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AXELOS.com
®
White Paper
June 2013
© The Stationery Office 2013
Contents
4
5
5
9
9
About the author 10
10
10
11
© The Stationery Office 2013
Contents
4
5
5
9
9
About the author 10
10
10
11
© The Stationery Office 2013
Contents
4
5
5
9
9
About the author 10
10
10
11
© The Stationery Office 2013
Contents
4
5
5
9
9
About the author 10
10
10
11
© The Stationery Office 2013
Contents
4
5
5
9
9
About the author 10
10
10
11
© The Stationery Office 2013
Contents
4
5
5
9
9
About the author 10
10
10
11
8 Executive briefing: the benefits of ITIL®
© The Stationery Office 2013
Good change management:
• Clearly communicated release schedules that identify
the introduction of new and changed IT services
• The risks and potential impacts of change are
discussed with business users before the change
takes place
• Changes are agreed, well planned and implemented
in a timely fashion with minimal disruption to the
business.
Poor change management:
• Changes happen without users and support services
being informed
• New or changed IT services are fraught with
problems, and often lead to unexpected issues with
other services
• Operational resources are distracted from day-to-day
work by the problems caused by change.
This indicates poor service transition practice.
Incidents and problems under control:
• Failures sometimes occur, but they are resolved
effectively and users are kept informed
• A proactive approach is taken to problem solving,
anticipating and preventing problems wherever
possible
• Lessons are learnt, problems are rarely repeated.
they adversely impact the business.
Too many incidents and problems:
• There are many failures and IT service disruptions
•
(reacting to problems and failures) and do not have
time to make progress in other areas
• The failures have a disruptive impact on business
functions.
This indicates poor service operation practice.
Good supplier management:
• The internal IT service provider owns problems with
IT services even when a third-party supplier is
involved
• Contracts to deliver underpinning services and
components are managed effectively and seamlessly
by the service provider without needing to be brought
to the attention of business customers.
• Third-party costs are known and controlled.
Problems using external suppliers:
• IT issues are often blamed on third-party suppliers
• There are additional unexpected charges from
external suppliers and occasional contractual
disputes
• Internal service providers have little control over their
third-party suppliers.
This indicates poor supplier management practices.
Good communication between the business and IT:
• A catalogue of available IT services is written in
terms the users understand, with prices (if users pay
for IT services) or cost information (if not)
• Judgements on value can be made about IT services
and service levels
• Service providers are concerned with customer
perceptions and expectations
•
processes and the value IT provides to the customer.
Poor communication between the business and IT:
•
provider and business customers
• IT services do not meet customer expectations
• The business has a poor perception of IT services
• Service providers use technical jargon to describe
services and explain what is happening.
This indicates poor customer relationship practices.
Examples of short-cuts to adopt ITIL include:
Sending a few staff on Foundation-level training
Purchasing some software tools which claim ‘ITIL compliance’.
ITIL cannot be adopted in this way. Full adoption of ITIL means changing the way the business does IT,
so that IT services are developed and delivered in a way that is business-focused and value-driven. ITIL
may require investment in people and tools, but more importantly it requires a service culture that should
be introduced carefully and thoughtfully with support from senior management.
© The Stationery Office 2013
Executive briefing: the benefits of ITIL®
9
7
It is not always necessary to embark on a major project in order to improve your IT service management.
Sometimes a change of mindset is the most important thing that is needed, and some ‘quick wins’ can
help achieve this:
Send key IT development staff on ITIL training, focusing on service design and service transition
practices. They will better understand how to design IT services which are both fit for purpose and fit
for use – meaning fewer failures when the services go live, and a better understanding and control of
operational costs. This may not resolve current operational IT issues, but it will prevent future
operational problems from being created.
Rotate IT development staff into front-line operational roles, so that they get first-hand experience of
the consequences of poor service design and can bring back ideas for improvement of service design
practices. Send front-line operational staff into business areas so that they better understand the
business impact of poor service operation.
Send key IT service management staff to work in another organization or department, which practises
IT service management well, for a short period of time. They may learn more about service culture by
being immersed in it for a few weeks than they would on a training course. The experience can be
followed up and consolidated with theoretical training later.
Carry out a high-level assessment of your IT service management practices in order to identify those
areas which cause most pain, and which will give the greatest benefit if they are improved. The
80:20 rule will often apply – improving 20% of processes most in need of attention will bring 80% of
the required improvement in terms of business benefit.
