Generate value in the business by implementing ITIL best practices.

In this second article in the ITIL Series we will see some of the ways in which IT can create value for the organization. Following are the most prevalent ways ::

  • 1. Providing services to end customers that could not be provided without the help of IT. For example, Rentacar’s, (our car rental company) booking service via web.
  • 2. Optimizing business operations either by improving the quality of care the organization provides to its customers, or by reducing the cost and time that it takes for the organization to carry out its activities.
  • 3. Providing competitive advantages. For example, giving a differentiated service from competitors or helping to position the company where it wants to be (low cost, an expert on a certain topic, innovative etc.).

Usually, the IT department is not profitable by itself. That’s why it is not easy to quantify its value and sometimes is just perceived as a cost driver. At this point, the only way to demonstrate value is through cost reduction. And this is a path that eventually comes to an end.

What other ways can IT demonstrate its value?

One way would be through the business activities IT serves, which are the ones that finally realize the value expected by the organization. Therefore, in order to determine the value of the IT rings, it needs to be able to identify the activities of the organization and link them with IT operations.
One way to do this is to define what services IT offers and relate them to the products or services offered by the organization.

There will be services used directly by the organization or by external clients (Customer Services, for example, on-line booking Services) and Support Services, which enable the Client Services, for example, the internal network service without which neither the call center nor offices could access corporate applications.

As we have seen, it is not easy to establish the value of IT for the business. But it is necessary for IT to be seen as important, valued and worthy of investment. To make sure that the organization is aware of the values and services IT provides, we should be able to link what IT offers with what the organization gets.
Structuring IT in Services is a helpful way to achieve it.” – Manuel Molero, CTO ServiceTonic

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