Next Generation ITSM Making IT ready for the digital age Investing in Germany | A guide for Chinese 

02 Next Generation ITSM – Booklet | Making IT Service Management ready for the digital age

Executive Summary 04

Traditional ITSM and the DevOps Approach 05

Agile Adoption and Implementation 06

Combination of ITSM Frameworks with Agile Methods 07

DevOps Concepts for ITSM Processes 08

NextGen ITSM Collaboration Model 11

Service Management Platform 14

Contacts & References 15

03 Investing in Germany | A guide for Chinese businesses

Executive Summary

Process ITIL as only ITSM framework is no Application Management, Release and Perspective longer sufficient to design a future Deployment Management should be process map refined first

•• ITIL should be applied in combination •• Process refinement can be done central with CMMI, COBIT, and the DevOps to effi- or decentral: and ciently support the digital transformation should be adapt- of an ITSM-based IT service process map ed centrally for all IT services whereas and Release and •• Processes, which are affected by a strong Deployment Management should be customer interaction such as Incident adapted in line with the pace of the corre- Management, Problem Management, sponding IT service

Collaboration ITIL in combination with DevOps leads become more agile, utilize Feedback Perspective to better results in digital operating Loops, Service Delivery Teams, and Dev- models Ops Engineers to empower collaboration and continuous communication within a •• It will become possible to identify and modern IT department satisfy user needs early on, collaboration will be improved and inefficiencies and •• Use DevOps tools like interactive mon- information losses at process interfaces itoring in combination with ChatOps, reduced cross-functional KPIs or automation to make ITSM customer-centric and more •• Traditional ITIL based can agile apply DevOps approaches and tools to

Integration Agile frameworks are helpful to should constantly refine the established Perspective facilitate an enterprise adoption interface between and IT (e.g. for implementing new role concepts) •• On ITIL based ITSM can improve their implemented processes •• In case new processes or parts of existing by utilizing agile methods like SCRUM or processes are implemented, it is highly by applying selected concepts out of the recommendable to use an iterative imple- DevOps approach mentation approach (e.g. based on use cases). This will help to reduce complexity •• Companies that have already started and strengthen the feedback loop to the their digital transformation journey customer

04 Next Generation ITSM – Booklet | Making IT Service Management ready for the digital age

DevOps emphasizes people and culture and seeks to improve collaboration between IT operations and development teams

Fig. 1 – The next evolutionary stages of ITSM

at IT tage evs nterrise Move from a ilo aroach to a hightrt cltre aility to fail ithot lame Imroved ctomer eerience and deign throgh tale ervice ev ITSM

tage gie vtin • More likely to exceed profitability, market share, and productivity goals roactive conideration of ctomer feedack Pace of the throgh feedack and feedforard loo IT Organization gile ITSM

tage tats • Manual, resource intensive and siloed processes, inefficient hand-offs, lack of visibility and aditaility laic ITSM • Demand for faster, more frequent and redictale releae

laic IT

lo Agile mode high

05 Investing in Germany | A guide for Chinese businesses

Agile frameworks are helpful to facilitate an enterprise adoption and essential for an agile construct like a DevOps enterprise

Fig. 2 – Barriers and foundations of an agile adoption

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ign ITI trained management manager tak to the and staff team

onter e agile intitive ehavior gile frameork of loing the cltral eg Se control aot change to cale trctre ev

front talih lanning of a ev ITI v agile enterrie flexibility

06 Next Generation ITSM – Booklet | Making IT Service Management ready for the digital age

The combination of ITIL with other ITSM frameworks and agile methods leads to a dynamic and flexible IT service organization

•• How can ITIL support a dynamic and Fig. 3 – Agile ITSM Trend Radar agile IT service organization and why is this required at all? ITIL as a detailed orion urren no in fous and well established de-facto standard orion igh be reen in ong er erseie shows some gaps when it comes to its orion igh be reen in id er erseie agility and flexibility - e.g. its geared to the orion reen in shor er erseie waterfall approach, preferring sequential processes rather than iterative ones.

