SERVICE DESIGN

The Framework

Requirements

The business/customers

Obj (SLP) from

Service Resource & Requirements
Strategy Constraints
Policies
Strategies

Service SDPs
Standards
Design Solution Architectures
Design
Agenda/Learning Objectives
• Primary goals, objectives and benefits of
Service Design
• Generic concepts and definitions
– Service Design Package
– Service Portfolio (and Service Catalogue)
– Service Provider & Supplier
– SLA, OLA, Contract
– Availability
Agenda/Learning Objectives
• Key Principles and Models
• Processes
– Service Level Management
– Service Catalogue Management
– Availability Management
– Information Security Management
– Supplier Management
– Capacity Management
– IT Service Continuity Management
Definition
• The Design of appropriate and innovative IT
services, including their architectures,
processes, policies and documentation, to
meet current and future agreed business
requirements
Primary Goals, Objectives &
Benefits
Service Design
Objectives

Design efficient and effective

Service that Service that adhere to the processes for the design,
Service that meet business
minimize/constraint costs of policies and principles of transitions, operation and
requirements
service provision Service Strategy improvement of high quality
IT services

Reducing the need for

Design secure and resilient Design measurement
reworking and enhancing
IT infrastructure methods and metrics
services
Business Value
• Reduce Total Cost of • More effective service
Ownership (TCO) performance
• Improve quality and • Improve IT Governance
consistency of service • More effective service
• Easier implementation management and IT
of new or changed • Improve information &
services decision making
• Improve service
alignment to business
need
Balanced Design Principle
Strategy Governance

Functionality

Schedule Resource
Service Design Aspects

Technology &
Service
Architecture
Management Processes
Systems
Service Solutions Measurement

Service
Design
 Business service a Business service b Business service c The business
Business Business Business
Business
Business Business
Business Business
Business
Process 3 Process 6 Process 9
Process 1 2
Process Process 4 5
Process Process 7 8
Process

SLAs Service
Service C D IT Services
SLAs
SLAs Service
Service A B
IT
Service Service Service
Strategy Transition Operation SKMS
Service
Portfolio

Service Design SLAs

SLAs
Services
SLAs
Process Lifecycle

SCM SLM
Capacity SLAs
SLAs
Service SLAs
Architectures
Security
Improvement Availability
IT Service Continuity SLAs
Supplier SLAs
Measurement
SLAs
Support teams methods

Suppliers
Service Composition
Business Service Business Service A
Requirement Business Business Business
Process 1 Process 2 Process 3
Requirements/demand:
IT Service Policy/strategy
governance
Utility: compliance
Name, description, Service
purpose, impact, contacts

Warranty: SLAs/SLRs
Service levels, targets, assurance incl. Cost/prices
service hours, responsibility

Assets/resources:
Systems, assets, Infrastructure Environment Data Applications
components

Assets/capabilities: OLAs Support IT

Process, supporting targets, contracts services process
resources

Assets/capabilities: Support
Supplier
Resources, staffing, skills teams
Service Design Package (SDP)
• A Document defining all aspects of an IT
Service and its requirements through each
stage of its Lifecycle
• A Service Design Package is produced for:
– Each new IT Service
– Major change to an IT Service
– IT Service Retirement
 Design Process Activities
Requiremen Design
appropriate
t collections services

Liaison with Review and

other process revision

Revision of all
Production and
design
mantainance
documents

Ensure alignment
with policies &
Risk
strategies assesment
Designing Service Solution
Business Business Business Business
requirements requirements requirements requirements Pilot/warranty Live
period operation
Design & Development
Project (Project team)

SAC SAC SAC SAC SAC SAC

✔ ✔
Document & agree Design Develop Build service Test service
business requirements service service solution solution
(Strategy & Design) solution solution (Transition) (Transition)
(Design) (Design)

Strategy
SDP
Improvement
Design
Transition

Transition & Operation involvement Operation

SLA
SLR SLR SLR SLR SLR SLA
Pilot SLM Live

Change Management: Build, Test, Release & Deployment Management

RFC Approved Approved for Approved Approved Approved Approved for Review &
released for design development for build for test for warranty live release Closure
Key Principles and Models

Service Design
The ‘4P’s of Service Management
• These are the ‘Major
Components’ of Service Processes
Management
• The design and subsequent
Implementation of Service
Management (and Peopl Produ
e ct
individual service) is about
preparing and planning
(designing) the effective and
efficient use of the four Ps
Partners
(7) Delivery Model Options

