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ITIL and the creation of a Service Management

Office (SMO): a new challenge for IT professionals


An exploratory study of Latin American Companies.
Teresa Lucio-Nieto Ricardo Colomo-Palacios
PGIT Engineering & Technology Graduate Program Computer Science Department
Instituto Tecnolgico y de Estudios Superiores de Monterrey Universidad Carlos III
Monterrey, NL Mexico Madrid, Spain
tlucio@itesm.mx ricardo.colomo@uc3m.es

1
Abstract Worldwide, more efficient services from researching in the field of evidence suggests three
the implementation and their Information Systems Information Technology important findings: 1) a lack
incorporation of (IS) and Information Service Management (ITSM) of theoretically driven
Information Technology Technology (IT) - Information Technology researchers; 2) the field is
Service Management Departments in order to Infrastructure Library (ITIL), still being developed, with a
(ITSM) & Information provide high quality services including the strategies for growing number of
Technology Infrastructure to their internal and external the implementation of an published papers dealing
Library (ITIL) into customers, which means SMO. with the development of
Organizational Models has having a more disciplined concepts, constructs, models,
It is important to mention
become a key issue not only provisioning of IT services. methods and
for managing IT operations According to Pollard [1] an that there is limited academic implementations for theory
research on ITIL [1], [2] and
and processes, but also for IS Department is expected development; 3) ITSM
ensuring their users obtain to respond with agility in ITSM implementations [3]. performance issues,
Very little academic material
better services, and for light of new business justifications, and ITIL topics
providing organizations opportunities, to demonstrate exists on IT Service are among the most popular
Management Best Practice.
with tools and strategies responsible financial topics of research [3].
based on the use of IT to management, and satisfy The ITIL framework seems
to be the de facto standard, Considering the above
accomplish their business external customers through
goals. Due to the fact that on-line systems as well as but not all authors agree that facts, this research focuses
ITIL encompasses all aspects on analyzing - from the point
ITIL does not formally internal staff and
consider the existence of a management. This level of of IT Service Management of view of Latin American
Best Practice [4],[5], and ITIL & ITSM practitioners -
Service Management service can only be achieved
Office (SMO) as a way to with effective more research is needed. the importance of the
formalization of an SMO
guarantee its permanence communications between IT Since its first
and efficiency once the and lines of business. within organizational
appearance, ITIL has led to structures as a way for
ITIL implementation phase Therefore, reaching high successful service
ends, an online survey was quality service levels in IS/IT supporting and improving
management (SM) as the the quality, permanence and
applied to 169 Latin Departments does not only result of a balance of three
American companies in imply the implementation of performance of information
elements: people, processes technology service (ITS)
order to answer the "good practices" or "state of and technology. Although
question: What does an the art" IT/IS service areas. The results of research
there are many education are based on the analysis of a
organization need in order frameworks. Obtaining such and training specialists who
to guarantee ITIL goes levels requires more than the survey applied in year 2011
provide courses on ITIL and to 169 Latin American
beyond its implementation implementation strategies ITSM and well-constructed
stages? Evidence suggests alone, it may require the companies (in Mexico,
certification schemes that Colombia, Peru, Guatemala,
that the main challenges on formal existence of a Service produce skilled and
implementing ITIL are the Management Office (SMO) Ecuador, Dominican
motivated people, still some Republic, and Brazil).
time devoted by the IT staff within the organizational questions arise from
involved in the project, structure that, in some way, practitioners and This paper is structured
their capabilities in the guarantees their use, organizations that implement as follows. Section 2 covers
understanding of ITIL permanence and efficiency ITIL and ITSM [5]: Will the the conceptual framework of
purposes, and the support once the implementation certified employees fit into ITIL, ITSM y SMO. Section
from senior management; phase ends. the IT department? Should 3 summarizes the research
therefore, the existence of there be a separate Service design. Section 4 describes
an SMO could represent a Justifying the existence
of an SMO within an Management department? the results and delineates
way of facing those And if so, who should be in future work, and finally,
challenges and realizing organizational structure
requires not only internal that department? Should section 5 concludes the
ITIL benefits more problem, incident and paper.
effectively, representing evidence to prove that the
"best practices" in change management be
also new challenges for IT performed by the same II.
professionals. information services CONCEPTUAL
management are frameworks team?
