itil and company performance management in emea

2010ITIL and company performance

management in EMEA – 2010 –

C o n n e C t i n g B u s i n e s s & t e C h n o l o g y

3

EDITORIAL2009 was adversely affected by the financial crisis impact. The direct consequence on IT departments was a reduction in budgets. Nevertheless, the spread of ITIL in the company continues.

Demand is increasing and becoming more popular to this day. IT departments are using ITIL v.3 for the processes which ITIL v.2 is just not compatible with. This is especially the case when building a range of service catalogues for customers and the management of SLAs (service level agreements).

The general approach is towards developing dialogue between the IT department and other job functions within the company, and making service levels contractually binding.

The 2010 survey results identified two major barriers to ITIL deployment:

> the difficulty in measuring return on investment: the introduction of ITIL is not perceived as a direct saving but more as a factor in long-term productivity gains. The quality of service improvement where gains are difficult to measure from a financial point of view is also a factor. > Resistance to change: the pragmatism of the ITIL model (a vision of the service oriented IT department) often comes up against difficulties in the execution of change within organisations (motivation, finance, know-how, etc.).

The ITIL v.3 model tackles information systems in a more general way, which takes much longer to establish than ITIL v.2 and subsequently provides a further delayed return on investment. The resistance to change comes more from the effort required to reach the target, than from the model itself.

Cyril Bouillot, Senior Consultant, Business Service Management, Devoteam

4

METHODOLOGYThe Devoteam “2010 ITIL and company performance management” survey was sent to large private and public companies in the EMEA region (Europe, Middle East and North Africa). A good balance of economic sectors are represented (Finance and insurance, industrial, services, telecommunications and public sector).This survey enabled an assessment of IT performance and the management of this performance. It was carried out in November and December 2009 in the 23 countries where Devoteam is present.

This survey is structured around five key themes - the pillars of company performance:

> History and investment: “How long has there been an investment in ITIL practices?” > Clients and services: “How mature is the management of relations between the IT department and its internal clients?”

> Organisation and process: “What is the positioning of the ITIL project within the IT department?”

> Industrial integration: “At what stage of development is the IT Service Management tool?”

> Performance management: “At what stage of development is the performance control of the information systems?”

The cross-analysis of over one hundred survey responses received, has allowed us to make constructive observations about the study of IT performance in companies across EMEA.

5

RESULTS AND ANALYSISHistory and investmentThe question of investment is important, since it is the first indicator of a company’s maturity when it comes to good ITIL practices. It is also the first question asked by IT departments.

The investment durations logically increase year upon year: the average has therefore moved from 2.9 years in 2008 to 3.5 years in 2009.

In relation to previous years, the development of the budget allocated to investment in good ITIL practices is either stable or on the increase.

How long have you been investing in ITIL practices?

% of total responses

How have the associated budgets changed?

0%

10%

20%

30%

40%

50%

314

45

21

10 7

0%

10%

20%

30%

40%

11

3532

107

4

Less than 1 year

1 to 3 years

3 to 5 years

5 to 7 years

7 to 10 years

More than 10 years.

Stopped Decreased Stable Growing Strong growth

Not stated

6

Clients and servicesIT departments work for internal clients. The parameters for the formalisation of a range of services and client satisfaction represent company maturity indices.

The formalisation of services depends on the duration of the investment. Companies investing for less than three years in good ITIL practices have not yet formalised their services to a great extent. While most of those who have invested for more than 5 years have done so.

Similarly, the more mature companies are, the more service contracts are used for internal re-invoicing.

What proportion of your services are formalised into a catalogue, made available to clients and updated periodically?

What proportion of your services have been subject to commitments by IT in the form of agreements or service contracts?

How often do you check the adequacy of the services offered against your clients’ expectations (satisfaction surveys, service reporting, etc.)?

0%

10%

20%

30%

40%

15

37

17 1714

0%

10%

20%

30%

40%

30

2318

15 14

0%

10%

20%

30%

40%

34

1417

24

11

< 10% 25% 50% 75% > 90% < 10% 25% 50% 75% > 90%

Never Annually Twice a year Quarterly Monthly

7

Organisation and processThe organisation of the IT department and the processes are the basis for the implementation of good ITIL practices. It is therefore important to know how the organisation feels, in order to measure the development of good ITIL practices within the company.

