IT Service Operation and Continual Improvement Part one – Prerequisite and Introduction - Bahman Moghimi - The University of Georgia.pdf

IT Service Operation and Continual Improvement - Part one – Prerequisite and Introduction -

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2. IT Service Operation and
Continual Improvement
Part one –Prerequisite and Introduction
Dr.BahmanMoghimi(PhD, DBA)
Academic Staff/ Professor
The University of Georgia, Tbilisi, Georgia
[email protected]

3. Prerequisite 1: What is management?
Management is how businesses organize and direct workflow,
operations, and employees to meet company goals. The primary goal of
management is to create an environment that empowers employees to
work efficiently and productively. A solid organizational structure
guides employees and establishes the tone and focus of their work.
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4. Prerequisite 2: What is Marketing?
Marketing is those activities and sets of institutions, and processes for
creating, communicating, delivering, and exchanging VALUES to cerate
a long-term relationship for customers, clients, partners, and society at
large.
What is this? :
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5. Prerequisite : What is an organization?
An organized group of people with a particular purpose, such as
a business or a government department.
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6. Prerequisite 4: What Is Continuous Improvement?
Continuous improvement is an ongoing process of identifying,
analyzing, and making incremental improvements to systems, processes,
products, or services. Its purpose is to drive efficiency,improve quality,
and value delivery while minimizing waste, variation, and defects. The
continual improvement process is driven by ongoing feedback,
collaboration, and data.
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7. What Is Kaizen: Meaning and Definition
Kaizen is a Japanese word meaning "change for better." And the original
meaning of the Japanese word "Kaizen" from the Shogakukan
Dictionary could be literally translated as "The act of making bad points
better."
continuous improvement is not the sole definition of Kaizen. Instead, it
is the result of it. In fact, the literal translation of continuous
improvement in Japanese is "Kairyo“ that literally means : is to realize
your potential, break the status quo, and, this way, achieve improvement
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8. KaizenPhilosophy and Culture in Practice
Adopting this type of mindset will give you the ability to break the status quo
and push yourself to the limits. While positive thinking will show you
everything as a success, it is the negative emotion of "it could’ve been better"
that will give you the motivation to improve and eventually conquer new peaks
continuously.
For example, in the Toyota production system, all line personnel is expected to
stop the moving production line in case an abnormality occurs. Then, the staff,
alongside their supervisors, suggest an option to resolve the abnormality.
Furthermore, when the project ends, a Hansei-kai (reflection meeting) is held to
analyze the entire process, including any abnormalities that have occurred. Here,
it is important to mention that a Hansei-kai process would happen even if the
project were finished successfully, with no issues found along its lifecycle.
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10. Lean management is a
systematic approach to
optimizing efficiency by
minimizing waste and
maximizing value for the
customer. Originating from
the Toyota Production
System (TPS), it is
characterized by a relentless
pursuit of improvement and
a focus on value creation
through waste elimination.
Lean Management Definition
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11. What Is Six Sigma?
SixSigmaisaqualityimprovementapproachdesignedtohelporganizationsto
improveworkprocesses,increasethequalityofproductsandservices,reduce
defects,variationandcosts,anddriveprofitability.
InSixSigma,improvementisachievedbyidentifyingandremovingdefects’causes
andreducingallsourcesofvariationintheprocesses.Someofthequalitativeand
quantitativetoolsincludedintheSixSigmatoolsetareFMEA,processmapping,
rootcauseanalysis(RCA),5Whys,brainstorming,andothers.
•DMAIC: The acronym stands for Define, Measure, Analyze, Improve, Control. The methodology is the most widely
adopted approach to problem-solving. Through the use of statistical tools such as FMEA or process mapping, Six Sigma
practitioners apply theDMAICto identify the causes of a problem and implement quality improvements. The framework is
widely applied to improve existing processes.
•DMADV: The acronym stands for Define, Measure, Analyze, Design, Verify. The methodology has a proactive nature and
aims to prevent defects.DMADVis widely applied when a new process, product, or service is designed.
