What is ITIL 4? Everything you need to know from Dr. Mauricio Corona, ITIL 4 architect [VIDEO]

Video transcription

Introduction

Prem: A very good morning everyone. My name is Prem Maheswaran. I am a Product Specialist from ServiceDesk Plus ManageEngine. I welcome you all to this free webinar of ITIL 4. So today the webinar is going to be conducted by Dr. Mauricio Corona, and he's going to educate us ITIL 4 and what has it got. It is indeed a pleasure to introduce Dr. Mauricio to all of you.

Dr. Mauricio show is an experienced ITSM professional and also one of the architects of ITIL 4. He holds 20 ITIL certifications as well as certifications in COBIT, ISO 20,000, ISO 27,000, PRINCE2, MCP. Besides that, he also teaches graduate courses in various universities. In 2018. Dr. Corona was appointed to ServiceDesk Institute Board as the Global Chief of Transformation.

With that introduction, I'd also like to introduce our company, ManageEngine. ZOHO Corporation is our parent organization. We started back in the year 1996 with Web NMS. It's a telecom framework. In 2001, we launched ManageEngine, the line of business which deals with IT infrastructure management. And in 2005, we launched ZOHO business application suite in SaaS platform. And in 2019, we are still continuing to explore a lot of businesses.

We are a bootstrapped and a profitable business. Seventy thousand employees are working around the globe for us, and about 65% of Fortune 500 companies use the products from ZOHO Corporation. We've got about 45 million users in 190-plus countries. So ZOHO Corporation develops application for businesses collaboration and productivity, while ManageEngine focuses on enterprise IT management solutions. We've got about 90-plus products, 180,000 customers, 200 channel and technology partners, and, more than 90-plus products and free tools, which we offer from our website.

So this is the entire ManageEngine suite where we focus on every aspects of ITIL infrastructure management. Right from Active Directory management to operations management, analytics, service management, endpoint and time management, and security management. We have got everything covered with different tools that we offer out of the box for ManageEngine. All right, so that is about our ManageEngine, our organization and about Dr. Mauricio.

Everything you Need to Know About ITIL� 4 [00:00:22]

Dr. Mauricio: Okay. Well, thank you very much, Prem, for the kind introduction and, well, it is my pleasure to be here with you to talk about...I am very passionate about enterprise service management, information technology service management, and service management process. We're going to discuss some of these topics today.

Trends in Enterprise Service Management [00:03:24]

And I would really like to start talking, maybe discussing at the end of the session about the trends in enterprise and risk management.

As long as we are reviewing, attending this kind of webinars, attending some conferences, these are the main topics that we are starting to see. And some of them we have seen, for example, artificial intelligence, maybe the last, I would say 15, 20 years.

I remember when I went to my Bachelors, to my school, I took some artificial intelligence topics, but the main issues that we have is that there were not enough to hardware or some interesting software in order to run the algorithms that we need in order to bring AI reality. But right now it's a reality, and you already saw in at the beginning, there are very powerful tools that that are already working on this side.

And right now we are talking about value, we are talking about digital transformation, we're talking about being lean, what about high velocity on it, of everything? And in this case, we're going to talk about high velocity service management.

What about automation, organizational agility? We need to start thinking on a systemic way, on a systemic approach, organizational resiliency. What about everything about automation, robotic process automation, as well? What about advanced analytics, machine learnings? And, well, there are plenty of topics on which we can discuss every single topic, not only in one webinar, but even in one course. Certification course or not certification, it doesn't matter.

So I would like to start saying, well, if you take a look to the ITIL 4 Foundation book that has just released one month ago, you will be able to see these topics. All of these topics are mentioned in within the book and that was something that we really took care about this.

Common Organisational Questions [00:05:23]

So I would like to start this presentation with some common organizational questions that I have received, and all of the AXELOS team as well.

It's about how we ITIL will help me with to be more? Just insert some words right here. Please start thinking about that and we will come back at the end of the session to answer these questions.

Will my prior investments in tooling, training, and organizational change be relevant? That's one of the key questions that we got.

Is ITIL relevant to my organization? Is it still relevant? Some of you have asked about this. If we are talking right now about lean, about agile, about DevOps, about everything that we have been working additionally of, out of ITIL, how all of these topics will converge and will come together.

