the business of it understanding itil and how to run it as a business 1277 (1)

8/8/2019 The Business of It Understanding Itil and How to Run It as a Business 1277 (1)

1/20

1May 22-24, 2007Washington Dulles HiltonThe Business Transformation Conference

Loy AllenDirector, Consulting

The Business of IT

Welco

me

Welcome

to Transformation andInnovation 2007The Business Transformation Conference


2/20


Information TechnologyToday

Growing technical and business complexity

Cost pressures are never ending

The value of IT is questioned

The users of IT dont know exactly what they are

getting nor how much they are paying Outsourcing/Off shoring/best of breed decisions

are difficult

Consultants everywhere

The mountains are getting bigger and the heroes

fewer


3/20


No Shortage of Ideas

Running IT like a business

IS Lite

ISCo

Information Technology Infrastructure Library

Service Oriented Architecture

Business Service Management

Common Themes Self sustaining

Customer focus

Service based

Process centric

Business alignment

Measurable service levels Ability to show value

Transformation may be needed


4/20


If IT is a business

What does it sell?

Who buys it? (Customers/Consumers)

How is what it sells built and delivered

Who creates and delivers what IT sells?

Where is it created and delivered?

What does it cost?

How much is it worth?

Doesnt a business focus mean contracts and arms

length customer relationships??


5/20


Service Defined

A Service Definition 1: Activity that does not produce anything Definition 2: Work done by somebody for somebody else as a

job, a duty, a punishment, or a favor Old TV image of IT Services: Computer tape spinning, lights

flashing, cards being sorted

Services are not tangible, they are hard to describe Service: Activity that produces an outcome, valued by aconsumer, when and where it is needed

A service is different from a process Services are a discrete bundle of components (processes,

enabling technology, skilled people, organization and facilities) Services can be bundled into offerings which have meaning

and value to the consumer Services, offerings and components have owners

Responsibilities include quality, cost, delivery Owners ensure integration with other services

Wisdom begins

with the definition

of terms

Socrates

D i f IT S i


6/20


Domains of IT ServiceManagement

Management ofInformation Technology Services

Governance

Architecture Management

ApplicationManagement

InfrastructureManagement

Service SupportService Delivery

ITST operateswithin 6 domainsthat encompass anIT environment.

These domains are

focused onenabling the ITorganization tooperate in abusiness like waythat ensure valueis received for theuse of IT resourceswithin anenterprise .


7/20 7May 22-24, 2007Washington Dulles HiltonThe Business Transformation Conference

An IT OrganizationThe same principlesthat apply to the

analysis of theperformance of anyorganization apply tothe performanceassessment of an ITorganizations.

All of thesescomponents mustintegrate andfunction as a unit forIT to be successful inthe delivery ofservices to itscustomers.

APQCs processframework and thevast majority ofbusiness diagnosticscan be applied to theassessment of IT

organizations

There are s ecific

Facilities &

Infrastructure

Process

Infrastructure

Organization

Performance

Equipment

Strategy

and

Vision

Culture

Competency



IT Organizations DeliverServices

Enterprise

Information Technology

Service Provider

BusinessUnit

BusinessUnit

BusinessUnit

Information Technology Services

Consumer

Creator

Broker



Service Model

ServiceService ServiceService ServiceService

Offerings

Customer Customer

Cross-s

ervice

Processes,O

rganization

Technology,

Skills,Facilities

Service SpecificProcesses, Technology, Organization, Skills, Facilities

ServiceService

LevelLevel

AgreementsAgreements

ServiceService

LevelLevel


OperatingOperating

LevelLevel


OperatingOperating

LevelLevel


OperatingOperating

LevelLevel




Multiple Service Providers

ServiceService ServiceService ServiceService

Offerings

Customer Customer

Cross-service

Process

es,O

rganization

Technolog

y,

Skills,Faciliti e

s

Service SpecificProcesses, Technology, Organization, Skills, Facilities

ServiceService

LevelLevel


ServiceService

LevelLevel


OperatingOperating

LevelLevel


OperatingOperating

LevelLevel


OperatingOperating

LevelLevel




The Service CatalogThe catalog is the heart of the services based organization

Offerings created from

services

Services are created

from components

Offerings arepresented to

customers

Services can be

presented to

customers or

regrouped to provide

customized offerings

Offerings

Services

Components



The concept of Service Oriented Technology Management leverages experience and

industry best practices to guide IT toward achievement of their objectives

Service Oriented TechnologyManagement

Service Oriented TechnologyManagement is a comprehensiveapproach to the transformation and