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13. Lean and Kaizen
•In Lean, continuous improvement is also known as Kaizen. The
continuous improvement model refers to a never-ending strive for
perfection in everything you do.
•Kaizen originated in Japan shortly after the end of the Second World
War. It gained massive popularity in Lean manufacturing and became
one of the foundations of Toyota’s rise from a small carmaker to the
largest automobile manufacturer on the planet.
•In the context of the Lean methodology, continuous improvement
seeks to improve every process in your company by focusing on
enhancing the activities that generate the most value for your customer
while removing as many waste activities as possible.
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14. Benefits of Implementing the Continuous
Improvement Model
•1. Increased efficiency:
Continuous improvement helps businesses to identify and
eliminate waste, inefficiencies, and redundancies in their processes, resulting in
increased efficiency and productivity.
•2. Improved quality:
By continuously analyzing and refining their processes,
businesses can improve the quality of their products or services, reducing
defects, errors, and customer complaints.
•3. Cost savings:
Continuous improvement can help businesses reduce their costs
by eliminating waste, reducing defects, and streamlining processes, resulting
in increased profitability.
•4. Employee engagement:
At the heart ofcontinuous improvement lies feedback
and assessment of the efforts, which enables employee engagement and
satisfaction, teamwork and collaboration.
•5. Enabling transformation:
Continuous improvement can help businesses stay
ahead of the competition by allowing them to respond quickly to changing
market conditions, customer expectations, and the emerging need for
digital
transformation
.
•6. Supporting innovation:
Continuous improvement can also drive a
culture of
innovation
by encouraging businesses to experiment with new ideas and
processes, leading to new or improved products or services.
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15. The PDCA Cycle
It isa project management framework that businesses can use to
implement incremental change. PDCA stands for plan, do, check, and
act. This four-step approach is the most widely used methodology for
implementing continuous improvement.
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16. What is E-Commerce?
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17. Service !
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18. Continuous Service Improvement
Continual Service Improvement (CSI) processes play a pivotal role in
enhancing the efficiency and effectiveness of IT service management.
Organizations striving for excellence in IT service delivery often
prioritize CSI as a core component of their operations. Undertaking
anITIL certificationcan significantly bolster professionals'
understanding of CSI processes, empowering them to identify areas for
improvement, implement changes, and continuously refine service
delivery practices.
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19. The Seven-Step Improvement Process
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20. What is SLAM chart
(target met, target threatened, target breached)
A Service Level Agreement Monitoring Chart (SLAM) is used to help monitor and
report achievements against Service Level Targets. A SLAM Chart is typically color
coded to show whether each agreed Service Level Target has been met, missed, or
nearly missed during each of the previous 12 months.
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21. What is Strategy? .
a. :careful plan or method : a clever stratagem.
b. : the art of devising or employing plans or stratagems toward a goal. c. : an
adaptation or complex of adaptations (as of behavior, metabolism, or structure)
that serves or appears to serve an important function in achieving evolutionary
success.
d.:Competitive strategy is about being different. It means deliberately choosing a
different set of activities to deliver a unique mix of value.
STRATEGYISNOT the same as operational effectiveness. (Michael Porter)
EX: “Southwest Airlines serves price-and convenience-sensitive travelers,”
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22. What is Strategy? ..
•The essence of strategy is choosing to perform activities differently than rivals do,
according to a long-term plan.
•Strategic positions can be based on customers’ needs, customers’ accessibility, or
the variety of a company’s products or services or resources or performances or
even trade-offs like those, trade-offs that protected the company from imitators.
•Strategic positions should have a horizon of a decade or more, not of a single
planning cycle.
•The competitive value of individual activities cannot be separated from the whole.
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24. What is Strategy? …
•Strategy is creating fitamong a company’s activities. The success of a
strategy depends on doing many things well—not just a few—and
integrating among them. If there is no fit among activities, there is no
distinctive strategy and little sustainability. Management reverts to the
simpler task of overseeing independent functions, and operational
effectiveness determines an organization’s relative performance.
•In management, the concept of strategy is taken in more broader terms.
