Download - ITIL V3 - Service Design
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 1
ITIL V3 Lifecycle Phase
Service Design
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 2
1. Service Design – Introduction, Objective, Benefits
2. Service Design – Fundamentals & Design Aspects
Processes
1. Service Catalogue Management
2. Service Level Management
3. Capacity Management
4. Availability Management
5. IT Service Continuity Management
6. Information Security Management
7. Supplier Management
Service Design
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 3
Service Design - Introduction
Service Design phase
→ Follows the Service Strategy phase in the Service Lifecycle
→ Deals with the design and development of services and related processes
→ The most important objective is the design of new or modified services for introduction into a production environment.
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 4
Service Design - Introduction
Service Design phase
→begins with the demand for new or modified services /requirements from the customer
→ends with the design of a service solution that satisfies the requirements before including the service in the transition phase.
Requires
→Good preparation
→An effective and efficient infusion of the 4 Ps of ITIL (People,Processes, Partners and Products i.e. Service, Technology, & tools)
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 5
Service Design - Objectives
→ To contribute to the business objectives
→ To contribute to the quality of IT services by
improving the effectiveness and efficiency of IT
services
→ To minimize or prevent risks
→ To contribute to satisfying the current and future
market needs
→ To support the development of policies and
standards regarding IT services
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 6
Service Design - Benefits
→ Simpler implementation of new/modified services
→ Improved synchronization of service with business
→ Improved quality of service delivery
→ Improved consistency of the service
→ Lower Total Cost of Ownership (TCO)
→ Improved IT administration
→ More effective IT and ITSM processes
→ More simplified decision making
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 7
Service Design –Aspects
SLR SLA
pilot
SLRSLRSLRSLR SLA
LiveSLM
Approved for
build
SDP
Business requirements
Business requirements
Business requirements
Business requirements
Pilot or warranty period
Live operation
Design and development
Project (Project Team)
SAC SAC SAC SAC SAC SAC
Document & agree business
requirements(Strategy & Design)
Design
service solution
(Design)
Develop
service solution
(Design)
Build
service solution (Transition)
Test
service solution (Transition)
Strategy
Design
Transition
Transition & Operation involvement
Change Management:RFC released
Approved for design
Approved for
test
Approved for
development
Approved for warranty
Approved for live release
Review & closure
Build, Test, Release and Deployment Management
Operation
Improvement
SLR : Service Level Requirement
SAC : Service Acceptance Criteria
SDP : Service Design Package
SLA : Service Level Agreement
SLM : Service Level Management
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 8
Service Design - Aspects
ServicePortfolio
Using
Business/Organization Architecture
Delivery,
feedback & monitoring
Service Architecture
Supported by
Application ArchitectureInfluenced
by
Information/Data Architecture
Environmental Architecture
IT Infrastructure Architecture
Management
Architecture
Product
Architecture
Service
Knowledge Management
System
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 9
Service Design – Design Aspects
Design of Supplier Strategies
→ In-sourcing
→ Outsourcing
→ Co-sourcing
→ Multi-sourcing
→ Business Process Outsourcing (BPO)
→ Application Service Provision
→ Knowledge Process Outsourcing
In-sourcing - Internal capabilities are used for the design, development
maintenance, execution and/or offer of support for the service. The
advantage is direct control, freedom of choice and familiarity with internal
processes. Disadvantage is cost and time for delivering services which are
not core to the business as also competing for internal resources.
Outsourcing - Engaging an external organisation for the design, development maintenance, execution and/or offer of support for the
service. Advantage is focus on core competencies leading to reduction of
costs in the long term. Disadvantage in this is less direct control on the
services and dependence on external supplier who may not be able to
relate with the organisation’s processes. The competence and kills of the
supplier need to be judged correctly.
Co-sourcing - A combination of in and outsourcing in which various outsourcing organisations work co-operatively through the lifecycle of a
service. The advantage is faster time to deliver services and better
control. Disadvantage is complexity of projects and intellectual property
and copyright protection.
