ITIL® 2011 Foundation Certification Course

Unit 1—Introduction to Service Management Lifecycle

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 Introduction to Service Management Lifecycle
Lesson 1—Principles of IT Service Management

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Objectives
● Explain the best practices in IT Service Management
After completing
this lesson, you will ● Identify the stakeholders in service management
be able to:
● Describe service management roles and responsibilities

● Explain the types of service providers

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IT Service Management—Best Practices

IT Service Management is the implementation and management of quality IT services that meet the
needs of a business. It includes best practices followed by many organisations. The sources of best
practices are:

● Existing public standards published by the

International Standards Organisation or ISO;
● Industry practices that are shared among industry
practitioners;
● Academic research; and
● Internal experiences or an organisation’s past
experiences in providing similar services.

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Public and Proprietary Practices

The table provides a comparison between public and proprietary practices.

Public practices Proprietary practices

Widely distributed through public training Deeply embedded in organisations.
and certification.
Applied across various technologies and Highly customised to serve specific business
businesses. needs.
Available for free. Owners expect compensation.
Organisations can hire people with the The evolution of such practices depends on the
knowledge of such practices. owner and cannot be guaranteed.

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 KNOWLEDGE
CHECK
Which of the following is true for public practices?

a. Public practices need you to pay

b. The evolution of public practices depends on the owner
c. Public practices are customised to suit business requirements

d. Public practices are applied across multiple businesses and technologies

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 KNOWLEDGE
CHECK
Which of the following is true for public practices?

a. Public practices need you to pay

b. The evolution of public practices depends on the owner
c. Public practices are customised to suit business requirements

d. Public practices are applied across multiple businesses and technologies

Answer: d.
Explanation: Public practices are applied across various organisations and technologies.

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Service—Introduction

Service is a means of delivering value to customers by facilitating outcomes the customers want to
achieve, without the ownership of specific costs or risks.
Customer—Online bookstore

Transfers the Value added by service provider

responsibility to
manage risks and • Performs tasks
costs • Manages risks and constraints
• Optimises costs

Service provider—Database solutions

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Service Management

Service management is the effective, process-driven management of transforming IT resources into

valuable IT services.

Capabilities
Performance Value
Business
Service assets Services Customer assets
outcomes

Resources

Service management
© Crown Copyright 2011. Reproduced under licence from AXELOS.

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Service Management Practice

The image shows the various sources, enablers, drivers and scenarios of service management practice.

© Crown Copyright 2011. Reproduced under licence

from AXELOS.

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Challenges in Service Management

Following are the challenges in service management:

● The nature of output is intangible.

● The output is hard to control, measure and
validate.
● Demand is associated with customers’ assets.
● There is hardly any buffer between the creation of
the service and its consumption.
● Service capacity and output are perishable by
nature.

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Benefits of IT Service Management

Following are the benefits of IT Service Management:

Quality service provision

The service quality is cost-effective

Services satisfy customer, user and business demands

Centralised and integrated processes

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Stakeholders in Service Management

Stakeholders are those entities who are interested in the outcome of a service or a project. Following
are the stakeholders in service management:

Organisation refers to a legal entity, a company or an institution that comprises resources,

people and budgets. An example of temporary organisation is project and that of a

Organisation permanent organisation is business.

Internal stakeholders are the groups, teams and functions that deliver services within a
service provider organisation.
Internal stakeholders

They are customers buying goods or services, end users of services, and third parties such as
suppliers who provide the goods or hardware and network service for IT service delivery.
External stakeholders
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Internal and External Customers

For any organisation, there are two types of customers as mentioned below:

Internal customers External customers

● They work in the same organisation as the ● Purchase services from the service
IT service provider. provider under a legal contract, and are not
●
employed by the organisation.
Example: The marketing department in an
IT company is its internal customer ● Example: An online book seller getting IT
because it uses IT services. services from an IT service provider is an
external customer.

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Internal and External Services

Internal and external services are defined below:

These are services delivered to business units within the same

Internal service
organisation.

External service These are services delivered to an external organisation.

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Internal and External Services (contd.)

The image shows that the IT department

provides services to business units which
belong to the same organisation. Such services
are known as internal services. For example,
the sales department is an internal customer
using the CRM services provided by the IT
department.

The same IT department provides services to

the customers who are external to the
organisation. These services are called
external services.