Here, strategy means looking at the long-term future to determinewhat
the company wants tobecome, and putting in place a plan, how to get there.
Strategy is both art and science.
•Strategy is the intelligent allocation of resources through a unique system
of activities to achieve the goals. Simply put, strategy is how you planning
long-term to achieve a goal
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25. Service strategy
•A service strategy is a key aspect of service management that focuses on
developing and implementing strategies to deliver effective and efficient
services that align with an organization’s overall business objectives. It
involves identifying the services that an organization should offer,
determining the target market for these services, and developing a plan to
deliver them.
•Service strategy is the identification of what services your IT organization
should offer and for what customers. In this foundational phase, you
strategize the development, delivery, and management of those services in
an efficient and cost-effective manner.
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26. What are 4 P's of service strategy?
•This is where the 4Ps of service strategy come into play. These four
interconnected elements –Perspective, Position, Plan, and Pattern –
provide a comprehensive framework for ITSM to not only deliver
efficient IT services but also demonstrably contribute to the
organization's overall objectives.
•The Service Strategy Plan is your roadmap for achieving the defined
vision and goals. It outlines the steps that need to be taken to improve
existing services or develop new ones. This includes. Identifying target
market segments and customer needs. Defining service offerings and
value propositions.
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27. What is the value of service strategy?
•Service strategy helps building strategic assets which add value to
business guides entire Service Design, Service Transition & Service
Operation in a coherent manner for effective service operations. Service
Strategy provides best-practice guidance for the service strategy stage of
the ITIL service life cycle.
•One of the most effective customer service strategy examples is to provide
customers with interaction that speaks to them as individuals. Using their
name is the most obvious of the most common customer service tactics,
but it's equally important to remember specifics about their individual
needs and preferences.
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28. Everything is a Service Strategy?
•Everything-as-a-service (XaaS) model transformation allows customers
the flexibility to consume and pay-per-use, but transitioning is
complicated and challenging.
•Companies first need to decide where along the flexibility continuum
their model sits with respect to three separate consumption levers:
packaging, delivery, and monetization.
•Strategy of companies that determine XaaSis their future, committing to
go through the painful process of converting most (or a strategic part) of
the portfolio as soon as possible.
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29. Service Design
While Service Strategy is responsible for monitoring the progress of
strategies, standards, policies and architectural decisions that have been made
and implemented, Service Design monitors and gathers data associated with
creating and modifying (design efforts) of services and service management
processes. This part of the service Lifecycle also measures the effectiveness
and ability to measure CSFs and KPIs that were defined through gathering
business requirements. Service Design also defines what should be measured.
This would include monitoring project schedules, progress to project
milestones, and project results against goals and objectives. Service
Transition develops the monitoring procedures and criteria to be used during
and after implementation.
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30. Process Involved in Gathering and Processing The Data
SLMplays a key role in the data gathering activity as SLM is responsible for
not only defining business requirements but also IT’s capabilities to achieve
them. Service Level Management (SLM) refers to the process of defining,
monitoring, and maintaining agreed-upon service levels with customers or
users
•One of the first items in defining IT’s capabilities is to identifywhat monitoring
and data collection activities are currently taking place
•SLM then needs to determine if the monitoring taking place only at a component
leveland, if so, is anyone looking at multiple componentsto provide an end-to-
end service performance perspective?
•SLM should also identify who gets the data, whether any analysis takes place on
the data before it is presented, and if any trend evaluation is undertaken to
understand the performance over a period of time.
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31. What is ITIL?
•ITIL stands for Information Technology Infrastructure Library. The
acronym was first used in the late 1980s by the British government's
Central Computer and Telecommunications Agency (CCTA) when it
documented and distributed dozens of best practices in IT service
management.
•ITIL isa framework for effectively managing IT services throughout
the entire service lifecycle. The ITIL framework offers guidance and
best practices for managing the five stages of the IT service lifecycle:
service strategy, service design, service transition, service operation
and continual service improvement.
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32. ITIL service lifecycle
The product/service life cycle is a process used to identify the stage in which a product or
service is encountering at that time. Its four stages -introduction, growth, maturity, and decline
-each describe what the product or service is incurring at that time.