•• How to bridge these gaps without the itSM neccesity to completely redesign ITIL - which would be an enormous effort ITIT eign Thinking and clearly not sufficient - will be one MMI eTM anan question to answer. There are several igital starting points: Combining ITIL with other Se SM IT erating ITSM frameworks such as COBIT or CMMI Model Scrm or applying agile methods like iterative Technology ITI aaility ev process implementation and scaling up Model Horizon will lead to quick wins.

•• Following the “start small then scale ITSM Frameworks Agile Methods and Frameworks up”-approach means to focus first on ITIL processes which are strongly affected by 1)Deloitte Digital era Technology Operating Models 2)Deloitte Effectiveness Technology Capability Model changing customer requirements (e.g. incident management, change manage- ment or application management). The ITSM trend radar provides an indication on the most relevant or critical ITSM framework that should be assessed first and which agile method can help to bring agility in the design of a future IT service process landscape.

07 Investing in Germany | A guide for Chinese businesses

Traditional ITSM is based on ITIL principles - future IT processes will benefit from the quickness and flexibility that DevOps brings

•• The common perceptions of ITIL and Fig. 4 – Synergies between ITIL and DevOps features DevOps seem to contradict each other on the first glance rather than illustrate II evs a perfect match: DevOps is agile, quick and collaborative while ITIL’s strength lies within the rigid and detailed definition of nsieratin s n processes, services and roles to manage saiity ort eatres and avoid risks rather than to learn from g availaility ick realiation them. However, if evaluated carefully, calaility of oftare both frameworks complement each and ecrity fnctionalitie other.

•• While executing DevOps which focuses on the realization of functional require- ments (“features”), ITIL also ensures that requirements like availability, scalability II evs and security are met by following proven processes and using well established metrics and KPIs. The almost rigid and in s n s n eivery detail described processes in ITIL even Process Definition enale tomation of create the basis for automation – you etailed decrition teting and cannot automate what has not been well of reirement deloyment described previously. rocee and role

•• It is important to note that ITIL grants a degree of flexibility too. The framework often solely describes what shall be done, but not how (example: KPIs). This flexibility can be leveraged to make ITIL more agile, customer-centric and even customer-led by applying tools and methods from DevOps.

08 Next Generation ITSM – Booklet | Making IT Service Management ready for the digital age

DevOps complements ITIL with proven approaches and modern collaboration tools to enable a more agile ITSM organization

Fig. 5 – Adaptation of DevOps tools in ITIL

evs s

rssntina Is ather than earating ev and in Silo or ook creating conflicting infrastructure and service KPIs (e.g. uptime vs. time-to-market), cross-functional and result oriented KPIs need to en oe r be set up, making Dev and Ops equally responsible for them, e.g. e feature cycle time i er u tanariatin an tmatin n i n Focus on resource optimization for higher speed and agility o erie r C ns through automation of testing, integration, and deployment, ii on e.g. by usage of cloud provisioning tools

ynami an Interative nitring Dynamic and interactive kinds of monitoring, like ChatOps, n

g Service

i s create a direct touchpoint between Dev, Ops, and the

e Strategy

customer. Thus problems can be identified, treated or

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n escalated directly where they emerge, e.g. dashboards i o

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e r e eratina eea s e i The customer voice needs to be heard where it matters: in the er development. This way, a higher customer satisfaction and reduced ticket counts are achieved, e.g. by applying a net promoter score

e Iea ieting ystems DevOps takes a leaner approach to ticketing tools. In-tool processes needs to be streamlined and focus on benefits; monitoring has to be automated and integrated with the ticketing tool for faster responses, e.g. ServiceNow

09 Investing in Germany | A guide for Chinese businesses

Communication between Dev, Ops, and the customer is essential in modern IT departments and can be fostered by agile concepts

With the integration of Dev and Ops, the Loops which utilize (1) a common platform to a reduction of service disruptions, customer voice is getting closer to the (such as ChatOps), (2) transparency and rapid reaction times to problems or new developers who can react in a quick an integration and (3) organizational changes requirements, and a more efficient use of effective way. One tool facilitating this idea to achieve continuous improvement of development resources. is the concept of Operational Feedback processes, software, and services, leading

