Strategic Management for IT Services Using the

Information Technology Infrastructure Library

(ITIL) Framework
Hendro Gunawan
Department of Information System,
Faculty of Industrial Technology
Universitas Atma Jaya Yogyakarta
Yogyakarta, Indonesia
hendro.gunawan@uajy.ac.id

Abstract— Nowadays, the IT paradigm which initially
focused solely on data processing and manipulation, has now
begun to shift to strategic planning and IT services. The
company or organization must consider building and
implementing a clear Information Technology Service
Management (ITSM) that can control all IT services better.
Unfortunately, not all companies or organizations are able to
easily use the existing ITSM framework. This paper proposes a
solution for an ITSM model. The purpose of this research is to
provide ITSM models and document templates that can be
used by organization. This study uses the Information
Technology Infrastructure Library (ITIL) framework model, a
framework that is widely adapted by companies today. The
model that will be made in this study is at the service strategy
stages. This research contributes to providing an ITSM model
using the ITIL framework that can be used for organization in
particular.
Keywords—ITIL, ITSM, service strategy
I. INTRODUCTION
Along with the increasing service needs in organizations,
especially in the field of Information Technology (IT), the IT
paradigm which initially focused solely on data processing
and manipulation, has now begun to shift to strategic
planning and IT services. The IT environment is increasingly
developing as well as IT management. IT management is
becoming increasingly complex and difficult because of the
number of assets, both hardware, software and human
resources. The efficiency and effectiveness factors of the
system are needed to overcome the increasingly complex
environment. IT Service Management (ITSM) is one solution
that can manage this complex environment using several
methods [6]. IT Service Management (ITSM) is a method of
managing information technology systems that seeks to align
IT with business needs to manage the provision of efficient
IT services with quality assurance. Many organizations today
rely on Information Technology (IT) to assist organizations
in realizing the company's vision, goals and business
strategy. The use of IT is also based on several reasons, the
success of the organization in achieving business goals
directly depends on IT support.
Practitioners and the world of education have made
several kinds of standards for ITSM. Examples of existing
ITSM standards include ITIL, ISO / IEC 20000, COBIT
(Control Objectives for Information and Related
Technology) and DMTF (Distributed Management Task
Force). The main objective of all the above standards is to
provide the best IT services to customers and meet the
business needs of the organization. ITSM and ITIL are
currently very popular among IT managers [4]. ITIL is a
'best practice' framework that focuses on managing IT
services. Because ITIL is a framework, ITIL can be adapted
to any business environment, according to the needs of the
organization. ITIL introduces a systematic methodology in
managing IT services in organizations. ITIL is a high-level
IT governance framework that explains how to achieve
successful IT operational service management within an
organization [7].
The XYZ organization is an institution with 12,000
customers. In serving these customers XYZ organizations
use information technology. The use of IT in the XYZ
organization is realized in various services that can support
the needs of each user. With various applications that already
exist in the XYZ organization, there are also some services
that are still not available to customers. This research was
conducted to see how the process of making IT services in
XYZ organizations, especially available IT services and
seeing services that are not yet available in the scope of
service to customers. Based on an analysis of how the
organization works in providing a service, a model that can
be applied in XYZ organizations uses the ITIL framework.
In addition, document needs templates will also be made that
are not currently available in the XYZ organization.
II. LITERATURE REVIEW
IT Governance is a branch of corporate governance that
is focused on information technology (IT) systems and
performance and risk management. In this IT governance
there are several processes which consist of planning,
reporting performance and evaluating the decisions taken. In
addition, the company must establish a control metric for IT
investments that have been made. Organizational procedures
and policies are also one of the processes in IT governance,
companies must also be able to see regulations and laws
regarding organizational policies [9]. The needs and
adequacy of IT governance in each company / organization
are different, the factors that cause it are the company's
strategy, business needs on technology, policies in
management, number of branches or company location,
international or domestic [8]. Some other factors are
customer requirements, audit and control requirements, level
of security, level of risk and compliance and control of
documentation. These factors are considered in determining
the implementation of IT Governance in a company or
organization. [8].

