TO IDENTIFY AND EXAMINE THE EFFECTS OF IMPLEMENTING ITIL

To identify and examine the effects of Implementing ITIL

Abstract

Although information technology (IT) is taking significant role in businesses with its innovating and supporting potential, it seems that it is least understood company asset. Successful organizations manage IT function in much the same way that they manage their other strategic functions and processes. This in particular means that they understand, manage and systematically measure the quality of IT performance. They are doing so by engaging in IT Governance and IT Audit activities. In recent years there are number of world-wide used standards and best practices in IT process management area such as CobiT and ITIL, which helps management to measure the IT performances. In this paper we present the case study of managing IT services in finance industry by implementing suggestions which arises from ITIL methodology. After brief explanation of key terms, the methodology of complex ITIL implementation project is given and key performance indicators for major IT related business processes stressed.

Table of Contents

Chapter One: Introduction5

Background of the Study5

Thesis Statement6

Importance of this research with respect to ITIL7

Rationale7

Chapter Two: Literature Review10

ITIL Methodology and Business Organisations10

ITIL Issues12

Methodologies and guidelines for IT Audit and IT Governance12

ITIL methodology adopted - what does it really mean?14

ITIL Framework16

Interprise management-engineering framework elements19

Input20

ITSM and the KM pillars22

Leadership22

Organization23

Technology24

Learning25

Process and activities26

Integrative management27

Framework hybridization27

Technologies and techniques28

Quality improvement and metrics29

Feedback30

Output33

Service quality33

Effectiveness and efficiency34

Risk and cost35

Innovation36

CMDB as a KM-compliant tool36

Structural37

Architectural38

Contextual40

The bottom line43

ITSM frameworks44

Research activities45

Review of industrial reasoning approaches46

Rule-based reasoning47

Case-based reasoning47

Model-based reasoning48

Service management scenario at the Hong Kong Science Park49

ITSM process modules51

Implications on service outsourcing model52

Conflict of interest53

Standardizaton of processes and measurement53

Owner of the tools54

The analysis results55

Service target improvement55

The most requested users56

The most requested services58

Service impact analysis architecture59

Components60

Derive of critical business operations61

Identify the business processes and services62

Classification of business process service levels62

Business process and IT services mapping63

IT resources and IT services mapping63

Risk analysis64

User activities monitoring65

Three dimensions mapping66

Example of operation67

Configuration and usage snap-shot67

Network/system status probing68

Service event correlation and notification68

Chapter Three: Methodology70

Qualitative Research70

Research Method71

Literature Selection Criteria72

Search Technique72

Theoretical Framework72

The case study company profile74

Chapter Four: Analysis and Discussion76

ITIL implementation: analysis of the current practice and project steps76

Pilot project76

Education77

Side effects and problems during implementation of ITIL78

Case study results and KPIs for managing IT services quality79

Chapter Five: Conclusion85

Conclusion and implications85

Further work87

References89

Chapter One: Introduction

Background of the Study

In today's highly competitive business environment, effective and innovative use of information technology (IT) has the potential to transform businesses as well as to positively affect organizations performance. A number of researches showed that intensive use of IT which is particularly aligned with business strategy can provide number of opportunities and actual benefits to companies of all activities and sizes . A good, or rather, inevitable approach for measuring the performance of IT should include thorough audit of all aspects of IS and IT, including hardware, software, data, networks, organization and key business processes. The primary goal of the information system audit (IT audit) is to systematically, thoroughly, and carefully examine the IT processes, to measure the IT performance, to warn about possible omissions and risks, and thus examine ...