Fig. 6 – Operational Feedback Loops concept

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ransareny Integratin ev ll takeholder kno the rocee and have acce to relevant reorce eg ev kno ine rocee and are involved in teting early on are involved in releae lanning ev and the er are and develoment rocee collaorating on a common latform eg hat There i contino and ynchrono feedack and the ctomer voice i heard here it matter

s rganiatin ev o memer are comined to ervice delivery team facilitated y the ev ngineer

10 Next Generation ITSM – Booklet | Making IT Service Management ready for the digital age

DevOps helps ITIL to prepare ITSM organizations for future IT challenges by softening borders between processes and roles

•• To soften borders between processes •• Within a matrix working mode, the DOE and facilitate a cross-process working performs operational tasks in various mode, the introduction of the DevOps processes along his services. In doing Engineer (DOE) role – combining devel- so, entire processes are looked at from a opment and operational know-how – service perspective and not as common- secures the application of DevOps prin- ly applied, only from an isolated process ciples across an entire service or service perspective, which uncovers inconsist- bundle. encies across services and potentials to improve efficiency. •• Hereby, the DOE will not replace any ITIL roles but will closely collaborate with them. For example, while the Service Owner’s job is the “initiation, transition and ongoing maintenance and support of a particular service”, the DOE’s responsi- bility is much more operational.

11 Investing in Germany | A guide for Chinese businesses

Fig. 7 – The DevOps Engineer within the IT Organization

Senior eonile Service

ervie ne ervie ne ervie ne n eg eening eg rinting

Service Manager trat Service Manager trat Service Manager trat

Service eonile oer Service eonile oer Service eonile oer

SM Mater SM Mater SM Mater

SM Team SM Team SM Team

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vent anagement Senior eonile rocee Senior eonile roce ner Inient anagement

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BU Customer BU Provider IT 12 Next Generation ITSM – Booklet | Making IT Service Management ready for the digital age

Agile process implementation allows CIOs to refine their IT operating model based on use cases and in iterative steps

Fig. 8 – Agile Incident Management

gile Incident Management amle

etection and Classification and Invetigation and eoltion and Incident ecognition Initial eort iagnoi ecovery lore

nd er ommnication

Determining factors: Tab. 1 – Exemplary backlog

•• Process architecture: ITIL Theme Process Area Process Group User Story Priority Complexity

Service Incident Detection & As a user I want to 1 15 •• Amount of process groups: 6 Operation Recognition receive Incidents over a Service •• Backlog: centralized and prioritized Cockpit where I according to value expected and risk can assign them reduction to the responsible person •• Backlog refinement is done by a defined (change) board Service Incident Communication As a user I want to 3 5 Operation be able to access •• Sprint process as known a Dashboard to monitor the status •• Result: lean but operationalized process of my reported by defining use cases (e.g. password incident reset) which is implemented end to end

13 Investing in Germany | A guide for Chinese businesses

Drive digital transformation with the ServiceNow platform to improve the way teams work together in a modern enterprise

Fig. 9 – Enterprise Service Transformation with ServiceNow

rssntina aratin e manage large ine tranformation • We define cross-functional oerating model

igitie tmate resses e create ine vale and generate idea in or igital actory and Serviceo reator a e rovide indtry inight a eitte ell a Serviceo roce nterrise ervie et ractice anagement Integrate ervies an ssets e link ine and technology ervice to grant ne inight and dicover oortnitie e enale the atomation of technical ervice and aet detection nane stmer eriene e create intitive ercentric ervice ortal e integrate elf ervice and knoledge dataae reate ransareny an Insigts e enhance deciion making ith Serviceo analytic e drive tranarency and errelevant inight y creating tailored reort

14 Next Generation ITSM – Booklet | Making IT Service Management ready for the digital age

Contacts & References

15 Investing in Germany | A guide for Chinese businesses

Interview partners

Prof. Dr. Olaf Resch Prof. Dr. Claudia Lemke Berlin School of and Law. Berlin School of Economics and Law. Specialized in Business Rule Management, Specialized in Digital Transformation, , and IT-Management Management, Application (especially ITIL and COBIT). Management, and IT Service Management.