Nowadays, the service desks dedicated to client relations are always created by IT departments using good ITIL practices. Some of these practices are very well integrated, such as the management of incidents and problems.

Good ITIL v.3 practices appear with request fulfilment management but are still not common.

The management of client relations is also improved by the use of a SPOC (single point of contact) recommended by ITIL, but this is not always the norm within a company.

In comparison with last year, good ITIL v.3 practices are better known and some companies have already taken the step. On the other hand, just like in 2008, 71% of those surveyed weren’t very interested in ISO 20000, which enables the standardisation and certification of a company’s IT services.

What are the processes attached to your service desk? State if you have only one service desk.

Have you started a project within the last twelve months to move towards ITIL v.3?

Do you envisage ISO 20000 certification?

0%

10%

20%

30%

40%

3

3137

1713

0%

20%

40%

60%

80%

100%

93

7

46

242132

58

27

0%

10%

20%

30%

40%

18

38

27

8 8

Incident / Problem

management

Change management

Release management

Complaint management

Suppliermanagement

Single service desk (SPOC)

Several service desks

Request fulfilment

management

Not stated Not at all Not really Probably DefinitelyNot stated Being studied In addition to v.2

In transition In transition

8

Resistance to change is the main cause of reticence to invest in good ITIL practice. In the “Other” responses, the complexity of company organisation, the lack of human resource availability and the immediate cost also appear visible.

An improvement in the quality of service is the main reason for using good ITIL practices.

From your current observations, give two reasons for the reluctance from your company to invest in ITIL.

From your current observations, give two determining reasons for your investment in ITIL.

0%

20%

40%

60%

80%79

2030

1811

37

0%

10%

20%

30%

40%

50%49

3034

31

17

Resistance to change

Lack of knowledge

Lack of middle management

support

Added value not proven

Other

Improvement in service quality

Business alignment

Improvement in yield

Cost reduction

Improvement in the continuity

of service

Improvement in the agility

of the IT system.

9

Industrial integrationTo be completely effective, the processes relying on good ITIL practices must be designed with a view to industrialisation and automation. The performance of the processes benefits from the fact that they communicate with each other and the tool is homogeneous.

The industrial integration of processes is still relatively immature. The automation of updating the CMDB/CMS* is still limited. Only incident management processes, problems and changes are integrated into the CMDB/CMS.*

The quality of service (QoS) measurement is automated for the management of incidents and is being automated for availability problems.

How do you measure ITIL maturity in your company?

To what extent are your CMDB/CMS* (reference bases) managed automatically?

Which service quality measurement processes and service level agreements (SLAs) are automated?

0%

20%

40%

60%

80%

17

73

3427

118

0%

10%

20%

30%

40%

50%

45

2518

8 3

0%

10%

20%

30%

40%

50%

41

15 17 173

7

Not measured Occasional internal audit

Occasional external audit

Regular internal audit

Regular external audit

Benchmarking

< 10% 25% 50% 75% > 90% Not stated Incident mgmt

Problem mgmt

Availabilitymgmt

Capacity mgmt

IT Service Continuity

mgmt

What are the processes supported by your CMDB/CMS*?

0%

20%

40%

60%

80%

1425 20 1717

25

7062

Not stated Incident / Problem management

Change management

Release management

Event management

Service Level management

Capacity management

IT Service Continuity management

* Co

nfigu

ratio

n M

anag

emen

t Dat

aBas

e /

Confi

gura

tion

Man

agem

ent S

yste

m

10

How many tools are used by the various processes?

A single integrated solution is widely applied in companies to manage incidents and problems. Tools for other processes are more rarely put into practice but the homogeneity of solutions is sought.

One company in five has no self-service desk. When using ITIL v.2, the use of this tool is to improve incident management and, for ITIL v.3, it is to introduce a self-service services catalogue.

Incident & Problem Management Configuration & Change Management

Service Request & Service Catalogue Management

What functions are included in your self service desk portal?

