What’s with all the talk about ITSM, ITIL and IT Service Costing?

What’s with all the talk about ITSM, ITIL and IT Service Costing?

CIOs are striving to impose formal processes on IT activities, spurred by

  • new compliance regulations,
  • the rise of outsourcing options,
  • flattened budgets,
  • a retiring SME workforce, and
  • calls by senior management to “make IT a transparent partner to the Business – not run IT like a business.”

This push has led many CIOs to begin organizing and managing IT and delivering it to the rest of the corporation in the form of well-defined, tightly-managed services.

Steps to accomplish what these CIOs are doing.

  1. You could run out and buy all five ITIL books to get yourself up to speed, or perhaps bring in a consultant. Whichever resource you choose, you should be aware of these conditions:  This process is going to take up a lot of your time unless you can replicate yourself.
  2. Depending on your in-house capabilities, you may need to engage multiple vendors to roll out a complete ITIL process (Strategy, Tools, Implementation, and Training).
  3. For the complete transparency the business is demanding, you will need to adopt a showback/chargeback method for services, so you can show them actual costs per service?, perhaps even coming up with a “rate card” for the CFO to use when the yearly IT budget requests come in!
  4. You are going to need to build a clearly defined, accurate service catalog that will allow you to share not only costs , but available technology with your customers.
  5. There are very few options available to CIOs that allow them to quickly and concisely develop the IT Financial Management “leg” of their new lean process strategy.

Building a clearly defined IT Financial and Service management process and Service Catalog is the perfect opportunity for IT to get out from the backbreaking grind of constant firefighting by way of careful planning, communication, and structured response.

TIP:  Join a C level user group and talk to someone who has implemented IT Management processes – let them share with you the potential benefits:

  • reduced costs;
  • improved productivity, communication, and morale;
  • reduced time-to-market; and
  • competitive advantage.

Implementation of ITIL is just the beginning of the battle.

ITIL can bring structure to the development, operation and management of IT services, but it does not do those tasks in itself. For ITIL to provide the promised returns, you must apply it in a way that leverages and capitalizes on specific strengths, and eliminates or minimizes specific weaknesses.

Fact: ITIL can help your company harness the strategic power of IT, but it can do so only in the context of your company, your customers, and your IT department’s personnel, priorities, constraints, and values.

7 thoughts on “What’s with all the talk about ITSM, ITIL and IT Service Costing?

  1. Good Afternoon

    We are associated with SkillSoft where I located you as a proctor for ITIL training and certifications. We have two employees at Heights Finance signed up with Skillsoft to train on the ITIL Foundatiion v3 and are looking to find a company to administer the test for certification.

    I look forward to hearing from you if you are a company that will be able to assist us with our needs or if you have any questions please give me a call.

    Thank you

    1. Thank you for interest in our training program. I have sent you a follow up email. I look forward to speaking with you.

  2. I think there are two other aspects that need to be coerved in this discussion and which you alluded to briefly affect and impact. When we discuss efficiencies and effectiveness in the context of total productivity, we have to include the overall affect and impact on the area where we are trying to improve on efficiencies and effectiveness. The affect and impact on a given area, whether that is lab support, application support, research and development or any other given area where IT is involved, has to be considered both in the short term and in the long range planning. Of these two, impact is the most visible and probably the most likely to change the overall effectiveness of the CIO’s role.We recently witnessed the impact of Hurricane Irene on the east coast. The efficiencies and effectiveness of the weather reporters, FEMA and local government staff, and other support services could not have been better conducted; however, the impact of the storm, the torrential rains and the damage caused by the post-storm flooding could not have been stopped no matter how efficient or effective the pre-storm preparations were. One could ask, what the comparison of this event has in relationship to IT in higher education and that would be a fair question. The comparison, as I see it, is that no matter how well you prepare, no matter how efficient or effective your vision for your department and programs will’ be, no matter how well you communicate to the administration, staff and students, you still have to deal with the aftermath of any changes to the environment that you make towards the end objective of being more efficient. The aftermath could be positive or negative depending on what was done, but you have to be ready to support the change in policies, procedures or staffing to your constituents while limiting the negative impact or affect on their environment.A prime example is the implementation of change management. If performed correctly and with proper governance, change management can have an extremely overall positive affect on IT operations. At the same time, even if performed correctly, change management has a tendency to slow the implementation process. The impact to the end users, if they have been accustomed to having their requests acted upon immediately, will be received as a negative change. The CIO and the IT department has to be prepared to support or even defend these types of changes and the impact of these types of changes.

    1. Thanks for your thoughtful insights and feedback. We have a couple more blogs coming out in this series and I look forward to your feedback – Georgia

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