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Sun, Jun 15, 2008 18:31 EDT

Using ITIL to Drive Business Innovation

Topic: IT Organization Management

Current Rating: 5 Comments: 6

While Information Technology has become increasingly essential to continuing business operations, IT environments have simultaneously increased in both size and complexity. Individual hardware and software solutions to specific problems have, over time, created heterogeneous environments that require tremendous effort to manage. IT staff are resistant to changes, fearing unforeseen consequences. IT is viewed as a cost center, and there is very limited visibility into the Return on Investment for IT spending. At best, this is a recipe for friction between IT and the Business. At worst it leads to failure – of critical systems, of processes, or of the enterprise itself.

Failures are most often caused by mistakes in planning, provisioning, operations, etc. – in short: human error. In fact, Gartner Research shows that 80% of all mission critical application service downtime is caused by people or process failures. These failures are costly, and often preventable with the benefit of hindsight. Most organizations can learn from their mistakes and avoid making the same mistake twice, but what about all of the new ones? When it comes to mistake avoidance, many companies are at a loss. Improvements are made and expertise is gained as a byproduct of personally experienced pain (downtime, cost overruns, production delays, etc.).

As a solution, many organizations turn to consultants: it is often the only way to meet the need for expertise in a particular area – expertise derived from diverse experience. In this way, an organization can hope to benefit from the sometimes painful lessons learned by others.

On a much broader scale, the limited ability to effectively utilize the knowledge of others has arguably been the greatest historical constraint on the pace of human innovation. Prior to the advent of written language, scientific and technological advances were limited to what could be learned in the course of a single lifetime. Isaac Newton is most famously credited for saying, “If I have seen further, it is by standing on the shoulders of giants” (it is his quote that appears on the British two pound coin), implying that his work was built on the efforts of those before him. Since Newton’s time, the pace of scientific discovery and technological innovation has quickened at an exponential rate; the “innovation curve” has steepened. Newton’s discoveries are now considered the “basics” of mathematics and physics, and have given rise to progressively more advanced applications of these principles (See: Wright, Orville and Wilbur).

Unfortunately, many businesses continue to operate under a paradigm in which they are forced to learn from their own mistakes, effectively limiting themselves to the same “one lifetime” constraints that individuals who seek to innovate freed themselves of long ago. Nowhere is this more apparent than in the domain of Information Technology.

Enter: ITIL.

The Information Technology Infrastructure Library, or ITIL (pronounced EYE-till) is a series of books published by the Office of Government Commerce (OGC) in the UK. Each book documents an aspect of IT Management. The books offer a collection of industry “best practices” collected from a diverse group of IT professionals over the course of several years. ITIL books are descriptive not prescriptive, meaning they focus on processes and organizational structures that have been shown to be effective, rather than offering instructions on how to implement these practices. ITIL is not necessarily meant to be adopted in its entirety, but should rather be treated as one would treat any other reference book: rather than reading

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Sun, Jun 15, 2008 21:24 EDT
Posted by: aguzowski
Rating: 90

Brian,

Your are touching a few important aspects of ICT in your posting.

Firstly: complexity of the ICT environment.

Does it need to be so complex, or we can try to commoditise part of it? In my view, complexity of ICT environments in many cases flow not from the design but from historical accumulation of changes.

It is then a strategy question at which point it is worth to make a decision to simplify. In at least two recent large projects I was running, the approach was to totally change and convert the environment. In once case- to Citrix and VMWARE with ESX and external hosting (over 1500 users in very distributed environment), in the second - to MS Terminal Services using 2X solution (www.2x.com). Slight redesign of the network and printing environment was also required. The effect: a few million dollars a year savings in operational costs, and achieved very reasonable level of simplicity.

It is the strategic planning component which is important in the first place to start the change and to drive innovation.

Second question: can ICTL be used to drive business innovation?

My answer is no.

ICTL is a set of processes. They are good to run the business and support ICT implementations. Innovation is not starting at the ICTL level.

ICTL will not drive any innovations on its own. Again, only the strategic planning by people who know both business and technology can drive the business innovation process.

Certainly, in places when the general level of ICT management is bad, where basic processes are not enabled and the environment was brought to the level of over complexity - introducion of ICTL can in many cases help moving forward. But this is perhaps not a lack of ICTL which causes such a situation in the first place; it is alway advisable to have a close look on people involved in running the ICT and to check if the change is not required in this area as well.

In summary: ICTL is a good operational component of well managed ICT business structures. It does not bring great inovative value to the business on its own. Strategic planning and aligning ICT with business is a core task of CIOs, and only this can contribute to the real business innovation processes.

 
Sun, Jun 15, 2008 21:38 EDT
Posted by: aguzowski
Rating: 90

Apologies, in my posting above my online spellcheck decided to replace ITIL with ICTL for no reason... Andrew.

 
Wed, Jun 18, 2008 17:07 EDT
Posted by: Brian Flora
Rating:

I was wondering about that =). Thanks.

 
Wed, Jun 18, 2008 17:05 EDT
Posted by: Brian Flora
Rating:

Andrew,

Thank you for your comments. To your point, certainly there are many benefits to be had from simplifying an IT environment, not least of which are decreased support and maintenance costs. Availability may also increase, due to the reduction in simple human error that comes with simplification. The server consolidation project you referenced likely resulted in reduced data center power and space consumption.

The 2008 Gartner Research Data Center Conference survey shows that one of the most significant forces driving businesses to implement ITIL processes is "the need to improve agility in responding to business needs". The decision to undertake an ITIL implementation is, therefore, a strategic one.

The point I was attempting to illustrate is that while ITIL processes do not drive innovation unto themselves, the implementation of sound IT Service Management practices can serve as a foundational tool to allow the business to innovate. If IT can operate as a service provider, the business can more effectively use technology services to thrive in a competitive marketplace.

Regards,

Brian Flora
Principal

Creative Enterprise Solutions LLC.
web: http://www.creativeenterprisesolutions.com
blog: http://www.itsmnow.com

 
Mon, Jun 16, 2008 8:45 EDT
Anonymous user
Posted by: N. Spanos
Rating: 90

You are correct in observing that that concept of ITIL (V3) can be used to support business innovation. Unfortunately, I don't believe the creators of ITIL V3 see the potential benefits. Why do I say this? They came up with an excellent framework (Strategy, Design, Transition, etc.) but their underlying focus continues to be IT Infrastructure and Operations.

They did expand the definition of Infrastructure to include applications which seems to expand ITIL beyond operations and they did mention the business. When you look at the underlying details (e.g. Change Management), much of detail remains unchanged from ITIL V2 making it very difficult to apply outside of IT Operations. Philosophically, ITIL V3 can be applied across the business but it requires substantial vision, innovation and creativity which translates to substantial investments in time and money.

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