Presentation Topic

Relevance of ITIL and eTOM Framework for IT Risk Management

Aminul

What is ITIL & eTOM Framework?

What is the relation to IT Risk Management?

How is it supported?

Presented By

Mohammad Aminul Islam (11103812)

Muhammad Misbahur Rahman (11101850)

Cologne University of Applied Sciences

Contents

What is ITIL Framework?

Objectives

Terminology of ITIL

ITIL Lifecycle

Description of Lifecycle

How ITIL support to IT risk management?

Introduction of eTOM

eTOM operation processes

How it support to IT risk management?

Process implementation concept

Process flow concept

Main strength of eTOM in IT risk management

Bibliography

What is ITIL?

ITIL stands for IT Infrastructure Library. It was introduce by the British

government in 1980 for providing quality IT services .It is a set of practices for

IT services management and designed to standardize the all the process of IT

services (planning, delivery, support etc) to the business. The main target is to

improve efficiency and achieving the predictable service levels. ITIL offers a

body of knowledge useful for achieving ISO/IEC 20000 standard.

End users gets better level of service and business saves money

Main Objectives of ITIL

Reduce the IT cost, improve quality and decrease risk

Visibility of total cost and utilization of the product

Provide clear and effective communication to the users

Increase productivity

It helps for decision making

Terminology of ITIL

Single point of contact (SPOC) service desk

This is the entry point of the customer to request a service form for any Incident.

Service Management

A set of specialized organizational capabilities to providing value to

customer in a form of service.

Service Catalogue

It contains details of all IT services delivered to the customer.

Request for change

A formal proposal for change the existing system

Change Advisory Board (CAB)

A group of people in the organization who can make changes decisions.

ITIL Life Cycle

There are 5 modules in the ITIL life cycle

ITIL Service strategy

ITIL Service Design

ITIL Service Transition

ITIL Service Operation

ITIL Continual Service Improvement

ITIL Service Strategy

Service strategy is the first step of the ITIL service

management. ITIL Service strategy provides the guidance

of how to design, develop and implement service

management not only as an organizational capability but

also as a strategic asset.

Introducing strategy generation

The service strategy concern about

Service portfolio Management

Financial Management of IT Services

Demand Management

Service Portfolio Management

The purpose of service portfolio is which services are provided

by the service provider in the terms of business values. Here

business values correspond to the marketing terms means compare

the services with the other providers.

Main Target

Include complete set of services managed by the service

provider

Manage the entire lifecycle of the services

The three categories of service portfolio are

Service Pipeline

Service pipeline concern about the conceptual service, services

waiting for design and transition.

Service catalogue

Services visible to customers, support terms and condition,

ordering of the request, pricing and chargeback

Retired Services

Services phased out and service transition

Financial Management for IT services

The main objectives is to provide cost effective best

services, calculate the cost for IT services and assign those cost to

the services delivered to the organizational customers.

Financial management of IT services contain 3 sub processes

Budgeting

IT Accounting

Charging

Budgeting:

It enables an organization to plan future IT expenditures,

reducing the risk and make profit. In addition, budget allows an

organization to compare the actual cost with the previous cost in

order to improve the reliability or budgeting predictions.

Budget area

Sales & Marketing

Production Budget

Administrative Budget

Cost of investment Budget

IT Accounting:

It concern the amount of money spend to providing the IT

services. For this need help from finance department of the

organization.

Charging:

After calculating all cost set a charge to a specific service.

Demand Management

Demand management is the critical aspect of service

management. Poorly handle demand is a source of risk for service

providers because of uncertainty in demand.

Service production cannot occur without demand. It is a pull system

where consumption cycles stimulate production cycles.

Consumption produces demand and production consumes demand.

ITIL Service Design

ITIL service design provides guidance for the design and

development of services and service management process.

In ITIL service design is primarily upon the 4 Ps

Service design processes

Service level management

Capacity management

Availability management

IT service continuity management

Information security management

Service catalogue management

Supplier management

People Process Products

Partners

Service level management:

Service level management ensure that right service to the

right customers.

Capacity Management:

The capacity management process understand the business

requirements, the organizational operation and IT infrastructure. It

ensures the current and future capacity and performance aspects of

the business requirements are provided cost effectively.

Availability Management:

Available IT services to support the business

IT service continuity management:

IT services can recover and continue even after a serious

incident occurs.

Information security management:

Information Security management is very important overall

the system. It ensures that information is secure for the both

parties.

Service catalogue management:

It ensures all the service details to the customers and

future contact information.

