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No part of this publication may be reproduced in any form or by any means without permission in writing from AXELOS Limited. Applications to reuse, reproduce or republish material in this publication should be sent to the licensing team at: [email protected] Registered office address: 30 Berners Street, London, England, W1T 3LR AXELOS, the AXELOS logo, the AXELOS swirl logo, AgileSHIFT®, ITIL®, MoP®, M_o_R®, MoV®, MSP®, P3M3®, P3O®, PRINCE2®, PRINCE2 Agile®, and RESILIA® are registered trade marks of AXELOS Limited. Figure 3.7: The Cynefin framework is licensed under the Creative Commons Attribution-Share Alike 3.0 unported licence (https://creativecommons.org/licenses/by-sa/3.0/) from https://commons.wikimedia.org/wiki/File:Cynefin_as_of_1st_June_2014.png Figure 3.12: Adapted from Rother, M. Toyota Kata Practice Guide. Licensed under the Creative Commons Attribution 3.0 unported licence (https://creativecommons.org/licenses/by/3.0/) from http://www-personal.umich.edu/~mrother/Supporting_Materials.html. First edition 2020 ISBN 9780113316403 Printed in the United Kingdom for The Stationery Office Material is FSC certified and produced using ECF pulp, sourced from fully sustainable forests. P003017691 c20 02/20 Contents List of figures iv List of tables vi Foreword vii Preface viii About the ITIL 4 publications ix About the ITIL story x ITIL Foundation recap xii 1 Introduction 1 1.1 Audience and scope 2 1.2 Background and context 2 2 Key concepts of high-velocity IT 5 2.1 High-velocity IT 6 2.2 Digital technology 7 2.3 Digital organizations 11 2.4 Digital transformation 12 2.5 High-velocity IT objectives and key characteristics 16 2.6 Adopting the ITIL service value system to enable high-velocity IT 23 2.7 Summary 41 3 High-velocity IT culture 43 3.1 Key behaviour patterns 44 3.2 Models and concepts of HVIT culture 46 3.3 ITIL guiding principles 73 3.4 Summary 76 4 High-velocity techniques 77 4.1 Techniques for valuable investments 78 4.2 Techniques for fast development 88 4.3 Techniques for resilient operations 108 4.4 Techniques for co-created value 127 4.5 Techniques for assured conformance 130 4.6 Summary 138 5 Conclusion 139 End note: The ITIL story 141 Further research 143 Glossary 147 Acknowledgements 159 Index 167 iii List of figures Figure 0.1 The service value system xii Figure 0.2 The ITIL service value chain xiii Figure 0.3 The continual improvement model xv Figure 0.4 The four dimensions of service management xvi Figure 2.1 Digital technology 8 Figure 2.2 Information system technology stack 8 Figure 2.3 The IT value stack 9 Figure 2.4 Digital transformation and IT transformation 13 Figure 2.5 Examples of sourcing options for an IT function 15 Figure 2.6 Objectives from an economic perspective 17 Figure 2.7 Key characteristics of HVIT 18 Figure 2.8 A value stream with three workstations 19 Figure 2.9 The ITIL service value system 24 Figure 2.10 Service interaction and the band of visibility 26 Figure 2.11 Digital product lifecycle from two perspectives: consumer and provider 27 Figure 2.12 Customer journey model 28 Figure 2.13 Digital product lifecycles from a consumer’s perspective 28 Figure 2.14 The ITIL service value chain 29 Figure 2.15 DevOps activities in a continuous loop 30 Figure 2.16 DevOps and the service value chain 30 Figure 2.17 The service consumer’s perspective 31 Figure 2.18 Interacting service value chains 32 Figure 2.19 Example value stream referring to service value chain activities 32 Figure 2.20 The value stream in context 33 Figure 2.21 Value stream positioned with respect to governance, execution, and improvement 34 Figure 2.22 Multiple management practices involved in a value stream, depicted in a variation of a Porter value chain 35 Figure 2.23 The four dimensions of service management including the six PESTLE factors 37 Figure 3.1 Key behaviour patterns 44 Figure 3.2 Heat map of the importance of the key behaviour patterns to ethics 51 Figure 3.3 Heat map of the importance of the key behaviour patterns to design thinking 53 Figure 3.4 Heat map of the importance of the key behaviour patterns to reconstructing for service agility 55 Figure 3.5 Heat map of the importance of the key behaviour patterns to safety culture 58 Figure 3.6 Heat map of the importance of the key behaviour patterns to stress prevention 61 Figure 3.7 The Cynefin framework 63 iv Figure 3.8 Heat map of the importance of the key behaviour patterns to working in complex environments 65 Figure 3.9 Heat map of the importance of the key behaviour patterns to Lean culture 68 Figure 3.10 The ITIL continual improvement model 69 Figure 3.11 Improvement domains 69 Figure 3.12 Toyota Kata 71 Figure 3.13 Heat map of the importance of the key behaviour patterns to continual improvement 72 Figure 4.1 Heat map of the contribution of prioritization to