Introduction to Service Design Tutorial

1.1 Introduction to Service Design

Welcome to Learning Unit # 1 of ITIL Lifecycle Intermediate Service Design Certification Course by Simplilearn! In this unit we will be revisiting some of the basic concepts of ITIL which you would have learned during the ITIL Foundation Course. We will also cover the basics of Service Design. We have already discussed ITIL in the previous learning unit. However let’s go ahead and look at it once again. ITIL stands for Information Technology Infrastructure Library and is a globally recognised best practices framework for IT Service Management. ITIL is a service-oriented, customer-focused, process-based, holistic and futuristic framework. Adopting ITIL will enable IT service providers to deliver quality services focused on meeting current and future requirements of the customers. Let’s begin with the ITIL Library Constituents.

1.2 ITIL The Library Constituents

The ITIL framework is developed on a Service Lifecycle approach and the Library consists of the following three components: Core Publications: A set of best practice guidance applicable to all types of organisations who provide IT Services to a business or customer. This set consists of five publications, each representing a phase in the Service Lifecycle. The five publications are: • Service Strategy • Service Design • Service Transition • Service Operation • Continual Service Improvement The adoption of the guidance in these publications provides structure, stability and strength to Service Management capabilities, with durable principles, methods and tools. These in turn, serve to protect investments and provide the necessary basis for measurement, learning and improvement. Complementary Guidance: A set of publications providing guidance relevant to industry sectors, environments and organisation types. These include: • White Papers • Pocket Books • Working Templates • Case Studies • Governance Methods The Complementary Guidance provides flexibility to implement the Core in a diverse range of environments. Practitioners can select Complementary Guidance as needed to provide traction for the Core in a given business context. Web Support Services: A website providing online and interactive services wherein users can access time with ITSM experts to answer questions, discuss issues or seek advice. These support services include: • A glossary of terms and definitions • Interactive Service Management Model • Online Subscriber Services • Case Studies • Templates Let us now proceed to see what we will be learning in this learning unit?

1.3 Learning Unit 1: Syllabus

Service design phase is an important stage of the service lifecycle as it transforms the Service Strategy into a well-defined plan for delivering IT services. In the next few slides we will be covering some of the primary concepts of Service Design. The topics covered are: • A full understanding of service design terms and concepts • The purpose, goals and objectives of service design • The scope of service design • The business value of service design activities • The context of service design in the ITIL service lifecycle • Service design inputs and outputs and the contents and use of the service design package and service acceptance criteria Next, we will understand Service Management.

1.4 Service Management

Every organisation delivers some sort of services to its internal and/or external customers. The level of customer satisfaction is directly dependent on the value derived or perceived by the users and customers. Service Management is defined as “A set of specialised organisational capabilities for providing value to customers in the form of services”. Capabilities are a combination of processes and functions. The maturity level of service providers’ capabilities represents their ability to consistently meet customer requirements in a timely and cost-effective manner. There are specific skills required for defining the strategy, developing the designs, building, testing and implementing the solution, delivering and supporting the services and finally ensuring continual improvement during the life of the service – hence these are termed as ‘specialised organisational capabilities’. Capabilities represent a service organisation’s capacity, competency and confidence for action. Managing IT applications, infrastructure and processes for delivering IT services to business and customers is becoming so complex that service providers are required to demonstrate a level of capabilities that matches customer expectations and industry benchmarks. The ability to co-ordinate, control and deploy resources efficiently to develop and deliver valuable services to customers is the core of Service Management. Every service organisation should develop and continuously improve its capabilities to ensure alignment to changing business requirements and objectives. The lack of requisite capabilities will lead to low intrinsic value for the organisation and the customers. As we have an understanding of service management, let us now understand value proposition in the next slide.

1.5 The Value Proposition

Let us look at a common service that all of us are familiar with – The ATM service. In the present day world, one of the important banking services utilised by almost all bank customers is the ATM (Automated Teller Machine) Service. A customer of a bank authorised to use ATM services, normally expects to perform some transactions through the ATM; transactions like withdrawing cash, checking the balance in his account, to get a mini statement of account, to pay credit card, utility bills, etc. These are some of the outcomes the customer intends to accomplish through the ATM service. The customer is not worried about the cost of the ATM machine or the cost of the applications, infrastructure and supporting services deployed for enabling the ATM services. Similarly, he does not intend to take responsibility for the security and safety of these IT components. Rather, he is not interested to own the cost and risks associated with the ATM services. He would be just interested in completing his permitted banking transactions through the ATM. Thus, “A service is a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks”. The service provider owns the costs and risks related to provision of the services and the customer would specialise in the outcomes from the services utilised. In our above example, the Banking organisation owns the services as it has the specialised capabilities for managing the services and the costs and risks involved in the provision of ATM services. As it serves a number of customers, the costs are spread across the customers. The risks are managed through a defined risk management approach or process. Like in any other lifecycle stages, let us understand utility and warranty under service design in the next slide.

