An-Najah National University Faculty of Graduate Studies Service Delivery Process Improvements for IT-based Organizations By Qutaybah Adel Khwayrah Supervisor Dr. Ayham Jaaron This Thesis is Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Engineering Management, Faculty of Graduate Studies, An-Najah National University, Nablus, Palestine. 2012 iii    DEDICATION I would like to thank all who supported me for each step of the way I dedicate this humble work especially to: The soul of my father who was my Wiseman and for my mother who always pray for me My beloved wife who has given me an exceptional support and encouragement through my way to bring this work to light To my daughters Leen, Zeinah, and Ward My friends and fellows To everyone who provided any help or support to me. To you all I dedicate my love and gratitude and the outcome of my work iv    ACKNOWLEDGEMENT First of all, Praise and thanks to Allah who granted me the power to finish this work, and for all the great blessings and virtues that he bestowed on me and helped me to complete this work and continues to bestow on me. I am deeply indebted to many people who have made the success of my research possible. In the first place I would like to record my gratitude to my supervisor Dr. Ayham Jaaron for his supervision, advice, and guidance from the very early stage of this research as well as giving me extraordinary experiences throughout the work. Above all and the most needed, he provided me unflinching encouragement and support in various ways. I gratefully acknowledge Dr. Husam Arman for his advice, supervision, and crucial contribution, which made him a backbone of this research and so to this thesis. His involvement with his originality has triggered and nourished my intellectual maturity that I will benefit from, for a long time to come. I am much indebted to Dr. Abdelbaset Rabaiah for his valuable time, advice, contribution and discussion, to read and review this thesis and gave his valuable comments about it. Last but not least, I would like to thank Wataniya Mobile team for their help and support Qutaybah Adel Khwayrah v    اإلقرار :الرسالة التي تحمل العنوانأنا الموقع أدناه مقدم Service Delivery Process Improvements for IT-based Organizations باستثناء ما تمت اإلشارة إليه حيثما , اقر بأن ما اشتملت عليه ھذه الرسالة إنما نتاج جھدي الخاص أو أي جزء منھا لم يقدم من قبل لنيل أية درجة علمية أو بحث علمي ,و أن ھذه الرسالة ككل, ورد .أو بحثي لدى أية مؤسسة تعليمية أو بحثية أخرى Declaration The work provided in this thesis, unless otherwise referenced, is the researcher’s own work, and has not been submitted elsewhere for any other degree or qualification. Students name :اسم الطالب : Signatur : التوقيع :Date : التاريخ vi    Table of Contents No. Title Page DEDICATION iii ACKNOWLEDGEMENT iv LIST OF FIGURES ix LIST OF TABLES xi ABBREVIATIONS xii Abstract xiv Chapter 1 1 Introduction 1 1.1 Overview 1 1.2 Research Problem 2 1.3 Research Questions 3 1.4 Research objectives 4 1.5 Research Importance 5 1.6 Contribution to Business 6 1.7 Thesis Structure 6 Chapter 2 2 Overview of ICT in Palestine 9 2.1 Introduction 9 2.2 Palestinian ICT Key Players 11 2.3 Palestinian ICT Competitive Advantage 13 2.4 Palestinian ICT Sector SWOT Analysis 14 2.5 Palestinian ICT Challenges 16 2.5.1 Legal Challenges 16 2.5.2 Landline Bandwidth Challenges 16 2.5.3 Wireless Technology Challenges 17 2.5.4 Mobile Operator Challenges 17 2.5.5 Software Development Challenges 17 2.6 Chapter Summary 18 Chapter 3 3 Literature Review 19 3.1 Overview 19 3.2 Service and Service Management Concepts 19 3.3 Business and IT Strategy Alignment 20 3.4 Management Frameworks at a Glance 22 3.4.1 Quality Management Frameworks 23 3.4.2 Quality Improvement Frameworks 23 3.4.3 IT Governance Frameworks 23 3.4.4 Information Management Frameworks 24 3.4.5 Project Management Frameworks 24 3.5 Management Frameworks Benefits for IT Organization 24 vii    3.6 IT Service Quality 25 3.6.1 Deming Cycle 26 3.7 ISO9000 Quality Management System 27 3.8 IT Frameworks 31 3.8.1 ISO/IEC 20000 31 3.8.2 eSCM-SP 33 3.8.3 University of California IT Service Delivery Model 33 3.8.4 eTOM Business Framework 33 eTOM Objectives 34 3.8.5 IT Service CMM 36 Objectives of IT service CMM 37 IT Service CMM levels 37 3.8.6 CoBIT Framework 39 CoBIT Objectives 40 CoBIT Focus Area 40 3.9 ITIL Framework 42 3.9.1 History 42 3.9.2 ITIL Framework Objectives 43 3.9.3 Benefits of ITIL 43 3.9.4 ITIL Service Lifecycle Management 44 Service Strategy 46 ITIL and Four Ps of Strategy 47 Service Strategy Key Roles and Responsibilities 47 Service Design 48 Service Design Key Roles and Responsibilities 49 Service Transition 50 Service Operations 51 Continual Service Improvement (CSI) 53 3.10 Summary 54 Chapter 4 4 Research Methodology 56 4.1 Overview 56 4.2 Research Methodology Paradigms 57 4.3 Adopted Research Methodology Paradigm 59 4.4 Research Methodology Process 60 4.4.1 Focus Group 61 4.4.2 Survey Questionnaire Design 61 4.4.3 Semi-Structured Interviews 63 4.5 Summary 64 Chapter 5 5 Data Gathering and Analysis 65 5.1 Overview 65 5.2 Focus Group Findings and Analysis 65 viii    5.2.1 Addressed Problems Based on Focus Group Findings 69 5.3 Survey Results and Analysis 70 5.3.1 Addressed Issues Based on Survey Finding 88 5.4 Interviews Results and Analysis 90 5.5 Summary 95 Chapter 6 6 Palestinian IT service Delivery Framework (PISDF) 97 6.1 Overview 97 6.2 Why ITIL? 98 6.3 IT Service Delivery Parties 98 6.4 Palestinian IT Service Framework (PITSDF) 99 6.4.1 PITSDF Service Strategy 101 Project and Demand Management (PDM) Key Roles 103 6.4.2 PITSDF Service Design 106 PITSDF Service Design Key Roles 111 6.4.3 PITSDF Service Transition 112 6.4.4 PITSDF Service Operation 122 PITSDF Service Operation Key Roles 129 6.4.5 PITSDF Continual Service Improvements (CSI) 130 6.4.6 PITSDF Closer Look 133 6.5 Summary 134 Chapter 7 7 Conclusion and Recommendations 137 7.1 Introduction 137 7.2 Conclusions 137 7.2.1 The Problem, Methodology, and Data Analysis Outcomes 137 7.2.2 The Solution 139 7.3 Recommendations 141 7.4 Future Works 143 References 145 Appendices 149 Appendix 1: Survey Questions Form 149 Appendix 2: Survey Results Row Data 154 Appendix 3: Semi-Structured Interview Form 174 Appendix 4: List of Interviewees 178 ب الملخص ix    LIST OF FIGURES No. Title Page 2.1 PITA, The Palestinian ICT Sector, A Three-Year Outlook 14 3.1 Deming Cycle 27 3.2 Eight quality management principles, ISO9000 30 3.3 ISO/IEC 2000 32 3.4 eTOM level 0 35 3.5 eTOM level 1 36 3.6 IT Service CMM Model 38 3.7 IT service Maturity level details 39 3.8 CoBIT Focus Area 41 3.9 CoBIT principles 42 3.10 ITIL lifecycle management 45 3.11 ITIL lifecycle Details 46 3.12 ITIL CSI 54 4.1 Research Methodology 60 5.1 Alignment between business and service strategies 72 5.2 Adoption of IT service delivery framework 73 5.3 Requirements collection efficiency 75 5.4 Efficiency of Service Level Agreement (SLA) 76 5.5 Preparing solution architecture 77 5.6 Adoption of quality standard 77 5.7 Efficiency of Implementation Process 79 5.8 Efficiency of change request process 80 5.9 Efficiency of handover process 81 5.10 Efficiency of incident /problem management 82 5.11 Efficiency of access management process 83 5.12 Monitoring service availability 84 5.13 Efficiency of handover process 85 5.14 Role of IT Audit to Enhance Service Delivery 86 x    5.15 Having Continual Service Improvement Process 87 5.16 Measuring Customer Satisfaction Process 88 6.1 Palestinian IT service delivery framework 101 6.2 PITSDF design processes 108 6.3 Request for Change Process 116 6.4 Product/service roadmap 119 6.5 PITSDF Event Management 124 6.6 PITSDF Incident M anagement process 125 6.7 Access management process 127 6.8 PITSDF Request Fulfillment process 128 6.9 Seven-step improvement process 132 6.10 PITSDF Closer Look 133     xi    LIST OF TABLES No. Title Page 2.1 Palestinian ICT SWOT Analysis 15 4.1 Advantages and disadvantages of Mixed Method Approach 59 5.1 IT Service Delivery Strengths 66 5.2 IT Service Delivery Weaknesses 67 5.3 IT Service Delivery Opportunities 67 5.4 IT Service Delivery Threats 68 5.6 Focus Group Main Findings 69 5.7 Survey Main Findings 89 xii    ABBREVIATIONS CI Configuration Item CM Capacity Management CMS Configuration Management System COBIT Control Objectives for Information and related Technology CR Change Request CSI Continual Service Improvement eSCM-SP eSourcing Capability Model for Service Providers eTOM Enhanced Telecomm Operation Map GDP Gross Domestic Product ISO International Organization for Standardization ISO/IEC International Organization for Standardization/International Electrotechnical Commission IT Information Technology ICT Information and Communication Technology ITIL Information Technology Infrastructure Library ITS-CMM IT Service Capability and Maturity Model itSMF IT Service Management Forum KPI Key Performance Indicator MoE&HE Palestinian Ministry of Education and Higher Education MTIT Ministry of Telecommunication and Information Technology NGO Nongovernmental Organization NGOSS New Generation Operations Systems and Software PAT Professional Acceptance Test PCBS Palestinian Central Bureau of Statistics PDM Project and Demand Management PITA Palestinian Information Technology Association PITSDF Palestinian Information Technology Service Delivery Framework PMBoK Project Management Body of Knowledge QA Quality Assurance xiii    QC Quality Control RFC Request For Change SD Service Design SDP Service Design Package SKMS Service Knowledge Management System SLA Service Level Agreement SLM Service Level Management SLP Service Level Package SO Service Operation SS Service Strategy ST Service Transition SWOT Strength, Weaknesses, Opportunities, and threats UAT User Acceptance Test USAID United States Agency for International Development xiv    Service Delivery Process Improvements for IT-based Organizations By Qutaybah Adel Khwayrah Supervisor Dr Ayham Jaaron Abstract Palestine is directly affected by global trends of technological advances and revolution of information technology. As a result, the concept of IT-based services becomes clear in several service sectors like banking, stock exchange, telecommunications, and internet services. This research is an ambitious initiative that addresses the problems of Palestinians IT service delivery with the goal for more organized and streamlined IT service delivery. This research aims at organizing, and governing Palestinian IT service management by building a framework that is based on ITIL international framework. The framework was built with the principles of keeping it simplified, cost effective, and the most important thing is that framework fits Palestinian IT organizations. To understand and analyze the problems of Palestinian IT services delivery, the researcher adopted mixed method (qualitative and quantitative) approach so that focus group was used to understand the problem qualitatively, and based on findings; a survey was conducted to pull the opinion of IT community quantitatively. The researcher reverts back to qualitative approach and conducted several semi-structured interviews with IT seniors to validate findings of the survey. xv    Based on analyses of mixed method approach and literature review, the researcher addressed the major problems of IT service delivery here in Palestine. It was obvious that no clear alignment between business strategy and IT service strategy for IT organizations, at the same time, no clear end- to-end service delivery process, unclear requirements, weakness of testing methodology, unclear phases for product or service development, and requirements collection methodology should be more efficient and effective. Results of focus group, survey, and semi-structured interviews are almost aligned which indicate that the addressed problems almost exist. To treat the problems of Palestinian IT organizations service delivery that clarified throughout this research, the researcher based on literature review and data analysis findings has built Palestinian IT Service Delivery Framework (PITSDF) that has taken into consideration current problems of IT service delivery in Palestine. The framework is based on well known international framework; ITIL. PITSDF framework aims to provide Palestinian IT organizations with a simplified IT service delivery framework that is cost effective and easy implement and at the same time fits Palestinian IT organizations needs in term of providing systematic process follow for IT service delivery throughout service lifecycle. PITSDF is consisted of five key service areas; these are service strategy, design, transition, operation, and finally continual service improvements. At the end, this research has opened the door for other initiatives and endeavors to pursue in developing and improving IT service delivery in Palestine. 