Multi-sourcing - Multiple organisations make formal agreements with the focus on strategic partnerships (creating new market opportunities).
Advantage is expanded market opportunities and competitive response
opportunities. Disdvantages are complexity of projects and culture clashes.
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 10
Service Design – Design Aspects
(Continued from last slide )
Business Process Outsourcing - An external organisation takes over a business process or part of one at a cheaper location. Advantages are one-
counter functionality and access to specialized skills
Application Service Provisioning - Computer based services are offered to the customer over the network. Advantage is access to complex and
expensive solutions with support and upgrades included. Disadvantages are
access only to faculties, not knowledge and culture clash.
Knowledge Process Outsourcing - Knowledge of an entire work area is offered. Advantages are knowledge and expertise and cost savings.
Disadvantages are loss of internal knowledge and loss of relationship with
the business
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 11
1. Service Design – Introduction, Objective, Benefits
2. Service Design – Fundamentals & Design Aspects
Processes
1. Service Catalogue Management
2. Service Level Management
3. Capacity Management
4. Availability Management
5. IT Service Continuity Management
6. Information Security Management
7. Supplier Management
Service Design
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 12
Service Catalogue Management
The purpose of Service Catalogue Management (SCM) is the development and upkeep of a Service Catalogue that contains all accurate details, the status, possible interactions and mutual dependencies of all present services and those under development
The Service Catalogue is the central source of all service information. The
Service Catalogue provides the following information to everybody in the
organisation:
- the services provided- how the services are delivered
- how these services have to be used
- what is the purpose of each service
- which quality level may be expected by the client
Service Catalogue is a subset of Service Portfolio and consists of active and
approved services (at retail level) in Service Operation. It contains:
- Policies
- Guidelines
- Responsibilities
- Prices
- Service Level Arrangements
- Delivery conditions
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 13
Service Catalogue Management
Two aspects of a Service Catalogue are:
1) The Business Service Catalogue
2) The Technical Service Catalogue
The Business Service Catalogue: contains all details of the services that are being supplied to the client and the relations with different
departments and processes, which are depending on the service. The
Business Service Catalogue facilitates the development of proactive and
preventive SLM processes or even the development aimed at Business
Service Management.
The Technical Service Catalogue: contains not only the details of the services supplied to the client, but also their relation to the supporting and
shared services, components and CIs. It explains which technical aspects
and departments are necessary to render the service. This is the part that
is not visible to the clients.
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 14
Service Catalogue Management
Business
Process 1BusinessProcess 2
BusinessProcess 3
Business Service Catalogue
Service A Service B Service C Service D Service E
Technical Service Catalogue
Support Services
Hardware Software Applications Data
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 15
Service Catalogue Management
The activities in the process are:
• Ensuring that all operational services and all services being prepared for operational running are recorded within the Service Catalogue
• Ensuring that all the information within the Service catalogue is accurate and up-to-date
• Ensuring that all 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 backed up
The Service Catalogue is the only resource that contains information about
all services of the service provider and so should be accessible to every
authorized person.
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 16
1. Service Design – Introduction, Objective, Benefits
2. Service Design – Fundamentals & Design Aspects
Processes
1. Service Catalogue Management
2. Service Level Management
3. Capacity Management
4. Availability Management
5. IT Service Continuity Management
6. Information Security Management
7. Supplier Management
Service Design
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 17
Service Level Management
→ The objective of Service Level Management (SLM) process is to ensure that the agreed level of IT service provision is attained both for present and future services
→ SLM defines, documents, agrees, monitors, measures, reports and executes a review of the service level
→ SLM delivers and improves the relation and communication with the business and the clients
→ SLM ensures that specific and measurable targets are being developed
SLM ensures reliable communication with all responsible parties (external
and internal) and maintains the relations with these parties. It agrees on
goals of the service provision of these parties and provides the
management information which is required to attain these goals. If
interference occurs, SLM assures feedback regarding causes and provides
information to SLM regarding preventive actions to be taken.