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A. IT Service Management (ITSM)
ITSM is a set of special abilities of a company to provide
something of value to customers in the form of services.
Service is a means to provide value to customers by
facilitating the results that customers want to achieve [2].
The services provided by this company also vary depending
on the needs of their customers. In the past many companies
focused on their internal conditions both from the
organizational and technological aspects, at this time the
paradigm began to change. Nowadays IT service providers
must consider the quality of the services they provide and
they are now focusing on relationships with their customers.
Many large companies currently have implemented
ITSM, but not only large companies, small companies can
also implement ITSM. The company is currently in desperate
need of ITSM, but these needs must also be adjusted to the
size of the company and management in the company to
what extent will it need assistance from ITSM [1].
Alignment between business and IT can be done on the IT Fig. 1. ITIL Cycle
service process in the organization by implementing ITSM
[10]. The following is an explanation of the five components
in ITIL v3, namely: Service Strategy, providing guidance
B. Information Technology Infrastructure Library (ITIL) for ITSM implementation that ITSM in the organization is
framework not only responsible for managing and operating services,
but ITSM can also be interpreted as a very strategic
ITIL is a 'best practice' framework for managing IT corporate asset. Service Design contains methods and
services, which can be adapted to any business environment. designs to realize the strategic goals of IT and business
ITIL introduces a systematic methodology in managing IT companies into an IT service that can be provided to
services in organizations. Founded in the late 1980s [3] by customers. At this stage also identified service assets that
UK government service providers, Central Computer and can help realize services, such as server assets, human
Telecommunication Agency (CCTA). Table 1 shows the resources and so on. The scope of the Service Design stage
history of ITIL's development. The ITIL framework is also includes how the performance of a service, changes that
designed to help and provide benefits to organizations in might be made to improve service quality and how
managing their services. Within a few years there has been a continuity of a service. Service Transition contains guidance
development and modification of the ITIL framework. The on IT organizations to change services that have been
current version of ITIL is v4 which consists of four designed in the Service Design stage. At this stage new
dimensions. Whereas in ITIL v3 has 5 core dimensions, services or services that have been changed will be tested in
namely service strategy, service design, service transition, a new environment or operational environment that has been
service operation and continual service improvement. set by the organization. Service Operation, is a stage of
lifecycle that covers all the daily operational activities of
TABLE I. ITIL FRAMEWORK HISTORY [5]
managing IT services. Continual Service Improvement
No of Volumes (CSI) contains the methods and principles of quality
Framework Years Incorporated in the
framework
management of a service. CSI aims to continuously improve
the effectiveness and efficiency of the Process and Service
ITIL 1989-1995 31
that the organization has. Even though customers and
ITIL v2 2000-2004 7 businesses are satisfied with the services we provide,
ITIL v3 2007-2018 5 organizations still have to develop because business needs
continue to change as well. So that the business can
ITIL v4 2019-now 4 continue, organizations need to develop.

Figure 2 shows the service processes contained in the

ITIL v3 framework. In each component there are main
points that are taken into consideration in the ITIL life
cycle.

