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© SERVICE PORTFOLIO SOLUTIONS LTD, 2008 IT – cost overhead or enabling the business
Context 17/11/2008 © Service Portfolio Solutions Ltd The introduction of ITIL was a turning point in the way IT is delivered to companies across the world. V2 was all about running IT properly through the introduction of key processes that must be in place if you want to deliver good services. ITIL v3 has shifted the focus to a business centric world where IT and business processes are aligned. There is now a clear demarcation in IT between the front-office and back-office. The back office is focussed on delivering the technical IT services such as networks, data centre and PCs. The front office is all about how the business interacts with IT from requesting services to charging. The hub of the back office is the CMDB whilst the hub of the front office is the service catalogue. IT has spent too much time on the back office which results in the view that IT is a black box and a cost overhead. With the introduction of the front office this changes and transforms IT to a business enabler and valued partner. The following pages present a comparison of IT today vs. the direction for the future. The journey to the future all hinges on aligning IT service delivery to business processes through the adoption of a service catalogue and configuration management processes.
Cost Management TodayFuture Total IT Cost (Opex, Revex, Capex) Cost by Element (software, hardware, resources) Cost by Component (server, PC, network node) Cost by Location Cost by Supplier Cost by Service (technical or business) Cost by Service & Location Cost by Client Benchmarked service cost Service Value (company) / Profitability (supplier) Service Usage by client Cost variability (how long before costs change) Cost linked to usage (Price * Quantity) Budget is outcome of business demand Investment decisions optimised and aligned to business needs Improved tax and partner recovery 17/11/2008 © Service Portfolio Solutions Ltd
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