1    Chapter 1 1. Introduction 1.1. Overview There are no doubts that direction toward services is increasing rapidly nowadays, so focusing on service delivery is becoming crucial factor for organizations that want to save and make more financial advantage especially those using information technology as a tool to deliver services such as internet service providers (ISPs), telecommunication companies, business solutions, and value added services providers. Service delivery quality is a key factor that will affect customer experience and satisfaction, this satisfaction might be technological, provided support, quality of service, price, etc. Palestine is directly affected by global trends of technological advances and revolution of information technology, as a result; the concept of IT-based services becomes clear in several service sectors like banking, stock exchange, telecommunications, and internet services as clarified by PCBS (2008). At the same time; it’s also noted that Palestinian end user who consumes such services becomes more educated and aware about information technology tools like computer and internet as clarified by statistics of PCBS (2011). From this point it’s so important to look at IT sector as a vital sector and pay attention to its way in delivering IT-based services across the service lifecycle and address the major strength, weakness, opportunities, and threats continuously and put the proper regulations, process and frameworks that enhance its way in 2    delivering IT-based service. This research is one of the endeavors that researcher hope to help in enhancing Palestinian IT sector. 1.2. Research Problem Many governmental and non governmental bodies around the globe have launched initiatives to organize, govern, control, and enhance the way of delivering IT-based services, these initiatives also aim to respond to dramatic changes in IT domain and hence put the proper frameworks to streamline IT service delivery process that help in meeting IT key performance indicators(KPIs) at all levels. Here in Palestine, Information Technology sector is relatively new with respect to other local sectors and with other international ICT sectors, so initiatives to advance, govern, organize, control, and enhance IT service delivery still challenging and need attention of local bodies like IT key player. Despite of dramatic development of this sector especially in the last decade, still there is no evidence that ICT companies adopt clear frameworks for IT service delivery according to survey conducted by researcher “Service Delivery Process Improvements For IT-based Organizations” (2012).This research will investigate the local ICT companies to find out their ways that are used to streamline service delivery process either standardized one or customized and address major constrains that affect service delivery then put a simplified framework that fits their attributes and characteristics so that overall service delivery process will be enhanced and consequently improving IT Key performance indicators ( KPIs). 3    The need to review IT service delivery process is due to the following facts: ICT companies in Palestine are new with relative to other developing counties and third world companies. Difficulties to adopt international standards because of absence of local implementers. Cost associated with implementing such frameworks such as required resource, consultancy, and conduct required training. Absence of effective regulations that govern IT sector. The awareness and trend toward services is increasing in the region, nowadays we have more educated customers who will look closely about service quality. Because of these factors, it’s necessary to put framework that can treat these factors and at the same time easy to implement and cost effective. 1.3. Research Questions To achieve its objectives, the research has put the following major questions that will help to identify factors improve IT service delivery in Palestine • What is the adopted IT service delivery framework in Palestinian IT firms • What is the factors that affect IT services delivery in Palestine • What is the best IT management framework that fit them 4    1.4. Research objectives As mentioned earlier in this chapter that world trends toward services and the rapid growth in information technology produced a new market trends and customers. In this context; it has been seen here in Palestine- as party that directly affected by global trends - that trend toward services is growing day by day, to state only a few, the usage of mobile services such as voice, data, SMS, and multimedia services as well as internet access are notably increasing, for example more than 35% of Palestinian population is using internet and mobile services according to PCBS (2011) house hold survey. Revolution and rapid development in IT produces services that might not be mature enough to be introduced to the market, and hence, service instability and immaturity might be noticed through increasing customer complaints, that will lead to customer dissatisfaction, negative impact on organization public image, and eventually leads to incurred losses on both organization and customer. This research will address the major problems related to IT service delivery processes since it’s the most interactive processes with customers and the most effective one that will change customer behavior and satisfaction, it will mainly study and review this process from the following aspects. Reviewing service delivery approaches and models in the Palestinian IT firms and services providers and address the major problems, like problems associated with: o Service Strategy and alignment with business strategies 5    o Service requirements ,design, and implementation processes o Service level quality, and availability , and continual improvement o Service support, availability and reliability and factors that affect them. o Customers needs and how the service delivery meets customer expectation. Proposing framework for service delivery processes across the service life cycle that based on customized international frameworks to fit Palestinian IT firms. Establishing set of recommendations and guide lines that will help local IT firms to enhance service delivery process. 1.5. Research Importance The importance if this research is derived from the importance of information technology in general and in specific the importance IT sector that is growing rapidly nowadays globally and locally. This sector needs to be organized, governed, and controlled, and to be customer-focused so that IT key performance indicators (KPIs) can be met along with other KPIs like customer satisfaction, from this point; this research will help to: Address local IT firms in term if IT service delivery and address, the Strength, Weaknesses, opportunities, and threat that will affect them in term of IT service delivery and management. 6    Enhance service delivery process by proposing simplified framework that fit Palestinian IT-sector. Enhance customer satisfaction by streamlining service delivery process across the service lifecycle. Optimize IT quality and reduces associated cost by eliminating non value added components across the service lifecycle. It will be a good milestone and reference for other future initiative and studies that are related IT service management 1.6. Contribution to Business This research along with its deliverables provides high value to business because it addresses IT service delivery here in Palestine and factors that affect it either external or internal along with root courses and recommendation for enhancements. Also the research provides IT community with customized IT service delivery framework that based on international framework ITIL with modification to fit Palestinian IT companies. Finally the research has opened the door for other initiatives and endeavors to pursue in developing and improving IT service delivery in Palestine. 1.7. Thesis Structure Nowadays IT becomes an independent industry, and it’s not just a tool for enabling other business domains, most of businesses around the globe relay on IT services to deliver modern, quick, and high quality products, from 7    this point this research comes as an endeavor to enhance IT service delivery process. This thesis is comprised of seven chapters; each one provides important information and guidelines in the way of enhancing IT services. Chapter one introduces reader to the main topics of this thesis, and draw attention to research problem that research aims to solve, research objectives and importance, and how this research will help in enhancing service delivery process for IT-based organizations. Chapter two includes an overview of ICT in Palestine, with some important statistics that are based on information from Palestine Central Bureau of Statistics (PCBS), it also includes Palestinian ICT key player, and competitive advantages of Palestinian ICT sector along with strength, weakness, opportunities, and threats of this vital sector. In chapter three; the research provides reader with a comprehensive literature review for management frameworks and their benefits to IT along with the main objectives of these frameworks, it also provides reader with concepts of IT quality and continuous improvements, and finally it discusses ITIL formwork deeply since it will be the backbone for proposed IT service delivery framework. Chapter four provides an overview of methodological approach that has been adopted by researcher to investigate the current IT service delivery process in Palestinian IT-based organizations, which is a mix of qualitative 8    and quantitative methods, where focus group and semi-structured interviews were used as qualitative and survey as quantitative methods. Chapter five provides details for data collection and analysis; it shows details for focus group, survey, and interviews findings, it also shows the summary of addressed problems from those three different sources. Chapter six shows in details the proposed Palestinian IT service delivery framework (PITSDF), it shows how this framework provides a solution for most of IT service delivery problems that have been identified during data collection and analysis phase. This chapter also clarifies in details all components of Palestinian IT Service Delivery Framework (PITSDF). Chapter seven includes conclusion about all milestones of this research, in addition to that, it shows a set of recommendations for IT key players and decision makers that will help IT organization to enhance IT service delivery in Palestine. 