•Utilize internal organisational resources in the design,

In-sourcing development, transition, maintenance, operation, and/or
support of a new, changed or revised service

•Utilises the resources of an external organisation (or

Outsourcing organisations) in a formal arrangement to provide a well-

defined portion of a service’s design, development,
maintenance, operations, and/or support

•Often a combination of in-sourcing and outsourcing, using a

Co-sourcing number of outsourcing organisations working together to

design, develop, transition, maintain, operate, and/or support
a portion of a service
(7) Delivery Model Options

Partnership •Formal arrangements between two or more organisations

to work together to design, develop, transition, maintain,
or multi- operate, and/or support IT service(s)
•The focus here tends to be on strategic partnership that

sourcing leverage critical expertise or market opportunities

Business •Relocation of entire business functions using formal

arrangement between organizations where one organisation
process provides and manages the other organisation’s entire
business process(es) or function(s) in a low cost location
•Common examples are data centre and payroll operations
outsourcing
(7) Delivery Model Options

Application •Involves formal arrangements with an Application Service Provider

(ASP) organisation that will provide shared computer based services
to customer organisations over a network
Service •Application offered in this way often termed ‘on-demand’
•Through ASPs the complexities and costs of shared s/w can be
reduced (and provide to organisations that may not otherwise be able
Provision to justify investment

Knowledge •The newest form of sourcing

•KPO is a step ahead of BPO in one respect
•KPO organisations provide domain based processes
process business expertise rather than just process expertise and
requires advanced anaytical and specialized skills from the
outsourcing outsourcing organization
Service Level Management

Service Design
Service Level Management
• The process of negotiating, agreeing and
documenting appropriate IT service targets
with the business, and then monitoring and
reporting on the service providers ability to
deliver the agreed level of service
Goal of SLM
• The goal of the Service Level Management process is
to ensure that an agreed level of IT service is
provided for all current IT service, and that future
service are designed and delivered to agreed
achievable targets
Objectives
• Define, document, agree, monitor, report and review the level of IT
services provided
• Provide and improve the relationship and communication with the
business and customer
• Ensure that specific and measurable targets are developed for all IT
services
• Monitor and improve customer satisfaction with the quality of service
delivered
• Ensure that IT and the customers have a clear and unambiguous
expectation of the level of service to be delivered
• Ensure that proactive measures to improve the level of service delivered
are implemented wherever it is cost-justifiable to do so
Key Activities
• Develop relationship with business, customers,
and stakeholders
• Determinate, Negotiate, Document,& agree
Requirements for new and changed services in
SLRs
• Develop & manage SLAs for Operational Service
• Review and revised underpinning OLAs in line
with SLAs
Key Activities
• Monitor and measure service performance
against SLA Targets
• Collate measure and improve Customer
Satisfaction
• Produce Service Reports
• Conduct Service Review and Instigate
improvements within an overall Service
Improvement Program/Plan (SIP)
Basic Concepts

Service Level •Written agreement between an IT service provider & the IT

customer(s), defining quantitatively and qualitatively the
Agreement service being offered to a customer, the key service targets and
responsibilities of both parties
( SLA)

•Agreement between an IT service provider &

Operational Level
another part of the same organization that
Agreement (OLA) assists with the provision of services

Contract (formerly •Formal contract between an IT Service Provider & a

know as Underpinning Third Party covering delivery of services that support
Contract – U/C) the IT organisation in their delivery of services.
Basic Concepts

Service Level •A document owned by the Business owner of the

Service
Requirement •Details the desired level of service
•Generally used as a starting point for the development
s (SLRs) of the SLA, but does not become a part of the SLA

