1. Cathy A. Kirch
16th
Annual International
IT Service Management
Conference and Exhibition
Application Management…
A critical part of the overall
Service Management Lifecycle

2. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.2
AgendaAgenda
• Allstate Insurance at a Glance
• Allstate Journey to IT Service Management
• Application Management Defined
• Application Management in the Organization
• Summary and Questions

3. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.3
Allstate at a Glance
• The Allstate Corporation is the nation’s largest publicly held
personal lines insurer.
• A fortune 100 company with $133 billion in assets.
• Allstate sells 13 major lines of insurance, including auto, property,
life and commercial. Allstate also offers retirement and investment
products and banking services.
• Allstate is widely known through the “You’re In Good Hands With
Allstate®” slogan.
• The Allstate Corporation encompasses more than 70,000
professionals with technology operations located around the globe.
• Allstate is reinventing protection and retirement to help individuals in
approximately 17 million households protect what they have
today and better prepare for tomorrow.

4. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.4
Allstate Insurance at a Glance
Allstate’s Technology Environment
• High-Speed Networking
• Integration Architecture
• J2EE and .Net
• Large Scale Networks
• Message Brokering
• Performance Management
• Rich Media Management
• Service Oriented Architecture
• Unix, Windows and Mainframe platforms
• Web Content Management
• Web Services
• Advanced Analytics
• Business Process Management
• Capacity Planning
• Data Warehousing
• Document Imaging
• Enterprise Content Management
• Enterprise Databases
• Enterprise Information Integration
• ETL (Extract, Transform, Load) Tools
• Financial Applications
• High-Availability and Disaster Recovery
• Multiple operating systems
• Multiple technology platforms
• Multiple database systems
• 3,500+ IT professionals
• 5,000+ software applications
• 100,000+ desktop computers supported
Applications and Services

5. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.5
AgendaAgenda
• Allstate Insurance at a Glance
• Allstate Journey to IT Service
Management
• Application Management Defined
• Application Management in the Organization
• Summary & Questions

6. 2004 – Service
Management
COE
 One owner for the program - Infrastructure scope only
 How do we build the process behind the process?
 Red to green – can we improve incident classification?
 How do we define education and training program in IT?
2005 - ITSM at
Allstate
 Separated process owners - Infrastructure scope only
 How do we build the process with governance built in?
 What does standard documentation look like?
 How do we create process policies?
 How do we continue education and training?
2006 - ITSM at
Allstate/
Availability
Management
 One owner for the program - Infrastructure scope only
 How do we implement a process with the end in mind to
become defined and documented?
 What does Business Service Management (BSM)
organization look like?
 How do we finance enterprise training?
2007 - Availability
Management
 One owner for the program- Expand Change Applications
 How do we conduct an enterprise roll out of change?
 How do we introduce a Service Catalog?
 What is the right ITSM tool with our complexity?
 External Recognition for Practitioner of the Year
 How do we define enterprise training?
Allstate Journey to IT Service Management
ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.6

7. 2008 - BSM
 One owner for the Program - Infrastructure and application
for change management scope
 How to roll out new ITSM tool to 5000+ users?
 Problem classification - are all problems equal?
 External Recognition for Project of the Year-Strategy to
Execution
 How do we engage application areas for training?
2009 - BSM
 One owner for the program - Infrastructure and Application
 How do we survive the economy?
 External Recognition for Case Study of the Year
 How do we train our sourcing organization?
2010 - BSM +
Virtual
 One owner for the program - Infrastructure and Application
 What processes are needed to enhance availability?
 Where should process owners reside?
 How do we define education in a maintenance mode?
2011 - Virtual
Governance
Team
 New governance structure - Infrastructure and Application
 How do we enable a working committee to support an
Enterprise Governance Committee with Vice Presidents?
 Refreshed roles for Owner, Manager, ITSM Consultant
 Prepare for tool upgrade
 How do we communicate a standard training approach for
all processes?
ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.7
Allstate Journey to IT Service Management

