Thursday, August 14, 2014

CIS 3008

CIS 3008

ITSM- North Dakota



Executive summary
Present paper explores details for the information technology department of North Dakota pertaining to information technology service management. Importance of IT service management would be explored for North Dakota, ITIL V3 service strategy would be reviewed, decision would be made regarding adoption of outsourcing of IT services and decision pertaining to adoption of ISO/IEC 20000 certification would be made for North Dakota. It has been explored that ITSM is one of the key functionality for the organization which allows organization to achieve higher customer satisfaction, reduce delivery time and provide service support as per customer requirement. ITIL V3 strategy has three important parts (business relationship management, financial management and customer need understanding) which needs to be managed by North Dakota so as to enhance business proposition. Option of outsourcing would be critical for North Dakota in order to focus on their core activity and reduce cost. Adoption of ISO/IEC 20000 certification would be beneficial to evolve as continuously improving organization and to align business strategy as per organizational IT strategy.










  
Table of Contents















Part-1
Importance of IT service management at North Dakota
Information technology service management (ITSM) has gained vital importance in present age for managing business services effectively. The role of ITSM in present age businesses is to simplify business processes so as to align them in accordance with the IT infrastructure in the organization so as to develop a uniform and standardized code of practice organization wide. For North Dakota the major role of ITSM would be to simplify business processes in order to act as the growth driver thereby contributing in the development strategic fit and for business strategy and organizational policies (Bon, 2007). ITSM tools used by North Dakota would be vital in collecting the relevant information which would create a base for the development of sound decision making in the organization. Some of the major factors showing importance of IT service management for North Dakota can be given as under:
§  Service support in accordance to business need: ITSM would allow North Dakota to deliver service support for their customers in accordance to the particular business needs. Several organizations which are not having expertise in information technology field such as Bank of North Dakota, office of management and budget, Criminal justice information sharing, job service and department of human services would be able to concentrate on their core business activity. This would help customers to provide one touch access for all their IT related and Non-IT related issues and queries. For example at present Bank of North Dakota is utilizing these services in order to request for equipment, replacement for any particular machine and any other software or hardware related issues. ITSM would offer the customized set of services for their client based on requirements.
§  Automation of workflow: Entire organizational workflow would be smoothly managed and automated processed would be used. There would be automatic request tracking, resolution providing and closing the call after resolution of the problem. Hence human intervention in most of the processes would be minimal in the present context (England, 2008).
§  Higher customer satisfaction: Delivering services in accordance with organizational requirement and giving organizations opportunity to focus on their core activity would enhance the customer satisfaction level and North Dakota would be able to maintain customer satisfaction up to 99.8%. Further after each issue logged in with the IT service management team a feedback system would be maintained this will evaluate the customer satisfaction index pertaining to service imparted by IT desk. This will help in order to identify possible issues in the service department and accordingly changes can be made in the service delivery model to enhance customer satisfaction further.
§  Reduction in service delivery time: ITSM tools would help North Dakota to reduce their service delivery time considerably as lesser time would be consumed in service delivery and this would also enhance the customer value. This would add to higher efficiency in the organizational context as higher number of tasks would be accomplished within given time frame.
§  Service quality: Usage of ITSM would help North Dakota to give higher emphasis on the service quality aspect. The services provided to the customers would be of best quality and elastic in nature suiting the changing organizational environment. Improvement in service quality aspect would develop brand name for the organization and give customer high value (Knapp, 2010).
§  Competitive advantage: Usage of ITSM tool in the organization would be helpful in order to develop the competitive advantage through lower cost and better quality. An automated system would align organizational tasks and foster higher level of efficiency in the system. North Dakota would be able to compete with its competitors by maintaining the ITSM tool in the organizational context.
§  Improvement in decision making: IT Service management processes implemented in g North Dakota would be helpful in managing all processes efficiently hence better time management and information collection would happen. This would help the organization to make effective decisions so as to align the business processes for better decision making processes to be followed in North Dakota.
Hence North Dakota has high degree of importance for the ITSM tool managed by the organization in order to develop organizational efficiency, enhance customer satisfaction, managed automated work flow, reduce service delivery time and implement cost efficiencies in the organization.
Service strategy
ITIL V3 Service strategy phase