© Crown Copyright 2011. Reproduced under licence from AXELOS.

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Internal and External Services (contd.)

Given below are the facts related to internal and external services:

Internal service External service

Supports activities within an These services result in

organisation. business outcomes.

Linking the internal services to the external services helps in measuring the outcomes and the ROI or
Return on Investment.

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Process
A process is a set of activities designed to accomplish a specific objective. It takes defined inputs and turns them into
defined outputs. A process may include roles, responsibilities, tools and management controls required to deliver
the outputs. Process control

Process Process Process

owner policy objectives
Triggers Process Process
documentation feedback

Process

Process Process Process

activities metrics improvements
Process inputs Process outputs
Process Process Process work
procedures roles instructions

Process enablers

Process Process
resources capabilities

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Process Characteristics

Following are the common characteristics of all processes:

The cost, quality and other variables of a process can be measured.

A process leads to a specific result for stakeholders and customers.

A process responds to triggers or events.

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Functions Related to Service Management

Functions consist of a team of people and the tools they need to carry out one or more processes or
activities. They are the units of an organisation, which specialise in performing certain types of work.
Functions are responsible for specific outcomes.

The functions related to service management are:

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Functions Related to Service Management (contd.)

Following are the facts related to the various functions associated with service management:

● Service desk: It is the single point of contact where the business sends operational requests and
customers make support or service requests.

● IT operations management: It includes activities related to IT service delivery and the control and
maintenance of IT infrastructure. It comprises the following:

o Operations control: It includes job scheduling, backup and restore procedures and processing of
console management.

o Facility management: It is related to managing the physical IT environment such as network

rooms, data centre rooms and power supply.

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Functions Related to Service Management (contd.)

Following are the facts related to the other functions in service management:

● Technical management: It designs cost-effective technological infrastructure to support business

processes. This team is involved in testing and optimizing IT services, and provides resources to
support the ITSM lifecycle.

● Application management: It helps to manage applications for their lifecycle and provides resources
for the ITSM lifecycle. This team plays a key role in designing, testing and improving applications.

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Functions Related to Service Management (contd.)

The image shows the functions related to service management, as defined by ITIL® 2011.

© Crown Copyright 2011. Reproduced under licence from AXELOS.

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How Processes and Functions Operate

A process-oriented organisation aligns processes across functions. This helps the functions to run
effectively, resulting in customer satisfaction. In the image, the functions like operations,
development, etc., and their sub-functions follow a single process which is indicated by a dotted line.

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Roles in Service Management

Two key roles in service management are the Service Owner and the Process Owner.

Service Owner is the person who is accountable for the

delivery of a specific IT service, They are responsible for
continual improvement and management of change

Service Owner affecting services under their care.

The Process Owner is responsible for ensuring that a process

is being performed as agreed and documented.

Process Owner

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Roles in Service Management (contd.)

Following are the responsibilities of the Service Owner:

● Handles service enquiries and issues.

● Identifies opportunities for service requirements.
● Maintains liaison with the process owners.
● Solicits the reports, statistics and other data
required for analysis.
● Ensures effective service monitoring and
performance.

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Roles in Service Management (contd.)

Following are the main responsibilities of the Process Owner:

● Documents and publishes the process.

● Defines the Key Performance Indicators or KPIs.
● Engages in process design and takes responsibility
for it.
● Reviews any proposed enhancement to the
process.
● Addresses any issue related to the way the process
runs.

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Roles in Service Management (contd.)

Following are other responsibilities of the Process Owner:

● Ensures that the staff has the required training in

the process and are aware of their roles in it.
● Ensures that processes, roles, responsibilities and
documents are regularly reviewed and audited.
● Interfaces with the line management and ensures
that the process receives the needed staff
resources.

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RACI Model

The RACI model is used to identify the following roles and responsibilities in a process:

Responsible Includes the people or person responsible for carrying out various
tasks.

Accountable Includes one person taking ownership and being accountable for
various activities.

Consulted Comprises the people whose opinions are sought after designing,
implementing or improving an activity.

Informed Includes the people who are informed while executing or

improving an activity.

There can be only one person accountable but multiple people responsible for an activity.
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RACI Model (contd.)

The table shows the RACI model based on the roles and responsibilities related to activities in a
process.

