Slide 8 The outcomes that customers want to achieve are the reason why they purchase or use a service. Typically this will be expressed as a specific business objective (e.g. to enable customers of a bank to perform all transactions and account management activities online or to deliver state services to citizens in a cost-effective manner). The value of the service to the customer is directly dependent on how well a service facilitates these outcomes. Although the enterprise retains responsibility for managing the overall costs of the business, they often wish to devolve responsibility for owning and managing defined aspects to an internal or external entity that has acknowledged expertise in the area. This is a generic concept that applies to the purchase of any service. Consider financial planning. As a customer, we recognize that we don’t have the expertise, or the time, or the inclination to handle all the day-to-day decision-making and management of individual investments that are required. Therefore, we engage the services of a professional manager to provide us a service. As long as their performance delivers a value (increasing wealth) at a price that we believe is reasonable, we are happy to let them invest in all the necessary systems and processes that are needed for the wealth creation activities. In the past, service providers often focused on the technical (supply side) view of what constituted a service, rather than on the consumption side. Hence it was not unusual for the service provider and the consumer to have different definitions and perceptions of what services were provided, or for the provider to know all about the cost of individual components, but not the total cost of a service that the consumer understood. Slide 12 THE DEMING CYCLE The objective is continual service improvement (involved during Operations - Optimisation functions). This relates to the services provided by the organisation and also to the processes used to deliver those services. The Deming Cycle may be used to improve, for example, an online ordering service or the service level management process within an organisation. KEY ACTIVITIES The integration of the Plan–Do–Check–Act cycle with the seven-step improvement process identifies the activities of each stage as follows: Plan 1. Identify the strategy for improvement. 2. Define what you will measure. Do 3. Gather the data. 4. Process the data. Check 5. Analyse the information and data. 6. Present and use the information. Act 7. Implement improvement. Slide 14 Enterprises operating in dynamic environments need to improve their performance and maintain competitive advantage. Adopting practices in industry-wide use can help to improve capability.The term ‘best practice’ generally refers to the ‘best possible way of doing something’. As a concept, it was first raised as long ago as 1919, but it was popularised in the 1980s through Tom Peters’ books on business management.The idea behind best practice is that one creates a specification for what is accepted by a wide community as being the best approach for any given situation. Then, one can compare actual job performance against these best practices and determine whether the job performance was lacking in quality somehow. Alternatively, the specification for best practices may need updating to include lessons learned from the job performance being graded.Enterprises should not be trying to ‘implement’ any specific best practice, but adapting and adopting it to suit their specific requirements. In doing this, they may also draw upon other sources of good practice, such as public standards and frameworks, or the proprietary knowledge of individuals and other enterprises. More recently, the ITIL framework has offered a supplementary list Slide 15 1972: IBM starts research on quality service delivery called Information Systems Management Architecture (ISMA). 1980: IBM publishes Volume I of the IBM Management series titled "A management System for the Information Business", first public edition of ISMA. 1986: CCTA authorizes a program to develop a common set of operational guidance with the objective of increasing efficiencies in Government IT. 1988: "Government Infrastructure Management Method (GITMM)", is formalized and issued as 'guidelines' for Government IT operations in the UK focused on Service Level Management. Same year, the development team was expanded and work continued on Cost, Capacity, and Availability. 1989: GITMM title is inadequate. It is not a method, (last M), and it should lose its G letter in order to be marketable out of government. Renamed to ITIL. 1989: First 'ITIL' book published, Service Level Management, then Help Desk (incorporating the concepts of Incident Management), Contingency Planning, and Change Management. Books had 50-70 pages. 1990: Problem Management, Configuration Management and Cost Management for IT Services published. 1991: Published - Software Control & Distribution, on 89 pages. 1992: Availability Management, 69 pages. 1996: (July) First ITIL Service Manager class delivered in US by US company, ITSMI, 16 attended, 10 candidates, nine passes, one distinction, first US company authorized as an ITIL accredited course provider - ITSMI. 