1.6 Utility and Warranty

A customer using a service is interested in two important elements of the service - the features, functionality as well as the performance. The customer will be able to effectively achieve the desired outcomes only when all the required features and functionality are available and all aspects of the performance also match the business requirements. These two elements, which determine the ‘Value’ of a service from a customer perspective, are termed as Utility and Warranty. In our ATM services example - the GUI, look and feel, the various transactions that can be performed and the languages supported represent the features and functionalities of the service. The speed with which a transaction can be completed, the security of customer information, access levels, and continuous availability of the service represent the performance of the service. Utility of a service represents its functional requirements and features. It denotes whether the service is able to meet its desired outcomes. In other words is it ‘Fit for purpose’? Utility also represents aspects that support the performance of business assets or removal and reduction of constraints faced. It can thus be inferred that ‘Utility’ has a positive effect on the activities and tasks associated with the desired business outcomes. Warranty, on the other hand, is concerned with the performance efficiency of the service. It represents the level of availability, capacity, continuity and security of the service. In other words is it the service ‘Fit for use’? It must be noted that warranty is a representation of all the four factors together and not any one of them or a few of them.

1.7 Utility and Warranty

Utility is ‘what the service does’, and warranty is ‘how it is delivered’. Thus value of a service can be delivered only through a combination of both Utility and Warranty. Customers cannot achieve their desired outcomes with services that are only ‘fit for purpose’ and not ‘fit for use’ or the other way round. Next, let us learn about the terms functions, roles and process.

1.8 Function, Roles and Process

Hope by now you are able to clearly understand the terms - Service, Service Management, Utility, Warranty and Value. Let us now look at some of the other important terms commonly used in ITIL. In any organisation, for performing various tasks, activities and processes we require people. There should be clearly defined roles and responsibilities to enable seamless provision and management of services being delivered to customers. A good organisation structure will ensure adequate levels of authority, accountability and responsibility. Function: A function is a team or group of people and the tools or other resources they use to carry out one or more processes or activities. Functions are units of organisations specialised to perform certain types of work and are responsible for specific outcomes. They are normally self-contained organisational units constituting resources, capabilities and tools. Based on the size of an organisation, functions may be further divided into departments or teams. Service desk, application management, technical management and IT operations management are the four functions detailed in Service Operation publication of ITIL. Role: A role is a set of responsibilities, activities and authorities granted to a person or team. Roles should not be confused with job titles and designations as one person may play different roles in different contexts. For example, a service delivery manager may perform the roles of change manager, service level manager and continuous improvement manager. Generally, roles are defined in a process or function. It is important to note that while assigning more than one role to a person, there should be no conflict of interest with respect to responsibilities assigned to these roles. Process: A process is a structured set of activities designed to accomplish a specific objective. A process takes one or more inputs and turns them into defined outputs. A process includes all of the roles, responsibilities, tools and management controls required to reliably deliver the outputs. Process oriented approach is becoming an integral part of all management and quality frameworks. Processes play a significant role in achieving and improving organisational performance and objectives. The characteristics of a process are: • It is measurable • It delivers specific results • Delivers its primary results to customers or stakeholders • Responds to specific events A process is owned by a process owner, who is responsible for ensuring that the process is followed; it is reviewed and improved regularly; and achieves the process objectives. In the next slide we will understand the Service design purpose & objectives.

1.9 Service Design Purpose and Objectives

Service design is the second stage within the service lifecycle. It adopts a holistic approach in designing services and ensures adherence to strategic objectives and business requirements. Service Design provides a blueprint of the services in the form of Service Design Package enabling Service Transition to build, test and deploy services with minimal risks and impact to business. • IT service design is a sub-set of overall business change process and hence the purpose of service design is to design appropriate and innovative IT services, including their architectures, processes, policies and documentation, to meet current and future agreed business requirements. • Service Design is primarily concerned with the design of new or changed services for introduction into live environment. It also takes care of retirement of services from live environment. • Service Design also plays a proactive role in recommending improvements required to increase or maintain value to customers — During the lifecycle of services — Continuity of services — Achievements of service levels — Conformance to standards and compliance to regulations.