FRAMEWORK
Keywords: ITIL; SMO; or tools that help the Additionally, existing
Service Management Office, organization accomplish its It has become
research related to ITIL has
organizational structure; goals and strategies, and focused on reporting increasingly recognized that
Organizational Models and represent a competitive information is the most
Information Systems (OMIS). outcomes and benefits
advantage, but supporting mainly for developed important strategic resource
I. external evidence is also that any organization has to
countries such as: the United
INTRODUCTION important in order to analyze Kingdom, Germany, manage. The quality of the
how companies around the IT Services provided to the
Australia, and New Zealand
Increasingly, world are experiencing and business is the key for the
[1]. In the field of ITSM,
organizations are demanding
collection, analysis, project delivery success; Management is a set of infrastructure to processes
production and distribution outsourcing, insourcing and specialized organizational has paved the way for the
of information within an smart sourcing; using IT to capabilities for providing term IT Service
organization. It is essential gain competitive advantage; value to customers in the Management as a process-
to recognize that IT Services delivering the required, form of services [6] and customer-focused
are crucial, strategic business-justified IT services discipline. Its objective is to
organizational assets and (i.e. what is required, when Thus, according to contribute to the quality of
Cardlige [6], the primary
organizations must therefore it is required and at an IT Services, and it also seeks
invest appropriate levels of agreed upon cost); managing objective of Service to make quality management
Management is to ensure
resources for supporting, constant business and IT and process control of IT
delivering and managing change; and demonstrating that the IT services are services a part of the
aligned to business needs
these critical IT Services and appropriate IT governance organization and its policies
the IT systems that support [6]. and actively supporting [7].
them. It is imperative that IT
them. However, these
aspects of IT are often In order to address all services support business Due to the fact ITSM is
those challenges, ITSM has processes, but it is also process-focused, it shares a
overlooked or only
superficially addressed evolved into best practice increasingly important that common theme with the
standards starting with ITIL, IT acts as an agent for process improvement
within many organizations
[6]. which is a framework change to facilitate business movement, such as [8]: Total
developed by the UKs transformation. Quality Management
Traditionally IT has been Office of Government (TQM), Six Sigma, Business
seen as delivering products: Commerce (OGC), outlining In order to accomplish IT Process Management
quality service management,
hardware, systems, PCs, etc. Best Practice in Information (BPM), and Capability
However the high and and Communication ITSM has emerged as a Maturity Model Integration
discipline for managing IT
continuous dependency of Technology Service (CMMI). ITSM provides a
business upon IT has made it Management [1], and since operations as a process- framework for aligning IT
oriented service. ITSM is a
clear that this is no longer December 2005, the operations-related activities
the case, due to the fact that, International Organization subset of Service Science and the interactions of IT
that focuses on IT operations
although IT uses products in for Standards technical personnel to
the delivery of IT services, it (ISO)/International such as service delivery and business customer and user
service support, in contrast
is now considered to be a Electrotechnical processes.
typical services domain, Commission (IEC) 20000 with the traditional
technology-oriented B. Information
which implies new standard, as well as others
challenges considering the such as COBIT. In 2005, as approaches to IT [8]. ITSM Technology
can be defined as a set of Infrastructure
nature of the services, which many as 90% of USA
are [7]: intangible, produced companies had one or more processes that cooperate to Library (ITIL)
ensure the quality of live IT
and consumed at the same ITSM implementations ITIL is a public
time, variable, user takes underway [1]. services, according to the
levels of service agreed to by framework of best practices
part in the production of the intended to facilitate the
service, and satisfaction is Considering the above, the customer ([9] quoted by
this section presents the [10]). According to the delivery of high quality IT
subjective. services at a justifiable cost.