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Fig. 2. Service Process In Each Component
III. RESEARCH METHODS
This type of research is field research, by making direct
observations of the object under study in order to obtain
relevant data. The method that will be used in this study is to
use qualitative analysis research methods, which try to
describe the problems that occur case studies based on
existing facts, then will be analyzed to solve these problems.
In the first phase a preliminary study was carried out by
conducting literature studies on ITIL and re-studying in
depth the ITIL framework life cycle, especially at the service
strategy stage. In the second stage, the researcher conducts
analysis planning at the service strategy stage by preparing
questions to be used when interviewing the head of the XYZ
organization's information system office. The third stage is
collecting data by interviewing the XYZ organization
responsible for IT services in this case the XYZ
organization's Information Systems Office. Data from
interviews and supporting documents will be analyzed to
find out the real conditions in the organization at this time.
Having known the organization's business process in making
an information technology service, the next step is to create
an ITIL-based information technology service management
model.
IV. RESULTS AND DISCUSSION
Based on the results of the interview with the Head of the
Information Systems Office, it is known that the level of
service capability in the service strategy process is good. The
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Information Systems Office has a blueprint in developing
information systems and IT. This organization has a
blueprint that is used as a guide in developing information
systems in their organizations. The services that will be
created are planned in the blueprint, but do not rule out the
possibility that there will be new services that will appear
based on requests from users or stakeholders. The XYZ
organization's Information Systems Office has the authority
to plan and create a new service, as long as the service
supports the organization's needs and sustainability. Based
on the analysis that has been done, it can be concluded that in
the development of information systems the organization
XYZ has not been equipped with good processes and
documentation. This documentation is an important part of
the development stage of an information system. The results
of the analysis to the Information Systems Office also
suggested that documentation must exist and information
system development processes must also look at human
resources and the financial capacity of the organization.
Table 2 shows some document recommendations that are not
yet available in the XYZ organization.
TABLE II. DOCUMENT RECOMMENDATIONS
Document Supporting Recommendations
Service Asset documents and investment templates
Investment
Analysis
Service Valuation Service valuation template
Service Portfolio Pipeline service template
Template service catalog
Template service retired
Assessment of a Document all services
service
User request Customer request template
Customer Customer evaluation template
expectations
Strategic Service Strategic Service Assessment Templates and
Assessment and Service Strategy Execution
Service Strategy
Execution
Service Asset documents and investment templates
Investment
Analysis
At present, there are no documents relating to Service
Investment Analysis, Service Valuation, Service Portfolio,
Assessment of a service, User request, Customer
expectations, Strategic Service Assessment and Service
Strategy Execution, Service Investment Analysis. So that
some document templates are needed that can be a guide for
XYZ's organization in documenting plans and developing a
service.
In addition, based on the analysis conducted, a model in
the service strategy stage can be made using the ITIL
framework. Figure 3 shows the suggested model in the
service strategy stage.
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 yet have the capability to support the new services, training
will be conducted or call for people who are experts in the
field to be able to transfer knowledge.
At the strategy stage, a number of considerations related
to the system are system security strategies, how the
architectural model to be used, what technology will be used
because users also use various kinds of technology. How the
system will be done whether using labor outsourcing, or
using organizational resources.
The XYZ organization already has a roadmap and
planning, while for funds, each new service development
will be approved if it is in accordance with the goals and
vision of the organization. In particular, the business model
of this organization is not engaged in information
technology services, information technology is a
complement and support in this organization. Table 3 shows
one of the templates that can be used to define a service that
will be created.

TABLE III. TEMPLATE SERVICE PORTFOLIO

Type Description
Name << Current status of service life cycle >>
<<example: "Proposed", "Defined", "Designed",
"Built", "Tested", "Released", "Operational",
"Retired">>
Service type 1. Services to customers (services delivered to
customers) or support / technical services
(not visible to customers, used to support
services faced by customers)
2. Internal / external: Services provided
internally or services sourced from external
service suppliers
Service Owner << responsibility for service provider >>

