Service Design

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Service Design Session Overview and Objective

By the end of this session, you will be able to

Explore Goals, Objectives & Business Value.

Describe 4 Ps of Service Management.

Explain Service Design Lifecycle.

Evaluate 5 Key Aspects.

Generalize Service Design Processes.

Service Design Purpose

The purpose of the service design stage of the lifecycle is to design IT services, together with the governing IT practices, processes
and policies.
Service design activities can be periodic or exception-based when they may be triggered by a specific business need or an event.
ITIL Service Design provides guidance for the design of appropriate and innovative IT services, to meet the current and future agreed
business requirements.
All processes within the service lifecycle must be linked closely together for managing, designing, supporting and maintaining the
services, the IT infrastructure, the environment, the applications and the data.
ITIL Service Design provides an access to the proven best practices, based on the skill and knowledge of experienced industry
practitioners in adopting a standardized and controlled approach to service management.
Selecting and adopting the best practice as recommended in this publication, which will assist organizations in delivering significant
benefits.

Service Design Purpose

ITIL Service Design is relevant to organizations involved in the development, delivery or support of services, including:

Service providers, both internal and external.

Organizations that aim to improve services through the effective application of service management principles, and a service lifecycle
approach.

Organizations that require a consistent managed approach across all service providers in a supply chain. Organizations that are going out
to tender for their services.

The publication is also relevant to any professional involved in the management of services, particularly:

IT architects.

IT managers
and
practitioners.

IT service
owners.

Business
relationship
managers.

Goal and Objective

Goal:

To create a
realistic service
with:

Service Solution

Processes

Technology
Architecture

Supporting
systems

Measurement
System &
Metrics

Objective:

To ensure the new or changed services are consistent to all other services.
Technology architectures and management systems should be consistent.
Processes, roles, responsibilities and skills have the capability to operate support and maintain the new or changed services.
Existing measurement methods can provide the required metrics for new / changed services.

Service Design Value to Business

Reduced Total
Cost of
Ownership (TCO)

More Effective
Processes

Improved quality
& Consistency

Business
Value
Improved IT
Governance

Easier
Implementation

Improved
Service
Alignment

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Key Concepts

Service Design
Package (SDP)

A SDP details all aspects of the service and its requirements during the design stage through all of the subsequent stages of
its lifecycle.

Formal agreement between service provider & customer record of agreed service levels.
Service Level
Agreement
(SLA)

The SLA describes the IT Service, documents Service Level Targets, and specifies the responsibilities of the IT Service Provider
and the Customer.

An Agreement between an IT Service Provider and another part of the same Organization.
Operational
Level
Agreement
(OLA)

An OLA supports the IT Service Provider's delivery of IT Services to Customers.

Key Concepts

Legal binding, covering

obligations each entity has
to the other; from the first
day of the contract, often
extending beyond its
termination.

Ability of a Configuration
Item or IT Service to
perform its agreed function
when required is called
availability.

Contract

Availability

An Organization supplying
Services to one or more
Internal Customers or
External Customers.

Service Provider

3rd Party who supplies

goods / services required to
deliver IT Services.

Supplier

Four Ps of Service Management (Design)

Many designs, plans and projects fail through a lack of preparation and management. Service Management
implementation is about preparing and planning the effective and efficient use of the four Ps.

To obtain the best benefits:

Determine the roles of processes and people, implement the tools to automate the processes facilitating
peoples roles and tasks.

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Service Design in Lifecycle Model

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Measurement Design
If you cant measure it, you cant manage it
Four types of Measurement metrics:
Compliance of the process to governance
requirements, regulatory requirements
and compliance of people to the use of
the process.

Milestones and deliverables in the

capability of the process.

The accuracy and correctness of the

process and its ability to deliver the
right result.
Compliance

Effectiveness

Progress

Efficiency

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The productivity of the process, its

speed, throughput and resource
utilization.

Service Design The Big Picture

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Service Design 5 Key Aspects

In Service Design, there are five aspects. We must integrate all five aspects of design, rather than design them in isolation.
Design of Service Solutions:
Design services based on business requirements.

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Service Management Systems and Tools Design:

Design tools needed to manage, control and support services.

Technology & Architectural Design:

Designing the technology architectures required to provide the services.

Process Design:
Designing the processes needed for transition, operate and improve the services.

Measurement System & Metrics:

Designing the measurement methods and metrics.

Service Design Processes

Design Coordination

To ensure the goals and objectives of the service design stage are met by providing
and maintaining a single point of coordination, and control for all activities and
processes within this stage of the service lifecycle.

Service Catalogue
Management

Provides the means of devoting that care and attention in a consistent fashion, and
ensuring that the organization accrues all of the potential benefits of a service
catalogue in the most efficient manner possible.