SLM represent IT service provider at the client and the client internally at
the IT service provider. There is a regular bi-directional contact, whereby
both the present service and future services are discussed.
SLM has to manage the expectations of both parties (internal and
external).
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 18
Service Level Management - Concepts
CUSTOMER
IT SERVICE ORGANISATION
SUPPORT
TEAMS
THIRD PARTY SUPPLIERS
SLA
OLA UC
Service Level Agreement (SLA): SLA is an agreement set forth in writing between the Service Provider and a client regarding the mutual goals and
responsibilities
Operations Level Agreement (OLA): an agreement between different departments of the same service provider regarding assistance in case of
(joint) service rendering
Underlying/Underpinning Contract (UC): SLA is an agreement set forth in writing between the Service Provider and a supplier regarding the mutual
goals and responsibilities
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 19
Service Level Management - Activities
→ Design of SLA Frameworks
• Service based SLA• Customer based SLA• Multi-level SLA
→ Production of Service Level Requirement (SLR)
→ Monitoring the performance and reporting the same
→ Improving client satisfaction
→ Review of the underlying agreements
→ Reviewing and improving services
� Developing contacts and escalations
Service based SLA – an SLA covers the service for all clients
Customer based SLA – an agreement with a client containing all services he wants to use. This captures all the requirements of a client in a single
document
Multi-level SLA – a combination having the following structure:
•Corporate level – covering all generic SLM matters
•Client level – covering all SLM matters which are relevant to the specific
group of clients or business units
•Service level – covering all subjects that are relevant to a specific service
relating to a specific client
The Multi-Level SLA keeps the SLAs under control and diminishes the need
for frequent updates.
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 20
1. Service Design – Introduction, Objective, Benefits
2. Service Design – Fundamentals & Design Aspects
Processes
1. Service Catalogue Management
2. Service Level Management
3. Capacity Management
4. Availability Management
5. IT Service Continuity Management
6. Information Security Management
7. Supplier Management
Service Design
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 21
Capacity Management
→ The purpose of Capacity Management is to provide an IT capacity coinciding with both the current and future needs of the customers against justifiable costs
→ Represents the central point of information on IT performance and capacity issues
→ Thorough capacity management is able to predict events and their impacts before they occur
The objectives are:
1) creating and maintaining an up-to-date Capacity Plan
2) internal and external consulting on services in terms of capacity and
performance
3) ensuring that the services provided comply with the defined objectives
by managing the performance and capacity of the services
4) contributing to diagnosis of performance and capacity related problems
and incidents
5) investigating the impact of all changes to the Capacity Plan
6) taking proactive measures to improve performance
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 22
Capacity Management
Capacity Management Information System
(CMIS)
Capacity & Performance reports and data
Forecasts
Capacity Plan
Review current capacity & performance
Improve current service and component capacity
Assess, agree and document new requirements and capacity
Plan new capacity
More proactive the Capacity management, the lesser the need for reactive
activities.
The Capacity Management process consists of :
Reactive activities
- Monitoring
- Measuring
Proactive activities
- predicting future requirements
- predicting trends
The purpose of CMIS is to provide relevant information on the capacity and
performances of services and infrastructures in order to support the
capacity management process. All the capacity management sub-processes
analyze the information stored.