1997: Customer focused update to the Service Level Management book, 106 pages. 1997: ITIMF legally becomes what we know today as the IT Service Management Forum (itSMF UK). 2000: Service Support V2 published, 306 pages. 2001: Service Delivery V2 published, 376 pages. 2001: CCTA became a part of the Office of Government Commerce (OGC) 2002: Application Management, 158 pages, Planning to Implement IT Service Management, 208 pages and ICT Infrastructure Management, 283 pages, published. 2003: Software Asset Management, 146 pages, published. 2004: Business Perspective: The IS View on Delivering Services to the Business, published, 180 pages. 2006: (June) ITIL Glossary V2 published 2006: (June) APM Group Limited announced as preferred bidder of ITIL accreditation & certification program, over the itSMF International (expectant winner) 2007: (May) ITIL V3 five core books published. 2011: (July) ITIL 2011 update published.   Let's analyse this timeline a bit: ITIL V1 was rather similar to IBM's ISMA, especially in support/delivery domain. Core ITIL V2 books did not differ much from ITIL V1. Only a few processes were altered slightly, but the focus and perspective was pretty much unchanged. And this process lasted for some 20 years. ITIL V3 approximately doubled the scope, almost tripled the number of processes and functions and introduced a few new dimensions and perspectives. We have the first set of core books now, but a lot of time will be needed to develop all the complementary books, to groom and mature the training materials and to polish best implementation practices. ITIL 2011 books grew 57% in weight and 46% in number of pages due to rewrite and redesign (larger font). RELATED MATERIAL Apart from the ISO/IEC 20000 standard, ITIL is also complementary to many other standards, frameworks and approaches. No one of these items will provide everything that an enterprise will wish to use in developing and managing their business. The secret is to draw on them for their insight and guidance as appropriate. Among the many such complementary approaches are: Balanced scorecard: A management tool developed by Dr Robert Kaplan and Dr David Norton. A balanced scorecard enables a strategy to be broken down into key performance indicators (KPIs). Performance against the KPIs is used to demonstrate how well the strategy is being achieved. A balanced scorecard has four major areas, each of which are considered at different levels of detail throughout the organisation. COBIT: Control OBjectives for Information and related Technology provides guidance and best practice for the management of IT processes. COBIT is published by the IT Governance Institute. CMMI-SVC: Capability Maturity Model Integration is a process improvement approach that gives organisations the essential elements for effective process improvement. CMMI-SVC is a variant aimed at service establishment, management and delivery. EFQM: The European Foundation for Quality Management is a framework for organisational management systems. eSCM–SP: eSourcing Capability Model for Service Providers is a framework to help IT service providers develop their IT service management capabilities from a service sourcing perspective. ISO 9000: A generic quality management standard, with which ISO/IEC 20000 is aligned. ISO/IEC 19770: Software Asset Management standard, which is aligned with ISO/IEC 20000. ISO/IEC 27001: ISO Specification for Information Security Management. The corresponding code of practice is ISO/IEC 17799. Lean: a production practice centred around creating more value with less work. PRINCE2: The standard UK government methodology for project management. SOX: the Sarbanes–Oxley framework for corporate governance. Six Sigma: a business management strategy, initially implemented by Motorola, which today enjoys widespread application in many sectors of industry. Slide 18 The term ‘best practice’ generally refers to the ‘best possible way of doing something’. As a concept, it was first raised as long ago as 1919, but it was popularised in the 1980s through Tom Peters’ books on business management. The idea behind best practice is that one creates a specification for what is accepted by a wide community as being the best approach for any given situation. Then, one can compare actual job performance against these best practices and determine whether the job performance was lacking in quality somehow. Alternatively, the specification for best practices may need updating to include lessons learned from the job performance being graded. Enterprises should not be trying to ‘implement’ any specific best practice, but adapting and adopting it to suit their specific requirements. In doing this, they may also draw upon other sources of good practice, such as public standards and frameworks, or the proprietary knowledge of individuals and other enterprises. Slide 32 - Perot had bought wholesale computer time on an IBM 7070 computer installed at Southwestern Life Insurance in Dallas during the latter company's idle hours (EDS would not acquire its own computer until 1965).