Service Level
Management

Availability Management

To ensure that all current and planned IT services are delivered to agreed achievable
targets.

To ensure that the level of availability delivered in all IT services, that meets the
agreed availability needs and/or service level targets in a cost-effective and in a
timely manner.

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Service Design Processes

Capacity Management
Provides appropriate capacity to support resilience and overall service availability

IT Service Continuity Management

To support the overall business continuity management (BCM) process by ensuring that, by managing the risks that could
seriously affect IT services, the IT service provider can always provide minimum agreed business continuity-related
service levels.

Information Security Management

Information security is a management process within the corporate governance framework, which provides the strategic
direction for security activities and ensures objectives are achieved

Supplier Management
Ensures that suppliers and the services they provide are managed to support IT service targets and business expectations.
The aim of this section is to raise awareness of the business context of working with partners and suppliers, and how this
work can best be directed toward realizing business benefit for the organization

Design Co-ordination Goals & Objectives

Goals

To ensure Goals & Objectives of Design Stage are met.

Single point of co-ordination & control for all design activities.

Objectives

Ensure Consistent design.

Co-ordinate all design activities across stakeholders.

Plan & co-ordinate resources & capabilities for design.

Ensure adherence to architecture & governance requirements.

Manage quality criteria especially at handover points from Strategy to Transition phase.

Some design efforts will be part of a project, whereas others will be managed through the change process alone without a formally defined project.

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Most design coordination process activity focuses around those design efforts that are part of a project, as well as those that are associated with
changes of defined types.

Design Co-ordination Goals & Objectives

The design coordination process includes:
Assisting and supporting each project, or other change through all the service design activities and processes.
Maintaining policies, guidelines, standards, budgets, models, resources and capabilities for service design activities.
Coordinating, prioritizing and scheduling of all service design resources.
Planning and forecasting the resources needed for the future demand for service design activities.
Reviewing, measuring and improving the performance of all service design activities and processes.
Ensuring that all requirements are appropriately addressed in service designs, particularly utility and warranty
requirements.
Ensuring the production of service designs and/or SDPs and their handover to service transition.

The design coordination process does not include:

Responsibility for any activities or processes.

Responsibility for designing the detailed service solutions themselves.

Design Co-ordination Key Activities

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Service Level Management Goals & Objectives

SLM is a vital process for every IT service provider organization, in that it is responsible for agreeing and
documenting service level targets, and responsibilities within the SLAs and service level requirements (SLRs)
for every service and related activity within IT.

If the targets are not aligned with business needs, then the service provider activities and service levels will
not be aligned with the business expectations, and problems will develop.

The success of SLM is very dependent on the quality of the service portfolio, and the service catalogue, and
their contents, because they provide the necessary information on the services to be managed within the
SLM process.

Service level management is responsible for defining and agreeing the service level requirements.

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Service Level Management Goals & Objectives

The Goal of Service Level Management (SLM) is to ensure that:

An agreed level of IT service is provided for all current IT services.

Future services are delivered to agreed achievable targets.

Proactive measures are taken to seek and implement improvements to the service delivered.

Objectives:

Develop relationships with business.

Negotiate, agree and document SLA and SLR.

Monitor, measure and review IT Services (SLA/SLO).

Review contracts with Supplier Management.

Service Improvement Plan (SIP).

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Service Level Management Scope

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Service Level Management Basic Concepts

Service Level Management (SLM)

A communication channel & relationship with appropriate customers & business representatives.

Service Level Agreement (SLA)

Written agreement between an IT service provider & the IT customer(s), defining the key service targets and responsibilities of
both parties.

Operational Level Agreement (OLA)

Agreement between an IT service provider & another part of the same organization that assists with the provision of services.

Underpinning Contract (UC)

Formal contract between an IT Service Provider & a Third Party.

SLR - Service Level Requirements (Future Requirements)

SIP - Service Improvement Program (Plan)

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Service Level Management Key Activities

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SLM Chart for Service Reporting / Monitoring

SLM Chart is an important tool for Reporting and Monitoring the Services.

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This chart is usually used during the performance review meetings

Service Level Management Key Metrics

Percentage reduction in:

SLA targets missed

SLA targets threatened
SLA breaches (because of UC)
SLA breaches (because of OLA)

Percentage increase in:

Customer perception & satisfaction of SLA achievements

Service reviews

Customer Satisfaction Survey responses

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Service Catalogue Management (SCM) Goals & Objectives

The goal is to ensure :

Objectives:

That a Service Catalogue is

produced and maintained

Manage the information

contained within the
Service Catalogue

It contains accurate
information on all
operational & planned
services

Ensure accuracy in current

details, status, interfaces
and dependencies of all
services

Scope:

All services that are being

transitioned or have been
transitioned to the live
environment

SCM Types of Service Catalogue

Business Service Catalogue (BSC)
contains details of all the IT services from customers perspective, relationships to the business units and business
process that rely on the IT services.
This is the customers view of the Service Catalogue.