conceptual framework of official ITIL Glossary and
Considering the above ITSM & ITIL, and the Abbreviations 2011 [11] ITIL is built around a
process-based system
facts, some of the key issues importance of the ITSM is: The
facing many of todays implementation of an SMO implementation and perspective for controlling
and managing IT operations,
senior Business Managers within an organization. management of quality IT
and IT Managers are: IT and services that meet the needs including continuous
A. Information improvement and metrics of
business strategic planning; of the business. IT service
integrating and aligning IT Technology Service management is performed by the quality of IT service
Management (ITSM) delivered [6], [8].
and business goals; IT service providers through
implementing continual In order to understand an appropriate mix of ITIL has evolved into
improvement; measuring IT what service management is, people, processes and three versions [1]: Version 1
organization effectiveness it is important to understand information technology. was originally developed by
and efficiency; optimizing what services are: A service the Office of Government
costs and the Total Cost of ITSM has been known
is a means of delivering for the last decade as the Commerce (OGC) in the
Ownership (TCO); value to customers by United Kingdom in the
achieving and demonstrating process- and service-focused
facilitating outcomes approach of what was 1980s to promote efficient
Return on Investment (ROI); customers want to achieve and cost-effective IT
demonstrating the business initially known as
without the ownership of Information Technology operations within
value of IT, developing specific costs and risks. government-controlled
business and IT partnerships Management. The shift of
Considering that, Service this management from computing centers. It
and relationships; improving
consisted of 40 volumes satisfaction with IT services; stage and accomplish its improved focus on
describing best practices improved service objectives? Is the existence ITSM, more
in most IT management availability, directly leading of an SMO necessary in predictable
areas. Version 2 has two to increased business profits order to guarantee ITIL infrastructure,
primary components: service and revenue; financial effectiveness? improved
delivery and service support. savings from reduced consultation with IT
Each one consists of core rework, lost time and C. ITSM /ITIL/SMO groups within the
processes that IT improved resource As it was previously organization,
organizations are advised to management and usage; mentioned, ITSM is the smoother
put in place in order to improved time-to-market for provision of quality negotiation of
provide quality IT services new products and services; customer service by ensuring service level
(year 2006). Version 3 was improved decision making that customer requirements agreements and
released in May 2007. This and optimized risk. and expectations are met at seamless end-to-
version has been organized all times. Most organizations end service.
into five core volumes: At this point, it is
important to bear in mind, as around the world that have There are
strategy, design, transition, implemented the concept,
operations, and continuous it was stated in the organizations
Introduction, that although have adopted the ITIL adopting ITIL
process improvement. In framework (championed by
2011, Version 3 was updated ITIL is considered to be a concurrently with
successful Service the internationally active IT other frameworks
(ITIL 2011). The updates to Service Management Forum
the publications are designed Management framework, such as CobiT
there is limited academic (itSMF1)). The ITIL best (Control Objectives
to [12]: Resolve any errors practice framework enables
or inconsistencies in the text research on ITIL [1] and for Information and
ITSM successful managers to document, Related
and diagrams, both in audit, and improve their IT
contents and presentation; implementations [3], and Technology),
very little academic material service management CMMI and ISO
improve the publications by processes [4].
addressing issues raised in exists on IT Service 9000.
Management Best Practice It is important to mention
the Change Control Log, as Benefits from
analyzed and recommended [5], which represents an area that implementing
of opportunity for ITIL alignment are
by the change advisory ITIL/ITSM requires not only improved
board (CAB) and approved researching and getting qualified people, but
evidence that ITIL is not just client/service
by the Cabinet Office, that is organizations will also orientation and the
a part of HM Government; a de facto framework, but require the economic and
from an empirical point of quality of IT
address suggestions for organizational justification services; greater
changes made by the view, it is also an effective of benefits, and up to date,
Service Management efficiency due to
training community to make little research has been standardization,
ITIL easier to teach; and framework, as Potgieter undertaken to quantify the
research evidences [14]. This optimizing of
review the ITIL Service benefits from their processes and
Strategy publication to research found that customer implementation.
satisfaction and operational process automation;
ensure that the concepts are Considering those facts, Tan and transparency
explained in the clearest, performance improve as the [4] in his theoretical review,
activities in the ITIL and comparability
most concise and most found that (quoting the through process
accessible way possible. framework increase, and research of several authors):
suggests that more research documentation and
There is no notion of Both customer process monitoring.
