IT can no longer deliver services based on technology fiefdoms or silos as it has in the past. This practice is dead. Organisations that refuse to accept it will dissolve, get outsourced, or end up being controlled by external entities such as CFOs, business units, and so on. IT needs to rethink the ways in which it contributes to the business — and how it manages itself.
The ITIL (Information
Technology Infrastructure Library) and ITSM (IT Service Management)
practices provide a pathway for this to happen. Back in 1989, it dawned
on the Office of Government Commerce (OGC) in the United Kingdom that
IT was becoming increasingly important to business — and that there was
still a lot of confusion about how IT services should be delivered and
managed. Shortly thereafter, the OGC published ITIL: 44 volumes of
dense prose that attempted to provide an integrated set of
best-practice recommendations for managing IT. Version 2, published in
2001, reduced the library to nine volumes that integrated the
practices, but none was exactly light reading. Version 3 was launched
in April this year.
The processes embodied in ITIL and ITSM have evolved greatly through
the years and are poised to become a worldwide standard embodied as ISO
20000. At present, ITIL is both a glossary and a set of conceptual
processes intended to outline IT best practices.
The rapid pace of business change, technology advancement, regulation,
and services that must be delivered across an ever-flattened global
economy is forcing IT to organize and manage itself more effectively.
For all its promise, ITIL is still a tremendous undertaking.
So, here’s a head start: the 10 most important things you need to know about ITIL right now.
1. What can I do with ITIL that I couldn’t do before?
Implemented properly, ITIL raises customer satisfaction, reduces waste
in the IT organisation, and lowers operating costs. Two quick examples:
In 2000, target response time for resolving Web incidents at
Caterpillar IT was 30 minutes — but it hit that goal only 30% of the
time. Then Caterpillar implemented ITIL. Now its IT providers hit the
mark more than 90% of the time — and Caterpillar has been able to grow
its business exponentially in the past five years with only 1% increase
in its IT budget.
Proctor & Gamble — with 5,000 people employed in IT — implemented
service management processes outlined by ITIL and saved $125 million,
according to company officials.
2. Do I have to read all nine volumes, or are some more important than others?
Good news! Two volumes, Service Support and Service Delivery provide
the core knowledge. The other books are supplementary. The Service
Support volume introduces five key processes: Incident Management,
Problem Management,
Change Management, Release Management, and Configuration Management.
Although considered a function, not a process, the Service Desk is
included here as the central point of contact where customers of IT
services can report incidents, make requests, and communicate with the
IT infrastructure and the business.
Incident Management involves restoring normal business operations as
quickly as possible after an incident (a server meltdown, for instance)
— in other words, doing whatever is necessary to get services back into
a normal operational state after they are disrupted.
ITIL neatly divides the work that IT does, with emphasis on how it touches the business.
Problem Management, on the other hand, focuses on finding and removing
the root causes for the incident in order to prevent its recurrence.
ITIL is unique in separating “problems” from “incidents.” Too often, IT
organisations will allow services to remain down while support staff
tries to find the root cause of an incident, instead of focusing on
fast workarounds to minimise impact on the business. ITIL puts priority
on serving the business first and then on fixing the root cause in the
background.
Change Management is the process that coordinates and controls changes
to the IT infrastructure itself. ITIL views this process as a
coordinated effort to obtain the proper approvals, authorization, and
quality assurance steps.
Release Management refers to the actual implementation of IT changes, including
people, processes, technology, training, rollout, communications, and
business area activities, as well as the design build, test, and
release of the change.
Change Management introduces the notion of packaging changes into
release units to minimize disruption to the business is new to most IT
operations.
Configuration Management includes the process of logging, tracking,
controlling, and verifying infrastructure information that describes
every component in the IT infrastructure — and their relationships.
Emphasis is placed on how these items, known as CIs (configuration
items), relate to one another. All this information is stored in a
logical CMDB (configuration management database).
3. This CMDB sounds important.
The CMDB will serve as the blueprint for how the entire IT
infrastructure is structured, how various CIs — hardware, software,
incidents, agreements, service levels, documentation, and so on — are
related, and how the entire meta-system functions. The CMDB becomes the
basis for finding infrastructure information quickly, and making
effective management decisions based on it. Under ideal circumstances,
every CI will have configurable attributes — for example, it might be a
computer, a purchasing process, or an individual IT staffer. If
possible, the CMDB should be designed to automatically discover
information about the CIs and to track changes as they happen in order
to minimise the administrative labour necessary to maintain it.
4. Did you forget about the Service Delivery volume?
Not at all. Whereas the Service Support book is focused on how effective IT services
should be operated and maintained, the Service Delivery volume looks at
how those services are provisioned and enhanced. This book also
highlights five critical processes: Service Level Management,
Availability Management, Capacity Management, IT Service Continuity
Management, and IT Financial Management.
Service Level Management involves planning, coordinating, monitoring,
and reporting of SLAs. It reviews services on an ongoing basis to
ensure that they are being delivered cost effectively and are meeting
desired service targets. ITIL also introduces the concept of a Service
Catalog that lists all the services delivered by IT to the business.
Creation of this catalog forces IT to think in business terms and to
link the IT infrastructure and its costs to the services that are being
delivered.
Availability Management coordinates, designs, measures, and manages IT
infrastructure availability, taking into account all aspects of the
infrastructure and supporting organisation.
The CMDB will serve as the blueprint for how the entire IT infrastructure is structured.