the service value chain 81 Figure 4.2 Heat map of the contribution of a minimum viable approach to the service value chain 83 Figure 4.3 Heat map of the contribution of product or service ownership to the service value chain 85 Figure 4.4 Time-limited experimentation with A/B testing 86 Figure 4.5 Heat map of the contribution of A/B testing to the service value chain 87 Figure 4.6 Effect of the size of change 90 Figure 4.7 Heat map of the contribution of infrastructure as code to the service value chain 91 Figure 4.8 Heat map of the contribution of loosely coupled information system architecture to the service value chain 94 Figure 4.9 Heat map of the contribution of retrospectives to the service value chain 95 Figure 4.10 Heat map of the contribution of blameless post-mortems to the service value chain 97 Figure 4.11 Faster value realization with an iterative approach 99 Figure 4.12 Heat map of the contribution of continual business analysis to the service value chain 100 Figure 4.13 Heat map of the contribution of CI/CD to the service value chain 102 Figure 4.14 Heat map of the contribution of continuous testing to the service value chain 105 Figure 4.15 An example of a Kanban board 107 Figure 4.16 Heat map of the contribution of Kanban to the service value chain 108 Figure 4.17 Heat map of the contribution of technical debt to the service value chain 111 Figure 4.18 Heat map of the contribution of chaos engineering to the service value chain 113 Figure 4.19 Heat map of the contribution of definition of done to the service value chain 116 Figure 4.20 Heat map of the contribution of version control to the service value chain 119 Figure 4.21 Heat map of the contribution of AIOps to the service value chain 121 Figure 4.22 Heat map of the contribution of ChatOps to the service value chain 123 Figure 4.23 Heat map of the contribution of SRE to the service value chain 125 Figure 4.24 Heat map of the contribution of service experience to the service value chain 129 Figure 4.25 Heat map of the contribution of DevOps Audit Defense Toolkit to the service value chain 131 Figure 4.26 Heat map of the contribution of DevSecOps to the service value chain 134 Figure 4.27 Peer review formality spectrum 136 Figure 4.28 Heat map of the contribution of peer review to the service value chain 137 v List of tables Table 0.1 The ITIL management practices xiv Table 2.1 HVIT objectives 16 Table 2.2 Key characteristics of high-velocity IT 18 Table 2.3 Summary of the influence of HVIT characteristics on ITIL service value chain activities 19 Table 2.4 Stages of the digital product lifecycle 28 Table 2.5 Practices and their relevance to the five objectives 36 Table 3.1 Models and concepts and related key behaviour patterns 46 Table 3.2 Elements of Lean culture 67 Table 4.1 Practices for which prioritization is relevant 81 Table 4.2 Practices for which a minimum viable approach is relevant 83 Table 4.3 Practices for which product or service ownership is relevant 85 Table 4.4 Practices for which A/B testing is relevant 88 Table 4.5 Practices for which infrastructure as code is relevant 92 Table 4.6 Practices for which loosely coupled information system architecture is relevant 94 Table 4.7 Practices for which retrospectives are relevant 96 Table 4.8 Practices for which blameless post-mortems are relevant 98 Table 4.9 Practices for which continual business analysis is relevant 100 Table 4.10 Practices for which CI/CD are most relevant 103 Table 4.11 Types of software testing 104 Table 4.12 Practices for which continuous testing is most relevant 105 Table 4.13 Practices for which Kanban is relevant 108 Table 4.14 Practices for which technical debt is relevant 111 Table 4.15 Practices for which chaos engineering is relevant 114 Table 4.16 Practices for which the definition of done is relevant 116 Table 4.17 Practices for which version control is relevant 119 Table 4.18 Practices for which AIOps is relevant 121 Table 4.19 Practices for which ChatOps is relevant 123 Table 4.20 Practices for which SRE is relevant 126 Table 4.21 Practices for which service experience is relevant 129 Table 4.22 Practices for which the DevOps Audit Defense Toolkit is relevant 132 Table 4.23 Practices for which DevSecOps is relevant 134 Table 4.24 Activities in different peer review approaches 136 Table 4.25 Practices for which peer review is relevant 137 vi Foreword At this new stage in the development of the IT industry, AXELOS is delighted to present ITIL 4, the latest step in the evolution of IT best practice. By building on our experience and bringing fresh and forward-looking thinking to the marketplace, ITIL 4 equips your business to deal with the challenges currently faced by the industry. The adoption of ITIL as the most widely used guidance in the world on IT and service management will continue with ITIL 4. It ensures continuity with