9    Chapter 2 2. Overview of ICT in Palestine 2.1. Introduction There are no doubts that information technology is developing rapidly nowadays, this revolutionary development affects all markets globally and locally and shape the way of delivering information technology services to consumer. As part of this open market; its noted here in Palestine that ICT sector is increasing rapidly at all levels; enterprises and consumer, to state only a few, the percentage of families that use computers is 50.9% in 2011 according to PCBC (2011), “Household Survey on Information and Communications Technology (2011)”.This is an indication about such development at the end user level; on the other hand it’s also noted a significant development and growth at enterprise level especially after 1995 after Oslo agreement. According to PITA (2009), the biggest end-user of technology products and services was the PNA represented by all ministries followed closely by municipalities and then by the larger companies, especially utility companies such as the Jerusalem District Water and Electricity Companies. By 1997, the Palestinian telecommunication sector was 100% privatized with the creation of PALTEL, the Palestine Telecommunications Company. PALTEL installed a digital network connecting the West Bank and Gaza and currently offers a wide range of services such as standard fixed telephone lines, leased 10    lines, ISDN connections, ADSL, all of these services participated to develop ICT sector which includes telecommunication, software development, computer and networks, and internet services. With respect to ICT investment; the Palestinian ICT Cluster Assessment report17 estimated the Palestinian ICT market in 2005 at US$ 300 million. The same report estimated the size of the local market at US$ 120 million in 2000 dropping to US$ 87 million in 2003 and reaching US$ 250 million in 2007 according to PITA (2009), on the other hand; the statistics of PCBS (2008) show that the percentage of enterprises that use computer information technology was around 21.3% in 2007, and of course if the last 5 years, which witnessed massive development in using ICT is taken into consideration; the percentage will be higher than 21% .According to PCBS (2008) Business Survey on ICT, 21.3% of the total number of the enterprises in the Palestinian Territory used computers in the year 2007, also the survey data showed that the rate of ICT specialists employed by economic enterprises was 3.5 per 100 employees and 30.3% of the ICT specialists are computer programmers, 17.7% were computer engineers. The rates of electronics engineers and telecommunications engineers were 10.6% and 10.3%, respectively, of the total number of ICT specialists according to PCBS (2008). Regarding ICT spending, PCBS (2008) survey findings showed that 62.4% of the total expenditures on ICT were spent on telecommunications, 9.9% on computers and computer maintenance, 8.2% on purchasing and 11    maintenance of electronic equipment and devices, and 6.1% was spent on the internet and networks, and their maintenance, development, and installation. Moreover, 3.8% of the total expenditures on ICT were spent on purchasing software programs; 0.7% was spent on training enterprise employees on technology and the use of technology; and 0.4% was spent on research and studies involving technology. 2.2. Palestinian ICT Key Players For effective ICT sector, it’s important for all Palestinian bodies that have the power and authority to consolidate efforts to develop this vital sector, among those bodies: Ministry of Telecom & IT ( MTIT) The governmental body that is responsible for information and telecommunication scoter in Palestine Ministry of Education and Higher Education (MoEaHE) The governmental body that is responsible operating and developing education and higher education sector. Palestinian IT Association PITA PITA represents the collective interest of the private IT sector in Palestine by advocating business-enabling policies, mechanisms, and environment through private-public partnerships 12    Palestine Telecommunication Company PALTEL Private sector company that provides land line and internet services Cellular companies; WATANIYA Mobile and JAWWAL Private sector companies that provides mobile services in Palestine Palestine Chapter of the Internet (ISOC.PS) Palestine Chapter of the Internet (ISOC.PS) is an NGO that aims to maintain and extend the development and availability of the Internet and its associated technologies and applications in Palestine Palestinian National Internet Naming Authority PNINA The Palestinian National Internet Naming Authority (PNINA) is the Official domain registry for the Palestinian country code Top-Level- Domain (ccTLD). Palestine ICT Incubator PICTI The Palestine Information and Communications Technology Incubator (PICTI) is an independent NOG that offer professional business services to Palestinian entrepreneurs who have mature concepts for unique and innovative ICT products assessed to have strong market potential. Universities (excellence centers) Like Korean Palestinian IT Institute of Excellence ( KPITIE), and Hasib Sabbagh IT Center of Excellence. 13    2.3. Palestinian ICT Competitive Advantage The Palestinian ICT sector has been growing rapidly since 1994 (after Oslo agreement) in parallel to the growth in other economic sectors and increased demand for their services. According to PITA (2009) report ,”The Palestinian ICT Sector, “A Three-Year Outlook…Based on Economic Indicators”, the spillover effect of the ICT sector to other industries has led to the creation of technological and information management solutions needed to improve these industries resulting in increased value added and therefore increased contribution to Gross Domestic Product (GDP) as clarified in the below figure, these include the use of telecommunications capabilities and internet, outsourcing to regional and global markets, especially in software development According to PITA (2009), the main competitive advantages of the Palestinian ICT sector can be summarized as follows: Abundance of ICT graduates ( 8.5 % according to MoE&HE) Highly trained labor Force Diversity of ICT specializations ( SW languages, networking , servers Low labor cost (with relative to other markets). Wide range of ICT companies specialization (content, services, HW, SW, consultation). 14    Figure 2.1 : ICT Contribution to GDP from 1999-2008, Source:PITA (2009) 2.4. Palestinian ICT Sector SWOT Analysis According to findings of study coonducted by PITA (2009) and funded by USAID about ICT sectore in palestine, the follownig key factors were identified in term of pleastinan ICT strengh, weanesses, opprtunities, and threaths, below is a set of major factors that affect Palestinan ICT sector as have been seen by researcher. 15    Table 2.1: Palestinian ICT SWOT Analysis , Source: PITA (2009) Strengths Opportunities Development assistance from US and EU with real interest in change, through adoption and funding ICT projects The Positive growth rate despite the political situation which represent Palestinian case in adaptation Pool of proven ICT products and services supported by experienced human resource – but often local and therefore limited ability to sell beyond the region, Advanced and accessible basic telecom infrastructure including ADSL, ISDN and leased lines which enable IT services and other related deliverables to be delivered easily. availability of skilled and trained workforce as indicated earlier in this chapter Significant donor projects can help jumpstart industry if proper policy is there. Weaknesses Threats International perception of development and security toward the region which primarily limit IT services outsourcing to outside world Lack of investment in IT sector due to region instability and other political conditions. Political conflict which lead to immigrate investment to other stable regions, Commoditization as the Palestinian firms are competing for the same services which are increasingly becoming generic and standardized ICT brain drain to outside. 16    All above motioned factors shape directly and indirectly the way of Palestinian ICT sector stability and hence the quality of delivered product or services. The study that conducted by PITA (2009) is appreciated initiative that needs other supporting studies to investigate deeply ICT needs, constrains, opportunities, and future of Palestinian ICT sector as an independent industrial one. 2.5. Palestinian ICT Challenges Since establishing Palestinian National Authority (PNA), ICT sector has been developed dramatically despite of occupation policies that limit such development at all levels starting from ICT import polices, up to technology implementation and operations. According PALTRADE(2010) ICT sector still facing many challenges as mentioned below. 2.5.1. Legal Challenges Legal challenges represent issues related to technology ownership like frequency spectrum to operate 3G services in PNA areas, illegal operator of Israeli Mobile Operators (IMO) in PNA areas, these challenges should be addressed by both side Israeli and Palestinian to resolve all related pending issues in this regard 2.5.2. Landline Bandwidth Challenges In PNA area there is one landline provider “PalTel”, and faces many constrains starting from investment up to operation in C areas, these 17    definitely limit spread of broadband technologies so government should put policies to free ICT market and encourage investors in this regard along with solving the problem of building network in C areas. 2.5.3. Wireless Technology Challenges This represent the most important challenge that should be addressed deeply because of most countries had licensed WiMaX, and 3G services, however this related also to legal challenges stated earlier in this section 2.5.4. Mobile Operator Challenges There are two mobile operators in Palestine, Wataniya and Jawwal, and both of them are facing the same challenges related to refusal of Israeli side to release additional frequencies to accommodate normal growth subscriber base and refusal to release frequencies concerning 3G-advance network from one side and allow those operators to establish mobile stations in Area C which have lead to a major loss of market opportunity. 2.5.5. Software Development Challenges According to PITA, there are around 20 large general software development firms in Palestine that develop software and export regionally and internationally. The major challenge for software development firms is inability to access advanced wireless broadband technology such as 3G and WiMAX could limit their ability to compete both locally and internationally. 18    2.6. Chapter Summary The revolutionary development in IT affects all markets globally and locally and shape the way of delivering IT services to consumer, this dramatic development affects also Palestinian ICT sector at all levels; enterprises and consumer, so key ICT player in Palestine should pay more attention for development and governance of this vital sector first by addressing major strengths, weaknesses, opportunities, and threat, then put the proper plans that will develop this vital sector. Palestinian ICT sector has strong competitive advantages like abundance of ICT graduates, highly trained labor force, diversity of ICT specializations, and low labor cost, if these competitive advantages have been employed properly, then for sure this will enhance overall performance of this vital sector. 19    Chapter 3 3. Literature Review 3.1. Overview In the previous chapter, the researcher introduced reader to Palestinian ICT sector, its strengths and weaknesses, in addition to opportunities and threats; it also highlighted the major ICT key players who have the authority and power to develop this sector. This chapter will introduce reader to the main IT frameworks that help to organize, govern, and develop ICT-based organizations, it will also discuss management frameworks in general and IT related in specific, and shows their objectives, advantages, models, and many other important aspects. 