Supplier management:

Supplier management ensure that services provide from the

supplier are enough to support the IT and organizational

expectation.

ITIL Service Transition

ITIL Service transition provides guidance for the development and

improvement of capabilities for transitioning new and changed

services into operation.

ITIL Service Operation

The main objectives are delivering IT services effectively and

efficiently. It concern about customer request, problem

management, resolving service failure etc.

Continual Service Improvement

ITIL continual service improvement concern about the

quality of service. Take experience from past failure and apply best

process for the IT services improvement.

Bibliography:

1. http://www.best-management-

practice.com/gempdf/ITIL_and_Corporate_Risk_Alignment_Guide.pdf

2. https://www.ucisa.ac.uk/~/media/Files/members/activities/ITIL/Service_Strategy/ITIL_Introducing

%20Service%20Strategy%20pdf.ashx

3. https://www.ucisa.ac.uk/~/media/Files/members/activities/ITIL/service_design/ITIL_Introducing%

20Service%20Operation%20pdf.ashx

4. https://www.ucisa.ac.uk/~/media/Files/members/activities/ITIL/service_transition/ITIL_Introduci

ng%20Service%20Operation%20pdf.ashx

5. https://www.ucisa.ac.uk/~/media/Files/members/activities/ITIL/service_operation/ITIL_Introduci

ng%20Service%20Operation%20pdf.ashx

6. https://www.ucisa.ac.uk/~/media/Files/members/activities/ITIL/service_continual_service_impro

vement/ITIL_Introducing%20Service%20Operation%20pdf.ashx

7. http://wiki.en.it-processmaps.com/index.php/

8. http://wiki.en.it-processmaps.com/images/thumb/0/0c/Overview_service_transition_itilv3.jpg/459px-

Overview_service_transition_itilv3.jpg 9.

Introduction To eTom:

Etom is a business process frameworkor model. It is widely accepted and

recognized by service providers around the world as their operations

business process framework, and many vendors use the TOM as the basis for

product development and sales.

At present, TOM 2.1 is the TM Forum member approved business process

framework or model. It is widely accepted and recognized by service

providers around the world as their operations business process framework,

and many vendors use the TOM as the basis for product development and

sales.

Purpose of eTom Business Process Framework:

Traditionally, telecommunication service providers supply the end-to-end

services. Therefore, a single enterprise controlled the entire value chain; if

necessary it can be interconnected with other service providers.

Nevertheless, in the liberalized market, service providers, for example the

internet service providers need to cope with the situation of an increasing

numbers of customers, and at the same time, provide superior and

competitive services to the customer. Thus, they keep expanding their

markets and business relationship.

Etom operation Process:

eTOM is a business process framework that defines all major business

processes in telecom service providers. Actually, it is one of Next Generation

Operations Systems and Software frameworks. It has almost four levels in

details from 0 to 3 level in which 0 level shows the highest conceptual level

of the eTOM and level 1 shows how the major process areas Strategy,

Infrastructure& Product and Operations are decomposed and levels 2 and 3

are further decomposition of the previous processes view.

eTom Architecture:

The highest conceptual view of the eTOM framework is illustrated below.

In the upper two major boxes in the diagram, it provides an overall

context that differentiates strategy and lifecycle processes from the

operations processes in two large process areas. The key functional areas

horizontally lay across these process areas. In addition, there is also the

internal and external entities that interact with the enterprise such as

customer, suppliers/partners, shareholders, employees and other

stakeholders. After the conceptual overview of the eTOM architecture, there

is a need to dedicate into deeper levels of eTOM framework to master the

mechanism of utilizing eTOM to solve problems.

Benefits or Strength of eTom framework:

1. It makes available a standard structure, terminology and

classification scheme for describing business processes and their constituent

building blocks

2. eTOM is widely used in the service provider industry because it

provides important benefits, such as:

3. It makes available a standard structure, terminology, and

classification scheme for describing business processes and their constituent

building blocks

4. It supplies a foundation for applying enterprise-wide discipline to

the development of business processes

5. It provides a basis for understanding and managing portfolios of IT

applications in terms of business process requirements

Etom Needs continual Evaluation:

What benefits will level 4 bring? :

Vendors benefit as Level 4 provides clearer interfaces between different

functional modules and essential functions, which can greatly reduce

integration costs. Moreover, vendors can more easily understand their

customers business requirements as additional details are provided by

further eTOM decomposition. Ultimately, development costs and delivery

time can be reduced.

Bibliography