Service Process Security IT Chief Process

Activities Owner Owner Manager Head Architect Manager

Create a framework for defining IT services C C C A/R C I

Build an IT service catalogue C A/R I C I I

Define SLA for critical IT services A R C R C I
Monitor and report SL performance I A/R I I I R
Review SLAs, OLAs and UCs A R C R I R
Review and update IT service catalogue C A/R I C I C
Create a service improvement plan I A/R I C C R

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Types of Service Providers

According to ITIL®, an IT service provider is an organisation supplying IT services to one or more

internal or external customers. ITIL® defines three types of service providers:

● Refers to a service provider embedded within a business unit.

Type I or internal ● Example: An IT organisation within each business unit

● Refers to an internal service provider that offers shared IT services to more than a
single business unit.
Type II or shared ● Example: A telecom company’s IT services team offering services to the mobile and
landline phone units of the same company

● Refers to an external service provider that offers IT services to external customers.

Type III or ● Example: An IT service provider in India, which offers outsourcing services to a global
external
bank

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Supplier and Legal Agreements

Following are the three key terms associated with IT Service Management:

Third party responsible for supplying goods or services required to

Supplier deliver IT services. Commodity software and hardware vendors,
outsourcing organisations and telecom and network providers are
suppliers.

Underpinning
It is a legal agreement between the service provider and the supplier.
contract

Service Level The agreement between the business organisation and the IT service
Agreement provider is called Service Level Agreement.

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 KNOWLEDGE
CHECK
Who defines the key performance indicators in service management?

a. Service Owner
b. Service provider
c. Internal stakeholder
d. Process Owner

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 KNOWLEDGE
CHECK
Who defines the key performance indicators in service management?

a. Service Owner
b. Service provider
c. Internal stakeholder
d. Process Owner

Answer: d.
Explanation: The Process Owner defines the key performance indicators in service
management.

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Summary
● Best practices are successful innovations that have been accepted and
Here is a quick
recap of what we followed by organisations.
have learnt in this
● Service management helps to transform IT resources into valuable IT
lesson:
services.

● Stakeholders are interested in the target, resources, activities and outcome

of a service or a project.

● The Service Owner is responsible for providing a specific service within an

organisation. The Process Owner ensures that a process is performed as
decided and documented.

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 Introduction to Service Management Lifecycle
Lesson 2—The Service Lifecycle

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Objectives
● Identify the components or phases of service management lifecycle
After completing
this lesson, you will ● Explain the relationship between governance and ITSM
be able to:

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Components of Service Management Lifecycle

Following are the components or Application Management

Design Coordination IT Operations Management

phases of service management
Supplier Management Change Evaluation Technical Management

lifecycle. Information Security

Service Validation and Testing Service Management
Management

Strategy Management IT Service Continuity

Knowledge Management Access Management
Management
Business Relationship Release and Deployment
Availability Management Problem Management
Management Management
Service Asset and
IT Financial Management Capacity Management Incident Management
Configuration management
Service Portfolio Service Catalogue
Change Management Request Fulfilment
Management Management
Transition Planning and
Demand Management Service Level Management Event Management
Support

Service Strategy Service Design Service Transition Service Operation

Continual Service Improvement

7 Steps Improvement Process, Deming Cycle, CSI model

Service Reporting Service Measurement

© Crown Copyright 2011. Reproduced under licence from AXELOS.

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Components of Service Management Lifecycle (contd.)

Below are the facts related to the components or phases of service management lifecycle:

● The organisation decides to come up with certain services to have a competitive

advantage in the market.
Service strategy ● Questions like what service to provide and why will someone pay for the services are
addressed.

● In this phase, specific design related decisions are taken.

Service design ● Questions, such as what is the user base, will the services be offered 24/7 or will they
be provided during a certain time period, are addressed.

● Once all service design related decisions are taken, the focus shifts to the service
Service transition
transition stage.
● This is the stage of making the services available to the target user base.

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Components of Service Management Lifecycle (contd.)

Below are the facts related to some more components or phases of service management lifecycle:

● When users encounter any problem while accessing the service, service operation
Service operation takes care of resolving their problems.
● The aim of service operation is to ensure that a service runs uninterrupted.

Continual service ● This phase is common to all the phases of service management lifecycle.
improvement ● It includes regular monitoring of service for improvement of service quality.