3.2. Service and Service Management Concepts IT service delivery refers to the activities performed by IT staff to provide applications, technology and support to IT customers either internal or external customers according to Wheatcroft (2007). To understand service delivery, it’s important to understand the meaning of service and service management: According to Cartlidge (2007), “A service is a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks” According to Stucki (2004) “A service is an essentially intangible set of benefits provided by one party to another party “. 20    According to OGC (2007) “Service Management is a set of specialized organizational capabilities for providing value to customers in the form of services”. According to ITIL “Service management is concerned with more than just delivering services. Each service, process or infrastructure component has a lifecycle, and service management considers the entire lifecycle from strategy through design and transition to operation and continual improvement , Cartlidge (2007). 3.3. Business and IT Strategy Alignment The is no doubt that IT has become a critical tool for Service delivery in all business domains, so alignment of IT Strategy with business strategy is mandatory nowadays to optimize service delivery, mitigate risk, and reduces operation cost. Without tight integration of the strategic and planning of IT and the rest of the organization, a business risks costly IT failures and a steady decline in competitive ability. According to Tallon(2008) Strategic Alignment is defined as the interaction or fit between IT and business strategy. According to Rathnam (2005); the gap exists between IT and business because of: Poor strategy development, management, and communication Lack of strategic focus within organizations - focus on budget, tactical plans, and governance rather than strategic direction of the enterprise. No strategy management process in place 21    Business areas unwilling to include IT in strategy discussions in most cases. IT investments are not linked to corporate strategy in most cases According to Tallon(2008); the following guidelines help to minimize business strategy and IT strategy alignment gaps: CIO builds focus on strategy. Build a strategy-focused leadership team Involve IT executives in planning, implementation, and resolution of business issues. Create an integrated management process to align IT strategy with business strategy Manage IT as an asset rather than as an expense Include business departments in reviews of IT performance Survey business departments to evaluate IT value, development and execution of strategy. Build trust between IT executives and business executives. Ensure strong governance of IT and business resources. Reward IT staff based on how well the business does. Conduct strategy alignment review for all new IT initiatives. Build recognition that technology is at the center of strategic opportunity. Ensure IT staff and leadership understands business objectives. 22    Physically relocate IT executives to business units to lean the business. 3.4. Management Frameworks at a Glance In today’s business world, where revolution in information technology plays a vital role in providing competitive and differentiated services, it’s not an exaggeration if someone says that IT service management is the most important process that shapes the nature of delivering such competitive services, from this point, it’s important for any organization that needs to adapt with such competing environment to focus on IT functions and its processes. Developing, adopting, and customizing IT processes are common practices in most of successful organizations, but unfortunately budget limitations, lack of awareness, and cost are the major constrains that affect IT services delivery. IT service management addresses the overall service or product lifecycle starting from service or product strategy -that should be aligned with business strategy- , up to service design, implementation, and operations, all of them participate in delivering successful product or services that fulfill organization and customer’s needs. According to Slem (2008), it should be noted that in overall service delivery lifecycle; the operation phase represents the majority of expenditures, the operating budget, staff cost, and ongoing cost associated with maintaining the information system, represent the largest portion of IT 23    spending which is around 70%, the remaining 30% is spent on product development. Many frameworks published from several bodies worldwide that can be used for managing different domains including IT. However, some frameworks only cover specific aspects of IT such as service delivery, security, management of risk, procurement, project management, ...etc, unfortunately there is no one-size fits all. This section clarifies the main categories of management frameworks along with examples 3.4.1. Quality Management Frameworks Frameworks that concentrate on quality standards which can be applied in specific IT area such as service delivery, development, security, like TQM, ISO9000, ISO/IEC20000 3.4.2. Quality Improvement Frameworks Frameworks that concentrate on IT processes improvements such as ITS- CMM, Six-Sigma, eSCM-SP, and IT balanced scorecards. 3.4.3. IT Governance Frameworks Frameworks that concentrate of how to organize and control IT functions and identify key responsibilities, organization and organizational structure along with control IT functions like CoBIT and ITIL. 24    3.4.4. Information Management Frameworks Frameworks that concentrate on how to organize IT functions in term of IT service delivery, requirements collections and processing, procurements, etc which is the main topic of this research like eTOM, ITIL, ASL , …etc. 3.4.5. Project Management Frameworks Frameworks that concentrate on project management processes in general and not specific for IT like PMBoK and PRINCE2 3.5. Management Frameworks Benefits for IT Organization The IT develops clearer structure, becomes more efficient, and more focused on corporate objectives as Slem (2008) clarified Efficient control of delivered services, any change becomes more easier Clear relationship between all participated parties like other business units and external supplier or customers. The effective process structure provides framework for effective outsourcings of element of IT services as Slem (2008) clarified Better service quality for delivered products or services Better man power optimization through process optimization and standardization. IT Service Level Agreement (SLA) SLA represents an understanding of minimum level of IT service quality that customer expect to receive from IT department. The understanding 25    may be formally documented by SLA document or may be informally, the quality may be expressed in service availability, response time to required changes, lead time, service restoration time , …etc, according to Tricker (2006). 3.6. IT Service Quality Like other domains; IT needs quality principals and quality management approaches to deliver IT services efficiently according to specifications and business needs, it’s no wonder when seeing concepts of quality management and total quality management (TQM) are applied in this domain. Many IT frameworks and standards, but most of them dedicate considerable part to IT quality management that are aligned with most popular quality approaches like ISO9000 and Six Sigma. Before going inside IT quality, it’s useful to have a look at the definition of quality. ISO 9000 state: “We can speak of quality when all those features of a product or service which are required by customer are being delivered to customer”. Quality is a “Degree of Excellence” according to Merriam Webster. Quality is “totality of features and characteristics that satisfy needs without deficiencies” according to American Society for Quality. 26    3.6.1. Deming Cycle According to Slem (2008), Dr. William Deming introduced an iterative four-step management method used in business for the control and continuous improvement of processes and products, shortly called the PDCA cycle for Quality Improvement, as clarified by Slem (2008). PDCA is based on the following: Plan: Put the objectives and processes to deliver results in accordance with the expected output, plan what should be done and when it should be done, and who should be doing, how it should be done, and by using what. Do: Implement the plan, execute the processes, make the service as requested Check: investigate if the executed activities and plans provide the expected results. Act: make corrective actions by modifying, adjusting, and fixing, any non-compliant activity derived from check phase. The following diagram illustrates Diming Cycle: 27    Figure 3.1: Deming Cycle, Source Slem (2008) 3.7. ISO9000 Quality Management System According to Tricker (2006), ISO 9000 has put eight principles for quality, these principles have been identified to facilitate the achievement of quality objectives and form the foundation for effective quality management, below is a description of these principles as they are currently defined in ISO 9000. Customer Focus Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations. The key benefits include enhanced customer satisfaction, customer loyalty, increased revenue and market share 28    Leadership Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization’s objectives. Key benefits includes better communication among all organizational level, better understanding of organization goal and objectives Involvement of People People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization’s benefit. Key benefits include employee motivation, accountability, and stimulation Process Approach A desired result is achieved more efficiently when activities and related resources are managed as a process. Key benefits include better resource utilization, cost reduction, systematic workflow and hence reduction of reworks and scraps. System Approach to Management Identifying, understanding and managing inter-related processes as a system contributes to the organization effectiveness and efficiency in achieving its objectives. Key benefits include efficiency and effectiveness. 29    Continual Improvement Continual improvement of the organization’s overall performance should be a permanent objective of the organization. Key benefits include sustainability and market presence, fast response to customer needs. Factual Approach to Management Effective decisions are based on the analysis of data and information. Mutually Beneficial Supplier Relationships An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value.   