1.10 Service Design Purpose and Objectives

The objective is to: • Provide guidance on developing design capabilities for service management. The Service Design stage also ensures designing an efficient and effective service management system, including processes for the design, transition, operation and improvement of high-quality IT services, together with the supporting tools, systems and information, especially the service portfolio, to manage services through their lifecycle. • Another objective of service design is to adopt a holistic approach for all aspects of design when changing any of the individual elements of design. Essentially, it considers the service solution, supporting systems, technology architectures, processes and measurement systems and metrics. • Service design considers not only the design requirements but also the management and operational requirements as one of the key elements of design. Next, let us look at the value of service design to the business.

1.11 Value of Service Design to the Business

Adopting best practices enables organisations to experience and accrue various benefits. By implementing Service Design principles and practices, it is possible to deliver quality, cost-effective services and also meet business requirements in a consistent way. Now let us discuss the benefits derived by adopting and implementing standard and consistent Service Design approaches. • One of the key financial concerns of any organisations is to manage and reduce the Total Cost of Ownership (TCO) with respect to services provided. Total cost of ownership represents Lifecycle costs which include initial cost or purchase price and the operational and recurring costs incurred till retirement of the service. Cost efficiency being one of the critical factors which helps in competitive pricing and improving Return on Investments, reducing total cost of ownership becomes an important element of design objectives. As all aspects of services, processes and technology are taken into consideration during service design, the design phase benefits the business with a reduced total cost of ownership. • Another benefit of adopting Service Design best practice is delivering improved quality of service to customers. Service design focuses on designing services that meet customer requirements and outcomes which result in enhancing service quality and operational quality. • Service design ensures alignment of designs with corporate strategies, policies and principles. By designing services within the corporate strategy, architectures and constraints, business can expect consistency of services that are being designed and implemented. • The key output from service design stage is the service design package. The service design package consists of well integrated designs of service solutions, processes, management tools and architectures, and measurement systems. These will assist in easier implementation of new or changed services in the service transition phase. • Proactiveness is one of the key characteristics of ITIL framework. Service design teams are involved right from the conception stage of the service. This enables improved service alignment to business needs and service level requirements. • The service package created during the service strategy phase also consists of the service level package. This service level package details the utility and warranty requirements. As service design takes into consideration, the warranty components of capacity, availability, continuity and security, more effective service performance can be expected. • Service design builds the necessary controls and management architecture in the service designs developed. This will result in improved IT governance. • The design of processes, covering all the service lifecycle phases, is performed during the service design. These are designed with optimal quality and cost-effectiveness and hence more effective service management and IT processes can be expected. • A comprehensive and effective set of measurements and metrics are designed along with other aspects of service design. These will enable improved information and decision-making capabilities that would assist in continual improvement of services and service management practices throughout the service lifecycle In the next slide we will discuss about the 4 Ps of service design.

1.12 Four P's of Service Design

Design and planning activities are essential components of service development and implementation. Service providers will have to allocate sufficient time to these activities to achieve eventual delivery of quality services. • The implementation of ITIL Service Management is all about preparing the economic, effective and efficient use of the four Ps. These four Ps are : • People – We all know the importance of the role people play in various aspects of organisational functioning, growth and achievement of objectives. • Processes – First the establishment of processes and later the maturity of processes determine the commitment of the organisation in delivering the services in a systematic manner focusing towards desired outcomes and objectives. • Products – A number of software and hardware products are required to deliver IT services. These include applications, servers, databases, networks, systems, components and tools. • Partners – In current day situations collaborating with suppliers for meeting organisational strategic, tactical and operational goals and objectives. Suppliers are looked as key partners in provision of services to customers and users. • Many designs, plans and projects fail through a lack of preparation and management, especially due to not considering all the four Ps in a holistic manner. Next, let us understand SDP – Service Design Package.