operation of a service basedenterprise relying on structure anddiscipline to identify, define, supportand provide services, delivered to aconsumer, consistently meeting

standards in support of theirbusiness objectives



Service Oriented TechnologyManagement

Service Oriented Technology Management looks at

rethinking and structuring what the IT organization provides

to it customers and how well it does so

Viewing a business in terms ofservices provided allows

Clients, including IT organizations to bundle process,

enabling technology, people, management structures and

facilities into offerings Services are then shared with consumers across an

enterprise based on value to the consumer, cost that can

vary based on the appropriate per level of service

Value is understood and appropriate services are provided

to enable consumers to meet their business objectives

and the enterprise to improve its performance



What is ITIL?

ITIL is a best practice in IT Service Management, developed

by OGC and supported by publications, qualifications and an

international user group (itSMF)

It is a component of the foundation of the ITS&T practice

It is primarily process driven, describing what should be done

but not how

It is the de facto standard for IT Service Management globally

It integrates with CoBIT, MOF, BS15000, ISO

It is growing in acceptance and is being improved based on

experience

IT is a guideline not a cook book

It is not an out of the box solution



History of ITIL

ITIL was initially developed in the late 1980s

The British Telecommunications Agency (CCTA), nowcalled the Office of Government Commerce (OGC),developed a framework for efficient and financiallyresponsible use of IT.

The goal was to develop an approach that would be

vendor-independent and applicable to organizations withdiffering technical and business needs.

ITIL version 1 grew from a collection of best practicesobserved in the IT service industry.

ITIL version 1 was static so over the last few years OGCmade changes (some of those are quite significant) to

ITIL and the latest publication of the library is regardedas version 2

In early 2005 work started on ITIL version 3, due to bepublished in June

Wisdom begins

with the definition

of terms

Socrates



ITIL is changing

ITIL V3 is a significant shift from

the process oriented approach

in V2 to the focus on services.

V3 is to be published in June, itis believed to be of considerable

value in defining how services

are identified, designed,

delivered and supported

ITIL Version 2

ITIL Version 3

June 2007
http://www.itsmacademy.com/Detail.bok?no=14http://www.itsmacademy.com/Detail.bok?no=11



OK, How??

Moving from a functional view of IT to a service,business view is transformational in nature

A plan/framework/strategy is essential Define terms and measurements Shift thinking from functional to service

Organize IT for focus and effectiveness Understand how services are delivered and howmuch they cost to deliver

Define how value will be determined and how thecosts of services will be recovered

Transformation requires active sponsorship,leadership and perseverance

Governance (framework for decision making) of ITmust change

New skills may have to be added to the ITorganization (account/relationship management??)

Communication with customers and IT is critical

IT must create value in the minds of its customers



Guiding Principles

IT serves its customers, not IT IT enables customers to meet their business objectives IT has a mutually beneficial relationship with its customers Expectations for the delivery of services are clearly and

commonly understood by the customer and by IT IT communicates the value it brings in terms customers

understand Service offerings are customizable and based on

consistent delivery of services Customers pay for level of services they receive Service owners are responsible for the life-cycle of the

service including quality and cost A service is integrated with the other services IT and its customers operate within a commonly

understood framework, ITIL IT runs like a business

Basis for transformation



WIIFM

Clearer understanding of what IT offers the business it

supports

Opportunity to align IT to the business needs

Clarity of roles and responsibilities within IT

Improved governance relationships with managed

service providers

Improved governance relationships with the enterprise

A more efficient and effective IT organization that

enables the business it enables to meet its objectives

Survival???

Whats In It For Me???

ThTh


20/20

20May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Than

kYou

Than

kYLoy AllenDirector, Consulting

Contact Information:817 235 [email protected]

ou

the business of it understanding itil and how to run it as a business 1277 (1)

Documents