NEWSLETTERS
 

CIO.com updates, insights and advice on technology, management and your career.

 
 
 
SUBSCRIBE TO CIO
 
Are you involved in setting the direction for your company's IT budget or strategy?

Apply today for a FREE subscription to CIO Magazine!

 


Sun, Jun 8, 2008 11:46 EDT

The Service Management Approach to IT

Topic: IT Organization Management

Current Rating: 5 Comments: 2

When you plug the stereo into the wall, you expect to hear music. A lot goes into generating the electricity, getting it into your home, through the walls, and into that plug, but you don’t have to care about that. The electricity is there when you need it, you get exactly the amount you need, and you can reasonably account for the cost of using it.

It is precisely because these things are true that we are able to make use of electricity in order to get work done. Because the electrical service is available in the right quantities at the right time and at a predictable cost, we can use it to do all kinds of interesting things. The technology behind it is necessary, but the service is the point.

Still, many businesses operate their I.T. organizations as technology providers, not service providers. The result is that business stakeholders find themselves worrying about servers, routers, and disk arrays, when they really just want things like internet access, email, document management, and secure data. I.T. is reduced to a cost center, and there is little to no understanding of the specific Return on Investment (ROI) for I.T. spending. Technology is great, but does a business really need technology for its own sake? The answer of course is no: technology is beneficial to a business only to the extent that it facilitates delivery of a service. The ROI on a piece of hardware is zero – it is the service or services provided that generate the ROI.

To address these issues, forward looking organizations adopt the IT Service Management (ITSM) approach. ITSM is the subject of the Information Technology Infrastructure Library (ITIL), and is supported by the ISO/IEC 20000 standard. ITSM is a different way of thinking about I.T., and it requires both operational and organizational changes.

Philosophically, ITSM looks at end to end delivery of IT services from a customer perspective. Rather than building isolated “silos” based on technical and functional groups within I.T., the approach is as follows:

1. Define the I.T. service needs of the business in terms of content, availability, continuity, etc.;
2. Hire or develop the organizational capacity to deliver and manage the necessary I.T. services;
3. Design processes and procedures aligned with business goals;
4. Implement tools and technology to meet business needs.

The irony is that in any given business, most divisions already operate under a similar paradigm. If you ask someone in sales what their job is, they will probably tell you that they sell products for the business. They won’t tell you that they make cold calls to prospects, maintain a database of contacts, take potential clients to lunch or write proposals. Sure, they do all of that, but the focus is on the end result, not the tasks required to achieve it.

It is time to bring I.T. out of the basement and apply the same principles used to run other divisions. Taking a service focused approach allows businesses to stop focusing on technology and start using I.T. as a powerful tool to get work done. When this happens, I.T. moves from cost center to competitive advantage.

You do not have flash or javascript support.
Average (3 votes)
5
 
 
Wed, Jul 2, 2008 20:08 EDT
Posted by: Adrian Tudor
Rating: 90

Nice post, but is there anything new here?... Have we not heard the same issues for the last 20 years – how do we get IT to the business table, how do we redirect the CIO from under the CFO to be a direct report to CEO, how do we shape IT into a service provider?... ITSM, ITIL or whatever new body of governance, running IT as a service simply makes sense, and a lot of companies and smart CEO have figured this out and are willing to make it happen. The problem in my opinion is with the lack of leadership within the CIO ranks who once they get in these positions, cannot deliver, are then forced back to operate as a cost center, and are invalidating the argument for those that could deliver but are not given a chance. Just like with any job, one needs to lead and deliver in whatever is that they do. There are tons of CEOs out there but there are only a few Jack Welchs. It’s the same with CIOs. It’s all about leadership. Some have figured it out and are delivering results, while some are just… bitter. My advice then is – deliver results where you are and then make your move. The smart CEO is dying to get his/her hands on the CIO that can think this way and also deliver.

Adrian Tudor
VP Engineering
Integrien Corporation

 
Thu, Jul 3, 2008 17:16 EDT
Posted by: Brian Flora
Rating: 90

I couldn't agree more about the current state of CIO leadership. A lot of this comes from the current workforce paradigm in the US. We'll likely have 12-15 jobs prior to retirement now, rather than staying put at one company as pervious generations did. This can be great for businesses in that it allows a constant inflow of fresh ideas and grater potential for innovation, but the hiring process now tends to skew heavily toward getting someone who is an expert in one particular area. In IT this is even more pronounced; we hire the the expert in whatever technical skill we need at the moment, and fail to develop well rounded employees who are truly fit for the CIO position.

I didn't make this point in the article, but perhaps an IT organization that is truly structured around services instead of technologies could help alleviate this problem?

I think a larger issue, however, is that many companies don't know how to hire IT managers, much less CIO's. Most CIO job descriptions read like a laundry list of every technical skill and certification in IT, with only vague, passing mentions of the leadership and vision that the position actually requires. At best, that's a recipe for a CIO who just "keeps the lights on", as opposed to bringing any real strategic approach to IT and the business.