1.12 Four P's of Service Design

Design and planning activities are essential components of service development and implementation. Service providers will have to allocate sufficient time to these activities to achieve eventual delivery of quality services. • The implementation of ITIL Service Management is all about preparing the economic, effective and efficient use of the four Ps. These four Ps are : • People – We all know the importance of the role people play in various aspects of organisational functioning, growth and achievement of objectives. • Processes – First the establishment of processes and later the maturity of processes determine the commitment of the organisation in delivering the services in a systematic manner focusing towards desired outcomes and objectives. • Products – A number of software and hardware products are required to deliver IT services. These include applications, servers, databases, networks, systems, components and tools. • Partners – In current day situations collaborating with suppliers for meeting organisational strategic, tactical and operational goals and objectives. Suppliers are looked as key partners in provision of services to customers and users. • Many designs, plans and projects fail through a lack of preparation and management, especially due to not considering all the four Ps in a holistic manner. Next, let us understand SDP – Service Design Package.

1.13 Service Design Package(SDP)

The Service Design Package is the main output from Service Design stage. It is developed based on the service charter, change requests and change proposals. • The Service Design Package defines all aspects of an IT service and its requirements through each stage of its lifecycle. It details the build, test and release activities of service transition, and the operation, support and improvement activities of service operation and continual service improvement. • Service Design Package is produced for each new service, major change to a service or removal of a service or changes to the Service Design Package itself. It is a comprehensive document covering various aspects of a service. • The Service Design Package is passed from service design to service transition. The service solution along with all other aspects is built, tested and deployed as per designs and plans detailed in the Service Design Package. The Service Design Package is later used by Service Operation and Continual Service Improvement phases to manage and improve the services to meet the current and changing requirements of the business. Let’s discuss the SDP contents in the next slide.

1.14 SDP contents:

We are aware that the Service Design Package is a comprehensive document containing all the details required for building, testing, deploying, managing and improving the services. Let us now look at the contents of the Service Design Package. A Service design Package contains: • Details of requirements covering: • The initial agreed and documented business requirements • Service applicability - how and where the service would be used • The business contacts, customer contacts and other stakeholders in the service • The Service Design covering : • Service functional requirements, basically the utility aspects • Service level requirements • Service management and operational management requirements • Service design and topology including the design, transition and subsequent implementation and operation of the service solution and its supporting components • The Organisational Readiness Assessment report and plan • The Service Lifecycle Plan which includes : • An overall service programme detailing all stages of the lifecycle of the service, including the timescales and phasing, for the transition, operation and subsequent improvement of the new service; • A Service Transition Plan detailing the Overall transition strategy, objectives, policy, risk assessment and plans; • A Service Acceptance Criteria for each stage of the service lifecycle; and • The Service Operational acceptance plan detailing overall operational strategy, objectives, policy, risk assessment and plans. Let us discuss about these contents in detail in the next few slides.

1.15 SDP Requirements:

We shall now discuss the Service Design Package contents in detail. The first one on the list is ‘Requirements’. The business requirements, service applicability and service contacts fall within the scope of ‘Requirements’. • Business Requirements: The change proposal created during Service Strategy provides the initial agreed and documented business requirements. These are generally at a high level and are useful in understanding the basic utility and warranty levels expected from the proposed service. • Service applicability : • Provides details about how and where the service would be used. This gives sufficient information to understand the business outcomes and areas that would be supported by the proposed service. • This could also reference business, customer and user requirements for internal services and or supporting services. • Service contacts : • Contains details of all key business contacts, customer contacts and other stakeholders in the service. This helps in building, implementing and managing the services by involving all the relevant stakeholders. Let us understand the SDP key components in the next slide.

1.16 SDP Service Design:

Within the Service Design category the key contents will focus on Service functional requirements, service level requirements, service management requirements and topology requirements. • The Service functional requirements are documented in the form of ‘Statement of requirements’. This document describes the functionality of the new or changed services, including its planned outcomes and deliverables. This information is vital for the development of the Service Solution. • Service Level Requirements: The service level requirements represent the desired warranty of the new or changed service. It is based on these service level requirements the service level targets and service level agreements are negotiated and produced. • Service and Operational Management Requirements: These relate to requirements to manage the new or changed service and its components including all supporting services and agreements, control, operation, monitoring, measuring and reporting aspects.

1.17 SDP Service Design:

• Service Design and topology part covers details relating to the design, transition and subsequent implementation and operation of the service solution and its supporting components. It includes all aspects of the core and supporting services that fall within the scope of the change request or change proposal. The coverage includes : • The service definition and model, for transition and operation; • All service components and infrastructure including hardware, software, networks, environments, data, applications, technology, tools, and documentation along with version numbers and relationships maintained within the Configuration Management System; • All user, business, service, component, transition, support and operational documentation; • The processes, procedures, measurements, metrics and reports; and • The supporting products, services, agreements and suppliers. Next, let us understand Organisational readiness assessment.

