Tuesday, February 19, 2008

The Politics of IT Service Valuation

Don’t value services based on the customer, but on enterprise risk, writes ITSM Watch columnist Hank Marquis of Enterprise Management Associates. Correct.

However, Mr. Marquis' assessment of ITIL is not. IT service value, according to ITIL, is based on the value of IT services to the enterprise not according to those of individual customers.The enterprise priorities are translated into IT service priorities. Resources are then allocated accordingly.

Doing so, thus removes the politics that result in "over supporting" or suffering of the "quiet" customers.It's quite a simple concept however it is worth mentioning again because many of the so called "experts" still don't understand the importance of identifying and communicating the business priorities before designing services and formulating SLAs. This is the basic premise of the entire IT Service Management library.

We don't need version 3 to tell us that. This concept was very clear to experienced practioners in V2.The example offered by Mr. Marquis is, at best, confusing. Cococo, should not simply measure the value of an IT service based simply on the absence or failure of that service. The value of that service, in this case the IT support of the "radio dispatch" service, should be measured according to the value of that service to the entire enterprise.

For example, the consideration should be based upon how the service contributes to the meeting of the overall business priorities?While this service is an important one, it is not critical to the business of Cococo.

The risk associated with the failure of this service can be addressed (and mitigated) with Business Impact Analysis and IT Service Continuity Management planning. ITIL has entire sections dedicated to explaining in exquisite detail how IT services create value.

Unfortunately, ITIL neither makes it easy to understand, nor gets it quite right, writes Mr. Marquis. However, ITIL does not get this wrong. Sadly, Mr. Marquis does.

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