existing ways of working (where service management is already successful) by integrating modern and emerging practices with established and proven know-how. ITIL 4 also provides guidance on these new methods to help individuals and organizations to see their benefits and move towards using them with confidence, focus, and minimal disruption. ITIL 4’s holistic approach raises the profile of service management in organizations and industries, setting it within a more strategic context. Its focus tends to be on end-to-end product and service management, from demand to value. ITIL 4 is the result of a great deal of global research and development work across the IT and service management industries; this work has involved active practitioners, trainers, consultants, vendors, technicians, and business customers. The architect team has collaborated with the wider stakeholders and users of ITIL to ensure that the content meets the modern requirements of continuity, innovation, flexibility, and value. ITIL training provides individuals with a structured approach for developing their competencies in the current and future workplace. The accompanying guidance also helps organizations to take advantage of the new and upcoming technologies, succeed in making their digital transformations, and create value as needed for themselves and their customers. As demand for digital technology grows, practitioners are under increasing pressure to design, develop, run, and support digital systems and services. ITIL® 4: High-velocity IT aims to help readers understand digital transformation and to guide them and their organizations towards a more integrated state between business and technology. By discussing organizational best practice and useful mental models from a practitioner’s perspective, it provides invaluable guidance in the practical application of high-velocity IT. Welcome to the new generation of IT best practice! Mark Basham CEO, AXELOS Global Best Practice vii Preface People depend on digital technology. The societal and economic impact of digitally enabled organizations is unprecedented, and these organizations demand a significantly different way of working. We need to strike a new balance between managerial control and professional judgement. IT service management often leans towards control, but digitally enabled organizations are based on complex and intrinsically unpredictable systems. These systems are uncontrollable at lower levels of granularity, so traditional management instruments such as specialization, prescriptive processes, and performance targets do not work. Action at the sharp end has to be based on professional judgement and an understanding of the nature of the systems in which the practitioner works. Practitioners therefore need appropriate ‘high-velocity IT’ ways of thinking and of working. As the reader, you care about this not only because you want to remain valuable and relevant in a changing workplace, but also because you have the privilege of contributing to the prosperity and wellbeing of people by providing them with better digital experiences. You have taken the trouble to look at industry guidance such as ITIL, so you are presumably committed to your professional development. You are aware of the considerable challenges and responsibilities involved in managing digital technology. You are up for the challenge and are prepared to review and unlearn old approaches and integrate new concepts in your way of working. You take your work and yourself seriously. We, the authors, reviewers, and other contributors, each in our own way, are committed to making our industry a better place to work. We believe that people come first. We work in complex human systems in which professionals often have to take gambles. This is defensible: there is limited data available so their actions are based on well-reasoned hypotheses that they calibrate when they observe the results of their actions. In toxic workplaces they could easily be blamed (with the luxury of hindsight) for taking the wrong decisions. This is unacceptable. When your people have to bet, you had better bet on your people. In parallel with the more ‘technical’ guidance that this publication offers, we draw your attention to the importance of psychological safety, wellbeing, and ethics in the workplace. Many organizations not only have accrued technical debt in their software as a result of taking conscious or unconscious shortcuts, they also have a considerable social debt that needs repayment. This is why we care. This is a pivotal moment. The time is right to share our thoughts and to hopefully be of service. I have witnessed the concern, engagement, and generosity of those who have contributed to this publication. We believe in its potential. It is now up to you. Mark Smalley Lead editor, ITIL® 4: High-velocity IT viii