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 23
Capacity Management
The 3 sub-processes are:
� Business Capacity Management
� Service Capacity Management
� Component Capacity Management
Business capacity management: translates the customer’s requirements to specifications for the service and IT infrastructure. Focuses on current
and future requirements
Service capacity management: main purpose is to identify and understand the IT services so that they comply with the defined targets. Focuses on
managing, controlling and predicting the performance and capacity of
existing operational services
Component capacity management (CCM): Focuses primarily on managing, controlling and predicting the performance, use and capacity of individual
IT components, such as processors, network and bandwidth, etc. The
emphasis is on the IT infrastructure that supports the service
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 24
Capacity Management
Supporting activities are:
→ Monitoring IT usage and response times
→ Analyzing data
→ Identifying possible points of improvement
→ Implementing changes
→ Leveraging new technology
→ Improving resilience
→ Setting thresholds
→ Influencing user demand for IT services
→ Managing the impact on IT services
→ Predicting the behavior of IT services by using modeling methods
→ Application sizing, estimating the requirements for resources to support proposed changes
Modeling
Rule of Thumb: This is the cheapest way of determining the best capacity solution and is based on experience and current resource utilization.
Linear Projection: This involves trend analysis based on resource utilization.
Simulation Modeling: This is usually more accurate than analytical modeling since it provides greater capabilities and more closely
emulates the application. Simulation modeling may require significantly more time and cost to prepare scripts and generate realistic transaction
loads.
Baseline Assessment: A “baseline model” accurately reflects the
performance levels and workload characteristics of the current system. This can allow predictive “what-if” scenarios with planned changes to resources under a variety of workloads. A good prediction of performance levels depends on the accuracy of the baseline model.
Actual System: This involves the actual operating environment to predict
the performance requirements.
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 25
1. Service Design – Introduction, Objective, Benefits
2. Service Design – Fundamentals & Design Aspects
Processes
1. Service Catalogue Management
2. Service Level Management
3. Capacity Management
4. Availability Management
5. IT Service Continuity Management
6. Information Security Management
7. Supplier Management
Service Design
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 26
Availability Management
The purpose of Availability Managementis to ensure that the delivered availability level for all services complies with or exceeds the agreed requirement in a cost-effective manner
The objectives are:1) creating and maintaining an up-to-date availability plan that reflects the
current and future needs of the customer
2) advising on availability related issues
3) guiding the customer and IT service provider
4) ensure that availability results comply with or exceed the defined
requirements
5) providing assistance in making a diagnosis of availability related
incidents and problems
6) investigating how much impact changes have on the availability plan and
the performance and availability of resources
7) taking pro-active measures to improve availability
The main activities are:1) determining the availability requirements of the business
2) determining the Vital Business Functions (VBFs)
3) determining the impact of failing components
4) monitoring and analyzing IT components
5) reviewing the services and components at unacceptable levels
6) creating and maintaining an Availability Plan
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 27
Availability Management
Monitors, measures and reports on the following aspects:
→ Availability
→ Reliability
→ Maintainability
→ Serviceability
→ Security
Availability: the service or component’s ability to function as agreed with
the customer
Reliability: the time a service or component can function without
interruption conforming to the agreements. This implies redundancy in
service design. The various types of redundancy:
1) Active Redundancy: used to support essential services. The productive capacity of redundancy is always available. All redundant units are
operating simultaneously (mirrored disks)
2) Passive Redundancy: use of redundant assets are left inoperative until the event of a failure (standby servers)
3) Diverse Redundancy: redundancy through various types of service assets that share the same capabilities (spreading the risk) like use of
different storage media
4) Homogenous Redundancy: using extra capacity for the same type of service assets. There is high certainty about the causes of failure (e.g. use
of two identical processors)
Maintainability: the speed and effectiveness of repair of a service or
component after a failure, how fast it will resume normal operation
Serviceability: the ability of an external supplier to comply with the
contract agreements
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 28
Availability Management - Tools
Component Failure Impact Analysis (CFIA) Configuration Item:
PC #1
PC #2
Ethernet segment
WAN link
Router 1
Router 2
Server
System software
Application 1
Application 2
Database 1
Database 2
Service A
B
N
B
N
X
N
X
X
X
N
B
N
Service B
B
B
B
B
X
X
X
X
X
B
B
X
X = Fault means service is unavailableA = Failsafe configurationB = Failsafe, with changeover timeN = No impact
During the ‘design for Availability’ activities it is necessary to predict and
evaluate the impact on IT Service Availability arising from component
failures within the proposed IT Infrastructure and service design.