Undertake an analysis of operational IT costs by IT service – in other words, find out the cost of
ownership of each IT service. Allocate overhead costs between IT services in a logical way. Then
track costs of ownership through time, to see how projects and other changes affect these costs. This
will highlight whether the savings promised by business cases are actually delivered, and will provide
insight into what causes costs of ownership to rise or fall. It will inform decisions on service strategies
and business cases for new IT services. Understanding cost of ownership of each IT service is essential
for making business decisions about IT investment.
8 How to access ITIL and where to start
You can find out more about ITIL in the five core publications (Cabinet Office, 2011):
ITIL Service Strategy
ITIL Service Design
ITIL Service Transition
ITIL Service Operation
ITIL Continual Service Improvement.
Introduction to the ITIL Service Lifecycle (Cabinet Office, 2011) gives an introduction to IT service
management practices and an overview of the core guidance, which cover the stages of the service
lifecycle in depth. Complementary publications add breadth and depth focusing on specific topics
and audiences.
You can build skills and knowledge in IT service management and invest in people through ITIL training
and the ITIL qualification scheme. Hundreds of thousands of IT practitioners across the world have
already gained ITIL professional qualifications. The scheme is supported by accredited training from a
global network of training providers, and examinations run by accredited institutes. There are
qualifications at Foundation, Intermediate and Expert levels with an advanced diploma for the most
experienced IT service management professionals. An excellent way to start adopting good practices is
by training key staff or hiring staff who are already qualified. Training development staff in IT service
management will ensure they focus on developing IT services.
Executive briefing: the benefits of ITIL®
© The Stationery Office 2013
The Institute of Service Management (ISM) in the UK and linked institutes in other countries provide
professional recognition for IT service management practitioners, and BCS, the Chartered Institute for IT,
recognizes IT service management as a key skill for IT professionals. The prISM Institute®
supports IT
service management professionals through its programme for professional recognition and development
in the field. Universities and business schools offer IT service management topics in their IT-related first
degree courses and masters degrees in IT service management.
ISO/IEC 20000 is the international standard for IT service management, which was developed based
upon ITIL processes. Adopting ITIL practices can help organizations achieve the ISO/IEC 20000
standard and provide evidence that they are practising good IT service management. ITIL also aligns with
other management frameworks and standards, including COBIT, ISACA’s framework for IT governance
and ISO/IEC 27001, the international standard for information security.
The IT Service Management Forum (itSMF) is a not-for-profit membership body which supports a vibrant
international community of practitioners and professionals, operating in over 50 countries. Its members
include many small, large and multinational companies across all industry sectors. It offers opportunities
to network and share experiences and best practices with IT service management practitioners and
experts across the globe.
IT service management as a professional practice is here to stay, because it makes sense for businesses.
ITIL has already proved its place in the world and, as more organizations better understand its value,
ITIL adoption will continue to increase. If you want to help your organization to get more value from its IT
investments, then ITIL is a good place to start.
About the author
Reviewers
TSO would like to thank Eddie Potts (Pink Elephant) and Stuart Rance (HP) who carried out a review of
the paper on behalf of the Cabinet Office, TSO and itSMF UK.
The author would like to thank the following people, who provided very helpful review comments:
Ms Denise Plumpton, independent consultant
Mr Dave Colquitt, interim business change manager at E.on
Mr Mark Jones, independent consultant
Acknowledgements
Sourced by TSO and published on www.AXELOS.com
Our White Paper series should not be taken as constituting advice of any sort and no liability is accepted
for any loss resulting from use of or reliance on its content. While every effort is made to ensure the
accuracy and reliability of the information, TSO cannot accept responsibility for errors, omissions or
inaccuracies. Content, diagrams, logos and jackets are correct at time of going to press but may be
subject to change without notice.
© The Stationery Office 2013
Executive briefing: the benefits of ITIL®
© Copyright TSO and Maggie Kneller. Reuse of this White Paper is permitted solely in accordance with
the permission terms at http://www.AXELOS.com/Knowledge-Centre/White-Papers/
A copy of these terms can be provided on application to AXELOS at Licensing@AXELOS.com
Trade marks and statements
The AXELOS logo is a trade mark of AXELOS Limited.