0%

10%

20%

30%

40%

37 37

21

41

0%

15%

30%

45%

60%

32

51

3224

6

0%

10%

20%

30%

40%

50%

21

41

31

61

0%

15%

30%

45%

60%

6

55

31

6 3

Process not implemented

1 solution integrated

2 or 3 multi-process tools

4 to 5 tools 6 or more





None / No portal

Information on incidents /

requests

Access to a services catalogue

Access to a knowledge

base

Self provisioning





11

Performance managementPerformance management allows IT departments to provide a level of service suited to the needs of their clients. The methods used therefore appear to be very important for IT departments.

These questions enable a realisation of the possibilities offered for the optimal management of the performance of the IT system.

ITIL is perceived as an enabler for achieving various IT department objectives. However it is still as difficult as ever to measure its contribution in terms of productivity.

Do the actions on your service management processes enable a contribution to the achievement of your IT department’s objectives?

Do the actions concerning your tools (referring to the industrialisation of the management of services) contribute to the achievement of your IT department’s objectives?

Do the actions of your organisation and management of skills contribute to the achievement of your IT department’s objectives?

Do you manage to measure the productivity gains obtained through the use of ITIL?

0%

15%

30%

45%

60%

420

55

21

0%

15%

30%

45%

60%

13

52

28

7

0%

20%

40%

60%

80%

610

69

15

0%

15%

30%

45%

60%

3 13

56

28

Not at all Not really To some extentNot at all Not really To some extent Completely

Not at all Not really To some extent Completely Not at all Not really To some extent Completely

Completely

12

Innovation is not sufficiently integrated into the “continuous service improvement” approach.

To measure performance, companies use a combination of several indices, e.g. KPI (key performance indicators) and regular reporting on the performance of ITIL processes in use.

0%

15%

30%

45%

60%

1

4552

39

14

3528

0%

15%

30%

45%

60%

4

24178

5861

3

How do you measure the performance of your IT system?

How do you control the performance of the processes resulting from good ITIL practices which you have put in place?

Not stated

Not stated

Benchmarking

KPI (Key Performance Indicators)

Regular audit

CSF (Critical Success Factor)

Cost measurement

Six Sigma method

Service quality measurement

Occasional reporting

Prospective management

data

Regular reporting

Managerial management

data

Regular audit

Is innovation management integrated into continuous service improvement?

0%

15%

30%

45%

60%

32

48

181

Not at all Not really To some extent Completely

13

Companies make a concerted effort to manage their suppliers.They prefer to manage their service management tools internally.

SaaS* was not polled in this survey. It is not yet widely known or considered as less suitable than traditional solutions for the management of information systems.

* Software as a Service

What methods do you use to manage your suppliers?

In your opinion, which tool is the most efficient for managing your services?

0%

15%

30%

45%

60%

3 13 1

4451

55

41

17

0%

10%

20%

30%

20

0

28

141417

1 6

Not stated

HP

Supplier reporting

management

CA

Control of resource

obligations

IBM

Meeting and monthly reporting

BMC

Contract and purchasing

review

Other independent

auditort

Daily review and alerts

Software as a service (SaaS).

E-SCM certification

Mix of publishers

Penalties activated, if necessary

Specific solution

If you work with outsourcers, is it necessary to manage service management tools in order to be more efficient?

0%

10%

20%

30%

40%

4 4

2427

31

10

Externally only Mainly externally

Split internally/externally

Mainly internally

Internally only Not stated

14

CONCLUSIONThe analysis of this survey, supported by the experience of Devoteam, confirms the following strategic goals:

> The use of ITIL, in particular for the management of requests, service contracts and service portals,

> The harmonisation of processes and the rationalisation of tools (sometimes down to just one),

> The progressive and pragmatic introduction of ITIL v.3.

Information technology departments are keen to supply their professional clients with an optimum level of service investment:

> To rationalise their operation by relying on ITIL,

> To assess their performance in terms of KPIs.

The conduct of change and the sponsorship of management remain two key factors identified in the deployment of ITIL.

1515

Devoteam would like to thank everyone who took part in this survey.

Contact

+33 (0)1 41 49 48 [email protected]://www.devoteam.com

CONCLUSION