Common Personal Questions [00:06:13]

So, well, some common personal questions that we receive is,

• Will my current certification still valid?
• What about, how will the ITIL help me to do a better job?
• How can I execute and how can I perform much more activities?
• Will ITIL help me to grow in my career?" - That's one of the key questions that we got as well.

So in order to answer these questions, I would like to start talking about, well,

The ITIL Update Programme [00:06:43]

What was all of this ITIL 4?

ITIL 4, remember, it's the evolution. It's the evolution of previous version of ITIL. As you, some of you can remember it was the ITIL then on the 20,000, on the 20k, it was about ITILv2, on 2007 it was ITLv3, then we made a refresh on ITIL 2011. And after that, we just bring some, a practitioner book and some additional stuff, but nothing concrete in order to have a complete evolution, a holistic evolution considering all of these topics that I just previously mentioned to you.

Meet the (Extended) Lead Architect Team [00:07:42]

So, well,what was the first step? The first step is trying to get the best view, the best possible view that we can have across the globe. These frameworks should be applied. It doesn't matter in which country you are. So this extended the architect team. We have a people from different nationalities from kind of a Australia, Japan, Holland, Mexico, Scotland, USA, of course. And as you can see, there is people pretty much representing every single part of the world.

"For the community, by the community" [00:08:10]

So the first step was to bring, to conform an architectural team, and after that, let's start working with the community because, as you know, AXELOS is the custodian of the ITIL 4 framework and publications. And, of course, they start working with the lead architect team on which I had the privilege to participate. And after that, we need to move from there. We need to go out there with the community in order to do some research on developments on community.

All of these topics that you saw in the first slide is exactly the outcome of the research that we did with end users, consultants, trainers, evangelists, for practitioners, pretty much like you. And I'm very happy that we have so many practitioners right now online. And then we start working with some subject matter experts as well regarding or depending on which topic we want to go deeper, then we start working with them.

We got more than 160 SMEs and we have more than 3,000 research and development community. So it was really, really interesting because right now, I have seen a lot of people that said, "Hey, I participated on this effort." And it's really nice to see as time goes by, more and more people have been directly involved with in this evolution.

Success factors for the Update [00:09:23]

So the success factors for the update. What do we consider? Well, we first of all,

1. Provide fundamental concepts. And of course, it should be accepted terminology. It doesn't matter if you are used to work with different frameworks, methodologies, standards. It doesn't matter. What we are trying to achieve here is to have a centralized set accepted terminology and put that in a simple framework like ITIL.

2. On the other side is to ensure practitioners to understand the systems components, how they contribute each other.

3. Ensure flexibility and adaptability. What we do not want to happen is that right now we are releasing ITIL 4. We are right now working on the upcoming books. There are going to be five more books. I will speak about this later. And what we don't do not want to happen is that we publish these books and maybe next year, we are seeing some specific topic that is gaining traction on some countries, then we should wait to another release. That's not the way it's going to happen. We're going to have a lot of flexibility and we're going to start releasing new information as long as the time goes by.

4. And, we need to, of course, highlight the importance of people and culture, and they should be at the center. We have been talking about, and a lot, about digital strategies and how to create or to develop the right digital transformation strategy in our organization. So, well, how can we do that? Well, the center is going to be, as usual, in people and the culture. It's impossible to talk about digital transformation if we don't have the culture and the right skills and capabilities developed within our organization in order to behave like a digital company.

History of the ITIL Update Programme [00:11:17]

So the history of the ITIL, it was a long way. It was a long way. We start working on 2017. And after that, we were pretty much...yes, it's one year but I would say that we work maybe 14 months, 2 or 3 months later, in order to start finalizing some details.

On September 2018, we run some alpha test. I personally went to the USA and another guys from the later team, run some alpha test sessions in Europe and in Asia. So after that we run beta test on trainer readiness. And after that we...well, actually, teams start finishing the publication.

And on February, in February, ITIL 4 Foundations was launched. So I was very pleased about that. And after that we have been testing. We have been hearing the community, what about, what do they think about this and they, as far as I can see and understand and see the polls, it has been a great acceptance.