Prof. Dr.-Ing. Martin Wolf Dipl.-Phys. Thorsten Pröhl FH Aachen – University of Applied Science. Technische Universität (TU) Berlin. Specialized Specialized in IT-Organization and in IT Service Management and ITIL, Cloud Management (ITOM). Deputy CEO of the IT Service Mgmt., and Service Science, Service Management Forum Germany e.V. Management and Engineering (SSME).

16 Next Generation ITSM – Booklet | Making IT Service Management ready for the digital age

List of references

BMC (2017), ITIL and DevOps: Differences & Frameworks Working Together, http://www.bmc.com/blogs/itil-and- devops-lets-not-paper-over-the-differences/, accessed on June 2nd 2017.AXELOS (2016), ITIL® Misconceptions: “ITIL is incompatible with other practices.”, https://www.axelos.com/news/blogs/september-2016/itil-is-incompatible-with-other- practices, accessed on June 2nd 2017.

EtheralMind.com (2015), Why I Hate ITIL So Much, http://etherealmind.com/why-i-hate-itil-so-much/, accessed on June 2nd 2017.

Pink Elephant: “DevOps & ITSM: Defining Value From Two Sides Of The Same Coin”, 2014, Ontario, Canada.

TechTarget (2016), Meredith Courtemanche: “Tighten IT operations control with a DevOps feedback loop”, 2016-11-11, http://searchitoperations.techtarget.com/news/450402826/Tighten-IT-operations-control-with-a-DevOps-feedback-loop, accessed on March2nd 2017.

DEVOPS.COM (2014), George V. Hulme: “ChatOps: Communicating at the speed of DevOps“, 2014-07-16, https://devops. com/chatops-communicating-speed-devops/, accessed on February 18th 2017.

ITIL.ORG (2014), Alex Lichtenberger: “Disruptive Agile Service Management –Integrating Agile and ITSM“, http://blog.itil. org/2014/07/allgemein/integrating-agile-and-itsm/, accessed on June 08th 2017.

IBM (2016), ITSM Solution Architect Council, Reference Architecture Series - 3. DevOps for ITSM, https://www.ibm.com/ developerworks/community/blogs/ee4f939e-275d-4997-876a-93cecb6842df/entry/Reference_Architecture_Series_3_ DevOps_for_ITSM?lang=en, accessed on June 2nd 2017.

Forrester (2016), Build a fitter ITSM Practice, https://www.forrester.com/report/Build+A+Fitter+ITSM+Practice/-/E- RES121703, accessed on June 2nd 2017.

DEVOPS.COM (2015), Chris Riley: “Metrics for DevOps – Is your organization flying blind without metrics?“, https://devops. com/metrics-devops/, accessed on June 08th 2017.

DEVOPS.COM (2014), Payal Chakravarty: “The DevOps Scorecard”, https://devops.com/devops-scorecard/, accessed on June 08th 2017.

Wauch/Meyer (2012), Agilität im IT-Servicemanagement – Ansätze für flexible Stabilität. HMD – Praxis der Wirtschaftsinformatik, Heft 288, 2012, S. 87-93.

TSO, ITIL Edition 2011 . 2011, p. 257, London.

Intland Software (2016), Eva Johnson: Agile, SAFe and DevOps – Replacing ITIL, https://intland.com/blog/agile/devops/ safe-implementation-of-agile-devops-replacing-itil/, accessed on November 02nd, 2017.

17 Investing in Germany | A guide for Chinese businesses Next Generation ITSM – Booklet | Making IT Service Management ready for the digital age

19 Contact

Gabor Vincze Andrea Diebold Senior Consultant Senior Consultant Technology, Strategy & Architecture Technology, Strategy & Architecture [email protected] [email protected]

Timur Tretner Benedikt Höller Consultant Consultant Technology, Strategy & Architecture Technology, Strategy & Architecture [email protected] [email protected]

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Issue 03/2018