Service •A plan or programmed established to improve an

aspects of the IT service
Improvement •Often developed in conjuction with Availability
Programmed and Capacity Management
•Generally owned by Service Level Management
(SIP)
What is an SLA?
• “The SLA is effectively a level of assurance or
warranty with regard to the level of Security quality
delivered by the Service provider for each of the
service delivered to the business”
• A written agreement (in ‘non-technical’ language)
between IT Service Provider and Customer(s)
• A formal negotiated document that defines in
quantitative terms the service being offered to a
customer
What is an SLA?
• Any metrics included should be capable of being
measured on a regular
– So – if you can’t measure it, don’t put it in!
• SLAs should be renegotiated whenever a business
services is subject to major change
– Regular updating is essential to ensure that SLAs remain
relevant to needs of the business
• It clearly defines and articulates the key service level
targets and responsibilities of each party
• Underpinned by OLA and/or Contract
Key Metrics
• Percentage reduction in SLA targets missed/threatened
• Percentage increase in Customer perception & satisfaction of
SLA achievements
– Service reviews
– Customer Satisfaction Survey responses
• Total number and percentage increase in fully documented
SLAs in place
• Percentage increase in SLAs agreed against operational
services being run
• Percentage reduction in the costs associated with service
provision
Service Level Manager Role
• Ensuring that the current and the future services
requirements of customers are identified, understood and
documented in SLA and SLR documents
• Negotiating and agreeing levels of service to be delivered with
the customer and formally documenting these levels of
service SLAs
• Negotiating and agreeing OLAs that underpin the SLAs
• Ensuring that targets agreed within underpinning OLAs and
Contracts are aligned with SLA targets
• Assisting with the production and maintenance the Service
Portfolio (and Service Catalogue)
Service Level Manager Role
• Ensuring that service reports are produced and that breaches of SLA
targets are highlighted, investigated, and actions taken to prevent their
recurrence
• Ensuring that service performance reviews are scheduled, carried out with
customers regularly and are documented with agreed actions progressed
• Developing relationships and communication with stakeholders,
customers and key users
• Managing compliance and their escalation, and resolution
• Measuring, recording, analysing and improving customer satisfaction
• Reviewing service scope, SLAs, OLAs and other agreements on a regular
basis, ideally at least annually
Challenges
• Monitoring of pre-SLA achievements
• Ensuring targets are achievable before committing to
them
• SLAs that are:
– Simply based upon desires rather than business needs
– IT based rather business aligned
– Too technical or lengthy & not properly communicated
• Lack of IT Senior Mgmt commitment
• Lack of business participation
• Viewed as an overhead
Service Catalogue Management

Service Design
Service Catalogue Elements
Goal of SCM
• The goal of the SCM Process is to ensure that
a Service Catalogue is produced and
maintained containing accurate information
on all operational services and those being
prepared to be run operationally
Objective
• To manage the information contained within
the Service Catalogue and to ensure that it is
accurate and reflects the current details,
status, interfaces and dependencies of all
services that are being run or being prepared
to run in the live environment
Scope & Purposes
• Scope
– To provide and maintain accurate information on
all services that are being transitioned or have
been transitioned to the live environment
• Purpose
– To provide a single source of consistent
information on all of the agreed services and
ensure that it is widely available to those that are
approved to access it
Value to the Business
• The Services Catalogue provides a central source of
information on the IT services delivered by the
service provider organization:
– This ensures that all areas of the business can view an
accurate, consistent picture of the IT services, their details
and their status
– It contains a customer facing view of the IT services in use,
how they are intended to be used, the business processes
they enable, and the levels and quality of service the
customer can expect of for each service
Key Activities
• Agreeing and documenting a service definition with all relevant parties
• Interfacing with Service Portfolio Management on the contents of the
Service Portfolio and Service Catalogue
• Producing and maintaining a Service Catalogue and its contents, in
conjunction with the Service Portfolio (incl. Business and Technical Service
Catalogue aspects)
• Interfacing with Support Teams, Suppliers and Configuration Management
on interfaces and dependencies between IT services and the supporting
services, components and CIs contained within the Technical Service
Catalogue
• Interfacing with Business Relationship Management and Service Level
Management to ensure that information is aligned to the business and
business process
Key Performance Indicators
• The number of services recorded and managed
within the Service Catalogue as a percentage of
those being delivered and transitioned in the live
environment
• The number of variances detected between the
information contained within the Service Catalogue
and the “real world” situation
• Percentage increase in completeness of the Technical
Service Catalogue against IT components that
support the services
Service Catalogue Manager Role
• The Service Catalogue Manager has responsibility for
producing and maintaining the Service Catalogue. This
includes responsibilities such as:
– Ensuring that all operational service and all services being prepared
for operational running are recorded within the Service Catalogue
– Ensuring that all of the information within the Service Catalogue is
accurate and up to data
– Ensuring that all of the information within the Service Catalogue is
consistent with the information within the Service Portfolio
– Ensuring that the information within the Service Catalogue is
adequately protected and back-up
Challenges
• The major challenges facing the SCM process is that
of maintaining an accurate Service Catalogue as part
of a Service Portfolio, incorporating both the
Business Service Catalogue and the Technical Service
Catalogue as part of an overall CMS and SKMS
• In order to achieve this, the culture of the
organization needs to accept that the Catalogue and
Portfolio are essentials sources of information that
everyone within the IT organization needs to use and
help maintain
Capacity Management