Key Concepts in ITIL 4 [00:12:26]

So,What are the main key concepts in ITIL 4? Some of you maybe started reading the book; some of you may be just start getting into an ITIL 4 foundations course. It's very important to mention that the ITIL 4 Foundation course is not focused on foundation topics. What you will see in that course is the new architecture that we created, that we developed in order to be able to confirm your new digital strategy.

Language of ITSM: Delivering Value [00:12:54]

So the language of IT service management (ITSM), you know, it has been very strongly focused on delivering value. So this is the typical value proposition that we got on previous ITIL iterations. It's the service provider delivering value.

Language of ITSM: �Co-Creating� Value [00:13:13]

But right now we are evolving to a co-creation of value in which you need to consider every single stakeholder within your organization, and at the middle, there is going to be a service relationship. Soyou need to create, to design, to build, and to deliver a service relationship on which every single stakeholder will be part of the equation.

It is impossible to just arrive and say, "Okay, I'm going to start working as the typical way on the strategy design, transition, and operation, and once that I arrive to operation I will just focus on continuous service improvement.

And then you said, "Okay, from your point of view, you are delivering value," but from the point of view of some of your stakeholders that could be your customers, your users, your own consumers, maybe you don't think that. And why is that? Because sometimes if you do not create or if you do not work on a co-creation model, then the customer experience and the user experience will never arrive. So this is one of the key concepts that we had.

The Four Dimensions of Service Management [00:14:13]

Now, there has been a lot of pressure. We have seen in European markets, for example, right now, what is happening, for example, with the GDPR and how this is affecting companies abroad and across the globe. It's huge. It's very strong.

So, there are additional forces that we need to consider in order to start working with these new concepts, and this is the best of the model.

• Organizations & People
• Information & Technology
• Partners & Suppliers
• Value streams & Processes

So at the outside you will see the best of the model then that means some factors that will have some influences within your service and your product, and those factors start with

• Political factors
• Economic factors
• Social factors
• Technological factors
• Legal factors, and
• Environmental factors

So we need to consider every single effort that we are doing. Right now we are talking about a lot of the innovation. What about creating by using the new technology, innovative products, and services? Okay, that's good. That's good. That's great. but we need to consider everything about legislations, everything about environmental factors, everything about political factors, and that kind of stuff. If not, maybe we can arrive with a very nice product or service, but that will not be applicable or this cannot be deployed in maybe in some specific parts of the world. So it's very important.

We have something that ITIL 4 calls the four domains. And the four domains is pretty much where we previously have seen like people, process, technology and partners. It's pretty much the evolution that we are seeing in these four domains.

1. Organizations & People

And the four domains are mainly focused on organizations and people, as I previously mentioned, the people are at the center,

2. Information & Technology

But at the same time, we need two things, information and technology, It's not exactly IT. It's we need information and we need technology. And as you can imagine, some of you are maybe have been working lately on some advanced analytics projects and doing some kind of stuff. Well, that will come up within the second domain that it's information. So we need both. We need information and we need technology. Information, there are several layers. You can even start on the lower layer on which you are controlling or covening your data.

But you can move further in the scale and maturity until you arrive to business intelligence, and after that you arrive to data lake, and after your data lake, you kind of arrive to some machine learning stage, and after the machine learning you can bring all of your information to the artificial intelligence layer. So it's very interesting all of the things that you can do on that domain.

3. Value streams & Processes

At the same time, we need to focus on value streams - that's a new concept, a new key concept in ITIL and all of the processes. Yes, the typical process that we have, but as well enterprise processes.

4. Partners & Suppliers

We need to consider, of course, our partners and our suppliers. We do not need more providers, we need partners. We need partners that fully understand our business model, and they fully understand how we are creating and delivering products and services.

So the definition of service keeps pretty much the same. There are some variances. The service is a means of enabling value co-creation, it's very important the word co-creation, by doing that well, by facilitating outcomes that customers want to achieve, and of course, we already know that this is without the customer having to manage specific cost and risks.

And, we have the definition of product. That's very interesting because on previous ITIL, we didn't consider that. But the product is mainly a configuration of an organization's resources. And these will be designed to offer value for our consumer. So it's really interesting that we need to start working towards delivering service and products or products and services.

