Value of ITIL Process Framework to IT Service Management

WHITE PAPER Author: Viswanathan. S
This white paper analyzes the value ITIL process framework adds to IT service management. In IT service management parlance the value of a service can be measured in four parameters: alignment of IT service to business, cost, quality of service and timeliness of service. Implementation of ITIL processes will improve all these four parameters.

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WHITE PAPER

Value of ITIL Process Framework to IT Service Management

Table of Contents
INTRODUCTION ............................................................................................. 3 DEFINITION OF VALUE PERTAINING TO IT SERVICES ................................... 4 HOW ITIL DOES ADDS VALUE TO IT SERVICES ............................................. 4 CONCLUSION ................................................................................................ 7 REFERENCES ............................................................................................... 7 GLOSSARY ................................................................................................... 8 ABOUT THE AUTHOR .....................................................................................8 ABOUT WIPRO TECHNOLOGIES................................................................... 8 WIPRO IN TECHNOLOGY INFRASTRUCTURE SERVICES.................................9

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WHITE PAPER

Value of ITIL Process Framework to IT Service Management

Introduction
Leading companies shift from purely a cost- oriented focus to a value-oriented focus. It has been found that the most forward-thinking, best practice companies have begun a shift away from purely operational metrics and measurements towards tracking the business value delivered by their IT initiatives. CIOs have traditionally delivered the requested technologies to the business at the lower cost through a combination of specialty service providers and internal services. The Best CIOs recognize the flaws associated with this approach; this forces the discussions about the value of IT to be based strictly on cost. The more savy CIOs are moving toward a role that has them focusing on cost effectively maximizing the business value enabled by IT. (Source: IT Trends 2003: IT Services; from Giga Information Group). As the IT organization’s role moves beyond efficiency to Business effectiveness, implementing an ITO value management process is crucial to optimizing an organization’s return on the IT investment. In this new scenario the words like “ best practices”, “process optimization”, “quality of service” and “alignment of IT services to business” etc. do not remain mere buzzword; rather they have turned out to be the lifeline of all ITOs. It is essential that ITOs and service providers adopt world-class processes and best practices so that they don’t learn and grow through the path of trials, errors and tribulations.

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Value of ITIL Process Framework to IT Service Management

Definition of Value Pertaining to IT Service Management
In IT Service management parlance the value of a Service can be measured in four parameters: alignment of IT service to business, cost, quality of service and timeliness of service. Alignment of Service to Business: The degree to which IT service is aligned with the current and future need of the business and its customers Cost: Rs/$/UKP/Euro/ / Quality of Service: QoS (Quality of Service) is a measurement of how well a service or solution complies with internal or external service-level agreements (SLAs). These metrics include, but are not limited to – availability, reliability, security, up-time percentages, serviceability, response times, storage, dsaster recovery etc. Timeliness: This is defined as responsiveness of the service provider to reactive support and planned change reflecting business priorities.

How ITIL Does Add Value to IT Services
The degree to which IT Service is aligned with the business can be rated by the Metrics generated by the service providers. Most of the ITO/service providers generate reports full of IT performance metrics and very few produce business focused metrics. Within the service level management of ITIL there is a focus on translating IT strategy of the business into IT services, managing the service level for those services, and putting in place continuous service improvement processes for those services. It defines, negotiates, monitors, reports, and controls customer specific service levels within predefined standard service parameters. It also generates customer-specific services if the SLA requires it. Where “defines” means translating customer-specific service delivery requirements into selected values for standard service level parameters and incorporating these into the form of Service Level Agreements (SLAs). SLAs bring the right balance between the demand of IT services and supply of IT services by knowing the requirement of the business and clearly communicating the capabilities of IT. Thus the right expectation of what is possible at what price is set. It also provides advance warning to business plans & forecasts. Thus services are aligned with business requirements and business strategy.