Fig Aft dis ma req des des tha to enh red gure 3.2: Eig fter well-k scussed, it’ anagement quires und sign and scribes the at initiated enhance IT hanced pe duction. ght quality m known Qu ’s now a ti systems. derstanding implemen e well know from seve T service d erformance im Factual  approach Re management uality Ma ime to talk For IT s g the persp nt service wn IT serv eral bodies delivery an e and bet Continual  mprovement Supplier  elationships 30  principles, I anagement k about IT service de pectives o es accord vice manag around the nd streamlin tter quality 8 QM  Principles Customer  focused System  approach ISO9000, Tr t System framewor epartment; of business ingly. Th gement stan e globe wi ne IT proc y of serv s Lead Pro app ricker (2006) ISO9000 rks and rel quality m s toward he followi ndard and th the main cesses and vice along dership Involvement of people ocess  proach ) has bee ated qualit managemen quality an ing sectio framework n objective accordingl g with co t  en ty nt nd on ks es ly st 31    3.8. IT Frameworks 3.8.1. ISO/IEC 20000 According to Slem (2008), ISO/IEC20000 is the first formal worldwide standard for IT service management, it was developed in 2005 to set out specifications for IT service management, the purpose of this standard is to enable organizations to effectively and efficiently deliver IT services that meet business needs, its mainly consists of two parts, part one is the specifications that enable organization to comply with ISO 20000 certification while part two is focusing on the implementation of part one. Part one promotes the adoption of an integrated process approach to effectively deliver managed services to meet the business and customer requirements. According to Slem (2008) ISO/IEC 20000 comprises of following sections: Scope and terms and definitions Planning and implementing service management Requirements for a management system Planning and implementing new or changed services Service delivery processes Relationship processes Control processes Resolution processes Release process. 32    ISO/IEC 2000 is applicable for all IT organizations and its independent of their structure; however, small organizations may find implementation more complex. Thus, other frameworks like ITIL maybe more appropriate for them. The following figure illiterates these sections Figure3.3: ISO/IEC 2000 sections, Source itSMF (2006) 33    3.8.2. eSCM-SP: According to Hyder (2010) eSCM-SP is a best practices capability model with three purposes: “(1) to give service providers guidance that will help them improve their capability across the sourcing life-cycle, (2) to provide clients with an objective means of evaluating the capability of service providers, and (3) to offer service providers a standard to use when differentiating themselves from competitors”. eSCM-SP is managed by Information Technology Service Qualification Center (ITsqc) which is a multidisciplinary group of researchers and practitioners that addresses the needs of IT-enabled service providers and their clients. 3.8.3. University of California IT Service Delivery Model University of California SANTA CRUZ (2003) has put a model for IT service delivery to optimize IT service delivery performance, this model primarily start from IT infrastructure and focus on client experience to deliver and improve IT services. California University initiative was primarily published to serve the university itself and can’t be used in general for all IT firms since it’s deeply customized to achieve university’s service delivery Key Performance indicators (KPIs). 3.8.4. eTOM Business Framework According to Rozemeijer (2007), eTOM (Enhanced Telecom Operations Map), is a telecommunication service provider frameworks published by 34    the TM Forum in 1995, it defines the most widely used and accepted standard for business processes in the telecommunications industry. eTOM describes the full scope of business processes required by service provider and defines key elements and how they interact. It focuses on structure, process component, roles and responsibilities eTOM has been adopted by ITU-T as a Recommendation and published in the M.3050.x series as being clarified in a white paper by Cisco Systems (2009). eTOM Objectives The main objective of eTOM is to standardize business processes for service providers specially telecommunication service providers like PalTel, Jawwal, and Wataniya Mobile. eTOM processes consist of three sections: Strategy, Infrastructure & Product (SIP) that covers planning and product /service lifecycle management Operations, that covers day to day operational routines Enterprise Management, which covers enterprise strategic planning, business support management, human resource management, The eTOM model consists of four levels from zero to three (Level-0, Level-1, Level-2 and Level-3 processes. These levels form a hierarchy, each level contains a group of processes that have been showed in details in 35    the next level. The Level (0) span horizontally across an enterprise’s internal organizations that clarify: Market, Product, and Customer Service: Product components developed by the enterprise Resource (Application, Computing, and Network) Supplier/Partner The following diagram illustrate the first level (0) of eTOM framework Figure 3.4: eTOM level 0, Source: Cisco systems (2009) Level (1) of eTOM processes gives more details for level (0). The model shows seven vertical process groupings required supporting customers and 36    managing the business, the following diagram illustrates the second level (1) of eTOM framework Figure 3.5: eTOM level 1, Source: Cisco systems (2009) Following this level is level 2, 3, which breaks down higher level to a more detailed ones which out of scope of this research , according to researcher, no local firms adopting above framework in telecommunication or service provider domain. 3.8.5. IT Service CMM IT Service Capability Maturity Model is open model derived from Software Maturity Capability model developed by Software Engineering Institute and the first version launched in 1999. According to Clerc (2004), the formwork presents the maturity growth path that an IT organization can follow to improve its IT processes and services, the formwork consist of 37    five levels and each level represent a stage in organization maturity. By implementing process in each level starting from bottom and up, an IT organization can improve its maturity and hence the way of providing IT services. Improving IT organization maturity means shifting it from being dependant on individual approach to be more process-oriented approach, in this context; it should be noted that organizations at higher maturity level don’t necessarily provide higher product or service quality, but they deliver IT services in more mature and consistent way than organization at lower maturity level. According to Stucki (2004) determining maturity level is based on assessment that can be done by organization itself or by third party who is credible and competent to do such assessment. Objectives of IT service CMM Provide reference model to assess organization IT service maturity current situation. Provide guide line to improve IT service maturity and hence IT service delivery. IT Service CMM levels Initial (chaotic, ad-hoc) is the starting point for use of a new or undocumented repeat process. Repeatable - the process is documented sufficiently such that repeating the same steps may be attempted. 38    Defined - the process is defined/confirmed as a standard business process, and decomposed to levels 0, 1 and 2. Managed - the process is quantitatively managed in accordance with agreed-upon metrics. Optimizing - process management that includes process continuous optimization/improvement. The following diagram illustrates IT service CMM levels Figure 3.6: IT Service CMM Model. Source: Stucki (2004), Clerc (2004) Each maturity level contains set of key process areas and each process area consists of set of goals, in order to achieve goals; the organizations needs to implement number of practices, these practices can be grouped into what 39    is so called common features, the below diagram illustrates maturity level in details Figure 3.7: IT service Maturity level details, Source: Stucki (2004), Clerc (2004) 3.8.6. CoBIT Framework CoBIT is an acronym for Control Objectives for Information and Related Technology, this framework mainly focuses on IT governance in term of managing and controlling IT resource, risk, security, and IT alignment with business. CoBIT practices optimize IT-enabled investment and ensure service delivery, it should be noted that IT governance is the responsibility of executives and the board of directors, and consists of the leadership, organizational structures and processes that ensure that the enterprise’s IT 40    sustains and extends the organization’s strategies and objectives” as being clarified by IT Governance Institute (2007). CoBIT Objectives: According to “IT Governance Institute” (2007), for IT to be successful in delivering IT services according to business requirements, organization’s management should set an internal control system or framework in place that contributes to these needs by: Making a link to the business requirements Organizing IT activities into a generally accepted process model Identifying the major IT resources to be leveraged Defining the management control objectives to be considered CoBIT helps to achieve above IT governance by providing a framework to ensure that: IT is aligned with the business strategies, trends and objectives IT enables the business and maximizes benefits IT resources are used efficiently IT risks are managed appropriately CoBIT Focus Area: For optimized and successful IT governance, CoBIT focuses on the following areas illustrated in the below figure. 41    Figure 3.8: CoBIT Focus Area, Source: IT Governance Institute (2007). The main functionality of each area includes: Strategic alignment focuses on alignment of IT plans with enterprise plans. Value delivery is about ensuring that IT delivers the expected benefits against the strategy. Resource management is about the optimal investment, and the proper management of IT resources. Risk management requires risk awareness by senior corporate officers, and a clear understanding of the enterprise risk. Performance measurement tracks and monitors strategy implementation, projects, resources, processes, and service delivery. The below figure illustrates CoBIT main principal for IT governance to ensure that organizations achieve their business objectives. 42    Figure 3.9: CoBIT principles, Source: IT Governance Institute (2007). 3.9. ITIL Framework ITIL is an acronym for Information Technology Infrastructure Library, it’s a public framework that describes IT best practice processes, It provides a framework for the governance of IT, and focus on continual improvement of quality of delivered IT services from both business and customer perspectives, ITIL describes IT service management in five stages- clarified later in this chapter-, these stages are service strategy, design, transition, operation, and continual service improvement as being clarified by OGC. (2007). 3.9.1. History According to OGC (2007), ITIL was published between 1989 and 1995 in UK by Office of Government Commerce (OGC) and universally accepted 43    in 2007 when OGC published version three which covers the whole IT service lifecycle. Today many companies have implemented ITIL applications like HP, Computer Associate (CA), and Microsoft. 