The Service Value System (SVS) [00:18:08]

And now, this is what we are seeing right now, this is the service value system. If you are trying to look or if you are after, well, where is the ITIL service lifecycle? Where is it located in ITIL 4? Well, this is the answer, this the service value system. The service value system replaces the service lifecycle and it demonstrates how the opportunity and demand is turned into value.

So, what we can see is that we are going from opportunity and demand to value by using what? Well, using several companies that it will be guiding principles, governance, service value chain, practices, and continual improvement. So I do not have enough time in order to explain every single part of this, but I would like to do a quick overview on this.

The Seven Guiding Principles [00:18:58]

Well, guiding principles, I will say that this is one of the most, most important aspects that you should consider. Every single company across the globe on which I have been working or helping them in order to create their digital strategies, they kept saying,

• Hey, Mauricio, when you arrive to a company, how do you do all of this consultancy process?
• How do you come along with the companies and start doing and adapting every single practice they want to get into their own environment? How can you do that?

And I always said, "Well, the main thing is that I follow some guiding principles." And these are the main guiding principles. Please remember that a guiding principle is a recommendation that will guide you and your organizations on all of the operating capabilities in every single circumstance on which you are facing.

1. Collaborate and promote visibility

So you have collaborate and promote visibility. It's very important. Every single effort that you are achieving, it doesn't matter if you consider it is small, then you do you need and you have to promote the visibility.

2. Keep it simple and practical

keep it simple, Please, please be as much as practical. Remember that companies are struggling to get what they want in short terms. So, please be practical, be practical doing short terms. If you are arriving with a new project or new service management project, and say that it's going to be a one year project for your company, well, then there's not going to be a good outcome from that meeting.

3. Progress iteratively with feedback

You need to progress iteratively with feedback. What is this? Focus on the real important matters? So if you do not identify what the risks are or what are your major challenges or where are you spending the most money on your information technology services, or, on things and topics that you are really struggling, then you won't be able to focus on what you need to focus on. So progress iteratively. Do not try to achieve everything at once.

4. Think and work holistically

Work holistically, of course.

5. Optimize and automate

we need to optimize and, of course, automate. Automation is key. And as far as we are seeing, why it is key? Well, why should you spend so much time and money on repetitive tasks that I could be able to in a much more reliable and faster and efficient way by using some tools? So, well, try to automate as much as you can.

6. Start where you are

Start where you are. Of course, you need to know exactly where you are standing right now in order to do the right move.

7. Focus on value

And at the end, well, focus always, always on value. So, this is one of the main things to consider.

The Service Value Chain [00:21:50]

If you run a zoom, if you do a zoom from the service value system, then you will be able to see a service value chain. And we can get back just quickly to this. So this is the service value system, and now I am going to zoom into the service value chain. So the service value chain will be this.

And this is the new way, that the new architecture on which we need to handle everything. So we are going to up right to the month, engagement. And after that, please consider that this is a key. What does this mean that you can go into several parts, it's not a one way or the other. So you can go to engage and after that you can plan and then get to obtain and build and then design and transition and then deliver support. Maybe you will get back to obtain and then you will have your product and services. So as I previously mentioned, you're going from demand to value and we're going to run a couple of examples in the following the slides. So this is what you need to consider in order to replace everything with, between the service value chain.

Scalable Operating Models

You need to create a scalable operating models. It doesn't matter if it's on individual, on teams, or on enterprise. This is where all of the service value chain comes, and every single service value chain will be confirmed by several value streams. Those value streams could maybe look like this.

Value Streams - Journeys Through The Value Chain - New service component [00:23:29]

For example, if you are having a journey through the value chain, what about if you need to put on production, put on like new service components? Well, maybe you can go to the month and see exactly what you need, stakeholders on the engagement, then you're going to plan after that, after you have your project plan, then you move to design and transition, obtain and build, then maybe you will get back to design and transition, deliver and support, and then finally, create the product or deliver the service in order to create value.

Value Streams - Journeys Through The Value Chain - Customer Support [00:23:52]

Maybe we can have some customer support. The customer support chain will go maybe on this way. And this is just sample. This is why we need to start creating our own value streams. So we have demand, maybe engagement, then we move to deliver and support, get back to obtain, design and transition, deliver and support again, and finally arriving to the value creation.

