The Business of IT: How to Improve Service and Lower Costs
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Drive More Business Value from IT…and Bridge the Gap Between IT and Business Leadership Apply business practices throughout IT to optimize budgets and improve ROI Create higher satisfaction and more realistic expectations for IT throughout the business Written by two leading IBM experts on bringing business discipline to ITIT organizations have achieved outstanding technological maturity, but many have been slower to adopt world-class business practices. This book provides IT and business executives with methods to achieve greater business discipline throughout IT, collaborate more effectively, sharpen focus on the customer, and drive greater value from IT investment. The book focuses on four specific areas of business practices related to improving IT service management, managing services’ cost and value, measuring IT performance with a goal of improving service and lowering cost, and improving customer alignment. Drawing on their experience consulting with leading IT organizations, Robert Ryan and Tim Raducha-Grace help IT leaders make sense of alternative ways to improve IT service and lower cost, including ITIL, IT financial management, balanced scorecards, and business cases. You’ll learn how to choose the best approaches to improve IT business practices for your environment and use these practices to improve service quality, reduce costs, and drive top-line revenue growth.
Preface xvAcknowledgments xxiAbout the Authors xxiiiChapter 1 Introduction: Improving Service and Lowering Costs 1How Business Practices Improve Service and Lower Cost 4Improve Service 6Lower Cost and Understanding the Value of IT Investments 8Realizing Business Objectives for an IT Organization 11Next Steps14Chapter 2 IT Service Lifecycle: Improving Business Performance 17Overview of ITIL 19IT Service Management 22IT Service Strategy 24IT Service Portfolio Management 27Demand Management 32IT Service Catalog Management 34IT Service Level Management 38Change Management 46Request Fulfillment 48Continual Service improvement 50Next Steps 52Chapter 3 Adopting IT Service Management Using ITIL 55Managing Change 57Managing Your ITSM Change Initiative 61Institutionalizing Your ITSM Change Initiative 78Next Steps 86Chapter 4 IT Financial Management: The Business of IT 89Define Service-Based IT Financial Management Activities 91Implement the IT Financial Management Maturity Model 98Develop a Roadmap for Improving IT Financial Management Practices 101Improve IT Financial Management Practices to Improve Service and Lower Cost 110Improve IT Accounting to Value Services 110Improving IT Charging Based on Services 120Improve IT Budgeting Based on the Service Lifecycle 131Improve Value-Added Financial Management Activities 134Next Steps 138Chapter 5 IT Business Cases: Realizing IT Value 139Use Business Cases to Improve the Value of Your Services 140The Intent and Purpose of a Business Case Process 141Benefits of an Effective Business Case Process 144Establish Process:Developing an Effective Business Case 147Project Design: Develop the Business Case 157IT Investment Selection: Choose the Most Valuable Investment Option 73Deployment and Post-Deployment: Measure and Realize the Benefit of Your IT Investment 174Next Steps 177Chapter 6 IT Performance Management: Defining Success 179What Is Performance Measurement for IT Organizations? 181Why Use Performance Measurement for Your IT Organization? 184The Balanced Scorecard Adapted for IT Organizations 189Managing Development and Use of Your IT Scorecard 201How Do You Populate Your IT Scorecard with Individual Measures? 213Links to Other ITIL Framework Components 215Sample IT Scorecard 215Next Steps 216Chapter 7 IT Business Skills: Enabling Customer Outcomes 219The IT Business Skill's Goals 220IT Business Skills 223Improving Your IT Business Skills 229Next Steps 233Chapter 8 Success Stories: Improving Service and Lowering Costs 235Swiss Re 236The City of Corpus Christi 239United States Navy Netwarcom 242Neighborhood America 246Forbes 249Next Steps 251Chapter 9 Going Forward 253Opportunities to Improve IT Business Practices 254The Future of IT ORganization 259Appendix Acronym List 265Index 271