Brian Flora
Principal

Creative Enterprise Solutions LLC.
web: http://www.creativeenterrpisesolutions.com

Start a Conversation
Click to post

Got something to say? We want to hear it! Click the Post button to get started. GO»

EXPERT ADVICE
See our roster of experts.

Advice & Opinion from more than 108 of IT's most insightful thinkers.

  PARTNERS       WEBCASTS    
 

Preparing for the Next Cyber Attack

Ensure you are up-to-speed on the latest security technologies available to keep your network safe in this Executive Guide. Get a thorough assessment of the corporate security threat landscape. Protect your network with data leakage protection, NAC and other technologies explained in this report.

Sponsored by Qwest  Read this Executive Guide »

 

Cloud Building: 8 Ingredients for Internal Clouds

Cloud computing: a fundamentally new way to deploy IT services and functions cost-effectively and quickly. Learn how the VMware vCloud initiative dramatically improves how consumers access their information and experience applications as well as the 8 ingredients to get you going.

Sponsored by VMWare  Read this White Paper »

 

Investing in Business Analytics Technology

You're thinking now is the time to take the plunge into business analytics, but you still have some unanswered questions. This research summary addresses the most common questions and concerns surrounding the successful launch of a business analytics initiative. It also includes real-world examples of organizations already getting return on their investment.

Sponsored by SAS  Read this White Paper »

Resource Alerts

Get instant email notifications by topic when white papers, webcasts, and case studies are added to our library.

Resource Alerts

Get instant email notification when white papers, webcasts, and case studies are added to our library. Don't just be up-to-date—be up to the minute with our new Resource Alerts.

Improving Transparency and Accuracy in IT Cross Charging

During this Webcast you'll learn how KBC Group implemented SAP BusinessObjects Profitability and Cost Management and realized many benefits.   View Now »

 

Cost Savings and Risk Reduction with Effective Systems Management

Join us and see how Novell can help you respond to today's economic challenges by increasing productivity, reducing costs and aligning IT initiatives with overall business goals.  View Now »

 

Capitalize on Your SAP Content

Learn ways to improve your content management by viewing these Open Text webinars today.  View Now »

Resource Alerts

Get instant email notification when white papers, webcasts, and case studies are added to our library. Don't just be up-to-date—be up to the minute with our new Resource Alerts.

 
NEWSLETTER

Sign-up for the Blogs & Discussion Newsletter

 
FEATURED SPONSORS
 
 
 
SPONSORED LINKS
 

Introducing the new HP ProLiant G6 server family

Accenture: Outsourcing for Competitive Advantage. More...

Better spam protection with Postini for just $1/user/mo

Introducing the new HP ProLiant G6 server family

infoBOOM! - The Mid-Sized Company CIO's Exclusive Community

Accenture IT Consulting: Logical meets technological. More . . .

The Fraudster Economy Model: Operating a Business in the Underground

Trade in your old laser printer and get up to $1000 back!

Taking the Service Desk to the Next Level

Revolutionizing Enterprise Application Deployment

Why Data Loss is Increasing--and What You Can Do About It

Data Loss Prevention: A Better Way to Approach Security

Learn how to managing client systems in the enterprise.

Build a High-Performance Open Web Platform

Mid-Sized Company CIO Community: infoBOOM!

Enterprise PBX Comparison Guide

Getting Value from Outdated Networking Equipment

Losing Ground: 2009 TMT Global Security Survey

Stop Application Fraud at the Source with Device Reputation

Learn about the VMware vSphere (TM) & Intel (R) Xeon (R) Processor 5500 Series

Learn how a virtualized enterprise can help your company reduce costs

Why Isn't Server Virtualization Saving Us More?

Learn how to save 30% through project & portfolio management.

How Open Source is Changing the Face of Enterprise Software

8 Key Ingredients to Building an Internal Cloud

Accenture IT Consulting: Enabling high performance. More...

Top Five CIO Challenges

Insight makes it easy to spend your Microsoft subsidy check.

Five minute business analytics assessment. Immediate results.

Dangerous Collaboration Practices: 5 Ways IT Can Minimize Risk

Accenture: Outsourcing for uncertain times. Click to learn more.

The Case for Investing in Business Analytics Technology. Read white paper.

Live Webinar: Applying Business Analytics. Click here to learn more

Seven Ways ITIL Can Help You in an Economic Downturn

Developing A Dynamic, Real-Time IT Infrastructure

Maximizing the Business Value of the PC Infrastructure

Communications and Collaboration Needs at Business Organizations

Using Open Source to Deploy Web Applications

Cloud Computing: Read about VMware's compelling vision & set of products

Enterprise PBX Buyer's Guide

Secondary Market Primer: Your Network at Half Price

How Interactive Viewer Reduces the Effort to Meet Visualization Requirements

Top-line Performance that's Bottom-line Efficient

White Paper: 8 Key Ingredients to Building an Internal Cloud

Read about virtualization and consolidation effort best practices

Building the Virtualized Enterprise with VMware Infrastructure

The Global Marketplace Today: Strategies for Tough Times

Top 10 Business and IT Drivers for the Wealth Management Sector

5 Steps to Automating Accounts Payable

Bottom-Line Benefits of Virtualization