8. Benefits and capabilities for the organization:
• Common roles and responsibilities across the enterprise
• Common process language and repeatable procedures - reduce the learning curve from
one area to another
• Increased visibility into change activities
• Reduced change collisions
• Recording of authorized changes to aid resolution that improve Incident activities
• Enterprise prioritization classification
• Faster mean time to repair
• Support metrics that allows for continued improvement
• Compliance with regulatory requirements (i.e. SOX)
• Common repository for approved changes and reporting
• Release audit repository
• Release aligned to business capacity for absorption of change
• Defined event alerting approach
ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.8
Allstate Journey to IT Service Management

9. 9
2012 Priorities
• Availability
• Upgrade ITSM tool - Incident,
Problem, Change, Release and
Configuration Management
System
• Expand release and deployment
maturity/adoption
• Expand the ITSM program to
focus on services, culture and
capabilities
• IT Service Management a
strategic focus ensuring Senior
Leadership involvement and
commitment
• Continued education and training
• Ensuring service utility, warranty,
and availability
• Fully leveraging tools and
technology
• Functioning efficiently as a well-
oiled machine across ATO
• Continually improving services in
anticipation of business needs
• Enabling success through
consistent and repeatable
processes
ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.
Allstate Journey to IT Service Management
The ITSM Vision is to
seamlessly enable superior
business services for our
customers by:

10. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.10
AgendaAgenda
• Allstate Insurance at a Glance
• Allstate Journey to IT Service Management
• Application Management Defined
• Application Management in the Organization
• Summary and Questions

11. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.11
Application Management Defined
Service Management
• Service Management is a set of specialized organizational
capabilities for providing value to customers in the form of services
Services
• 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.
IT Service Management
• IT Service Management is the implementation and management of
quality IT Services that meet the needs of the business.
• IT Service Management is performed by IT Service Providers
through an appropriate mix of people, process, information
technology and suppliers.

12. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.12
ITIL
• ITIL is the most widely adopted
guidance for IT Service Management
worldwide. It is non-proprietary best
practice that can be adapted for use
in all business and organizational
environments.
• ITIL adopts a ‘lifecycle’ approach to IT
services, focusing on practices for:
• Service Strategy
• Service Design
• Service Transition
• Service Operation
• Continual Service Improvement
(CSI).
• Aspects of Application Management
show up in all five volumes of the core
guidance.
Application Management Defined

13. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.13
Application Management
• Responsible for managing applications throughout their lifecycle
• An organizational function that provides support and maintains
operational applications
• Plays important role in design, testing and improvement of applications
that form part of IT services
Application Resources within application management provide the technical
capability and expertise to manage the entire service lifecycle
Application Portfolio consists of applications in use within the organization.
such as key attributes, customers and users; business purpose; level of
business criticality; architecture; developers, investment made to date
Application Management Defined

14. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.14
• IT Service Management
ITIL
Application Management Defined

15. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.15
Application Management Defined
• Application Management Lifecycle
• Service Management Lifecycle
pplication Development
pplication Management

17. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.17
• ITIL® V3 and ASL White Paper 01/2008
Application Management Defined

18. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.18
• Objectives:
• Support the organizations business processes by helping to
identify functional and manageability requirements for
application software
• Assist in the design and deployment of the applications as well
as the ongoing support and improvement of those applications
• Focus on ensuring that:
– Applications are well designed, resilient and cost-effective.
– The required functionality is available to achieve the
required business outcome.
– The organization has adequate technical skills to maintain
operational applications.
– There is swift use of technical skills to diagnose and
resolve any technical failures that do occur.
Application Management Defined

19. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.19
• Application Management consists of two key focal points:
• Application Development is responsible for the creation of
new application software and databases to support business
requirements.
• Service Management focuses on activities that are involved
with deployment, operation, support and optimization of the
application.
Application Management Defined

20. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.20
© Crown copyright 2007 Reproduced under license from OGC
Based on Figures 6.5 and 6.6 Service Operation
Application Development
Application Management
Roles of teams in the
Application Management
Lifecycle
Build &
Test
Build &
Test
Deploy
Deploy
Optimize
Operate
Deploy
Design
Requirements
IT Service Management
Strategy, Design,
Transition
& Improvement
IT Service Management
Strategy, Design,
Transition
& Improvement
Application Management Defined

21. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.21
Optimize
Operate
Deploy
Deploy
Deploy
Analyze /
Design
Build &
Test
Build &
Test
Requirements
IT Service Management
Strategy, Design,
Transition
& Improvement
IT Service Management
Strategy, Design,
Transition
& Improvement
Service Level Management
Service Catalog
Service Portfolio Management
Availability
Capacity
Security
IT Service
Continuity
Change
Release and
Deployment
Change
Service
Validation and
Testing
Evaluation
Configuration
(DML)
Change
Knowledge
Release and Deployment
Change
Configuration
Event
Incident
Problem
Change
Configuration
CSI
Incident
Problem
Change
Configuration
Availability
Capacity
Service Level
Security etc
Application Management Defined

22. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.22
AgendaAgenda
• Allstate Insurance at a Glance
• Allstate Journey to IT Service Management
• Application Management Defined
• Application Management in the
Organization
• Summary and Questions

23. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.23
• Manage Applications by Lifecycle
• Service Strategy: Defining your portfolio, looking at
expenses, utility and warranty
• Service Design: Ensuring capacity, continuity plans, availability
• Service Transitions: Defining release management, change
approval, test validation, knowledge management
• Service Operations: Event effectiveness, problem resolution,
configuration management system accuracy, requests, incident
and access management
• Manage Applications as a Corporate asset
• Focusing on Service Lifecycle versus short-term projects
• Link key business drivers to application requirements and
ensure testing is in relation to their value to the business
Application Management in the Organization

24. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.24
• The Journey….Most IT Service Management programs started in
an Infrastructure organization and followed similar paths outlined
below.
• Created aligned processes, usually starting with change and
incident
• Moved on to configuration and problem management
• Built a bridge and executed one change management process
with both Infrastructure and Application areas
• Realization that opportunities existed to reduce the number of
Service Desks
• Aligned to a common process reduction of tools to support
Service Management for incidents, problems and change
• Tackled challenges of a one release management approach
Application Management in the Organization

25. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.25
A look into a Service Management Organization
• Common footprint across service management processes
• Operational roles are within normal organizations and not a
separate IT Service Management organization
• One process owner
• One ITSM Consultant to govern the design and improvement of
the process
Application Management in the Organization

26. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.26
• Enterprise Process Manager
• Overall responsibility for execution of the Release Advisory Board (RAB) process
• Works closely with the Area Release Managers to ensure collaboration throughout
the enterprise regarding significant and major change activity
• Process Continual Process Improvement Team (CPIT)
• Virtual forum for Release Managers to provide local feedback
• Maintains the process by continually refining, creating and communicating process
requirements, standards and procedures along with the process team
• Area Process Managers
• Assist portfolio/area with coordinating and planning all releases by interfacing with
sponsors and stakeholders from project/work effort inception through delivery of
release
• Serves as the area’s interface and represents their interests by suggesting and
documenting actions to Enterprise Release Management (ERM) and other ITSM
processes
Application Management in the Organization

27. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.27
So where is Application Management?
• Option One: An extension of the Software Delivery Life Cycle
Lifecycle-one option
• Option Two: A global approach creating an Application
Portfolio; limited application frameworks and patterns are
required with common software components
• Option Three: A hybrid – the most common approach –
where service is aligned to the production support function
• Change
• Incident
• Problem
• Release
• Availability
• Continuity
• …other ITSM Processes
Application Management in the Organization

28. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.28
Application Management
Shows up through roles
supporting processes
Application Management
Shows up through roles
supporting processes
Application Management in the Organization