Service Design
Definition
• The process responsible for ensuring that the
capacity of IT services and of the IT
infrastructure is able to deliver agreed service
level targets in a cost- effective and timely
manner
• Capacity Management processes and planning
must be involved in all stages of the service
lifecycle from strategy and design through
transition and operation to improvement
Goal and Purposes
• Goals
– To ensure that justifiable IT capacity in all areas of IT,
always exist and is matched to the current and future
agreed needs of the business, in a timely manner
• Purpose
– To provide a point of focus and management for all
capacity and performance related issues, relating to both
services and resources
Objectives
• To produced and maintain an appropriate and up to date Capacity Plan,
which reflects the current and future needs of the business
• To provide advice and guidance to all other areas of the business an IT on
all capacity and performance related issues
• To ensure that service performance achievements meet or exceed all of
their agreed performance targets, by managing the performance and
capacity of both services and resources
• To assist with the diagnosis and resolution of performance and capacity
related incidents and resources
• To assess the impact of all changes on the Capacity Plan and the
Performance and Capacity of all Service and resources
• To ensure that proactive measures to improve the performance of services
are Implemented wherever it is justifiable to do so
A ‘Balancing Act’

Cost against Resources

needed

Supply against Demand

3 Sub Processes

Business •Is focused on the current and

Capacity
Management
future business requirements

Service Capacity •Is focused on the delivery of the existing

Management services that support the business

Component •Is focused on the IT infrastructure that

Capacity underpins service provision
•Looks at new and emergent technology
Management
 8 Key Activities
Monitorin
g
Analysis

Implement
ation Tuning
Storage of
Capacity
Demand
Management Data Management

Applicatio
Modelling
n Sizing
8 Key Activities

Tuning

Implementation Analysis

Monitoring

Resource SLM
exception
Utilisation
thresholds
SLM Resource Utilisation
thresholds Exception reports
Capacity
Management
Database
8 Key Activities

Inputs Outputs

Business Data Service &

Component
Based reports
Service Data
Capacity Exception
Technical Data Data Reports
Base
Financial Data Capacity
forecasts
Utilisation Data

Storage of Capacity Management Data

The Capacity Plan
• Document the current levels of resources utilization & service
performance
• Considers business strategy & plans
• Forecasts future capacity to support IT service that underpin the
business activities
• Includes options considered and recommendations with
justifications, costs, benefits, impact etc
• It is, essentially, an investment plan and should therefore be
published annually, in line with the business or budgets lifecycle
– A quarterly re-issue of the updated plan may be necessary to take into account
changes in Service plans, to report on the accuracy of forecasts and to make or
refine recommendations
Availability Management

Service Design
Definition
• The process of ensuring that the level of service
availability delivered in all services is matched
to the current and future agreed needs of the
business cost effectively
• The availability management process, (just like
capacity management), must be involved in all
stages of the service lifecycle from strategy and
design through transition and operation to
improvement.
Availability Management
• Goal
– To ensure that the level of service availability
delivered in all services is matched to or exceeds the
current and future agreed needs of the business, in
a cost effective manner
• Purpose
– To provide a point of focus and management for all
availability related issues, relating to both services
and resources, ensuring that availability targets in all
areas are measured and achieved
Objectives
• To produce an availability plan, which reflects the
current and future needs of the business
• To provide advice and guidance on all availability
achievements meet or exceed the agreed targets
• Assist with availability related incidents and problems
• To assess the impact of all changes on the Availability
Plan
• To ensure that proactive measures to improve the
availability of services are implemented wherever it
is cost justifiable to do so
Scope
• The scope of the Availability Management process
covers the design, implementation, measurement,
management and improvement of IT service and
component availability
• Availability Management is completed at 2 inter-
connected Levels: Service Component
Availability Availability
•Involves all aspects of •Involves all
services availability and
unavailability and the impact aspects of
of component availability, or component
the potential impact of
component unavailability on availability and
service availability
unavailability
Key Principles & Concepts
• Service Availability is at the core of business
success
• Better to design ‘Availability In’ than bolt it on
• The Vital Business Function (VBF)
– The business critical elements of the business
process supported by an IT service
4 Aspects of AM
•The ability of service, component or CI to perform its agreed