simplifying the concepts; but outlining the nature of these
relationships is however satisfaction and
rather, improving the and from his own research,
needed, especially regarding operational Tan [4] found that in the
exposition of the ideas. performance
each process in the ITIL success of ITIL:
ITIL contains seven core framework. improve as ITIL
aspects including: service processes are Senior
At this point, some new implemented. management
support, service delivery,
planning to implement questions arise: is ITIL just a support per se is
de facto standard? Is ITIL Benefits realized
service management, not sufficient:
really an effective by ITIL included senior staff from
security management, ITC
framework for any kind of business units
infrastructure management, 1

application management, organization? Does ITIL The IT Service Management Forum (itSMF)
is an independent organization dedicated to
should be appointed
success come just from promoting a professional approach to IT service to high level
and the business perspective
[13]. experimentation and vision management. The itSMF is a non-profit
membership organization with representation in committees, and
[5]? What does an many countries around the world (itSMF senior management
chapters). The itSMF and its membership
Some of the benefits of organization need in order to contribute to the development of ITIL and must understand the
ITIL include [6]: increased guarantee ITIL can go associated IT service management standards. magnitude of the
See www.itsmf.com for more information.
user and customer beyond its implementation
implementation and and business is based on the theory, implemented version(s),
ensure that the managers. principles and outcomes, time of adoption,
project is practices officially benefits, updating factors,
Considering the above
adequately and recognized by ITIL and person who is in charge of
appropriately facts, the establishment of a questionnaires from studies ITIL implementation and
SMO represents a way to
resourced. applied for itSMF USA and management, maturity level,
coordinate all processes and United Kingdom, and it challenges), and questions
Senior functions that manage the includes some questions about the existence or
management is also service providers services from the research conducted advisability of an SMO
needed to champion throughout their lifecycle by Lucio-Nieto and within the organizational
the project. [15], with three key Gonzalez-Baales in 2009 structure.
responsibilities: service
Close and [17], mainly the ones related
strategy and service design to ITIL implementation and A. Research approach
forthright to deliver value to the
relationships with maturity level. In that study, Statistical analysis
business; relationship the results of the research
vendors are management to strengthen consisted mainly of
important to ensure were encouraging: 100% of descriptive statistics and
the relationship with the participating companies
effective business; and governance on cross tabulations [18]. The
technology transfer. (103) expressed an interest assessment and validation of
process frameworks, in becoming involved in
methodologies and the questions included in the
To move the service processes supported applied questionnaire were
culture from standards [16]. by IT; most of the companies supported by the experience
technology-focused D. Research questions in the study averaged of the consulting team of
to service-focused between 1.5 and 3 in the Customer Care Associates
it is necessary to The research questions process maturity scale. firm from Mexico, as well as
have an effective for this paper were: What Therefore, based on the by other studies and
change does an organization need to results of this study, new literature related to ITIL &
management do in order to guarantee ITIL research questions emerged: ITSM [6], [17].
process. As the goes beyond its how to improve and
change involves implementation stages? Is an maintain the benefits of ITIL B. Sample
organizational SMO a way to realize and after its implementation? Is
restructuring, improve ITIL benefits? The sample consisted of
an SMO an alternative? 168 companies located
careful planning, (increased user and customer
reinforcement of satisfaction with IT services; The questionnaire mainly in Mxico (75%) and
contained 54 close-end in other Latin American
the project improved service
objectives and availability, directly leading questions (nominal) and 9 countries and in the United
open-end questions, States: Colombia (18%),
appropriate to increased business profits
appointment of and revenue; financial structured in 3 sections. The United States, Guatemala,
first section contained Ecuador, Dominican
process owners was savings from reduced
carried out to rework, lost time and questions related to general Republic and Brazil (each
information of the one 1%). Sampling
achieve the improved resource
transformation. management and usage; participants (industry, technique was non-
number of employees, probabilistic by convenience
improved time-to-market for
Effective project new products and services; participants role, position of and snowball [18].
