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Scenario
A clothing manufacturer has made a decision to supplement factory-based retail outlets by opening a series of stores at out-of-town shopping malls.
The internal IT organization provides support to many mission-critical business systems for both the manufacturing and retail operations. It must increase its portfolio of services and service options to meet the planned new expansion. Typically, the business is subject to seasonal patterns of demand, which recently have begun to exceed the capability of some of the IT services. This has led to periods of poor performance of some of the critical systems and therefore to degraded service quality. In periods of minimal demand, there is a surplus of capacity and performance is optimal.
There is concern that the additional business demand from the new stores will exacerbate these service performance issues.
The board of directors, made up of representatives from each business unit, has asked for a review of the business supply and demand issues currently being faced by the IT organization. Many service management processes have been implemented including service portfolio management and capacity management. However, IT does not have a demand management process.
Additionally, performance levels on many of the supporting services have remained unchanged for the past 3 years, even though some may now be less relevant to the overall performance of the critical services.
Refer to the Scenario.
The review of the supply and demand issues concluded that the implementation of a demand management process could help the IT organization address the issues. Which one of the following options provides the BEST solution to both the problems currently being faced and those related to the proposed expansion?

• A. An analysis should be carried out of each business unit's patterns of business activity (PBA), and appropriate services for each business unit selected from the service catalogue.
  In conjunction with the finance department, a revised cost model should be introduced to allow for the fluctuation in usage and costs.
  Differential charging should be introduced to address the issues of service quality.
• B. The service portfolio should be reviewed and an analysis carried out of each business unit's requirements to understand their current usage of the IT services and where seasonal variations lead to fluctuations in usage.
  Discussions should take place with the business units to impose limits within specific time periods for each business unit's usage of IT services.
  Work with business relationship management and capacity management to develop long term plans to meet the extra demand resulting from the company's expansion plans.
• C. The service portfolio should be reviewed and the business unit's cumulative service usage should be reviewed, monitored and analyzed.
  Work with the business to develop short-term measures to manage demand for the IT services, such as delayed or batch processing of retail transactions.
  Service levels should be reviewed to take into account changes to supporting service performance targets and, where applicable, agreements should be updated through change management.
• D. The service portfolio should be reviewed and an analysis carried out of each business unit's requirements in order to understand their patterns of business activity (PBA) and corresponding usage of the IT services.
  Differentiated service offerings should be developed to match PBA; this will make better use of available IT resources. Supporting service performance targets should be amended to reflect these changes.
  Work with business relationship management and capacity management to develop long term plans to meet the extra demand resulting from the company's expansion plans.

Scenario
A company provides an internet-based gift delivery service which is highly dependent upon IT services provided by the internal IT organization. A year ago the customer payments service that supports the gift ordering website regularly experienced poor availability. The organization hired a service management consultant to assess why the IT services were performing poorly and to rectify the situation.
As part of the solution, the consultant implemented service level management and adopted the role of interim service level manager. Service level agreements were negotiated with the business and agreed. The necessary underpinning agreements were negotiated and put in place. Regular monitoring and reporting was implemented. Monthly service review meetings with the business unit managers were established to discuss IT service performance and any issues and improvements. Within a year of the start of the initiative the gift ordering website IT service was performing at 98.7% availability, a significant improvement.
This month's service review meeting was attended by the chief executive officer (CEO) after concerns were expressed about the most recent availability figure for the customer payments service, which was 94%. This covered the period which included one of the traditionally most popular gift ordering times. The consultant stated that the poor availability was almost entirely due to an incident that occurred during one of the busiest periods and. as a result, the overall monthly availability percentage was low. Initial investigation has shown that the service desk used the SLA to designate the incident as a 'Priority 2'. This was however lower than the 'Priority 1" the business believed the incident should have been. The subsequent delay in restoration of the service meant some customer orders were lost.
The CEO reminded the consultant that a repeat of such an incident would not only have a major effect on monthly revenues but also seriously affect the company's reputation. The consultant agreed that this was unacceptable and committed to review this issue and report back to the CEO.
Refer to Scenario

• A. The issue is clearly a breakdown in understanding regarding the critical business periods and the matching of these to the availability targets in the SLAs. The SLM should agree with the business managers to set up a SIP to investigate the issue. The SLAs should be reviewed with the business to ensure that they match with the business needs and, if necessary are updated. Review and update any underpinning agreements as necessary to ensure that they support the targets in the SLAs.
• B. The SLM should agree with the business managers to set up a service improvement plan (SIP) to address the issue. Differing views relating to the cause of the low availability mean it should be investigated thoroughly to establish whether the slow restoration of service was due to a lack of understanding by the service desk, incorrect service level targets in the SLA or simply that, owing to the type of failure, restoration was always going to take that length of time. Appropriate action can then be taken to rectify the issue.
• C. The issue is with the service desk and its incorrect interpretation of the SLA and failure to escalate the issues. The SLM should agree to set up a SIP for the service desk. The operational level agreement (OLA) with the service desk should be reviewed to ensure that it underpins the SLAs. The SIP should include the retraining of the service desk staff. A complete review of the service desk tools should ensure that they can be used to prioritize incidents correctly by passing through targets agreed into the priority matrix of the toolset.
• D. The SLM should conduct an investigation by reviewing incidents and problems. Ask the IT service desk and support staff what ideas they have to resolve the issue. Review the impact on all other SLAs. OLAs contracts and procedures. Review the maturity associated with the service level management process and take steps to improve this process if necessary. Create a SIP with an associated business case for presentation to the chief executive officer (CEO).