BmC industRy insights

Whats new in itil v3? understanding the changes in the latest itil release
By Ken Turbitt, global best practices director, BMC Software
The growing popularity of the IT Infrastructure Library (ITIL ) reflects the substantial impact that these best-practice guidelines can have on a companys IT and business performance. Now, with the recent release of ITIL version 3 (ITIL V3), this positive impact will be greater than ever. Needless to say, the ITIL V3 books are packed with helpful information for IT professionals and business leaders. However, a thorough reading will take some time. Therefore, as you start down the path toward ITIL V3, you may be interested in a high-level snapshot of what to expect.

Evolution not REvolution

You are likely wondering about the scope of the changes in ITIL V3. While there are many differences between ITIL V2 and ITIL V3, the newest version represents more of an evolution than a revolution. The major changes youll notice include: > A transition from aligning IT with the business to integrating IT into the business > A new focus on service lifecycle management > Knowledge management > Added flexibility, adaptability, and continual improvement > Enhancements that make processes more versatile > The introduction of services as assets > Clear measurement of return on investment (ROI) and return on value > An approach to strategic thinking about the business The latest release provides better guidance to help the IT organization work more

efficiently. Youll see how this guidance will help speed IT implementations and make deployments run more smoothly. Youll also notice how current ITIL processes will be positively impacted. Finally, youll be able to quickly identify the specific benefits of using ITIL V3 in your own business environment.

technology to services and business processes, so you can make decisions based on business impact.

stRAtEgiC thinking ovER A lifECyClE of sERviCE

In ITIL V2 each process has its own module, which can create silos and prevent a longrange view of the activities. In contrast, ITIL V3 helps you think more strategically across the full lifecycle of a service. The new guidelines define five stages of the service lifecycle: > Service strategy > Service design > Service transition > Service operation > Continual service improvement ITIL V3 contains all the processes you need to manage services within this lifecycle structure and to produce business value at every stage.

A QuAntum lEAp in i.t.-BusinEss CommuniCAtion

The underlying philosophy of ITIL V2 is the alignment of technology with business objectives and the creation of a common language to facilitate communication between IT and business owners. ITIL V3 does even more. It vastly improves the IT-business relationship by integrating IT with the business. The distinction between IT and the business blurs, and the language of the business replaces the language of IT. Communication between IT and business managers is easier, more accurate, and more efficient than ever. In addition, you will gain visibility into the relationship of

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flExiBility, AdAptABility, And ContinuAl impRovEmEnt

ITIL V3 promotes a flexible model for service provisioning using a value network approach, which can be defined as a complex set of relationships between two or more groups or organizations. Value is generated through the exchange of knowledge, information, goods, or services in this case, between your IT department and other areas of the business. The newest version of ITIL also introduces the concept of adaptable models. This is a key component of the Service Transition book, in which ITIL V3 offers guidance for selecting a fit-for-purpose model for each type of service transition that moves from design into the live environment. Adaptable models make it possible to respond quickly to rapidly changing business requirements. The ITIL V3 Continual Service Improvement book now exerts influence throughout the service lifecycle by identifying triggers for improvement at every stage of service management.

also retaining the risk-mitigation elements. > Release and deployment management has undergone extensive changes and has expanded its focus to all areas of release and deployment.

According to ITIL V3, you can evaluate the return on value of a project in eight key dimensions: competitive, financial, functional, process, relationship, strategic, technical, or usage values. You can develop a comprehensive picture of value using these appropriate key metrics to communicate the return on value of any projects you are championing. The ITIL V3 Service Design book guides you in determining the mechanics for measuring ROI and return on value, providing insight into: > What to measure > How to measure it > Which metrics to use > How to use the measurements to demonstrate achievement

sERviCE AssEts CREAtE BusinEss vAluE

ITIL V3 introduces the concept of services as assets. Service assets consist of utility and warranty. Utility is the service itself. It is provided by a combination of people, processes, and technology. An online retail order-entry service and a companys online health plan enrollment service are utility examples. Warranty is the assurance that the utility will perform at an expected level. An online orderentry utility, for example, may warrant item availability and delivery time. Some services, such as online order entry, are consumed by external customers. Others, such as health plan enrollment, are consumed by internal customers. The new ITIL V3 guidelines re-categorize asset information defined in ITIL V2 under either the utility or warranty category. Utility and warranty act upon each other to create asset value. Assets have a direct impact on business value because they produce something of value for the business. As a result, you can weigh the value of service assets based on business impact and use this weighting to prioritize actions according to the business value of the service assets involved.

mAking thE most of youR Existing i.t. invEstmEnt

The bottom line is that ITIL V3 differs substantially from ITIL V2. While many of the changes are minor tweaks, others represent major advances in IT management. Your efforts in implementing ITIL V2 apply to the ITIL V3 environment. Moreover, the exciting changes in ITIL V3 will enable your enterprise to take full advantage of its investment in IT to make the business more innovative and successful. This approach, known as Business Service Management (BSM), is the most effective way to manage IT services from a business perspective, and it is now advocated in ITIL V3. BMC Software offers solutions that automate and integrate ITIL practices. For more information, visit www.bmc.com/itil.

stREAmlining pRoCEssEs
Processes have been enhanced in ITIL V3 to help organizations operate in a lifecycle context. This new version eliminates gaps and makes practices more versatile. Here are just a few examples: > The service-request activity has been removed from the incident process and reinstated as a separate request-fulfillment process. > Event management provides formal process elements to proactively manage potential service issues before they become incidents and to more quickly recognize issues that are incidents. > Change management processes have been overhauled to leverage adaptive models to suit change types. > Change management has been streamlined and updated to permit change, while

mEtRiCs foR A CompREhEnsivE piCtuRE of thE BusinEss

ITIL V3 expands the definition of return beyond financials to include such key indicators as higher customer and employee satisfaction. The new framework helps you quantify, measure, and optimize both ROI and return on value. The ITIL V3 Service Strategy book provides guidelines for calculating ROI and return on value. It also assists in determining what generates value and how the definition of value must be accepted by both IT and business managers.

About BMC Software

BMC Software delivers the Business Service Management solutions IT needs to increase business value through better management of technology and IT processes. Founded in 1980, BMC has offices worldwide and fiscal 2007 revenues of $1.58 billion. Activate your business with the power of IT. www.bmc.com.

To learn more about how BMC can help activate your business, visit www.bmc.com or call (800) 841-2031
BMC, BMC Software, and the BMC Software logo are the exclusive properties of BMC Software, Inc., are registered with the U.S. Patent and Trademark Office, and may be registered or pending registration in other countries. All other BMC trademarks, service marks, and logos may be registered or pending registration in the U.S. or in other countries. ITIL is a registered trademark, and a registered community trademark of the Office of Government Commerce, and is registered in the U.S. Patent and Trademark Office. All other trademarks or registered trademarks are the property of their respective owners. 2007 BMC Software, Inc. All rights reserved.

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