Availability function when required

•It is often measured and reported as a percentage

Reliability
•A measure of how long a service, component or CI can perform its agreed
function without interruption
•It is often measured and reported as Mean Time Between Failures (MTBF)

•A measure of how quickly and effectively a service, component or CI

Maintainability can be restored to normal working after failure
•It is measured and reported as Mean Time To Restore Service (MTRS)

•The ability of a third party supplier to meet the terms of their contract

Serviceability •Often this contract will include agreed levels of availability, reliability
and/or maintainability for a supporting service or component
The Overall Process

Reactive Proactive
Activities Activities
•The monitoring, measurement, analysis and •Involve the proactive planning, design,
management of all events, incidents and and improvement of availability
problems involving unavailability •Producing recommendations, plans and
•These activities are principally involved
documents on design guidelines and
within the operational roles, and are to criteria for new and changed services
ensure that all agreed service targets are •The continual improvement of service and
measured and achieved
•Most of these activities are conducted within reduction of risk in existing services
wherever it can be cost justified
the Operations stage of the lifecycle and are
•These are key aspects to be considered
linked into the monitoring and control
activities, event and incident management within the service design stage of the
processes lifecycle
Key Activities
• Determining the availability requirements from the business
for a new or enhanced IT service
• Formulating the availability and recovery design criteria for
the IT components underpinning a service
• Defining the targets for availability, reliability and
maintainability for the IT Infrastructure components that
underpin the IT service
• Establishing measures and reporting of availability, reliability
and maintainability that reflects the business, user and IT
support organization perspectives
• Producing and maintaining an Availability Plan which
prioritizes and plans IT availability improvements
• Monitoring of all aspects of availability, reliability and
maintainability of IT services and the supporting components
Techniques to Support the Process
Component Failure Impact Analysis (CFIA)

Fault Tree Analysis (FTA)

Analysis of Expanded Incident Lifecycle (EIL)

Risk Analysis & Management

Service Failure Analysis (SFA)

Value to the Business
• IT Services are designed to meet the IT Availability
requirements determined from the business
• The levels of IT availability are cost justified, agreed,
measured & monitored to support SLM
• Shortfalls in service levels are identified & corrective
actions taken
• The frequency and duration of IT service failures is
reduced
Availability Manager Role
• An availability manager has responsibility for ensuring
that the aims of availability management are met. This
includes responsibilities such as :
– Ensuring that all existing services deliver the levels of
availability agreed with the business in SLAs
– Ensuring that all new services are designed to deliver the
levels of availability required by the business
– The specification of the reliability, maintainability and
serviceability requirements for components supplied by
internal and external suppliers
– Attendance at CAB meetings when appropriate
Challenges
• Unreliable & inaccurate business forecasts &
information
• Incomplete or inaccurate information,
particularly from distributed systems,
networks & PCs
• Measures of availability that are meaningless
to the business
• Lack of tools to underpin & support the
process
IT Service Continuity Management

Service Design
Service Continuity Lifecycle
Definition
• The goal of ITSCM is to support the overall
Business Continuity Management process by
ensuring that the required IT technical and
service facilities can be resumed within
required, and agreed, business timescales'
Scope and Purpose
• Scope
– ITSCM focuses on those event which the business
consideration significant enough to be considered a
disaster
– Less significant event will be dealt with as part of the
incident Management process. What constitutes a disaster
will vary from organization to organization
• Purpose
– The purpose of ITSCM is to maintain the necessary on
going recovery capability within the IT service and their
supporting components
Objectives
• Develop and maintain IT Service Continuity & IT recovery plans that
support the overall Business Continuity Plans (BSPs) of the organization
• Complete regular Business Impact Analysis (BIA)
• Conduct risk assessment & management exercise
• To ensure that appropriate continuity and recovery mechanisms are
put in place to meet or exceed the agreed business continuity targets
• To Asses the impact of all change on the IT Service Continuity Plans
and IT recovery plans
• To negotiate and agree the necessary contracts with supplier for the
provision of the necessary recovery capability to support all continuity
plans in conjunction with the Supplier Management process
Recovery Options
Do nothing
• Accommodation and utilities only
• Includes power and communications

