Traditionally, Enterprise IT has 'not' been operating as a customer-facing department, and its costs were allocated to business drivers out of bundled costs using an arbitrary driver. But the business aligned ITSM framework enables a company to run its IT operations as a business that aligns to the strategic needs of business to enable its growth.

1. OPERATING
ENTERPRISE IT
AS A BUSINESS
Introduction
Model comparison
Guideline Prepared by:
Paul S. Lim

2. 2|
What is ITSM?
The ITSM (IT Service Management) is a framework of activities, policies,
processes and supporting procedures that are performed by an organization
to design, plan, deliver, operate and control information technology (IT)
services offered to its customers.
AwelldesignedITSM frameworkenablesacompanytorunitsIToperationsasa
businessthatalignstothestrategicneedsofbusinesstoenableitsgrowth.
Traditionally, Enterprise IT has not been
operating as a customer-facing
department, and its costs were allocated
to business drivers out of bundled costs
using an arbitrary driver.
While this may have worked 100 years ago when
overhead costs were proportionally minimal to a
business, in today’s IT driven world, each business
needs to understand how their IT expenses are
spent in relations to how they operate.
In order for Enterprise IT to run as a business, to
provide cost and benefit transparency at the service
level, the office of CIO, the office of CFO, and
Operational Departments must align to provide a
path to assign IT costs based on service provided
by IT.
Without such transformation, it is impossible for
Enterprise IT to be strategic and become the
competitive edge for the company it serves.

3. 3|
IT Infrastructure
Library (ITILv3)
ITIL stand for IT Infrastructure Library. The reason
ITIL includes the term ‘Library’ is because back in
the mid 80’s when it got started, ITIL was a set of
31 books! Going back to its inception, ITIL’s
successful adoption by the industry is said to be
attributed to its non-prescriptive, non-proprietary,
and best practice approach. According to ITIL, it is
the most widely accepted approach to IT service
management in the world that can help individuals
and organizations use IT to realize business
change, transformation and growth.
The conceptual iterative life cycle approach of ITIL
is best represented in the diagram below, based on
current Version 3 which was born in May of 2007
where the library has been reduced to a set of 5
books.

4. 4|
APPTIO TBM Unified Model
Just as ITIL released its version 3, APPTIO launched itself as the company that
helps CIO’s run technology departments as a business. Compared to the
iterative lifecycle version of the ITIL V3, The TBM Councils’ ATUM (APPTIO
TBM Unified Model) takes an operational approach, meaning how does IT
support the business with its service to provide:
■ Better alignment between IT, Finance, and BUs via common language and
information about IT costs
■ Confidence to manage the business of IT with the backing of peer-derived
best practices
■ Faster adoption of TBM disciplines via pre-packaged software built to the
standard
■ Easier, more frequent IT cost comparisons with peers via ATUM-aligned
benchmarking
.
APPTIOestablishedaprescriptive,proprietary,andstandardasdefinedbyTBM
CouncilwhereApptioservesasTechnicalAdvisor.
BusinessUnit
Consumption
.
Service&
Applications
. ITTowers&
Sub-Towers
.
CostPools&
Sub-Pools
.
Actual&
PlannedCosts

5. 5|
1.Accounting&FinancialPlanningstructureis
analyzedatGeneralLegerCostPools&Sub-Poolsto
reviewmaturationofthedataavailable.
2.ITOperationsStructureisanalyzedaccordingto
TBMCouncil’sATUMmodelorITIL’snonprescriptive
modeltofindthebestfit.
3.Allfinancial,operational&consumptiondataare
mappedandvalidatedwithallocationand
consumptionlogictocreateacomprehensive
chargebackmodelatvariousgrains.
4.TheITalignsitsoperationtothecompany’s
strategyandneedsintermsofrun,growand
transformthebusinessandusechargebackanalytics
tocommunicatewithbusinessunitstorefineits
servicemodel.
5.ContinuousImprovementthroughLifecycle
ApproachperITILorasgovernedbyTBMCouncil
Guideline StepsSo, Which is Better?
Like most things in life, the answer depends, based on the maturation of the
IT organization’s service model, its budget, and transformation timeline. As
mentioned earlier, APPTIO is a software company that created its own
proprietary guideline to managing IT as a business, working with TBM
Council. ITIL is a professional organization that created a broader philosophy
and processes where it certifies professionals to qualify execution of its
methodology. Also, the landscape has changed quite a lot since 2007 with
emphasis on the cloud infrastructure and SAAS (Software as a Service) model
where APPTIO has been refining its model, at least on the actual
implementation side.
APPTIO has a strong value proposition in its ability to implement quickly
where the insights it brings out will lead to obvious decisions such as
application rationalization, resource allocation based on utilization, etc.
A company that has already walked ITIL path would already have its own
proprietary model similar to APPTIO for managing its operation, depending
on its maturity. For those companies, it would make sense to continue to fine
tune its operations as they have been, rather than fit into APPTIO’s standard
model.
The Enterprise IT is one of the most complicated operation to manage, with a
variety of source of costs and service drivers in fast changing environment.
Whether you use ITIL’s approach or TBM Council’s ATUM approach, the
success of IT Transformation, in the way it operates and charges its
customers, will depend on your understanding of the IT operation, technical
ability to map costs, and ability to cultivate continuous improvement cycle
with buy-ins from the entire organization.

6. Appendix

7. 7|
APPTIO Technology Business Management Unified Model
www.tbmcouncil.org
www.Apptio.com

8. 8|
Configuration ManagementSystem(ITILv3OpenFramework)
This information is licensed under the terms of the Open Government License
http://www.nationalarchives.gov.uk/doc/open-government-licence

9. 9|
RequestforChangeWorkflowandKeyInterfacestoConfigurationManagement
(ITILv3OpenFramework)
This information is licensed under the terms of the Open Government License
http://www.nationalarchives.gov.uk/doc/open-government-licence

10. THANK YOU