applications and infrastructure that are packaged and offered as services by internal IT organizations or external service providers. IT costs are treated as business expenses. From the fourth perspective, IT is a category of business assets that provide a stream of benefits for their owners, including but not limited to revenue, income and profit. IT costs are treated as investments.

1.2.2 Good practice in the public domain

Organizations operate in dynamic environments with the need to learn and adapt. There is a need to improve performance while managing trade-offs. Under similar pressure, customers seek advantage from service providers. They pursue sourcing strategies that best serve their own business interests. In many countries, government agencies and non-profits have a similar tendency to outsource for the sake of operational effectiveness. This puts additional pressure on service providers to maintain a competitive advantage with respect to the alternatives that customers may have. The increase in outsourcing has particularly exposed internal service providers to unusual competition.

To cope with the pressure, organizations benchmark themselves against peers and seek to close gaps in capabilities. One way to close such gaps is the adoption of good practices in wide industry use. There are several sources for good practices, including public frameworks, standards, and the proprietary knowledge of organizations and individuals (Figure 1.2).

Figure 1.2 Sourcing of Service Management practice

Public frameworks and standards are attractive when compared with proprietary knowledge:

• Proprietary knowledge is deeply embedded in organizations and therefore difficult to adopt, replicate or transfer, even with the cooperation of the owners. Such knowledge is often in the form of tacit knowledge that is inextricable and poorly documented.
• Proprietary knowledge is customized for the local context and specific business needs to the point of being idiosyncratic. Unless the recipients of such knowledge have matching circumstances, the knowledge may not be as effective in use.
• Owners of proprietary knowledge expect to be rewarded for their long- term investments. They may make such knowledge available only under commercial terms through purchases and licensing agreements.
• Publicly available frameworks and standards such as ITIL, COBIT, CMMI, eSCM-SP, PRINCE2, ISO 9000, ISO/IEC 20000, and ISO/IEC 27001 are validated across a diverse set of environments and situations rather than the limited experience of a single organization. They are subject to broad review across multiple organizations and disciplines. They are vetted by diverse sets of partners, suppliers and competitors.
• The knowledge of public frameworks is more likely to be widely distributed among a large community of professionals through publicly available training and certification. It is easier for organizations to acquire such knowledge through the labour market.

Ignoring public frameworks and standards can needlessly place an organization at a disadvantage. Organizations should cultivate their own proprietary