Why ITIL - Real Business Case Extract
- 1. Why ITIL? Or “ How to avoid drinking at the last chance saloon in 6 easy steps”
- 3. Good Service Management, so what? Translating the organization’s mission in to delivery of IT Services Increase efficiency and effectiveness by 30% (Gartner) Changing the behavior of the IT department Historical (Hysterical) behaviors, (Bad) Habits Improvements as quick wins can be IMMEDIATE Pragmatic projects, a little longer Miracles…EASY
- 4. ITIL Benefits Integrated processes Common Language Standard procedures Clear roles and responsibilities Improved IT availability, reliability and security of mission critical services Provide services that meets business, customers and users demands Provide demonstrable performance indicators Policy-driven Greater control Improved communication COST REDUCTIONS BETTER SERVICE
- 5. ITSM through a scenario The best way to show why to get involved in ITSM and using ITIL is through an improvement example AKA A WAR STORY
- 6. Q1. What is the vision ? (Objectives) Reduce downtime of IT Services (for users) Increase efficiency in managing failures Increase service levels for clients
- 7. Q2. Where are you now ? ( Assessment) HOW MUCH? 500 incidents per day HOW LONG1? Average incident time 7 mins 30secs HOW LONG2? Average time spent on detection and diagnosis is 4 mins HOW MANY? 12 staff at the Service Desk(SD), 7 involved in detection and diagnosis HOW MUCH? Salary of SD staff £25K/year Cost of unavailability is £7.50/minute of down time for users You also need to do an assessment of ITSM process maturity within the organization
- 8. Q3. Where do you want to be (Targets) Reduce detection/diagnosis time by 1 minute Save £300,000/year Increase SLA Target Reduce SD Staff by 15%
- 9. Q4. Process Improvement Using ITIL based IT Service Management disciplines Availability Management (AM) confirms resolution, detection and diagnosis time using Incident / Problem Management data AM making recommendation on how to reduce failure time Change Management to manage Request For Change to implement new improvements before Release and Deployment implements them Service Asset & Configuration Management records and controls new assets being implemented Service Level Management to review Service Level Agreements (SLAs)
- 10. Q4. Process Improvement AM Recommendations Training of SD staff (£20K – external ) Implement new module of Monitoring tool (£20K –external, £20k - internal) Change Incident Management process (£10k – internal ) Incident process changes to use Service Desk tool and new monitoring tool Hire consultants to help change the processes and analysis of recommendation ( £30k – external ) TOTAL COST of £70K external, £30k internal
- 11. Q5. Measuring Success of Improvement Current situation (Calculations) 7 staff X 8 hours X 60 minutes X 70% on detection/diagnosis = 2352 minutes of possible work 500 incidents/day X 4 minutes unavailability = 2000 minutes of unavailability time If detection/diagnosis is reduced from 4 mins to 3 mins: 500 incidents/day X 3 minutes unavailability = 1500 minutes of unavailability time Reduction of unavailable time of 500 minutes (From 2000 mins to 1500 mins)
- 12. Q5. Measuring Success of Improvement Calculation Resource Savings 1500 minutes of unavailable time 5 staff X 8 hours X 60 minutes X 70% = 1680 minutes of possible work Was 7 staff X £25K = £175K Reduced to 5 staff X £25 = £125K SAVINGS OF £50K/year Calculation Availability Savings Savings of 500 minutes of unavailability (was 2000 reduced to 1500) £7.5/minutes X 500 minutes (saved) / day = £3,750/day 200 days of work X £3,750/day = £750K SAVINGS OF £750K/year
- 13. Q5. Measuring Success of Improvement SAVINGS: £50K + £750K = £800K / Year COST OF IMPROVING: £110K (Availability recommendations + Consultant assistance in process changes) £800K - £110K = Net Savings of £690,000
- 14. Increase revenue of the organization Lower cost of operations Legal compliancy (Political) Better control/knowledge of Service Delivery Increase morale of the organization The 5 main business objectives … all improvement projects should be linked to business objectives ... ITSM Improvements Business Objectives
- 15. Creating a business vision Process diagrams don’t make a difference, the business results DO Take the time to define your KPI’s and Business Objectives from the start You will be forced to look at the bottom line for your CSIP ITIL is about what ITSM processes and related roles that needs to be improved to meet business vision
- 16. Conclusion This is just an example but the premise is sound ITIL and ITSM is about making real life changes It is proven that it works Make sure you set your objectives and set some KPIs to measure the success