Component Failure Impact Analysis ( CFIA ) is a relatively simple technique
that can be used to provide this information. IBM devised CFIA in the early
1970s with its origins based on hardware design and configuration.
However, it is recommended that CFIA be used in a much wider context to
reflect the full scope of the IT Infrastructure, i.e. hardware, network,
software, application and Users.
Additionally the technique can also be applied to identify impact and
dependencies on IT support organization skills and competencies amongst
staff supporting the new IT Service.
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 29
Availability Management - Measurement
Incident Incident
Time Between System Incidents
DowntimeTime to repair
UptimeTime between failures
Time
Resolution time
Time to detect
Time to record
Recovery
MTTR : Mean Time to Repair (MTRS – Mean Time To Restore Service)
MTBF : Mean Time Between Failures
MTBSI : Mean Time Between System Incidents
Timeto
diagnose
Timeto
repair
Timeto
recover
Expanded Incident Lifecycle - A guiding principle of Availability Management is to recognise that it is still possible to gain customer
satisfaction even when things go wrong. One approach to help achieve this
requires Availability Management to ensure that the duration of any
Incident is minimised to enable normal business operations to resume as
quickly as is possible.
Availability Management should work closely with Incident Management
and Problem Management in the analysis of Unavailability Incidents.
A good technique to help with the technical analysis of Incidents affecting
the Availability of components and IT Services is to take an Incident
‘lifecycle’ view.
Every Incident passes through several major stages. The time elapsed in
these stages may vary considerably. For Availability Management purposes
the standard Incident ‘lifecycle’ as described within Incident Management
has been expanded to provide additional help and guidance particularly in
the area of ‘designing for recovery’.
Each stage, and the associated time taken, influences the total downtime
perceived by the User. By taking this approach it is possible to see where
time is being ‘lost’ for the duration of an Incident, e.g. the service was
unavailable to the business for 60 minutes, yet it only took 5 minutes to
apply a fix, where did the other 55 minutes go?
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 30
Availability Management
Measuring perspectives:
→Business perspective: looks at IT availability in terms of its contribution to or impact on the VBF
→User perspective: views the availability of IT services as a combination of 4 factors – frequency, duration and impact and response times
→IT service provider’s perspective: views the availability of services and components from the point of view of availability, reliability and maintainability
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 31
1. Service Design – Introduction, Objective, Benefits
2. Service Design – Fundamentals & Design Aspects
Processes
1. Service Catalogue Management
2. Service Level Management
3. Capacity Management
4. Availability Management
5. IT Service Continuity Management
6. Information Security Management
7. Supplier Management
Service Design
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 32
IT Service Continuity Management
→ The purpose of IT Service Continuity Management (ITSCM) is to support business continuity by ensuring that the required IT facilities can be resumed within the agreed timeframe
→ ITSCM focus on those events that can be considered a disaster (calamity)
The objectives are:
1) maintaining a set of continuity plans and recovery plans
2) performing regular BIA
3) executing risk estimates and management exercises
4) advising other business units on all continuity and recovery related
issues
5) ensuring that the required continuity and recovery mechanisms are
ready for use
6) investigating the impact of all changes on the continuity and recovery
plans
7) implementing proactive measures to improve the availability of services
8) negotiating agreements with suppliers in relation to the required
recovery capacity
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 33
IT Service Continuity Management
Involves
→maintaining a set of continuity plans and recovery plans
→ performing regular BIA
→ executing risk estimates and management exercises
→ advising other business units on all continuity and recovery related issues
→ ensuring that the required continuity and recovery mechanisms are ready for use
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 34
IT Service Continuity Management
Involves
→investigating the impact of all changes on the continuity and recovery plans
→ implementing proactive measures to improve the availability of services
→ negotiating agreements with suppliers in relation to the required recovery capacity
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 35
IT Service Continuity Management
Initiation
Requirements & strategy
Implementation
Ongoing operation
•Policy setting
•Scope
•Initiate a project
•BIA
•Risk Assessment
•ITSC strategy
• Plans & proc.