ITIL defines IT service management as: “The implementation and management of quality IT
services that meet the needs of the business. IT service management is performed by IT service
providers through an appropriate mix of people, process and information technology.”
There are five stages of the ITIL service lifecycle:
•Service Strategy.
•Service Design.
•Service Transition.
•Service Operation.
•Continual Service Improvement
Each stage contributes to delivering high-quality IT services and aligning them with business objectives.
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33. What is ITIL continual service improvement? .
•Continual service improvement (CSI) represents the fifth and pivotal stage
in the ITIL lifecycle. CSI’s core objective is to focus on identifying and
implementing IT services and process improvements.This phase kicks
in once a service is live—when it has been strategized, designed,
delivered, and is in operation. But the work doesn't stop there. CSI steps in
to refine and enhance.
•Within CSI, a metrics-driven approach is employed to spotlight
improvement opportunities and to gauge the impact of improvement
activities. Though CSI is a distinct phase with its dedicated ITIL
publication, it must permeate the entire lifecycle to foster an overarching
culture of continuous enhancement. Every person involved in service
delivery must understand their role in spotting improvement chances—it's
a collective effort.
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34. •A key task within CSI is pinpointing which daily metrics should be
monitored. To this end, identifying the Critical Success Factors (CSFs)
for each service or process is vital—these are the must-haves for success.
A manageable number of CSFs, ideally three to five, is suggested for
each process or service, fewer during their initial stages.
•Pinpoint Key Performance Indicators (KPIs) to actively determine the
presence of Critical Success Factors (CSFs), signaling the degree to
which these CSFs are achieved. Tie each CSF to a maximum of three to
five KPIs, incorporating quantitative metrics and qualitative aspects such
as customer satisfaction, which carry significant weight.
What is ITIL continual service improvement? ..
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35. Continual service improvement in ITIL v4
•ITIL 4 is the latest evolution of the ITIL framework, updated to address the
complex digital environment and to facilitate the transformation of IT
departments into a more agile, flexible, and modern digital service delivery
model. It integrates contemporary concepts from other methodologies like
Lean IT, Agile, and DevOps, providing a comprehensive and versatile guide
for the modern IT landscape.
•Not all IT processes are created equal, nor is there a one-size-fits-all
solution for IT service management. IT organizations must take a measured
approach, carefully weighing business objectives, budgetary constraints,
and company culture. The art of ITIL lies in tailoring its practices to fit the
practical needs of a business, bridging the gap between IT operations
management and strategic business goals.
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36. The ITIL framework
1.ITIL service strategy: This is the genesis, where customer needs and business
objectives are identified and defined.
2.ITIL service design: Here, strategies are translated into plans and proposals, ready
to be put into action for the business's benefit.
3.ITIL service transition: This phase focuses on deploying services into the live
business environment, ensuring they are delivered and transitioned smoothly.
4.ITIL service operation: Central to the lifecycle, this stage involves the ongoing
management of services and effectively addressing the end-users needs.
5.ITIL continual service improvement: A vital ongoing process that continually
evaluates and enhances IT service quality, aligning services with business needs.
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37. Benefits of implementing ITIL CSI
•CSI aims to enhance the effectiveness and cost-efficiency of delivered IT
services. It continuously measures and reviews service performance,
ensuring IT services evolve with shifting business demands. This
continual improvement process doesn't just fine-tune services—it
realigns them to business needs, promotes service enhancements, and
boosts process maturity.
•A robust CSI plan not only increases business value but also focuses on
enhancing the overall efficacy of IT services, ensuring they're in sync
with business requirements, and facilitating the development of more
sophisticated IT processes.
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38. CSI Objectives
•Review, analyze, and recommend areas for enhancement across the
ITIL lifecycle phases.
•Identify and implement initiatives to improve the efficiency and
effectiveness of IT service management processes.
•Suggest measures to boost service quality and cost-efficiency without
negatively impacting customer satisfaction.
•Ensure the application of appropriate quality management methods to
support and underpin CSI activities.
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40. Q and A ?