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Module 2.2 - ITIL v3 Foundation - more of those TLA's PDF Print E-mail
Written by David Noel-Davies   
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Module 2.2 - ITIL v3 Foundation - more of those TLA's
Pop quiz of module 1
Service Operations (SO)
Internal IT views vs. external business view
The value of communication
Continual Service Improvment
pop quiz for module 2

Continual Service Improvement (CSI)

The continual Service Improvement volume provides instrumental guidance in creating and maintaining value for customers through better design, introduction, and operation of services. It combines principles, Practices, and methods from quality management, Change management, and capability management.

Organizations learn to realize incremental and large scale improvements in service quality, operational efficiency, and business continuity. Guidance is provided for linking improvement efforts and outcomes with service strategy, design and transition. A closed loop feedback system, based on the Plan, Do, Check, Act (PDCA) model specified in ISO/IEC 20000, is established and capable of receiving inputs for change from any planning perspective.

Continual Service Improvement (CSI)

Aims to continually align IT services to changing business needs by identifying and implementing improvements.

Continually looking for ways to improve process efficiency and effectiveness as well as cost effectiveness

            Complacency is the single biggest enemy of continual improvement

The Objectives of CSI are to:

            Review, analyze and make recommendations on improvement opportunities in each lifecycle phase: Service Strategy, Service Design, Service Transition, and Service Operations

            Review and analyze service level achievement results

            Identify and implement individual activities to improve IT service quality and improve the efficiency and effectiveness of enabling ITSM processes

Improve costs effectiveness of delivering IT Services without sacrificing customer satisfaction

Ensure applicable quality management methods are used to support continual improvement activities.

Scope of Continual Service Improvement (CSI)

            Overall health of ITSM as a discipline and of the services

            Alignment of the service portfolio with business needs

            Maturity of processes

Value to the Business of Continual Service Improvement (CSI)

            Improve service quality, higher availability

            Gradual cost reductions and better cost-justification

            Better information about existing services and areas for improvement

            Better business / IT alignment

            Increased flexibility and adaptability

            Improved communication

            ROI / VOI

There are four commonly used terms when discussing service improvement outcomes:

            Improvements

            Benefits

            ROI (Return on Investment)

            VOI (Value on Investment)

Much of the angst and confusion surrounding IT Improvement initiatives can be traced to the misuse of these terms, below is the proper use:

            Improvements: Outcomes that when compared to the ‘before’ state, show a measurable increase in a desirable metric or decrease in an undesirable metric.

                        Example: ABC Corp achieved 15% reduction in failed changes through implementation of a formal Change Management process.

            Benefits: The gains achieved through realization of improvements, usually but not always expressed in monetary terms.

                        Example ABC Corp’s 15% reduction in failed changes has saved the company $395000 in productivity and reworks costs in the first year.

            ROI: The difference between the benefit (saving) achieved and the amount expended to achieve that benefit, expressed as a percentage. Logically, one would like to spend a little to save a lot.

                        Example: ABC Corp spent $200,000 to establish a formal Change Management process that saved $395,000. The ROI at the end of the first year of operation was therefore $195,000 or 97.5%

VOI: The extra value created by establishment of benefits that include non-monetary or long term outcomes. ROI is a subcomponent of VOI

                        Example: ABC Corp’s establishment of a formal Change Management process (which reduced the number of failed changes) improved the ability of ABC Corp to respond quickly to changing market conditions and unexpected opportunities resulting in an enhanced market position. In addition, it promoted collaboration between business units and the IT organization and freed up resources to work on other projects that otherwise may not have been completed.



 
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