•Orgn. planning
•Testing
•Awareness
•Review & audit
•Testing
•Change Mgmt.
BusinessContinuitystrategy
BusinessContinuityPlans
Invocation
BCM LifecycleKey activities
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 36
1. Service Design – Introduction, Objective, Benefits
2. Service Design – Fundamentals & Design Aspects
Processes
1. Service Catalogue Management
2. Service Level Management
3. Capacity Management
4. Availability Management
5. IT Service Continuity Management
6. Information Security Management
7. Supplier Management
Service Design
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 37
Information Security Management
The purpose of Information Security Managementis to align IT and business security and ensure that information security is managed effectively in all services and service management operation
The objectives are:
1) information is available and usable when necessary (availability)
2) information is available exclusively to authorised persons
(confidentiality)
3) the information is complete, accurate and protected against
unauthorized changes (integrity)
4) transactions and information exchange between companies and partners
are reliable (authenticity
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 38
Information Security Management - Concepts
1) A threat exploits a vulnerability
2) Threat causes an incident
3) Incident results in damage
4) Damage is to the assets leading to:
- Financial loss
- Reputation loss
- Image/Brand loss
- Regulatory breaches
- Loss of Goodwill
Measures to mitigate threats or reduce the impact of threats are:
1) Preventive Measures – prevent effects (access management)
1) Reductive Measures – limit effects (backups)
2) Detective Measures – detect effects (monitoring)
3) Repressive Measures – suppress effects (blocking)
4) Corrective Measures – repair effects (rollback)
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 39
Threat
Incident
Damage
Control
Preventive / Reduction
Detection / Repression
Corrective / Recovery
Evaluation / Reporting
Evaluation / Reporting
Evaluation / Reporting
Security controls for threats and incidents
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 40
1. Service Design – Introduction, Objective, Benefits
2. Service Design – Fundamentals & Design Aspects
Processes
1. Service Catalogue Management
2. Service Level Management
3. Capacity Management
4. Availability Management
5. IT Service Continuity Management
6. Information Security Management
7. Supplier Management
Service Design
ITIL V3 Foundation
© PCS Technology Ltd.
Topic- Lifecycle Phase: Service Design 41
Supplier Management
→ The goal of Supplier Management is to manage suppliers and the services they supply, aimed at consistent quality at the right price
→ Objectives are:
• getting “your money’s worth”
• adjusting underlying contracts with suppliers to the demands of the business
• manage relations with suppliers and their performance
The objectives are:
1) getting “your money’s worth”
2) adjusting underlying contracts with suppliers to the demands of the business
3) manage relations with suppliers and their performance
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 42
Supplier Management
Supplier categorisation& maintenance of the
SCD
Supplier & contractmanagement &
performance
Establish newsuppliers &
contracts
Contract renewal
and/ortermination
Evaluation of new
suppliers & contracts
Supplier strategy& policy
Supplier & ContractDatabaseSCD
Supplier reports
and information
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 43
Supplier Management – Contract Lifecycle
Identify requirements
Select suppliers
Categorize
Regulate
Manage
Renew / End
Supplier & Contract Database
The activities are:
1) Provide input to and maintenance of supplier policy
2) Maintain suppliers and contract databases
3) Categorize of suppliers and contracts with risk assessment
4) Evaluate of contracts and suppliers
5) Develop, negotiate and approve contracts
6) Revise, renew and end contracts
ITIL V3 Foundation
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Topic- Lifecycle Phase: Service Design 44