Capacity Management looks at IT capacity, performance, and throughput
compared with business workloads and objectives. Historically, the
majority of IT organisations have focused on managing capacity based on
how IT resources are being used.
IT Service Continuity Management ensures that IT services can be
recovered in the event of a major disaster. It turns on the concept of
Vital Business Functions and forces IT to look at how services — rather
than just technologies can be restored.
IT Financial Management provides budgeting, accounting, and charging
services to manage IT costs and spending. In today’s world, very few IT
organizations can actually identify what services they deliver, let
alone what costs are incurred to deliver them, which is one reason IT
has had little credibility in the boardroom.
Developing the ability to articulate costs and IT’s contribution to the
bottom line brings market dynamics and modern business practices to the
IT organization.
The Service Desk exists here, too. In a typical business organisation,
business users and customers will interface with the Service Desk
function on a daily basis as part of the Service Support workflow. At
the same time, executives and management will interface with the
Service Level Management process to put new services into place and
review service quality using the Service Delivery workflow.
This is how ITIL neatly divides the work that IT does, with emphasis on how it touches the business.
5. How about the other seven books? Are they chopped liver?
Not at all. After you have absorbed the basic concepts, you can learn a
lot from the other seven volumes. For instance, as you might imagine,
Introduction to ITIL introduces the basic concepts that comprise the
ITIL approach to service management. Then, Planning to Implement
Service Management explains the steps necessary to identify how an
organization will benefit from ITIL. ICT Infrastructure Management
covers critical issues such as network service management, operations
management, computer installation and acceptance, and systems
management.
Applications Management focuses on software development and support
lifecycles, defining requirements, and testing of IT services.
The Business Perspective volume is actually two books — one aimed at IT
staffers, and the other intended for business managers. Together, they
discuss business continuity management, partnerships, outsourcing,
surviving change, and ransforming business practices through radical
change. Security Management discusses security practices and standards
from an ITIL perspective.Finally, Software Asset Management provides
best practices for managing software and software licenses.
6. ITIL has been around for more than 15 years. Why has it taken this long to catch up with companies in the region?
One factor driving acceptance is that companies are seeing more than
two-thirds of their IT budgets being eaten up in new, nondiscretionary
operating costs, over which they have very little control. It’s rare to
find an IT shop that can articulate how IT contributes to company’s
bottom line.
ITIL changes that by implementing successive waves of mini-projects
that target specific business goals with measurable results. Typical
goals might include reducing IT costs, reducing service outages,
preparing for a major IT initiative, or preparing
for a major business change such as a merger, move, or acquisition.
These efforts may involve entire ITIL processes or just parts of them.
Finally, whereas IT customers of the past used to be purely internal (staffers,
Recent studies are showing that an IT service organization could achieve up to a 48% cost reduction by applying ITSM principles.
managers, and auditors), these days increasing numbers of IT
“customers” are external — actual customers of the business itself,
interacting via public Web sites.
If systems fail, potential buyers are likely to take their business
elsewhere; potential damage to corporate reputation is high. As long as
ITIL remains the only comprehensive plan for infrastructure management
that focuses specifically on IT service, it will continue to be the
only game in town.
7. Who needs ITIL besides large enterprises? Can small shops or individuals use it?
Any IT shop servicing a company that is undergoing major changes and/or
servicing that company’s customers, will benefit from ITIL. For
instance, a small shop facing recurrent network outages will find
benefits in employing ITIL’s Problem Management process to predict and
minimize future incidents.A midsize company with a complex IT
infrastructure may find that the ITIL Configuration Management solution
provides a blueprint for streamlining impact assessments for changes
and new applications. A large organization undergoing a major
acquisition or consolidation effort will discover that the consistent,
repeatable processes out-lined in ITIL make those efforts occur much
faster and at less cost.
8. How can I get started deploying ITIL?
Get trained and certified. Almost every major hardware/software vendor,
and a slew of smaller companies, offers ITIL training. Search for “ITIL
training” on the Web to reveal a treasure trove of capable vendors who
can get you started. Exams and certifications are handled through
independent agencies. Fill in your knowledge gaps with books, Webinars,
library material, and on-line resources. Some excellent sources
include: IT Service Success (itServiceSuccess.com), Service Level
Management (slminfo.org), and ITSM Watch (itsmwatch.com). Most
importantly, be sure to visit the main user group site of the IT
Service Management Forum (itsmfusa.org).You may want to consider
joining this organization and attending local ITIL interest groups that
meet regularly in many cities around the country.
9. Should I hire someone to help implement ITIL? Do big companies offer ITIL implementations?
Many companies offer ITIL consulting and implementation services, but
this is still on the early part of the adoption curve. Make your choice
based on the experience of the people assigned to your efforts, not a
brand name. As for résumés and look for experience, certifications,
expertise, and track records. Avoid cookie-cutter solutions; these
seldom work very well. ITIL has many facets, and there is no one “right
way” to implement it. The best approach for your efforts will be highly
dependent on your objective and the particular problems you are trying
to solve. Make sure that consultants are prepared to work closely with
you to understand your unique issues, and that their approaches match
your specific needs.
10. We’ve been hearing a lot about ISO 20000. How does it relate to ITIL? Should we care?
ITIL is mainly about processes; it provides no criteria for measuring anything.
ISO 20000, which has just been released, serves as a basis for benchmarking
IT service management and improving IT services. It defines the
requirements for service providers, and it helps you determine whether
you comply with an acceptable IT service management standard. ISO 20000
provides specific, measurable criteria that can be audited in areas
such as scope, 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, and
release processes.
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