1.18 SDP Organizational Readiness Assessment

The next category of information included in the Service Design Package is the organisational readiness assessment. • The ‘Organisational Readiness Assessment’ includes : • The details of business benefits derived from the new or changed service; • A Financial assessment report providing details of the estimated cost of service provision, and the financial feasibility of the service; • A Technical assessment report covering an analysis of the current IT infrastructure and environment and the required state for the service, the gap analysis and the viability of the technical design; and • The resource assessment and organisational assessment reports with details of all new skills, competences, capabilities required by the service provider organisation, and its suppliers.

1.19 SDP Lifecycle Plan

The last category of information that is included in the Service Design Package is the ‘Service Lifecycle Plan’. This covers details of Service Program, Service Transition Plan, Service operational acceptance plan and Service acceptance criteria. Let us now take a glimpse of these components of the Service Design Package. • Service Program is basically a plan covering all stages of the lifecycle of the service, including the timescales and phasing, for the transition, operation and subsequent improvement of the new service. It details : • The management, coordination and integration requirements and activities with other projects, or new or changed activities, services or processes; • The management of risks and issues throughout the lifecycle of the service; • The scope, objectives and components of the service; • The skills, competences, roles and responsibilities required for implementing and managing the service across lifecycle phases; • The processes required for building, testing, deploying, managing and improving the service; and • The interfaces and dependencies with other services, management aspects, communication plans, deliverables and quality requirements for each stage. Let’s continue to discuss the SDP lifecycle plan in the next slide.

1.20 SDP Lifecycle Plan

• Service Transition Plan details the overall transition strategy, objectives, policies, and risk management aspects of Service Transition. It covers : • The build policy, plans and requirements. These will be at very detailed level covering individual service and component build plans, specifications, control and environments, technology, tools, processes, methods and mechanisms. • The testing policy, plans and requirements, including test environments, technology, tools, processes, methods and mechanisms. It also details all the different types of tests to be performed during the testing phase. Different types of testing relevant and applicable for the service should be considered. The types of tests that may be considered are : • Functional testing • Component testing • User acceptance and usability testing • System compatibility and usability testing • Service and component performance and capacity testing • Resilience and continuity testing • Failure, alarm and event categorisation, processing and testing • Service and component, security and integrity testing • Logistics, release and distribution testing • Management testing, including control, monitoring, measuring and reporting, together with backup, recovery and all batch scheduling and processing • The deployment policy, release policy, plans and requirements, including logistics, deployment environments, cultural and organisational change aspects, technology, tools, processes, approaches and methods required for service deployment. In continuation let us understand service operational acceptance in the next slide.

1.21 SDP Lifecycle Plan

• Service Operational Acceptance Plan details the overall operational strategy, objectives, policies and risk management aspects of a service when it moves into Service Operational stage. The plan covers approach for : • Identifying all interfaces and planning and managing various dependencies. • Capturing, documenting and handover of all events, reports, service issues, including all changes, releases, resolved incidents, problems and known errors relating to the new or changed service. It also lists any errors, issues or non-conformances within the new service. • The final service acceptance by service operation. Let us now discuss about service acceptance criteria.

1.22 SDP Lifecycle Plan

• One important component of Service Lifecycle Plan within the Service Design Package is the Service Acceptance Criteria. The service acceptance criteria are powerful tools to ensure that the new or changed service meets the functionality and quality requirements as expected by the business. The service acceptance criteria is defined to cover each stage of the Service lifecycle and includes : • All environments – Build, test and production; and • Also takes care of the guarantee and pilot criteria and periods for the new or changed service.

1.23 Service Acceptance Criteria(example)

We will now look at an example of the Service Acceptance Criteria. It may be noted that the acceptance criteria document not only lists the criteria but also the respective role that is responsible for fulfilling the criteria. Please read through the list of criteria presented in this slide to get an understanding of the content and areas that is generally covered in the ‘Service Acceptance Criteria’ for a new or changed service. With this we have come to the end of learning unit 1, let us recap in the next slide.

1.24 Summary

In this unit we discussed about: • Service design terms and concepts • Purpose and objectives of service design • Scope of service design • Business value of service design activities • The context of service design in the ITIL service lifecycle • Service design inputs and outputs and the contents and use of the service design package and service acceptance criteria Next is the quiz section, attempt the quiz before proceeding to the next learning unit on Service Design Principles.

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  • PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.

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