Service strategy can be considered as the major axis for the service lifecycle in ITIL V3 around which entire phases will move and this phase would include the policy making and objective setting. This phase guides how information technology service management needs to be managed in order to provide competitive advantage to the businesses. Based on the service strategy of the organization an organizational competitive advantage would be developed based on the target market of the company (Kolthof, 2007). Management team in the organization would analyze key risks and benefits so as to develop efficient decision making system. There are three major service strategy processes included in the ITIL V3 which are given as under in relation to North Dakota:
  1. Service portfolio management: The role of service portfolio management is to ensure that an appropriate mix of services can be developed which would match the customer requirement. North Dakota has a proper service management processes in place so as to meet customer requirement. Continuous customer feedbacks are made in order to align the service according to customer requirements. Management of all service provision is being done in order to improve organizational processes at North Dakota (Sharon and Ivor, 2012). Further there is issue that at North Dakota value of IT to achieve organizational goals has been undermined. Customer need assessment survey conducted by ITD reveals that more than 90% of the customers believe that services delivered by ITD are able to meet consumer requirements. Further approx. 99% of the incidents and requests are completed with high customer satisfaction. In order to develop customer centric approach ITD makes use of the creation of positive customer experience, building strong relations and providing technology directions etc (Buchsein and Dettmer, 2008).        
  2. Financial management: The main objective of financial management for IT services is to ensure that sufficient funding can be availed so that IT services can be managed in proper manner and cost related to IT can be managed efficiently. A financial framework has been maintained at North Dakota so as to manage the cost on IT services and to recover these costs from customers. Further strategic analysis in North Dakota involves studying the impact of change in the organizational IT strategy on overall business objectives. Adequate amount of funding is made available for the IT relates services and any other expenditure which are required to be covered in the organizational context. North Dakota has high degree of focus on budgeting, accounting and charging for the financial management of IT services wherein exceptions of income are being managed, unit costs are being established and pricing is established in such a way to charge customers for covering organizational cost on the IT services. As a part of the financial management strategy ITD makes use of the cost effective investments, manage revenue, align prices with customer needs and manage state wide spending on technology (Rovers and Haren, 2012).     
  3. Business relationship management: The main aim of the business relationship management processes in ITIL V3 service strategy phase is to ensure that strong relationship is being maintained between the service providers and customers through meeting customer expectations and fulfilling consumer needs. The major objective of business relationship management would be to meet customer needs, maintain effective communication, maintain efficient complaint management system and to ensure high customer satisfaction. Survey conducted in order to assess consumer relationship with ITD it was found out that 90% of the consumers believe that ITD is trusted business partner and more than 90% of the customers would prefer to choose ITD as their IT service provider.     
Improvements in IT service strategy processes
Possible improvements in the service strategy processes for ITD would include development of the strategic processes so as to develop objectives and goals according to the organizational environment. It is important that ITD should realign the business processes in accordance with the organizational goals and objectives.
Part-3
3.0 Service Design
Service strategy section of the present report details various roles and responsibilities which would be assigned to different stakeholders and benefits & limitations in case of outsourcing of service desk by North Dakota can be given as under:
3.1 Roles and responsibilities of for IT support
Below are some of the major roles and responsibilities assigned to the key stakeholders of the organization:
1.      Incident analyst: Incident analyst would have the prime role to analyze impact of various incidents and giving priority based on the level of impact on the organizational services. Incident analyst has the responsibility to adopt proper measure in order to take services back to its original state.
2.      Process liaison: Process liaison is one of the top positions in IT field and has the responsibility to communication and modifies organizational processes to align with the IT strategy so as to develop coherence between the two (Hlvey and Melby, 2005).
3.      Change owner: Role of change owner would be to fill the change owner form in order to assemble the change package. Change owner would initiate the change request by filling the form and this would be assigned to change management team. Change management team would implement the changes as per the change owner request. 
4.      Operational analyst: Operational analyst in North Dakota would be responsible for handling day to day operational activities and to maintain the operational library. Operational analyst would be responsible for managing the overall budget and recruiting staff for the operational activities.
5.      Service analyst: Role of service analyst would be to conduct service audit in order to track which services are not efficient. Once identification for the inefficient services would be done, service analyst would recommend possible changes in order to improve the services.
6.      System administrator: Role of system administrator would be to own the system infrastructure and network infrastructure so that availability of these devices does not affect the task handled by IT team in the organization. System administrator would track the system performance and maintain the devices which are required in the organization for better organizational performance (Eric, 2007). 