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Value of ITIL Process Framework to IT Service Management

ITIL Ensures Quality of Service
It should be noted IT organizations do not trip over the mountains….but over the pebbles. Disruptive changes, high “peer support costs”, poor service level agreements, unidentified components, unknown service costs, unable to justify investment, no measure or proof of improvement, inconsistency in delivery of service and changes, unsatisfactory response time; More than 50 % of effort of IT staff is spent in firefighting; the share of repeat incidents is more than 40 % of all tickets – these are just some of the many complaints often heard in the corridors of IT organizations. Implementation of ITIL processes can ensure significant improvement in professionalism, proactive support, speed & accuracy of resolution of the incident/request/query, increased availability, stability of business-critical systems, effective change management and overall customer satisfaction.
Change Management & Release Mgmt

Less adverse impact of changes on services, reduced no. of failed changes Increases Uptime Improves Availability

Elimination of repeat incidents. Ensures higher availability

Problem management process

Capacity planning process

Improved Qu li y f Service
Speed and accuracy of resolution increases

Known Error DB

Availability management process

Configuration Management Process

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Value of ITIL Process Framework to IT Service Management

ITIL Ensures Timeliness of Service?
It is possible to achieve significant improvement in accuracy of scheduling of major changes, % of deployment, which are right first time, responsiveness on small or corrective changes, and business/IT coordination in change planning and capability to operate proactively more than reactively.
Change Management process Configuration Management process

Change control Board, Impact analysis, better scheduling of changes

CMDB

Decreases Rollbacks, Incidents caused by incorrect cha es Problem Management process Incident volume and Firefighting decreased
I

Elimination of repetitive incidents Known Error DB

Accurate Rollouts

Effective software control, consistent Distribution process, standardized desktops

Release Management process

ITIL Ensures Cost Reduction
Recently, some companies have made public the benefits they realized by implementing ITIL best practices for IT service Management: Procter & Gamble- After the implementation of ITIL processes has seen a six to eight percent cut in operating costs. Another ITIL project has reduced help desk calls by 10 %. Ontario Justice Enterprises- Created a virtual help/ service desk that cut support costs by 40 % Caterpillar- After applying ITIL principles, the rate of reaching the target response time for incident management on Web-related services jumped from 60 % to more than 90 %. A typical scenario where cost of service is reduced without improved Quality is depicted below:

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Value of ITIL Process Framework to IT Service Management

Change Management process

Configuration Management process

No. of calls caused by changes reduces

CMDB

Incident Management process

Better scripts and Knowledge Base will increase the incidents resolved At L1 (Service Desk)

Average cos call Decreas

In me and Firefighting decreased

s

Problem Management process

Elimination of repetitive incidents

Known Error DB

Conclusion
As outlined in this document, the benefits of adopting and implementing ITIL are many. Organizations have cut costs, improved their efficiency effectiveness significantly. The enterprises should adopt ITIL as a discipline. All improvement efforts in IT service management should be done with ITIL as a frame of reference.

References
1. ‘Effects of the British Standard on IT service Management’, Gartner Research note. 2. ‘IT Trends 2003: Offshore outsourcing’, Giga Information group 3. ‘Best Practice for Service support, and Best Practice for Service Delivery, ITIL the key to Managing IT services. 4. Melissa Shaw, Network World Management Strategies Newsletter

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Value of ITIL Process Framework to IT Service Management

Glossary
ITO - IT Organization ITIL – Information Technology Information Library QoS – Quality of Service SLA – Service Level Agreement CMDB - Configuration Management Database

About the Author
Viswanathan is the Manager (Mission Quality) and Six sigma Black belt for Technology Infrastructure Services division of Wipro Technologies.

About Wipro Technologies
Wipro is the first PCMM Level 5 and SEI CMMi Level 5 certified IT services company globally. Wipro provides comprehensive IT solutions and services (including systems integration, IS outsourcing, package implementation, software application development and maintenance) and Research & Development services (hardware and software design, development and implementation) to corporations globally. Wipro’s unique value proposition is further delivered through our pioneering Offshore Outsourcing Model and stringent Quality Processes of SEI and Six Sigma.

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Wipro in Technology Infrastructure Services
Wipro is the pioneer of infrastructure support service delivery model in India. Wipro runs large Offshore Development Centers for its global client base, servicing both their software development needs and IT infrastructure needs. Wipro has over 50 such offshore centers running for its global clients, which is the largest for any Indian software services provider. The Government of India awarded Wipro with the Business Model Innovation Award for its efforts in this space. Wipro has over 2500 person years of experience in IT infrastructure management delivering services to many global customers such as Seagate, Putnam Investments, J. P. Morgan, CSC Ltd., Nike, Data Channel, KPMG, Scottish Parliament, Orbit, etc. We have built a rich repository of best practices, which we share with our customers for delivering exemplary service. http://www.wipro.com/tis For more white papers logon to http://www.wipro.com/insights
© Copyright 2003. Wipro Technologies. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without express written permission from Wipro Technologies. Specifications subject to change without notice. All other trademarks mentioned herein are the property of their respective owners. Specifications subject to change without notice.

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