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Interactions in the Service Lifecycle

The image below demonstrates the interactions in the service lifecycle.

© Crown Copyright 2011. Reproduced under licence from AXELOS.

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Relationship between Governance and ITSM

The image below shows the relationship between governance and IT Service Management.

Corporate governance
Ensures the provision strategy and business plans. Establishes the corporate
policies and enables strategic direction, objectives, critical success factors and
key result areas.

IT governance
Corporate compliance Establishes IT policy, standards and principles.
Assures adherence to legal, industrial and Assures alignment of IT strategy to corporate
regulatory requirements. business strategy.

IT Service Management
IT compliance Establishes, enables and executes the IT
Assures the design and operability of IT strategy. Establishes operations to assure high-
policies, processes and key controls. quality compliant IT service provisioning.
Ensures effective key result areas.

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Summary
● The five components of service management lifecycle are service strategy,
Here is a quick
recap of what we service design, service transition, service operation and continual service
have learnt in this improvement.
lesson:
● Continual service improvement identifies opportunities for improving the
failures within any stage of the service lifecycle.

● Corporate governance deals with setting up corporate policies, strategic

directions, etc., and identifying critical success factors for an organisation.

● IT Service Management helps to implement quality IT services that meet the

needs of a business.

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 Quiz

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 QUIZ
What is the RACI model used for?
1

a. Documenting the roles and relationships of stakeholders in a process

b. Defining the requirements for a new service or process
c. Analysing the business impact of an incident
d. Creating a balanced scorecard to show the status of service management

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 QUIZ
What is the RACI model used for?
1

a. Documenting the roles and relationships of stakeholders in a process

b. Defining the requirements for a new service or process
c. Analysing the business impact of an incident
d. Creating a balanced scorecard to show the status of service management

Answer: a.
Explanation: RACI model identifies which stakeholders are responsible, accountable,
consulted and informed about a process.
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 QUIZ
The Service Owner is responsible for _____________.
2

a. Designing and documenting a service

b. Carrying out the activities related to service operations
c. Producing a balanced scorecard to show the overall status of services
d. Recommending improvements

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 QUIZ
The Service Owner is responsible for _____________.
2

a. Designing and documenting a service

b. Carrying out the activities related to service operations
c. Producing a balanced scorecard to show the overall status of services
d. Recommending improvements

Answer: d.
Explanation: The Service Owner recommends service improvements.

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 QUIZ
Which of the following statements is correct?
3

a. Only one person can be responsible for an activity

b. Only one person can be accountable for an activity
c. Multiple people can be responsible and accountable for an activity
d. Multiple people are accountable but one who takes the ownership is
responsible

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 QUIZ
Which of the following statements is correct?
3

a. Only one person can be responsible for an activity

b. Only one person can be accountable for an activity
c. Multiple people can be responsible and accountable for an activity
d. Multiple people are accountable but one who takes the ownership is
responsible
Answer: b.
Explanation: According to the RACI model, only one person accountable but multiple people
responsible for an activity
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 QUIZ
Which of the following statements about functions is incorrect?
4

a. Functions provide structure and stability to organisations

b. Functions are self-contained units with capabilities and resources
c. Functions rely on processes for cross-functional coordination and control
d. Functions are costlier to implement compared to processes

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 QUIZ
Which of the following statements about functions is incorrect?
4

a. Functions provide structure and stability to organisations

b. Functions are self-contained units with capabilities and resources
c. Functions rely on processes for cross-functional coordination and control
d. Functions are costlier to implement compared to processes

Answer: d.
Explanation: Functions include a group of people or tools that help to execute processes.
These are not costlier to implement compared to processes.
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 QUIZ
Which of the following is not the characteristic of a process?
5

a. It is measurable
b. It is timely
c. It delivers a specific result
d. It responds to a specific event

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 QUIZ
Which of the following is not the characteristic of a process?
5

a. It is measurable
b. It is timely
c. It delivers a specific result
d. It responds to a specific event

Answer: b.
Explanation: A process can be measured. It is result-oriented and responds to specific
events. However, it may not be timely.
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 Thank You

ITIL® is a registered trade mark of AXELOS Limited Copyright 2014, Simplilearn, All rights reserved.
IT Infrastructure Library is a registered trade mark of AXELOS Limited
AXELOS® is a trade mark of AXELOS Limited
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