29. Bus.
Area
Bus. Area Bus.
Area
Bus.
Area
Bus.
Area
Bus.
Area
Bus.
Area
Area Process
Manager
PM PM PM PM PM
P P P P
C C C C
P P P P
C C C C
P P P P
C C C C
P P P P
C C C C
P P P P
C C C C
ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.29
Enterprise {Process} Management - Delivery Model
App Area 2 App Area 3App Area 1
{Process}
Governance
Committee
Area
{Process}
Management
PC
PC
PC
PC
PC
PC
PC
PC
PC
PC
PC
PC
PC
PC
PC
Bus.
Area
Bus. Area Bus.
Area
Bus.
Area
Bus.
Area
Bus.
Area
Bus.
Area
Area Process
Manager
PM PM PM PM PM
P P P P
C C C C
P P P P
C C C C
P P P P
C C C C
P P P P
C C C C
P P P P
C C C C
App Area 2 App Area 3App Area 1
PC
PC
PC
PC
PC
PC
PC
PC
PC
PC
PC
PC
PC
PC
PC
EPM – Enterprise {Process} Manager
PM – {Process} Manager
PC – {Process} Coordinator
Application Management in the Organization

30. Scope: Business Functionality.
•The Application Management Team will have direct involvement in all
service management processes as part of the application’s availability and
performance improvement .
•The utility, warranty and early life support will be defined.
•Application Management will coordinate with Application Development in
order to ensure proper governance of all efforts.
Deliverables
•Application mapping (operational model)
•Environment designs
•Operational Readiness
•Disaster Recovery Plan
•Procurement support
•Deployment activities
•Change evaluation
•Continual improvement- OLAs, SLAs, Measurements
30
Application Management in the Organization

31. A
p
p
M
g
m
t
C
o
r
e
T
e
a
m
T
e
a
m
L
e
a
d
Pr
og
ra
m
M
g
mt
Of
f
I
ce
Availability & Performance
Improvement
Capability Improvement &
Innovation
PMO level Coordination
Event Management
Production Support
Infrastructure
A
p
p
M
g
m
t
C
o
r
e
T
e
a
m
T
e
a
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e
a
d
e
r
P
r
o
g
r
a
m
M
g
m
t
O
ff
ic
e
Governance
Incident Management
Problem Management
Early Life Support
Release Management
Change Management
Configuration
Environment
Usability
Business Knowledge
Risk & Impact Assessment
SLA / OLA Monitoring
Communication
Metrics & Measurement
Defects management &
Resolution
Component Failure
SLA /OLA Reqmts
31
Application Management in the Organization

32. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.32
AgendaAgenda
• Allstate Insurance at a Glance
• Allstate Journey to IT Service Management
• Application Management Defined
• Application Management in the Organization
• Summary

33. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.33
Summary
1980s: We were one organization.
1990’s: We separated and focused on
our line of delivery.
2000: The Service Industry was
born. ITIL takes off in the
US and we need to present
one front.
2007: Use one process for both
organizations - change,
incident and the beginning of
problem management.
2008: Economic challenges
promotes more right sourcing.A bridge is not built overnight…A service needs both Infrastructure
and Application Management playing together!
A bridge is not built overnight…A service needs both Infrastructure
and Application Management playing together!

34. ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.34
2009: Survival and assessment
2010: Time for Application
Management definition.
 What is the difference
between Application
Management and
Application Development?
 How do we use one
enterprise ITSM process?
 How many Application
Management teams are
needed?
A bridge is not built overnight…A service needs both Infrastructure
and Application Management playing together!
A bridge is not built overnight…A service needs both Infrastructure
and Application Management playing together!
Summary

35. 35
Questions?
Cathy A. Kirch
Allstate Insurance Company
ITSM Process Consultant
Distinguished Professional
in IT Service Management priSM (R)
2007 Project of the Year
2006 Practitioner of the Year
V3 ITIL Expert & Intermediate CSI & Service Transition
Prince2
V2 Service Manager & Practitioner SR, RC, PI, AD
Designations
ckirch@allstate.com