Manual/clerical backup
• Own or 3rd party Standby site
• Recent application and data archives required

Reciprocal arrangement
• Equipment available

Gradual Recovery – 72 hrs +

• Equipment already up and running
• Data is mirrored

Intermediate Recovery – 24 – 72 hrs

Fast Recovery – up to 24 hours

Immediate Recovery
Value to the Business
• ITSCM provides an invaluable role in
supporting the Business Continuity Planning
process
• The ITSCM should be driven by business risk as
identified by Business Continuity Planning and
ensuring that the recovery arrangements for
IT service are aligned to identified business
impacts, risk and needs
ITSC Manager Role
• Service Continuity manager has responsibility for
ensuring that the aims of Service Continuity
Management are met
• Includes such tasks and responsibilities as:
– To implement and maintain the ITSCM process
– To Perform Business Impact Analyses for all existing
and all new service
– Performing risk assessment and risk management to
prevent disasters where cost justifiable and where
practical
Information Security Management

Service Design
Definition
• The goal of the ISM process is to align IT
security with business security and ensure
that information security is effectively
managed in all services and service
management activities
• ISM needs to be considered within the overall
Corporate Governance Framework
Objectives
• The security objective is met when:
– Information is available and usable when required,
and the system that provide it can appropriately
resist attacks and recover from or prevent failures
(availability)
– Information is observed by or disclosed to only
those who have a right to know (confidentiality)
– Information is complete, accurate and protected
against unauthorized modification (integrity)
Scope
• The ISM process should be the focal point for all IT security
issues and must ensure that an information Security Policy is
produced, maintained and enforced that covers the use
misuse of all IT systems and services
• ISM needs to understand the total IT and business security
environment, including:
– The Business Security Policy and plans
– The current business operations and its security requirements
– Legislative requirements
– The obligations & responsibilities with regards to security contained within
SLAs
– The business & IT risks and their management
Information Security Policy
• ISM activities should be focused on &driven by an overall ISM
Policy and set of underpinning specific security policies
• All security policies should have the full support of top
executive IT management and top executive business
management, and should be reviewed and where necessary
revised on at least an annual basis
• These policies should be widely available to all customers &
users and their compliance should be referred to in all SLRs,
SLAs, contracts and agreements
• The ISM Policy should cover all areas of security, be
appropriate, meet the needs of the business
Information Security Policy
• ISM Policy should include....
use and misuse of IT assets policy

an access control policy

a password control policy

an email policy

an internet policy

an anti-virus policy

an information classification policy

a document classification policy

a remote access policy

a policy with regards to supplier access of IT service, information and components

an asset disposal policy

Value to the Business
• ISM ensures that an ISM Policy and
Framework are maintained and enforced
which fulfils the needs of the Business Security
Policy and the requirements of the Corporate
Governance
• ISM manages all aspects of IT and information
security within all areas of IT and Service
Management activity
Security Manager Role
• A security Manager has responsibility for ensuring that the
aims of ISM are met, this includes responsibilities such as:
– Developing and maintaining the information Security Policy with a
supporting set of specific policies, and communication of the policy to
all appropriate parties
– Ensuring that Information Security Policy is enforced and adhered to
– Designing security controls and developing security plans
– Monitoring and managing all security breaches and handling security
incidents, taking remedial action to prevent reoccurrence wherever
possible
– Ensure that all access to services by external partners & suppliers is
subject to contractual agreements and responsibilities
– Act as a focal point for all security issues
Supplier Management