3.9.2. ITIL Framework Objectives According to ITIL publications, ITIL has the following main objectives: Align IT services with the current and future needs of the business Improve the quality of IT services Reduce the cost of providing the IT services Increase service availability 3.9.3. Benefits of ITIL Because ITIL was built based on best practices; it provides the following benefits to organizations: Provides a single documented framework for IT best practices across the IT organization. Identifies roles and responsibilities for IT service management. Help to reduce the IT cost through optimizing service delivery processes, and proactive approach (e.g. Configuration management, problem management, and proactive maintenance). Supports ability of IT to measure and improve internal performance and service provisioning 44    Defines IT in terms of services rather than systems Supports improvement of user productivity ( resource reallocation) Improves communication and information flows between IT and organization business departments ( e.g. systematic processes) Improves ability of IT to adjust as business opportunities and challenges are presented ( e.g. manage Ad-Hoc changes) Improves relationship of IT with the business (e.g. Through understanding business needs and deal with it as such). Improved time to market for new product or service. The following are the main reasons behind choosing ITIL framework to build proposed IT service delivery framework as will be clarified in chapter six: ITIL is the most famous IT framework around the world ITIL is based on best practices Redundancy of application and management tools that based on ITIL Redundancy of training material Flexible framework that allow organization to customize processes ITIL suitable for all types of IT companies 3.9.4. ITIL Service Lifecycle Management As motioned above, the service lifecycle contains five core elements, illustrated in the below figure, each one has a set of processes, the service lifecycle uses hub and spoke design; where the service strategy at the hub 45    and other core elements are the revolving lifecycle stages, the cycle is surrounded by continual service improvement as being clarified by OGC (2007) Figure 3.10: ITIL lifecycle management, Cartlidge (2007) As illustrated in the below diagram, the service lifecycle is initiated by requesting change request and associated requirements from business side. Requirements are identified and agreed in the service strategy stage within a Service Level Package (SLP) and a defined set of desired business outcomes. Then SLP passes to the Service Design stage where a service solution is produced together with a Service Design Package (SDP) containing everything necessary to take this service through the remaining stages of the lifecycle. The SDP passes to the Service Transition stage, where the service is implemented, evaluated, and tested, at this stage also the Service Knowledge Management System (SKMS) is updated, and the service is transitioned into the live environment, where it enters the Service 46    Operation stage. Periodically and wherever possible, Continual Service Improvement identifies opportunities for the improvement of weaknesses or failures anywhere within any of the lifecycle stages as being clarified by OGC (2007). Figure 3.11: ITIL lifecycle Details, Source: Cartlidge 2007. Service Strategy The service strategy for any service provider should be based on the fact that customer is looking to buy a satisfaction of particular needs, not to buy products, so that all aspects that satisfy this approach should be taken into consideration when putting strategies for new products or service. According to Cartlidge (2007), ITIL service strategy provides guidelines of how to design, develop, and implement service management not only as an organizational capability but also as a strategic asset; it provides guidelines about value creation, service structure, market and offering, resource 47    allocation and other aspect that should be aligned with organization business strategies. ITIL and Four Ps of Strategy: According to ITIL Service Strategy ver.3 (2007), ITIL service strategy is adopting the four Ps of strategy which are: Perspective: the distinctive vision and direction Position: the basis on which the provider will compete Plan: how the provider will achieve their vision Pattern: the fundamental way of doing Service Strategy Key Roles and Responsibilities: According to OGC (2007), Service strategy defines roles and responsibilities that will help to execute service strategy, however, these roles can’t be found in every organization that wants to implement ITIL, but it can be covered by other roles that are capable to handle such responsibility specially here in Palestine where most of IT companies are small to medium ones, the key roles are: Business Relationship Manager Business Relationship Manager or Demand Management Manager is responsible for establishing business relation with customer either internal or external, and responsible for understanding business and customer 48    requirements, it works closely with project or program managers in this regard. Product /Project/ Program Manager (PM) Key responsibilities of PM include developing and managing services across the service development life-cycle; according to OGC (2007) this includes responsibilities of design, transition, and handover service to operation team. Service Design According to ITIL service design ver.3 (2007), the role of Service Design within the business change process can be defined as: “The design of appropriate and innovative IT services, including their architectures, processes, policies and documentation, to meet current and future agreed business requirements”. After understanding service strategy and set of services to be implemented according to service roadmap, the next step is to design service. According to Oleson (2009), Service Design is focusing on designing services according to business needs, it includes design principles and methods that will be used to convert strategic objectives into services, this include- but not limited to- design the required processes to support the service lifecycle, solution design, service level management, Service Design Packages (SDP), and architecture. In this context it should be noted that the scope of Service Design is not limited to new services; it also includes the 49    required changes and enhancements on the currently launched services to increase or maintain value to customers. Service Design Key Roles and Responsibilities: According to Oleson (2009) Service Design defines roles and responsibilities that will help to execute Service Design, however, these roles can’t be found in every organization that wants to implement ITIL, but it can be covered by other roles that are capable to handle such responsibility specially here in Palestine where most of IT companies are small to medium ones, the key roles are: Service Design Manager Key responsibilities of Service Design Manager include – but not limited to- ensuring that all service strategies are reflected in service design practices, ensuring that all design documents meet business requirements, and monitoring and measuring service design efficiency and effectiveness. IT Planner Key responsibilities of IT planner include –but not limited - develop plans, coordinate with all related parties to ensure smooth implementations of these plans, review IT costs periodically to be aligned with allocated IT budgets ,identify external and internal factors that affect implementation of IT plans and put proper actions, and finally review IT performance and put actions for improvements. IT Designer / Architect 50    Key responsibilities of IT Designer/Architect include –but not limited to- overall service design aspects of services, ensure that design is compliant with service strategy and meet customer needs, translating logical design to physical design, taking into account business requirements, target environments, and related processes. Service Transition After approving design of new product or service, now it’s a time to handle it to implementation team who is responsible for building the solution based on Service Transition processes that provide guidance in this regard. According to OGC (2007) and Oleson (2009), Service Transition includes processes to put plans for implementation, manage resource that are required to build solution, testing and release solution to production, these processes include the following: Plan and prepare release Build and Test solution Service testing and pilot ( if pilot is necessary) Deploy to production or retire from operations Review and close service transition Service Transition Key Roles and Responsibilities: Service Transition define roles and responsibilities that help to execute Service Transition in term of implementation, testing, and quality assurance, however, these roles can’t be found in every organization that 51    wants to implement ITIL, but it can be covered by other roles that are capable to handle such responsibility specially here in Palestine where most of IT companies are small to medium ones, the key roles are: Service Transition Manager Key responsibilities include –but not limited to – overall planning for service transition delivery including continual improvements, budgeting and accounting service transition, making final recommendations for business and IT functions to release and deploy service to production, and ensure that final delivery meets business needs. Configuration Manager Key responsibilities include- but not limited to - , agree on the scope of configuration to be made and evaluate current configuration and ensure that all of them are in line with business requirements Change Manager Key responsibilities include- but not limited to –review all change requests from either new or currently implemented changes to ensure that they met the required objectives, and make priorities between changes according to business needs. Service Operations After the service is planned and implemented into production environment, it’s now a time to keep this service up and running according to business 52    needs and within agreed Service Level agreement SLA, this is the role of Service Operation. According to OGC (2007), Service Operation includes guidelines on achieving effectiveness and efficiency in the delivery and support of services to ensure service stability and maintain the service value for both; the customer and the service provider, it includes all processes that are responsible for “business-as-usual” activities. In Service Operation, the operation team has been trained to handle day-to-day activities to maintain service availability. The main processes of Service Operation include event management, incident management, and problem management. Service Operation Key Roles and Responsibilities: In general, operation team is dedicated to do required operations as motioned above, but in many cases, operation team take responsibilities of other roles in service management lifecycle, here in Palestine most operation teams are used in other service management lifecycle like in service Design and Transition. Service Desk Manager Key responsibilities include –but not limited to – overall service desk activities, escalation point, and take responsibility of incidents and service requests. Operation Manager 53    Key responsibilities include –but not limited to – operation control and day to day activities, in addition to report senior management on overall operation issues. System/ application administrators Key responsibilities include –but not limited to – administering systems applications under his responsibilities and report direct manager about operations issues. Continual Service Improvement (CSI) Continual Service Improvement provides guidelines for maintaining and improving value for customers through periodic review of products or services to achieve better design and operation of services. It combines principles, practices, and methods from quality management based on Deming cycle, the Plan–Do–Check–Act (PDCA) model specified in ISO/IEC 20000 as clarified earlier in this chapter. OGC (2007) CSI includes three major processes that should be followed to get effective service improvements which are the 7-Step Improvement Process, Service Measurement, and Service Reporting. Below figure illustrates continual service improvement (CSI) model, it compares the current position of organization with desired one through gap analysis. It should be noted that CSI as it name imply is a continuous process to evaluate and addresses changes in requirements, strategies, market, technology and any other internal or external factors 54    Figure 3.12: ITIL CSI, Source: Cartlidge (2007) 3.10. Summary Nowadays Information Technology is becoming industry, many governmental and non governmental bodies initiated projects to organize, govern, and control this industry by standards and management frameworks and to produces effective, efficient, and high quality IT services, these management frameworks can be categorized as quality management frameworks, quality improvement, IT governance, information management, and finally project management frameworks. These frameworks have many benefits to IT organizations since it will help to develop clear IT structure and hence more effective and efficient IT service delivery, it also help IT-based organizations to produce high quality 55    service in addition to better man power and other resource utilization, and as a result better customer satisfaction. This chapter also clarified the foundation IT Service quality and its relation to TQM, Six Sigma, Deming Cycle which also called Plan, Do, Check, Act (PDCA) Cycle, Then it discussed in details the management framework ISO9000 and its incredible principals. After introducing the reader to management frameworks, the researcher focused on IT frameworks, its objectives, benefits, and management models, these frameworks include ISO/IEC 20000, eSCM-SP, eTOM, IT service CMM, CoBIT, and finally Information Technology Infrastructure library ITIL which is discussed in details since it will be the base for building the proposed IT Service Delivery Framework for Palestinian IT-based organization. 