ITIL Terms and Concepts

ITIL

  • A set of best practices

  • A framework of best practices for IT Service management.

  • Helps all organizations to deliver IT services using the most efficient methods

Goal of ITIL

  • To improve efficiency and achieve predictable service delivery

ITSM

  • Stands for Information Technology Service Management

  • Focuses on how an organization maintains IT Services for Customers

  • Controls various activities involved in a process

Benefits of ITIL

  • Reduce IT Cost

  • Enhanced IT Services

  • Improved Productivity

  • Better Management of Business Risk and Service Disruption

  • Improved Customer Satisfaction by delivering efficient services

  • Provides guidance to address service management challenges

—END OF BENEFITS OF ITIL—

ITIL History

  • ITIL in 1980’s

    • focus on practical guidance, 36 books

  • ITIL v2 in 2001

    • Focus on processes, maturity, Support and Delivery Book

  • ITIL v3 in 2007

    • Focus on Service Lifecycle, 5 lifecycle books

  • ITIL 2011 edition in 2011

    • Update to V3

  • ITIL 2016 Practitioner Course

    • ITIL Guiding principles created

  • ITIL 4 in 2019

    • Focus on Value and flexibility

      • Lean, Agile, and DevOps

  • ITIL Today

    • Service drive value

      • For service providers

      • For Customers

    • Organizations are changing

      • Need for speed

      • Need for cross-functional collaboration

    • Digital Transformation is creating new business models

    • ITIL 4 reflects updates to best practices to support

      • Customer experience

      • Value streams

      • New ways of working

        • Lean, Agile, DevOps

—END OF ITIL HISTORY—

ITIL Key Concepts

  • IT Service Management

  • Value and value co-creation

  • Stakeholders

  • Services

    • Definition

    • Offerings

  • Value

    • Outcomes, costs, and risks

    • Warranty and Utility

  • Service Relationships

—START OF KEY CONCEPT DEFINITIONS—

SERVICE MANAGEMENT

  • A set of specialized organizational capabilities for enabling value to customer in the form of services

VALUE AND CO-CREATION

  • Value is the perceived benefits, usefulness and importance of something.

  • Value Co-Creation

    • Communication in value chain is bi-directional

    • Active collaboration between providers and consumers

    • Stakeholders across the service value chain contribute to:

      • The definition of requirements

      • design of service solutions

      • service creation and/or provisioning

STAKEHOLDERS IN SERVICE MANAGEMENT

Customer

  • A person who defines requirements for services and takes responsibility for outcomes from service consumption

User

  • A person who uses services

Sponsor

  • A person who authorizes the budget for service consumption.

Supplier

  • A stakeholder responsible for providing services that are used by an organization.

Other Stakeholders Include:

  • Organization

    • A person or group of people that has its own functions with responsibilities, authorities, and relationships to achieve its objectives.

  • Shareholders

  • Community

  • Employees

SERVICE OFFERING

  • Description of one or more services, designed to address the needs of a target consumer group

  • May include goods, access to resources and service actions

  • Goods Outcome

    • Ownership is transferred to the consumer

    • Consumer takes responsibility for future use

  • Access to Resources

    • Ownership is not transferred to the consumer

    • Access is granted/licensed under agreed terms or conditions

  • Service Actions

    • Performed by the provider to address a consumer need

    • Performed according to agreement with consumer.

SERVICE

  • A means of enabling value co-creation by facilitating outcomes that customers want to achieve, without the customer having to manage specific costs and risks.

OUTPUT, OUTCOME, COST & RISK

  • Output

    • A tangible or intangible deliverable of an activity

  • Outcome

    • A result for a stakeholder enabled by one or more outputs

  • Cost

    • The amount of money spent on a specific activity or resource

      • Costs removed from customer (Part of Value)

      • Costs imposed on customer (Cost of Consumption)

  • Risk

    • Possible event that could cause harm or hinder achievement of objectives

    • Can be defined as uncertainty of outcome

    • Can be used in context of measuring probability of positive or negative outcomes

      • Risks removed from Customer (Part of Value)

      • Risks imposed on customer (Risks of Consumption)

  • VALUE = BENEFITS - (COST + RISKS)

SERVICE VALUE DEFINITION

  • Utility (OR)

    • Performance supported?

    • Constraints removed?

  • Warranty (AND)

    • Available Enough?

    • Capacity Enough?

    • Continuous Enough?

    • Secure Enough?

  • Service Value

    • Utility Warranty

Service Relationship

  • Aims to co-create value

    • Roles are:

      • Service Providers

      • Service Consumers

    • An organization can have both roles

  • A cooperation between service provider and service consumer

  • Service Relationship include:

    • Service provision

    • Service Consumption

    • Service Relationship Management

Service Provisioning

  • Consists of activities performed by a service provider to provide services

    • Management of provider resources configured to deliver the service

    • Provision of access to resources for users

    • Fulfillment of the agreed service actions

    • Service of performance management and continual improvement

Service Consumption

  • Consists of activities performed by a service consumer to provide services

    • Management of the consumer resources needed to consume the service

    • Utilization of the provider’s resources

    • Requesting of service actions to fulfill

    • Receipt of, or acquiring of goods.

Service Relationship Management

  • Consist of joint activities performed by a service provider and a service consumer to ensure continual value-cocreation based on agreed and available service offerings.

ITIL FRAMEWORK: The ITIL Service Value System

  • ITIL Service Value System (SVS)

    • Describes how all components and activities of the organization work together as a system to enable value creation.

  • Operates across the 4 dimensions:

    • Guiding Principles - give direction

    • Governance - checks the progress against strategies, plans, policies

    • Continual improvement - drives change

    • Service Value Chain (SVC) - aligns to above three components

    • Practices - provide guidance for activities in the Service Vale Chain

GUIDING PRINCIPLES OF ITIL

  1. Focus on Value

  2. Start where you are

  3. Progress iteratively with feedback

  4. Collaborate and promote visibility

  5. Think and work holistically

  6. Keep it simple and practical

  7. Optimize and automate

ITIL FRAMEWORK: The Four Dimensions

  1. Organizations and People

    • Complexity of organizations is growing

    • Structure and management should support strategy and operating model.

    • That Includes roles, responsibilities, and systems of authority and communication.

    • Includes:

      • Formal organizational structures, Service Teams

      • Roles and Responsibilities

      • Required Staffing and Competences

      • Culture & Leadership

  2. Information and Technology

    • Applies both to service management and to the service being managed.

    • Relationships between different components of the SVS, such as Inputs/outputs of activities and practices

      • Relationships between components

      • Technologies

      • Information and Knowledge

  3. Partners and Suppliers

    • Organizations and services depend partly on external services.

    • Relationships between organizations involved in design, development, deployment, delivery ,support and/or continual improvement of services.

  4. Value Streams & Processes

    • Defines how organizations/SVS, work together to enable value creation.

    • Focused on how activities are organized, and ensure effective creation for all stakeholders.

EXTERNAL FACTORS INFLUENCING THE DIMENSIONS

P - Political E - Economic S - Social T- Technological L - Legal E - Environmental

ITIL Enables Organizations To:

  • Provide a strong, unified, value-focused direction for the organization

  • Address new service management challenges

  • Utilize the potential of modern technology

  • Ensures a flexible, coordinated and integrated system for effective governance and management for IT-enabled services.