So this is exactly the way this should work, and it's very important that it's not like the typical one line option where you move to strategy design, transition, operation, and then continuous improvement. That doesn't exist anymore. So it's really important and it's very interesting in order to start thinking on new ways like value chain and value streams.

34 ITIL Practices [00:24:52]

Now, one of the main things and one of the main, I would say, evolution that we have in this situation, it was there's no longer what we used to know, a process. Right now we are talking about practices. So practices are going to be at the core in this service value chain. And a practice, remember it's a set of organizational resources. And these resources will be designed for performing work, or maybe they will be designed for accomplishing an objective, an objective, on a specific objective or on a specific goal.

So these practices does not only comprise processes and procedures, but they also considers all of the people, the skills, the partners, suppliers, information towards everything that we have previously seen in the fourth domain. So this is why it's very important. It's no longer a matter of, "Okay, I will design my Incident management process, and it's one and only process that will be developed or that will be deployed across my organization." That doesn't work anymore. You need much more than that.

From Processes to Practices [00:25:47]

Of course, processes are still on the what and procedures on the how, but you need to consider every single from a holistic point of view. So as we have discussed, right now we have the service value system and after the service value system, we have the service value chain.

But ,what about how are these practices going to underpin our service value chain? Well, in this way. You have practices and this is going to be the way of working. Maybe we need to start working with management instructors, cultural skills, competencies, value streams, processes, information assets, tools, of course our partners and our suppliers. So this is really interesting.

Practices At A Glance [00:26:46]

And in this side we are arriving to mention, well, okay if practices are the new stuff in ITIL 4, well, what kind of practices are located or are based in this new iteration of ITIL? Well, this is the way we can start discussing or we can... If we are going to think or if we are going to consider that right now, we have 34 practices, and I want to tell you that the beginning, the first meeting that we had in London in AXELOS headquarters, all of the later team says, "Hey, 26 processes are too much. So we need to diminish them." And after all of the discussion and the research, we end up with 34 practices. And why was that? Well, because we need and we found different type of practices that they could be considered within some domains.

General (Business) management practices (14 Practices)

One is, for example, general management practices. Right here we put 14 practices. They are focusing, of course, mainly on capabilities across multiple value chains, and, of course, they are originated in business domains. So I have heard a lot about enterprise service management and service management, I would say that it's pretty much what we created and this is the way we are handling this. Right now they are considering between general management practices.

Service Management Practices (17 Practices)

We have the service management practices.Those are 17 practices. They are originated in service management domains mainly. And the common goal is in on approaches across multiple value chains. So we're going to take a look in a few minutes about this.

Technology Management Practices (3 Practices)

And then finally, of course, we have technology management practice. And these ones are, originated in technology domains and are adopted by service management. So,these 3 practices, of course, and are mainly, mainly focused on the use of technology. So we have the service value system, we have the service value chain, I mentioned about the service value stream, and I mentioned that we can enable all of these streams and the service value chain by using practices. Okay. Which practices should be that?

General Management Practices (14 Practices) [00:28:50]

Well, these are the practices.

New to ITIL 4

• Enterprise Architecture
• Measurement and Reporting
• Organisational Change Management
• Project Management
• Risk Management
• Workforce & Talent Management

Significantly modified from ITIL v3

• Continual Improvement
• Information Security Management
• Knowledge Management
• Relationship Management
• Supplier Management

Traditional processes

• Portfolio Management
• Service Financial Management
• Strategy Management

And what you are seeing right now is for all of you that have been involved in previous iterations in ITIL, well, you will see the traditional processes in white. They already existed. They are other practices that has been significantly modified from ITILv3, that will be continual improvement, information security management, knowledge management, relationship management.

Please take a look that it is not a business relationship management. What we need is relationship management. Relationship management with whom? With everyone. It's impossible to create customer experience and user experience if we do not have the right relationship even with them. So it's relationship management, generally speaking, and we have significantly modifications on supplier management.

On the other side, we have new. And when you ask, "Hey, Mauricio, but why did you go from 24 processes to 34 practices?" "Well, because there are plenty of topics and domains that previous ITIL iterations didn't consider. "Which ones?" "Well, enterprise architecture. This is new."