56    Chapter 4 4. Research Methodology 4.1. Overview In the previous chapter; literature review, the researcher clarified management frameworks especially those related to information technology and their benefits for enhancing IT service delivery process across the service lifecycle. Literature review along with adopted methodology consist the base for building proposed IT service delivery framework. This chapter provides an overview of methodological approach that has been adopted by researcher to investigate current IT service delivery process in Palestinian IT-based organizations. This research will address the major problems related to IT service delivery process since it’s the most interactive processes with customers and the most effective one that will change customer behavior and satisfaction, it will mainly focus on investigating service delivery approaches in the Palestinian IT-based organization and address their service strategy and alignment with business strategies, service requirements, design and implementation processes, and finally the service quality and support. Based on adopted methodology and after determining the major factors in term of strength weaknesses, opportunities, and threats, the research will suggest framework for service delivery processes across the service life cycle that based on customized international frameworks to fit Palestinian IT firms. 57    4.2. Research Methodology Paradigms In general; research methodology paradigms include the following three major types: • Qualitative approach • Quantitative approach • Mix between the above two types Qualitative approach is used to measure and understand attitude, positions, and behavior of people, it’s good for smaller and selected groups, Qualitative data collection sometimes uses unstructured or semi-structured techniques such as open- ended responses, interviews, participant observations, field notes, and focus group that has been used in this research along with semi-structured interviews as will be clarified later. According Dawson (2002), the focus group is powerful tool to understand people’s thoughts, feelings, and directions. It is usually conducted by inviting small group of professionals that consist of six to ten people to gather for a few hours with a moderator to talk about a product, service, or organization. The moderator needs objectivity, knowledge of the subject, and some understanding of group behavior. The moderator starts with general questions to open subject before moving to more specific issues, then after finishing discussion, the moderator and researcher collect all responses together to formulate findings according to Dawson (2002). According Johnson and Christensen (2008) Qualitative method is used to understand and analyze social interactions, it’s good for smaller and not 58    randomly selected groups, and data analysis is used to identify patterns, features, and themes. Quantitative methods is used to identify statistical relationships like test hypotheses, look at cause and effect, and then make predictions, and usually the sample is random and large if compared with qualitative approach. Usually quantitative research is objective, because it mainly depends on accurate measurements using data validation tools. According to Strategic Counsel, a market research firm, Quantitative methods include telephone survey, mail survey, and web survey which was used in this research. According to Thomas (2003) Quantitative research tends to be on numerical measurement of specific aspect of phenomena while Qualitative research is a multi-method in focus involving an interpretive naturalistic approach to its subject matter, it involve case studies, focus groups, and interviews. According Spratt & Walker & Robinson (2004), the mixed method paradigm uses combination of qualitative and quantitative methods together, mixed method provides more comprehensive answers to research questions, going beyond the limitations of a single approach. Mixed-methods research has certain advantages; it gives indication about power and solidity of research and provides guidance to others about what researchers intend to do or have done. According to Tashakkori and Tedllie (2003), multiple methods in a research helps to research a process or a 59    problem from all sides, but may be high in cost, and require the researchers to work in multiple teams. 4.3. Adopted Research Methodology Paradigm In this research; the researcher adopted mixed method approach where survey was used as quantitative method and focus group and semi- structured interviews were used as qualitative methods. The below table illustrates advantages and disadvantages of mixed method research according to Tashakkori and Tedllie (2003). Table: 4.1: Advantages and disadvantages of Mixed Method Approach, Source: Tashakkori and Tedllie (2003) Advantages Disadvantages Build a study based on the strength of both quantitative and qualitative research methods May be high in cost May provide a complete picture of a research problem Requires training in both methods multiple methods in a research helps to research a process or a problem from all sides May require researchers to work in multiple teams Usage of different approaches helps to focus on a single process and confirms the data accuracy May take longer time to complete the research   Th wa Fig F Se 4.4. R he below d as adopted gure 4.1: Re Focus Group • Survey Quationaire • emi‐Structured Interviews • Research diagram illu by researc search Meth Researc •Understa based  se •Wide ran ( Quantit •More foc above fin IT  h Method ustrates th cher hodology ch Meth anding fac ervices de nge invasti tative)  cus on IT s nding and  P an Service D 60  dology Pr e process odology ctors that a livery pro igation of  service de validation Data  rocesssing nd Analysi Delivery F rocess of research y Process affect Pale cess ( Qua IT service livery bas n ( Qualita g  is ramewor h methodo s estinian IT alitative)  e delivery  ed on  ative) rk  ology whic T‐      Literature Review ch 61    4.4.1. Focus Group To understand the current situation of IT service delivery process in Palestinian IT-based organization, a group of IT professional were invited to review the adopted service delivery process to identify related problems and identify internal and external factors that affect it in term of strengths, weaknesses, opportunities, and threats which represent internal factors evaluation (IFE), and external factors evaluation (EFE) in SWOT technique respectively, a cross functional group consisted of eight professionals( IT and non IT professionals) was invited to make brainstorming about IT service delivery, the group was consisted of middle management (department managers) as well as staff level (field employees) to pull their opinions about the adopted IT service delivery process, in this regard; it should be noted that focus group findings along with literature review consist the base for survey design illustrated below in the next section. 4.4.2. Survey Questionnaire Design Based on focus group finding, and literature review; the researcher conducted survey to make more penetration inside IT community in order to address IT-service delivery process in details. The survey (questionnaire) was consisted of four parts where each part focuses on the major IT service delivery process across the service lifecycle, these parts are: General information. Business and Service Strategy. 62    Service/ Product Design. Service Implementation /Operation / Continuous Improvement. Part one contains general information about participants and IT companies, this information include age, gender, company field and size, IT position, and finally company address. The objectives of this part were to know the nature of companies and participants who was being surveyed. Part two addresses IT-based organization business and services strategy, it contains five questions that highlight the understanding of participant to company business strategy, understanding IT service strategy, alignment of service strategy with business strategy, and finally asking if the company has a standard or framework for IT service delivery. The objectives of this part were to identify if there is a clear service strategy that is aligned with business strategy, and to know the adopted frameworks that are used to deliver IT services, this will help in identifying key factors that affect service delivery and should be taken into considerations when building proposed IT service delivery framework that will be clarified later in chapter six. Part three is addressing service/ product design process, its contains also five questions that highlight the presence and efficiency of key design aspects and service development that are adopted by IT organization, this include requirements collection methodology, assessment phase, service level agreement (SLA), and solution design. 