Technical Service Catalogue (TSC)

contains details of all the IT services from IT perspective, relationships to the supporting services shared services,
components and CIs necessary to support the provision of the service to the business.
TSC should underpin the BSC and maybe visible to the customers!

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Two View - Service Catalogue

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SCM Key Role

Service Catalogue Manager

Record existing & new services in Service Catalogue.

Produce & maintain Service Catalogue.

Ensure Service Catalogue information is accurate.

Ensure Service Catalogue & Service Portfolio information is consistent.

Ensure Service Catalogue information is adequately protected & backed-up.

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Types of Services

Core services
Deliver the basic outcomes desired by one or more customers.
Services which customer wants and for which they are willing to pay.

Enabling services
Services that are needed in order for a core service to be delivered.
Enabling services may or may not be visible to the customer, but the customer does not perceive
them as services in their own right.

Enhancing services

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Services that are added to a core service to make it more exciting or enticing to the customer.

Availability Management Goals & Objectives

Goal
Is to ensure that level of service availability is delivered in all services is matched to or exceeds the current and future agreed
needs of the business in a cost-effective manner.

Objectives:

Produce and maintain an appropriate and up to date Availability Plan, that reflects the current and future needs of the
business.

Provide advice and guidance to all other areas on availability related issues.

Assist with diagnosis and resolution of availability related incidents and problems.

Asses the impact of all changes on the Availability Plan, and the performance, and capacity of services and resources.

Ensure that proactive measures are implemented to improve the availability of services wherever it is cost justifiable.

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Availability Management Basic Concepts

Availability:

In simplest terms, The ability of a service, component or CI to perform its agreed function
when required.

Reliability:

A measure of How long a service, component or CI can perform its agreed function without
interruption.

Maintainability:

Serviceability:

A measure of How quickly and effectively a service, component or CI can be restored to

normal after a failure.

Often this contract will include agreed levels of availability, reliability and / or
maintainability for a supporting service or component.

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Understanding Basic Concepts of Availability Management

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Availability Management Key Role

The Availability Management process includes two types of activities:

Reactive activities

Proactive activities
Responsible for Availability Management process
Participate in IT infrastructure design
Monitor actual IT availability achieved
Create, maintain & review AMIS and Availability Plan
Availability testing schedule
Testing after major business change
Assess impact of changes on Availability Plan
Attending CAB meetings
Ensure cost justified levels of IT availability

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Assessment and management of risk

Capacity Management Goals & Objectives

Capacity Management:

Capacity
management is a
process that
extends across the
service lifecycle.

This provides the

predictive and
ongoing capacity
indicators needed
to align capacity to
demand.

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Capacity
management
provides a point of
focus and
management for all
capacity- and
performancerelated issues.

Capacity Management Goals & Objectives

Goal:

To ensure that Cost-justifiable IT capacity is matched to the current and future agreed needs of the business in a timely
manner.

Objectives:

Ensures the Capacity Plan, reflecting the current and future needs of the business, is available and up to date.

Provide advice and guidance to all other areas of the business and IT on all capacity and performance related issues.

Ensure that service performance achievements meet or exceed all of the agreed targets, by managing the performance and
capacity of both services and resources.

Scope:

The process should encompass all areas of technology, both hardware and software, for all IT technology components and
environments.

Capacity management could consider human resource capacity where a lack of human resources could result in a breach of
SLA

Capacity Management Basic Concepts

Balancing Act
Cost against Capacity
Supply against Demand

Business Capacity Management

Focused on current and future business requirements
Translates business needs and plans into Services and IT Infrastructure

Service Capacity Management

Focused on delivery of the existing services that support the business
Management, control and prediction of the end-to-end performance and capacity of the live, operational IT services usage
and workloads

Component Capacity Management

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Focused on the IT infrastructure that underpins service provision

Management, control and prediction of the performance, utilization and capacity of individual IT technology components

Capacity Management Key Role

Managing the capacity of large distributed IT infrastructures is a complex and demanding task, especially
when the IT capacity and the financial investment required is ever-increasing.

Also, there could now be economies of scale because the cost per individual component could be
reduced when many components need to be purchased.

Which components to upgrade (i.e. more memory, faster storage devices, faster processors, greater
bandwidth).
When to upgrade ideally this is not too early, resulting in expensive over-capacity, nor too late,
failing to take advantage of advances in new technology, resulting in bottle-necks, inconsistent
performance and, ultimately, customer dissatisfaction and lost business opportunities.
How much the upgrade will cost the forecasting and planning elements of capacity management
feed into budgetary lifecycles, ensuring planned investment.