Service Design
Goal of Supplier Management
• The goal of Supplier Management process is
to manage suppliers and the services they
supply, to provide seamless quality of IT
service to the business, ensuring value for
money obtained
Scope and Purpose
• Scope
– This process should include the management of all
suppliers and contracts needed to support the
provision of IT services to the business
• Purpose
– The purpose of this process is to obtain value for
money from suppliers and to ensure that suppliers
perform to the targets contained within their
contracts and agreements while conforming to all of
the terms and conditions
Objectives
• Obtain value for money from supplier and contracts
• Ensure that underpinning contract and agreements with
suppliers are aligned to business needs and support and align
with agreed in SLRs and SLAs, in conjunction with SLM
• Manage relationship 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 Database (SCD)
The Process
• The Supplier Management Process should include Categorization
– Implementation and enforcement of the supplier policy & maintenance
– The maintenance of a Supplier and Contract Database
(SCD)
– Supplier and contract, evaluation and selection Evaluation
– The development, negotiation and agreement of contracts
– Contract review, renewal and termination
– The management of suppliers and supplier performance Establish new
– The agreement and implementation of service and
supplier improvement plan
Management &
– The maintenance of standard contracts, terms and
performance
conditions
– Management of contractual dispute resolution
Renewal &
termination
The Process
• All Supplier Supplier & Contracts
Management Supplier Strategy & Policy Database (SCD)

process activity
should be driven by Supplier categorization &
maintenance of SCD
a supplier strategy
and policy from
Evaluation of new Supplier &
Service Strategy contracts
• In order to achieve
Supplier
consistency and Establish new Supplier & Suoo &
Reports
effectiveness in the contracts Information

implementation of
the policy an SCD Supplier & contracts
should be management & performance
established
Contract renewal and/or
termination
Learning Objectives
• Primary goals, objectives and benefits of
Service Design
• Generic concepts and definitions
– Service Design Package
– Service Portfolio (and Service Catalogue)
– Service Provider & Supplier
– SLA, OLA, Contract
– Availability
Learning Objectives
• Key Principles and Models
• Processes
– Service Level Management
– Service Catalogue Management
– Availability Management
– Information Security Management
– Supplier Management
– Capacity Management
– IT Service Continuity Management
Testing Your Knowledge

Service Design
Question #1

Which of the following is NOT a major process of

Service Design?

A. Capacity Management
B. Portfolio Management
C. Service Level Management
D. Supplier Management
Question #2

Which one of the following statements about Service

Level Agreement is FALSE?

A. An SLA is an agreement between Service Provider

and a Customer
B. The SLA describes the IT Service and documents
Service Level Target
C. Each individual SLA should be a comprehensive
legally binding document
D. An SLA specifies the responsibilities of both parties
Question #3

Which one of the following statements is incorrect?

A. Supplier Management negotiates OLA’s & SLAs

B. Supplier Management has an important role to
play in all phases of the Service Lifecycle
C. Supplier Management maintains the SCD
D. Supplier Management ensures that Changes are
assessed for impact on suppliers contracts,
supporting services and contracts
Question #4
Which one of the following statements is correct?
1. Information Security is a management activity within the
Corporate Governance framework
2. ISM ensures that access to services by suppliers is subject
to contractual agreement and responsibilities
3. All processes within the IT organization must include
security considerations

A. 1 and 2 only
B. All are correct
C. Only 3 is correct
D. 2 and 3 only are correct
Question #5
Which of the following is not a valid stage within the
ITSCM Lifecycle?

A. Testing

B. Initiation

C. Implementation

D. Requirements & Strategy

Question #6
The ‘4Ps of Service Management’ refer to?

A. People, Process, Products, Partners

B. Process, Policies, Products, People

C. People, Policies, Process, Purchasing

D. People, Process, Policies, Philosophy

Question #7
Who within an organization should know about the
Information Security Policy?

A. The Information Security Manager

B. The Information Security Manager, Head of IT Services

and the Heads of Business Units

C. IT, Customers and Users

D. Being a secure document, it should only given to those

who “need to know”
Question #8
Which are the 5 Major aspects of Service Design....
The Design of....?

A. New/changed services – service portfolio (incl. service catalogue) –

technology architecture & management system – processes –
measurement methods & metrics
B. New/changed services – service portfolio (incl. service catalogue) –
technology architecture & management system – processes
– role definition
C. New/changed services – service portfolio (incl. Service catalogue) –
database – processes – role definition
D. New/changed services – service portfolio (incl. Service catalogue) –
organizations & reporting structures – technology architecture &
management system – processes – measurement methods & metrics
Question #9
What is being described.... ‘Relocation of entire
business function using formal arrangement between
organizations where one organization provides and
manage the organization’s entire business process(es)
of function(s) in a low cost location.’?
A. a Partnership
B. Knowledge Process Outsourcing
C. Co-Sourcing
D. Business Process Outsourcing