The AXELOS swirl logo is a trade mark of AXELOS Limited.
ITIL®
is a registered trade mark of AXELOS Limited.

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Executive briefing-the-benefits-of-itil-white-paper

  • 2. © The Stationery Office 2013 Contents 4 5 5 9 9 About the author 10 10 10 11
  • 3. © The Stationery Office 2013 Contents 4 5 5 9 9 About the author 10 10 10 11
  • 4. © The Stationery Office 2013 Contents 4 5 5 9 9 About the author 10 10 10 11
  • 5. © The Stationery Office 2013 Contents 4 5 5 9 9 About the author 10 10 10 11
  • 6. © The Stationery Office 2013 Contents 4 5 5 9 9 About the author 10 10 10 11
  • 7. © The Stationery Office 2013 Contents 4 5 5 9 9 About the author 10 10 10 11
  • 8. 8 Executive briefing: the benefits of ITIL® © The Stationery Office 2013 Good change management: • Clearly communicated release schedules that identify the introduction of new and changed IT services • The risks and potential impacts of change are discussed with business users before the change takes place • Changes are agreed, well planned and implemented in a timely fashion with minimal disruption to the business. Poor change management: • Changes happen without users and support services being informed • New or changed IT services are fraught with problems, and often lead to unexpected issues with other services • Operational resources are distracted from day-to-day work by the problems caused by change. This indicates poor service transition practice. Incidents and problems under control: • Failures sometimes occur, but they are resolved effectively and users are kept informed • A proactive approach is taken to problem solving, anticipating and preventing problems wherever possible • Lessons are learnt, problems are rarely repeated. they adversely impact the business. Too many incidents and problems: • There are many failures and IT service disruptions • (reacting to problems and failures) and do not have time to make progress in other areas • The failures have a disruptive impact on business functions. This indicates poor service operation practice. Good supplier management: • The internal IT service provider owns problems with IT services even when a third-party supplier is involved • Contracts to deliver underpinning services and components are managed effectively and seamlessly by the service provider without needing to be brought to the attention of business customers. • Third-party costs are known and controlled. Problems using external suppliers: • IT issues are often blamed on third-party suppliers • There are additional unexpected charges from external suppliers and occasional contractual disputes • Internal service providers have little control over their third-party suppliers. This indicates poor supplier management practices. Good communication between the business and IT: • A catalogue of available IT services is written in terms the users understand, with prices (if users pay for IT services) or cost information (if not) • Judgements on value can be made about IT services and service levels • Service providers are concerned with customer perceptions and expectations • processes and the value IT provides to the customer. Poor communication between the business and IT: • provider and business customers • IT services do not meet customer expectations • The business has a poor perception of IT services • Service providers use technical jargon to describe services and explain what is happening. This indicates poor customer relationship practices. Examples of short-cuts to adopt ITIL include: Sending a few staff on Foundation-level training Purchasing some software tools which claim ‘ITIL compliance’. ITIL cannot be adopted in this way. Full adoption of ITIL means changing the way the business does IT, so that IT services are developed and delivered in a way that is business-focused and value-driven. ITIL may require investment in people and tools, but more importantly it requires a service culture that should be introduced carefully and thoughtfully with support from senior management.