governance and the IT Department within the
improved decision making
execution and and optimized risk [6]) organizational structure,
staying focused on level of relationship between
the project also IT department and executive
contributed C. Participants
III. levels and importance of IT
significantly to the services). Section two
RESEARCH DESIGN
success of the ITIL contained questions about The participating
project. In order to analyze the the activities of the IT companies were classified as
importance of the creation of Department (assessment technological (36%) and
A plan to track a Service Management
and communicate about IT performance non-technological (64%);
Office (SMO) as a way to metrics, helpdesk/service
the tangible and considering their number of
improve ITIL benefits, a desk tools, and how a
intangible benefits questionnaire was conducted employees, participating
of the project is help/service desk solution is companies were small (less
through a self-administered selected).
necessary in order on-line survey applied from to 100 employees: 19%),
to maintain the October to November 2011 Finally, the third section medium-sized (101 to 500
commitment from to 169 companies in eight contained questions related employees: 17%) and large-
senior management countries. The questionnaire to ITIL (reasons for sized (501 to 1,000
implementation, employees: 13%; more than
1,001 employees: 51%); (45%) but 48% of them do (56%) in a scale raking from implement the ITIL
participants were mostly not quantify the monetary 5 (completely satisfied) to 1 framework: improving
professionals related to IT losses due to IT service (completely dissatisfied) (1). service quality and
activities (from managerial interruptions. Among the increasing customer
ones that do quantify the C. ITIL implementation satisfaction.
to operational 82%); the
other ones were engaged in losses, 25% express such Participants in the survey
losses are less than $100,000 It is important to mention
business managerial where asked whether they that all 74 (100%)
activities. USD. Participants were know ITIL. 87% of them
requested to value the participants that answered
IV. answered yes, but only 44% they had implemented ITIL,
relationship level between IT of them have implemented
RESULTS
and the company (ranking expressed they recommend
ITIL (Version 3: 65%), 33% other companies to
In order to investigate choices: strategic, excellent, of them implemented ITIL 1
whether technological or competent, firm command, implement ITIL.
to 2 years ago, and 26% of
non-technological companies reactive, and there is little them implemented it 5 years D. IT Service
differ in whether they closeness): 25% of them ago. From the cases where Management and
implement ITIL or ITSM express IT is a competent ITIL has not been ITIL
frameworks, a Chi-square business partner and ensures implemented 60% expressed
test was applied. Results that our critical services are that the person who would The survey suggests that
suggest that technological available when needed, and the main challenges of the
most likely lead the
and non-technological only 24% expressed IT is a implementation is the IT implementation of IT Service
companies are not strategic partner (measured Management are:
Manager.
significantly different on in terms of its contribution to organization has to
whether they implement or business). The main benefits understand the purposes of
2
perceived by companies ITIL implementation (30%),
not ITIL or ITSM ( = B. Services provided by having implemented ITIL generating a culture of
0.201, df = 1, N = 169, p = IT Deparment are: improving service change (20%), and obtaining
0.423). The same analysis quality and levels (39.6%), executive sponsorship (18%)
was done for company size The survey includes
questions related to how the increasing customer and resources (17%).
and ITIL or ITSM satisfaction (33.7%),
IT Department supports IT As previously mentioned,
implementation (2 = 6.43, df Service. Regarding users standardized and more
effective processes (30.8%), the benefits of implementing
= 6, N = 169, p = 0.169). opinion on what the ITIL are: increasing user and
Due to the fact that statistical functions of IT Department adopting a common
methodology for IT customer satisfaction with IT
evidence suggests there are are (from hardware-software services; improving service
no significant differences in provider, IT service provider processes (29.0%), alignment
with organizational services, availability, directly leading
the responses, the results and strategic partner): 40% to increased business profits
presented in the next sections of them express the function processes and goals (24.3%),
reducing the time of and revenue; financial
have been obtained is to provide business savings from reduced
considering the 169 support services, and involvement in IT services
(23.1%), continuous service rework, lost time and
observations without evaluating the performance improved resource
selecting the companies as of the quality of the services improvement (23.1%),
improvement in the management and usage;
technological or non- provided by the IT improved time-to-market for
technological and/or by Department (using multiple interaction between IT and
the rest of the business new products and services;