7.      Capacity manager: Services handled by service desk would be as per the capacity of the system and role of capacity manager would be to ensure that there is no over burden for capacity on system as this may reduce the overall capacity of the system. Along with reducing service quality this would also elongate the service delivery time.
3.2 Advantage of outsourcing 
Some of the key advantages of an outsourced service desk can be given as under:
1.      Higher emphasis on core activities: By going for the option of outsourcing North Dakota can have higher focus on their core activities. Time, efforts and budgeting requirement and their planning would not be done by North Dakota and this entire part would be taken care by outsourcing partner.
2.      Sharing of risk: Risk inherent in the management of service desk would be shared by North Dakota along with the outsourcing partner making service desk a lower risk composition for the state (McBride, 2000).
3.      Lower cost: Managing outsourcing team for the IT service desk would allow North Dakota to manage low cost IT service system. Significant amount of cost would be saved in terms of human resource, training & development and system deployment.
4.      Staffing: Managing staff for the IT service desk would be another issue for North Dakota as high number of people would be required for the management of service desk. Further North Dakota can leverage on the outsourced staff as they would be highly competent in their field which can’t be achieved by training and development for North Dakota staff (Atwell, 2012).
5.      Lower investment in technology: By deploying outsourcing service North Dakota can save in the overall investment made by state for the technology, systems and other capital investments. These surplus funds can be deployed for some other purpose leading to additional benefits for the state.
3.3 Disadvantage of outsourcing
Some of the key disadvantages which can be faced by North Dakota by outsourcing option can be given as under:
1.      Delayed delivery of service quality: Outsourcing for the service desk would involve business partners and they would lay down their specific processes and these processes may have the chance to delay service quality which is generally observed in case of outsourced business partners.
2.      Third party reliance: State of North Dakota would be having high degree of reliance on the third party due to which there would be much lower degree of organizational control and any changes in processes laid down by outsourcing partner may affect the overall processes for North Dakota as well.
3.      Information risk: Critical information contained in the systems for North Dakota may be at risk due to outsourcing partner as there can be information leakage during the system maintenance or any exchange of information outside the organization.
4.      Difficulties in process alignment: With outsourced partner managing the entire IT operations of the organization it would be really difficult for North Dakota to align the organizational processes with the IT infrastructure of the state as there would be lesser degree of organizational control.
4.0 ISO/IEC 20000 Certification
As per the situation faced in present task decision needs to be done whether or not to obtain the ISO/IEC 20000 certification for ITD of North Dakota. This decision for the ISO/IEC 20000 certification would involve reviewing the benefits and drawbacks of this certification which are given as under:
Benefits of ISO/IEC 20000 certification
Some of the major considered for the ISO/IEC 20000 certification include the below mentioned:
  • Following service focused business strategies: With adoption of ISO/IEC 20000 certification it would be easy for the ITD to align its services according to the organizational objectives and goals. Information technology business strategy would be focused towards the services and processes and would be an efficient mean to provide the synergy between organizational strategy and information technology strategy of the organization.
  • Instant reaction as per changing environment: There can be possible changes in the business requirement with change in economic, political or technological environment for the organization. Adoption of ISO/IEC 20000 certification would help in order to grasp these changes at a faster pace and align the services of the organization according to the changing business scenario. Quick and efficient reaction towards the service changes for ITD would be a major benefit for the adoption of ISO/IEC 20000 certification (Dugmore, 2006).
  • Organization with continuous improvements: Achieving ISO/IEC 20000 certification for ITD would help the organization to engage into continuous changing environment wherein organization would strive for service excellence. These continuous improvements in services of the organization would help in order to maintain customer satisfaction and develop sustainability in longer term. This would make ITD to become an organization with high value delivery system.   
  • High reliability in service deliverability: Adoption of ISO/IEC 20000 certification would help in order to build reliability in service deliverability to consumers. Consistency and reliability factors would be incorporated in the services provided by the organization giving higher value delivery system for the consumers of the organization. Hence ITD would be benefited to become an organization with high reliability and value delivery system by maintaining ISO/IEC 20000 certification.
Limitations of ISO/IEC 20000 certification
Some of the major limitations for the ISO/IEC 20000 certification for ITD can be given as mentioned below and these factors would be important so as to make final decision regarding adoption of ISO/IEC 20000 for ITD:
  • Complex compliance requirements: Compliance requirement for ISO/IEC 20000 certification are too complex in nature which demands extensive process and policies to be implemented by organization and it would be really difficult for ITD to implement these processes in organizational environment. There would be requirement of the high amount of financial and human resources in order to comply with these compliance requirements. Further due to these compliance requirements organization sometime may have to change their existing policies and processes to align themselves with these requirements.  
  • High costing for implementation of ISO/IEC 20000 certification: There is significant level of cost involved for the implementation of ISO/IEC 20000 certification in terms of process changes and alignment. This cost may outweigh the benefits of implementation of the ISO/IEC 20000 certification. Hence implementation of ISO/IEC 20000 would affect the overall profitability for the organization (Dugmore, 2006).  
  • Developing phase for ISO/IEC 20000 certification: ISO/IEC 20000 certification standards are not quite established and are into developmental phase only. Further there are chances that drastic changes can happen in the entire certification and processes for the organization. ITD would be significantly affected by these changed hence the decision for adoption of ISO/IEC 20000 certificate may not prove beneficial for the organization.
Looking into the benefits and limitations for the ISO/IEC 20000 certification for implementation in ITD there are several important factors which needs to be considered. The major advantages of ISO/IEC 20000 certification such as service focused business strategies; higher reliability, continuous improvements and quick reaction to the changing service environment outweigh the limitations which would be faced due to the implementation of ISO/IEC 20000. Hence from the strategic aspect of evolving ITD as one of the major service provider known for its quality services and reliability it is recommended that organization should go for ISO/IEC 20000 certification.  
Part-5
5.0 Conclusion and recommendations to Deputy CIO
Present report has reviewed several important IT service management issues pertaining to Information technology department of North Dakota. Importance of information technology service management processes were understood with specific context to ITD and some of the key important features evolved includes developing competitive advantage, improvement in service quality, meeting customer satisfaction and improving service delivery time for the organization. ITIL V3 service strategy phase for ITD include service portfolio management, financial management and business relationship management. Service portfolio management deals with understanding consumer requirement and providing business solution according to consumer needs.
Financial management require an organization to maintain its profitability high by passing cost to consumers. Business relationship management include managing relationship with the business stakeholders such as customers and suppliers. Further outsourcing of IT service desk can be a useful tool for North Dakota as it will allow the organization to focus on their core activities and minimize overall cost of the organization which could have been spent in the IT service infrastructure for North Dakota. Though there are some disadvantages of outsourcing as well such as the higher reliance on third party, risk to information and delay in service delivery but these limitations would be outweigh by advantages which would be gained by the organization by going for outsourcing of their service desk. ISO/IEC 20000 certification is a crucial decision which needs to be taken by ITD as its major benefits include focus on continuous improvements, higher reliability and finding instant solution for the changes occurring in business environment. Limitations of ISO/IEC 20000 certification include complex compliances, higher cost implications and developing phase of the ISO/IEC 20000 certification which creates uncertain environment for the ITD to adopt this certification.   
Looking into the various aspects related with information technology department of North Dakota it can be recommended that organization has high importance level for the information technology service management and organization should deploy ITSM as their main tool for improving service quality. North Dakota needs to manage various aspects of the ITIL V3 strategy so as to understand consumer requirement, develop high profitability and to maintain strong customer relationship. Outsourcing of services would be a beneficial decision as organization would be able to give its attention on the core activities and cost pertaining to investment in infrastructure can be reduced. Decision for adoption of ISO/IEC 20000 certification should be taken so as to focus attention of organization towards continuous improvement and aligning organizational objectives.
References
Bon, V (2007). Foundations of IT Service Management Based on ITIL V3. Van Haren Publishing
Buchsein, R and Dettmer K (2008). ISO/IEC 20000 – IT Service Management. Benefits and Requirements for Service Providers and Customers. iET Solutions
Dugmore, J (2006). Achieving ISO/IEC 20000 - The Differences Between BS 15000 and ISO/IEC 20000. BSI Group [1]. p. 124. ISBN 0-580-47348-1.
Dugmore, J (2006). "BS 15000 to ISO/IEC 20000 What difference does it make?". ITNOW 48 (3): 30. doi:10.1093/combul/bwl017
England, R (2008). Introduction to Real ITSM. CreateSpace Independent Publishing Platform
Hlvey, J and Melby, B (2005) Information Technology Outsourcing Transactions: Process, Strategies, and Contracts. John Wiley & Sons.
Knapp, D (2010).The ITSM Process Design Guide. CPDE, ITIL ExpertTM. J. Ross Publishing. ISBN: 978-1-60427-049-5.
Kolthof, A (2007). Foundations of IT Service Management Based on ITIL V3: an introduction, Volume 3. Van Haren Publishing
McBride, D (2000). A guide to help desk technology, tools & techniques. Course Technology
Rovers, M and Haren, V (2012). ISO/IEC 20000-1:2011: A Pocket Guide. Van Haren Publishing
Sharon T and Ivor M (2012). ITIL Small Scale Implementation. The Stationery Office. ISBN 0-11-330980-5


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