Customer << customers who will use this service >>

Contacts and 1. For example the contact details of the Service

procedures for Level Manager
registering for 2. Procedure for registering
services:
Descriptions / 1. Business justification (added value from a
results desired business perspective)
by customers 2. Customer-side business processes / activities
supported by this service
3. Desired results in terms of utility (example:
"Field staff can access aa and bb company
Fig. 3. Service Strategy Model applications without being limited by location
or time")
4. Desired results in terms of warranty
On the organizational side, the services to be made must (example: "Access is facilitated throughout
align with the organization's vision and mission. This is very the world in a safe and reliable way")
important because the services that will be created must be Offer variations 1. Different level of service package is offered
able to realize the vision of the organization. The blueprint and packages 2. Different time zone coverage
3. The coverage of different geographical areas
that has been created must be clearly detailed how each
Costs and prices 1. Pricing schemes available for service
service that will be created can help organizations achieve provision
their vision. In the blueprint there are a lot of services or 2. Rules of punishment / refund fees
information systems that will be created, so that the 3. Pricing schemes available for service
organization's resources are not immediately exhausted so provision
4. Rules of punishment / refund fees
priority is also needed on what services will be made first. Dependence of 1. Services
Assessment also needs to be carried out, assessments Services Required Infrastructure Services
relating to the scope, regulation, culture and capabilities of (Infrastructure Services that form the basis of
existing human resources and the technology that the this service)
Supported services (other services that
organization currently has. The XYZ organization currently depend on this service)
has a clear organizational structure with their respective 2. Component / Item Configuration (the main
duties and functions. The problem that occurs in each CI like where this service depends)
organizational structure is the problem of document
documentation. The component of human resources is also In evaluating a service, a guideline for what will be a
an important consideration. If the human resources do not component of assessment is also needed. In the service

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strategy phase, an Information Technology service strategy
management service performance indicator will also be
created. Table 4 shows these performance indicators.
TABLE IV. INDICATORS OF PERFORMANCE MANAGEMENT STRATEGY
OF IT SERVICES
Critical success
Key Performance Indicator (KPI)
factor (CSF)
Effectiveness of 1. New service ratio planned in%
Service Strategies 2. Unplanned new service ratio in%
3. The number of new customers in absolute
numbers
4. The number of customers lost in absolute
numbers
Implementation of 1. The number of strategic initiatives in
Service Strategy absolute numbers
2. Number of strategic initiatives that have
been successfully implemented in%
The service portfolio also needs to be defined,
maintained and further developed so that it can be realized
in the Service Design stage. Table 5 shows Service Portfolio
Management Performance Indicators.
TABLE V. SERVICE PORTFOLIO MANAGEMENT PERFORMANCE
INDICATORS
Critical success
Key Performance Indicator (KPI)
factor (CSF)
Effectiveness of New service ratio planned in%
Service Portfolio Unplanned new service ratio in%
Management
Service Portfolio Service quota review in%
Management Review service success (reviews with positive
results) in%
In order for this ITIL framework to be implemented, it
requires a policy and procedure that can truly be followed
by members at each level of the organizational structure.
The problem of planning document documentation of a
service can be overcome by the policies and procedures that
have been made. To minimize errors in documentation, clear
templates need to be made in each process. This template
will be a knowledge management for XYZ organizations, so
that when members need information or want to make
information, they can use existing documentation or use the
template they have created. Based on the analysis, it can be
concluded that the right model is needed in the development
of a service, so that the services to be made can be in
accordance with the needs of the organization and users.
V. CONCLUSIONS
Data analysis shows that the level of service ability of
the XYZ organization in the service strategy process is
good. The Information Systems Office of the XYZ
organization has a blueprint in developing information
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systems and IT. This Blueprint is a guide for them in
creating a new service for users. The services that will be
created are planned in the blueprint, but do not rule out the
possibility that there will be new services that will appear
based on requests from users or stakeholders. The problem
that arises in this organization is the problem of
documenting a process in creating a new service. The model
suggested in this organization refers to the ITIL framework
model at the service strategy stage with processes including
IT service management, Service Portfolio Management,
Financial management for IT services, Demand
Management, Business relationship management. In order
for this model to work properly and correctly, it also
requires management policies and procedures for the
organization.
ACKNOWLEDGMENT
The author thank to Universitas Atma Jaya Yogyakarta
who have financed this research and reviewers for their
constructive comments.
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