company size. answer questions). improved decision making
Participants expressed they (21.3%), improving business
A. Relationship productivity (16%), cost and optimized risk.
between IT use mainly metrics oriented Considering the benefits
towards evaluating reduction (12.4%), and
Department and the competitive advantage over expressed by the participants
Administrative Level satisfaction level (70%) and in the survey applied for this
secondarily other providers (8.3%). The
main reasons why the study, the perceived benefits
Participants were asked capability/maturity in are mainly related to
whether the IT Department integrated processes (34%) company decided to
implement ITIL were: improving service quality
is represented within the and service cost (33%), and customer satisfaction.
organizational structure: being the most widely used improving the strategic
66% of them answered yes alignment between IT and The survey included the
Help/Service Desk tool, one
(technological: 63.9% and designed according to business strategies (36%); following open-end question:
non-technological 66.7%). improving service quality According to your
company needs (20%), and
The frequency of meetings for the commercial ones the (21%); and improving experience with ITIL, and if
is: 25% of them are monthly customer satisfaction (17%). you had to deploy it again,
most widely used is BMC
and 24% weekly. In average, Remedy (17%). The This suggests that the what should be paid more
the time that a company can perceived benefits are attention to in order to ensure
satisfaction level with the
stand with an interruption of Help/Service Desk solution consistent with the reasons its successful
an IT service is one hour the company had to implementation? (What
implemented is satisfied
does an organization need to procedures (ISO, MAGTIC, to face the challenges study focussing on critical
success factors, Journal
do in order to guarantee ITIL SOX...). expressed by survey of Computer Information
goes beyond its participants; how to obtain Systems, no. Winter, 2009.
V.
implementation stages?), the all the expressed ITIL
main answers were: support CONCLUSIONS benefits. Therefore, new [5] F. Malcom, Building an
ITIL based Service
and commitment from all Considering that ITIL research questions arise: is Management Department.
stakeholders within the does not formally include there an opportunity cost TSO Information &
company (mainly senior the existence of an SMO as a associated with the failure to Publishing Solutions,
2008.
management); training; focus way to guarantee ITIL adopt ITIL? Is there a way
on key processes; permanence and its of measuring whether the [6] A. Cartlidge, A. Hanna,
adaptability and flexibility of ongoing cost of ITIL C. Rudd, I. Macfarlane, J.
efficiency once the Windebank, and S. Rance,
the ITIL framework; and implementation phase ends, adoption is lesser than the An Introductory Overview
establishment of roles and the evidence obtained ongoing service benefits of ITIL V3 An
responsibilities. They also through theoretical research accrued? Is an SMO an Introductory Overview of
expressed that the main alternative for reaching those ITIL V3. The UK
and with the survey applied Chapter of the itSMF,
challenges of implementing to a group of Latin American purposes? Would SMO 2007.
ITIL are: the time devoted companies in order to know become a challenge for IT
[7] J. V. Bon, IT Service
by the IT staff involved in their perceptions about the professionals in order to Management: An
the project, and support from benefits of an SMO as a way accomplish the goals of Introduction. Van Haren
senior IT management. to improve the benefits of ITSM? Publishing, 2007.
ITSM suggests that in most The next stage of the [8] S. D. Galup, R. Dattero, J.
of the cases, while the IT J. Quan, and S. Conger,
research will focus on An overview of IT
E. SMO and ITIL department is represented at proposing a definition and service management,
the organizational level, it is
Considering only the designing a framework for Communications of the
not perceived by an SMO within an ACM, vol. 52, no. 5, p.
companies that have management as a strategic 124, May 2009.
implemented ITIL, the organizational structure in
partner. order to achieve better [9] C. M. Young, An
following results are the
outcomes for ITSM introduction to IT service
most relevant: 56% of them The main benefits management. Gartner,
know the term Service perceived by the companies practices, mainly for 2004.
Manager, and only 38% that have implemented ITIL organizations that have
[10] M. Marrone and L. M.
know the SMO concept, and are: improving the strategic implemented ITIL. Kolbe, Impact of IT
those who know what an alignment between IT and Service Management
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