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Capacity Management Key Role

Capacity Manager
Develop a Capacity Plan and ensures it is up to date

Asses the impact of all changes on the Capacity Plan and the performance and capacity of all services and resources

Ensure that proactive measures are implemented to improve the performance of services, wherever it is cost justifiable to do so

Sizing new services & systems (per future requirements)

Focal point for capacity & performance issues

Provide management reports on Current Usage, Trends and Forecasts

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IT Service Continuity Management (ITSCM) Goals & Objectives

Service continuity is an
essential part of the
warranty of a service.

ITSCM focuses on those

events that the business
considers significant enough
to be treated as a disaste.

As technology is a core
component of most business
processes, continued or high
availability of IT is critical to
the survival of the business
as a whole.

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The impact of a loss of a

business process, is
measured through a BIA
exercise, which determines
the minimum critical
requirements.

IT Service Continuity Management (ITSCM) Goals & Objectives

Goal:
Support the larger business continuity plan.
Objectives:
Ensure IT Service Continuity Plan and Recovery Plan is in alignment of overall Business Continuity Plan (BCP) of the
organization.
Ensure regular Business Impact Analysis (BIA) happens so that all continuity plans remain in line with changing
business needs.
Regular Risk Assessments.

Scope includes resources (people) as well!

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IT Service Continuity Management (ITSCM) Goals & Objectives

The ITSCM process includes:
The agreement of the scope of the ITSCM process and the policies adopted.
BIA to quantify the impact loss of IT service would have on the business.
Risk assessment and management the risk identification and risk assessment to identify potential threats to
continuity and the likelihood of the threats becoming reality.
This also includes taking measures to manage the identified threats where this can be cost- justified.
The approach to managing these threats will form the core of the ITSCM strategy and plans.
Production of an overall ITSCM strategy that must be integrated into the BCM strategy.
This can be produced following the BIA and the development of the risk assessment, and is likely to include elements
of risk reduction as well as selection of appropriate and comprehensive recovery options.
Production of an ITSCM plan, which again must be integrated with the overall BCM plans.
Testing of the plans.

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Ongoing operation and maintenance of the plans.

IT Service Continuity Management (ITSCM) Key Activities

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Info Security Management (ISM) Goals & Objectives

Goal
To align IT security with business security and ensure that information security is effectively managed in all
services and Service Management activities.
Objective
To protect the interests of those relying on information, systems and communications.
Information security is a critical part of the warranty of a service.
If the security of a services information and information processing cannot be maintained at the levels
required by the business, then the business will not experience the value that has been promised.
Without information security the utility of the service cannot be accessed.

Scope includes all IT Systems and Services.

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Info Security Management Key Terms

Confidentiality

Information can
only be accessed by
those authorized.

Integrity

Information is
complete, accurate
and protected
against
unauthorized
modification.

Availability

Information is
available and can be
used when required.

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Authenticity and
Non-repudiation

Information
exchanges between
parties can be
trusted.

Info Security Management Key Activities

Information Security
Policy

Produced & maintained

Communicate & publish

Enforcement
(adherence)

Promote (awareness)

Business Impact Analysis (BIA)

Security controls

Maintain, review &

audit

SLAs & Statutory

Requirements

Security Incidents

Impact & volumes

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Security reviews

Assess changes CAB

Access: external
partners &
suppliers

Focal point for

security issues

Supplier Management Goals & Objectives

Goal
To manage suppliers and the services they supply, to provide seamless quality of IT Services to the business, ensuring
value for money is obtained.

Scope
The Supplier Management process should include the management of all suppliers and contracts needed to support the
provision of IT Services to the business.

Objective
Obtain value for money from suppliers and contracts.
Ensure that contracts with suppliers are aligned to business needs.
Manage relationships with suppliers.
Manage supplier performance.
Negotiate and agree contracts with suppliers and manage them through their lifecycle.
Maintain a supplier policy and a supporting supplier and contract management information system.

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Supplier Management Key Activities

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Supplier Management Key Role

Supplier Manager
SLAs, contracts, agreements, etc.

Providing assistance in the development and review of SLAs, contracts, agreements or any other documents for
third-party suppliers.

Supplier & Contracts Database (SCD)

Maintaining and reviewing a Supplier and Contracts Database (SCD)

Dispute Resolution

Termination / transfer

Reporting & improvement

Contract and Performance Review

Service Design Session Summary

In this session, you have learnt about:

Goals, objectives & business value of service design
4 Ps of service management
Service design lifecycle
5 key aspects of service design
Different types of service design processes

DEMO SESSION