Measurement and reporting, for all of you that are used to have ISO 20,000, ISO 27,000, all of the management system equality, security governance, and etc., then you will be able to see and understand that this came from management system. It's impossible to create a service value system without considering the measurement and reporting domain. So, this is new.

Organizational change management for all of you that has already previously gone through ITIL practitioner, then you will be able to recognize this one, but this is a new one and this is a new and huge one. So, right now you can see who in your company would be able to or would be the accountable for organizational change management? And this is food for thought. So we need to move outside IT. We need to move outside within the business. So we need to work as well on new practices like project management, risk management, and workforce and talent management. Just imagine. Who will be, in your organization, be accountable for the workforce and talent management?

Service Management Practices (17 Practices) [00:31:22]

New to ITIL 4

• Business Analysis
• IT Asset Management
• Service Design

Significantly modified from ITIL v3

• Capacity and Performance Management
• Change Control
• Incident Management
• Monitoring & Event Management
• Problem Management
• Release Management
• Service Desk

Traditional processes

• Availability Management
• Service Catalogue Management
• Service Configuration Management
• Service Continuity Management
• Service Level Management
• Service request Management
• Service Validation & Testing

If we move next to the service management practices, then you will see the traditional one in white, the major modifications, capacity and performance management, it's very important we added performance, change control, incident management, monitoring, and even management.

As you can remember, monitoring is a new one, problem management, release management, and the service desk. The service desk evolution is to be considered at the central point of orchestration for every single effort that you want to have with the customer experience. It doesn't matter if it's going to be by the typical analyst or by automated responses like chatbots, service bots, virtual assistance, AI, machine learning, it doesn't matter. And, we have business analysis, service design, IT asset management.

Technology Management Practices (3 Practices) [00:32:16]

New to ITIL 4

• Infrastructure Management
• Platform Management

Significantly modified from ITIL v3

• Deployment Management

Then we have the knowledge management practices that we are updating deployment management and we need to make sure about infrastructure and platform management. What about...This was a huge question,

What about one of the best practices in order to handle or to manage my cloud services provider or my cloud strategy?

Well, in infrastructure and platform management practice. We have software development and management. So these are the 34 new practices.

Practices Contribute to Activities [00:32:51]

And remember, this is the way they're going to underpin. And how are we going to interact? Let's put a couple of examples.

Change Control Practice [00:32:57]

What about with the change control practice?

Well, the change control practice will have high interactions with improved, with obtain and built, with design and transition, of course, by doing everything that you are seeing right now in your screen, and at the end, they will finish at the delivery and support. But this doesn't mean that we don't have additional interactions, medium interactions.

For example, with plan and with engagement. By doing what? By managing changing the product and services portfolio, and by the engagement will be with customers, users and, of course, all of the, all of they may need to be consulted or informed.

For example, all of you that are working right now on DevOps stuff, then, well, you will be able to see that it's much more easier to map the efforts that you are doing right now with DevOps, to map that within the service value system.

Incident Management Practice [00:33:55]

Let's put another example. For example, on incident management practice. Well, high interactions you will be, of course, engagement, of course, delivery and support. That's pretty much the first image that comes to my mind. But what happened with additional interactions? After an incident, maybe you need to change something in order to repair or to restore something.

Well, then you will need to have interactions, of course, first with design and transition, then with obtain and build, and at the end, with improve in order to provide all of the incident data so we can maybe avoid this to happen again by using problem management practice. So it's very interesting and it's very dynamic. And this the way I want you to see it. This is a very dynamic view, and this is what we need. We need to be lean, we need to be agile. And by doing this, then we need to arrive on a very efficient way to move through these value streams.

Scaling Practices Across Multiple Value Streams [00:34:54]

What would happen if we are scanning, for example, practices across multiple value streams?

This is the way maybe it should look like. We will have several streams and, for example, we will have incident management practices, most must have at least the following aspects. It will be incident number one, number two, number three, number four, five, six, and seven, and we need to start working on the minimum viable incident management. And this is the kind of information then we need to understand and these are the kind of flows that we need and we really encourage you to understand in order to start creating the right approach for bringing value to your customers and consumers by delivering value through your products and services.

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