63    The objectives of this part were to know the presence and efficiency of service design process adopted by IT organization to design IT-based services. And finally part four is addressing service implementation, operation, and continual service improvements, it contains twelve questions that highlight key processes that have been adopted by IT organization to implement, operate, and improve delivered services that meet customer needs. This include the efficiency and effectiveness of implementation processes for designed products or services, changes request process, testing and validation methodology, presence of quality assurance, handover of delivered products or services to operation team, incident and problem management, security and access management, service availability, helpdesk unit, process of continual improvements, and finally measuring customer satisfaction. The objectives of this part were to identify the presence, efficiency, and effectiveness of those key processes, and to identify key factors that should be taken into considerations when building proposed IT service delivery formworks which will be clarified later in chapter six. 4.4.3. Semi-Structured Interviews According to Kajornboon (2005) semi-structured interview is a technique used to collect qualitative data by setting up a situation (the interview) that allows participants to talk about their opinions on a particular subject. The objective is to understand the participant's point of view about subject 64    matter. Semi-structure interview was adopted by researcher to get more focus into service delivery process and discuss major problems and factors that affect IT service delivery interactively with IT professional and decision makers being interviewed, a sample of six professionals was chosen in this regard. The interview contains four parts and each part is discussing specific IT processes that consists part of service lifecycle, these parts are: Business and service strategy and alignment between them Product development and design processes Implementations and deployment processes Operations and continuous improvements processes 4.5. Summary In this chapter the researcher clarified the methodology that was adopted to conduct research, it consists of mixed method approach that combines qualitative and quantitative methods. Focus group was used as qualitative method to understand the problem of Palestinian IT service delivery process, a group of cross functional team was invited to make brain storming about this process, and then survey was conducted to pull the opinions of IT community about the same subject, then the researcher conducted semi-structured interviews to make validation of survey and focus group findings. 65    Chapter 5 5. Data Gathering and Analysis 5.1. Overview Based on mixed method adopted by researcher which combines both quantitative and qualitative methods and clarified in methodology chapter, this chapter clarifies data collection and analysis for conducted focus group, online survey, and semi-structured interviews. 5.2. Focus Group Findings and Analysis Based on literature review, the researcher had invited a group of professional to half-day brain storming session to figure out and understand the current situation of IT service delivery process in Palestinian IT-based organizations in order to identify related problems and identify internal and external factors that affect it in term of strengths, weaknesses, opportunities, and threats which represent internal factors evaluation (IFE), and external factors evaluation (EFE) in SWOT technique respectively. The group of eight professionals was consisted from middle management (department managers) as well as staff level (field employees) to pull their opinions about the adopted IT service delivery process in this regard. In this brainstorming session; attendees discussed IT service delivery process to identify below factors: Internal Factors ( IFE) 66    o Strengths : identify internal IT service delivery strengths in order to leverage them o Weaknesses : identify internal weaknesses in order to try to overcome them External Factors (EFE) o Opportunities: identify external opportunities that enhance IT service delivery and try to exploit them. o Threats : identify external IT service delivery threats and try to mitigate them The below tables illustrates internal and external factors of SWOT technique that affect IT service delivery based of focus group findings. Table 5.1: IT Service Delivery Strengths Strength (S) Factor Notes Technical Skills IT employees posses good technical skill which will facilitate design, implementation, and operation of IT services Project management Unit The existence of PM unit inside IT is strength point that can be utilized to manage and streamline IT projects Experience of IT staff and competencies IT community has many experts who can lead service development 67    Table 5.2: IT Service Delivery Weaknesses Weaknesses (W) Factor Notes Work package efforts estimation Some of business employees clarify that IT personnel under estimate completion date for requested product or service , to overcome problem , it’s necessary to adopt clear assessment process Quality of delivered items Some delivered items did not pass User Acceptance Test (UAT) due to some bugs that need fixing, to overcome this ,it’s necessary to review testing methodology Product development process automation Automating product development process will facilitate and speed up required deliverables Absence of revenue assurance tools Proactive revenue assurance tools will guarantee minimizing required operations and time to fix bugs or rework Testing environment Its noted that no testing labs and environments, such facilities will minimize bugs and risk Table 5.3: IT Service Delivery Opportunities Opportunities (O) Factor Notes Risk Management Its noted that no clear risk management methodology ( mitigation, avoidance, and transfer) in place for most IT organizations Knowledge sharing Knowledge sharing is an opportunity for IT team to secure skill redundancy and hence better management for required deliverables Technologies Technologies represented in the used tools for service delivery enhance dramatically the quality and reduce the delivery time of delivered products or services 68    Table 5.4: IT Service Delivery Threats Threats (T) Factor Notes Platform limitations Limitations of platform that is used to deliver services consists a threat in term of fulfilling business requirements Platform control and SLA with vender IT organization usually sign service level agreements (SLA) with equipment/platform providers, such SLA should be studied carefully before issuing contract. Commercial team knowledge in IT platform capabilities Its noted in many cases that business team doesn’t know technical capabilities of service delivery platforms, this can be overcome by conducting awareness programs Supplier dates For those products /services that need involvements of supplier; it’s necessary to estimate required date for delivery of required components or deliverables Last minute changes In many times; product or service owner makes slight changes in the final product /service in the last moments Unclear Requirements Unclear requirements increase time needed to complete deliverables, all required details should be added in a structured document to reduces inquiries as much as possible Ad-Hoc requests Ad-hoc request may affect product or service currently under implementation, so delay might occur in service delivery. Dependencies on externals service providers IT team can’t control external providers sometime for justified delay in equipment delivery, margin should be taken into consideration if external provider is involved in service development process Confidentialities of products or services Awareness and access management process should handle this issue Competitors, competitors products Functional department may request urgent service in very short time frame to be launched in the market, the requested service might not be listed in functional department roadmap and hence delay for under development services Changing business priorities Changing business priorities due to business considerations should be managed smoothly and communicated clearly between IT and business team 69    5.2.1. Addressed Problems Based on Focus Group Findings Based on literature review and after studying mentioned above factors that affect IT service delivery; below table lists the main issues that should be taken into considerations when building proposed IT Service Delivery Framework Table 5.6: Focus Group Main Findings # Issues 1. No clear relationship between business strategy and service strategy 2. No cartelized demand and project management 3. No SW tools to be used to facilitate service delivery projects 4. No clear Service Level Agreement (SLA) in place between IT and its customer 5. No end-to-end process for service delivery 6. Weakness in project management skills 7. No service oriented architecture for IT organizations 8. Absence the effective role of IT governance 9. Ad-hoc changes from business side 10. Unclear requirements for new products or services 11. Absence of risk management 12. Weakness in testing and quality assurance 13. No clear configuration and change management 14. Suppliers and venders management and control 15. Business team awareness in IT resources capabilities 70    5.3. Survey Results and Analysis Based on literature review of IT service delivery frameworks, the researcher had designed survey to pull the opinions of IT professionals about IT service delivery process that is adopted by Palestinian IT organizations, a sample of 84 companies was chosen which consists the majority of IT organizations that deliver IT services in Palestine, a web based survey link is sent to all companies with assistance of Palestinian IT Associations (PITA); the IT body for private sector in Palestine, PITA circulated survey to all PITA’s members, at the same time the researcher contacted many companies by phone and email to encourage IT professionals to fill the survey, the researcher got 70 responses from 84 companies, which is a representative sample with confidence level 95% and marginal error 5% which is globally accepted according to Ayyub and McCuen (2003). The survey is consisted of four parts, the first one is general information while the other three parts are handling IT service delivery processes; service and business strategy, service design, service transition (implementations and deployment), and service operation and continual improvements. According to survey results, the majority of IT professional ages are between 20 and 29 years, which indicate that the work force of Palestinian IT scoter from young people and actually this is one of competitive advantages of Palestinian ICT sector as clarified earlier in section 2.3 “Palestinian ICT competitive advantage”. This competitive 71    advantage can be utilized, since young people have the ability to change their way in developing and delivering IT services if service delivery strategy or processes are changed. They just need proper training in this regard. Survey results also showed that majority of IT professionals are from males, since the percentage of males was around 89 %. 44% of professionals being surveyed were from managerial level and 46 % from staff level, this gives an indication about the survey penetration to all levels. With respect to company field, the survey data showed that 60% of ICT professionals are working in service providers companies, while the other 40% are working in different ICT fields like software development, and business solution. According to this finding, it’s important to focus on IT service delivery which gives indication about the importance of this research and its objectives to develop customized IT service delivery framework. Business and Service Strategy The survey results showed that 85% of IT professionals have excellent or good understanding of their company’s business strategy, and 76% of them have good understanding of service strategy, but when asking IT professionals about alignment between business strategy and service strategy; only 66% of IT professional strongly agree or agree that such 72    alignment is exist. From this point it’s necessary to address this alignment deeply according to survey and focus group findings that mentioned earlier in this chapter. The below figure illustrates IT professionals opinions about alignment between business strategy and service strategy Figure 5.1: Alignment between business and service strategies About IT department’s participation with other business entities during service concept development, the survey showed that 70% of IT professionals say that such cooperation is excellent or good, while the other 27 % says such cooperation is average or poor, the other 3% have not put their opinions in this regard. Based on this finding, i