  • 9. © The Stationery Office 2013 Executive briefing: the benefits of ITIL® 9 7 It is not always necessary to embark on a major project in order to improve your IT service management. Sometimes a change of mindset is the most important thing that is needed, and some ‘quick wins’ can help achieve this: Send key IT development staff on ITIL training, focusing on service design and service transition practices. They will better understand how to design IT services which are both fit for purpose and fit for use – meaning fewer failures when the services go live, and a better understanding and control of operational costs. This may not resolve current operational IT issues, but it will prevent future operational problems from being created. Rotate IT development staff into front-line operational roles, so that they get first-hand experience of the consequences of poor service design and can bring back ideas for improvement of service design practices. Send front-line operational staff into business areas so that they better understand the business impact of poor service operation. Send key IT service management staff to work in another organization or department, which practises IT service management well, for a short period of time. They may learn more about service culture by being immersed in it for a few weeks than they would on a training course. The experience can be followed up and consolidated with theoretical training later. Carry out a high-level assessment of your IT service management practices in order to identify those areas which cause most pain, and which will give the greatest benefit if they are improved. The 80:20 rule will often apply – improving 20% of processes most in need of attention will bring 80% of the required improvement in terms of business benefit. Undertake an analysis of operational IT costs by IT service – in other words, find out the cost of ownership of each IT service. Allocate overhead costs between IT services in a logical way. Then track costs of ownership through time, to see how projects and other changes affect these costs. This will highlight whether the savings promised by business cases are actually delivered, and will provide insight into what causes costs of ownership to rise or fall. It will inform decisions on service strategies and business cases for new IT services. Understanding cost of ownership of each IT service is essential for making business decisions about IT investment. 8 How to access ITIL and where to start You can find out more about ITIL in the five core publications (Cabinet Office, 2011): ITIL Service Strategy ITIL Service Design ITIL Service Transition ITIL Service Operation ITIL Continual Service Improvement. Introduction to the ITIL Service Lifecycle (Cabinet Office, 2011) gives an introduction to IT service management practices and an overview of the core guidance, which cover the stages of the service lifecycle in depth. Complementary publications add breadth and depth focusing on specific topics and audiences. You can build skills and knowledge in IT service management and invest in people through ITIL training and the ITIL qualification scheme. Hundreds of thousands of IT practitioners across the world have already gained ITIL professional qualifications. The scheme is supported by accredited training from a global network of training providers, and examinations run by accredited institutes. There are qualifications at Foundation, Intermediate and Expert levels with an advanced diploma for the most experienced IT service management professionals. An excellent way to start adopting good practices is by training key staff or hiring staff who are already qualified. Training development staff in IT service management will ensure they focus on developing IT services.
  • 10. Executive briefing: the benefits of ITIL® © The Stationery Office 2013 The Institute of Service Management (ISM) in the UK and linked institutes in other countries provide professional recognition for IT service management practitioners, and BCS, the Chartered Institute for IT, recognizes IT service management as a key skill for IT professionals. The prISM Institute® supports IT service management professionals through its programme for professional recognition and development in the field. Universities and business schools offer IT service management topics in their IT-related first degree courses and masters degrees in IT service management. ISO/IEC 20000 is the international standard for IT service management, which was developed based upon ITIL processes. Adopting ITIL practices can help organizations achieve the ISO/IEC 20000 standard and provide evidence that they are practising good IT service management. ITIL also aligns with other management frameworks and standards, including COBIT, ISACA’s framework for IT governance and ISO/IEC 27001, the international standard for information security. The IT Service Management Forum (itSMF) is a not-for-profit membership body which supports a vibrant international community of practitioners and professionals, operating in over 50 countries. Its members include many small, large and multinational companies across all industry sectors. It offers opportunities to network and share experiences and best practices with IT service management practitioners and experts across the globe. IT service management as a professional practice is here to stay, because it makes sense for businesses. ITIL has already proved its place in the world and, as more organizations better understand its value, ITIL adoption will continue to increase. If you want to help your organization to get more value from its IT investments, then ITIL is a good place to start. About the author Reviewers TSO would like to thank Eddie Potts (Pink Elephant) and Stuart Rance (HP) who carried out a review of the paper on behalf of the Cabinet Office, TSO and itSMF UK. The author would like to thank the following people, who provided very helpful review comments: Ms Denise Plumpton, independent consultant Mr Dave Colquitt, interim business change manager at E.on Mr Mark Jones, independent consultant Acknowledgements Sourced by TSO and published on www.AXELOS.com Our White Paper series should not be taken as constituting advice of any sort and no liability is accepted for any loss resulting from use of or reliance on its content. While every effort is made to ensure the accuracy and reliability of the information, TSO cannot accept responsibility for errors, omissions or inaccuracies. Content, diagrams, logos and jackets are correct at time of going to press but may be subject to change without notice.
  • 11. © The Stationery Office 2013 Executive briefing: the benefits of ITIL® © Copyright TSO and Maggie Kneller. Reuse of this White Paper is permitted solely in accordance with the permission terms at http://www.AXELOS.com/Knowledge-Centre/White-Papers/ A copy of these terms can be provided on application to AXELOS at Licensing@AXELOS.com Trade marks and statements The AXELOS logo is a trade mark of AXELOS Limited. The AXELOS swirl logo is a trade mark of AXELOS Limited. ITIL® is a registered trade mark of AXELOS Limited.