Cologne University of Applied Sciences

Presentation Topic
Relevance of ITIL and eTOM Framework for IT Risk
Management
What is ITIL & eTOM Framework?
What is the relation to IT Risk Management?
Aminul
How is it supported?

Presented By
Mohammad Aminul Islam (11103812)
Muhammad Misbahur Rahman (11101850)

Contents

What is ITIL Framework?

Objectives

Terminology of ITIL
ITIL Lifecycle
Description of Lifecycle
How ITIL support to IT risk management?
Introduction of eTOM
eTOM operation processes
How it support to IT risk management?
Process implementation concept
Process flow concept
Main strength of eTOM in IT risk management
Bibliography

What is ITIL?
ITIL stands for IT Infrastructure Library. It was introduce by the British
government in 1980 for providing quality IT services .It is a set of practices for
IT services management and designed to standardize the all the process of IT
services (planning, delivery, support etc) to the business. The main target is to
improve efficiency and achieving the predictable service levels. ITIL offers a
body of knowledge useful for achieving ISO/IEC 20000 standard.
End users gets better level of service and business saves money

Main Objectives of ITIL

Reduce the IT cost, improve quality and decrease risk

Visibility of total cost and utilization of the product
Provide clear and effective communication to the users
Increase productivity
It helps for decision making

Terminology of ITIL
Single point of contact (SPOC) service desk
This is the entry point of the customer to request a service form for any
Incident.
Service Management
A set of specialized organizational capabilities to providing value to
customer in a form of service.
Service Catalogue
It contains details of all IT services delivered to the customer.
Request for change
A formal proposal for change the existing system

Change Advisory Board (CAB)

A group of people in the organization who can make changes decisions.

ITIL Life Cycle

There are 5 modules in the ITIL life cycle

ITIL Service strategy

ITIL Service Design
ITIL Service Transition
ITIL Service Operation
ITIL Continual Service Improvement

ITIL Service Strategy

Service strategy is the first step of the ITIL service
management. ITIL Service strategy provides the guidance
of how to design, develop and implement service
management not only as an organizational capability but
also as a strategic asset.
Introducing strategy generation

The service strategy concern about

Service portfolio Management
Financial Management of IT Services
Demand Management

Service Portfolio Management

The purpose of service portfolio is which services are provided
by the service provider in the terms of business values. Here
business values correspond to the marketing terms means compare
the services with the other providers.
Main Target
Include complete set of services managed by the service
provider
Manage the entire lifecycle of the services

The three categories of service portfolio are

Service Pipeline
Service pipeline concern about the conceptual service, services
waiting for design and transition.
Service catalogue
Services visible to customers, support terms and condition,
ordering of the request, pricing and chargeback
Retired Services
Services phased out and service transition

Financial Management for IT services

The main objectives is to provide cost effective best
services, calculate the cost for IT services and assign those cost to
the services delivered to the organizational customers.
Financial management of IT services contain 3 sub processes
Budgeting
IT Accounting
Charging
Budgeting:
It enables an organization to plan future IT expenditures,
reducing the risk and make profit. In addition, budget allows an
organization to compare the actual cost with the previous cost in
order to improve the reliability or budgeting predictions.
Budget area
Sales & Marketing
Production Budget
Administrative Budget
Cost of investment Budget
IT Accounting:
It concern the amount of money spend to providing the IT
services. For this need help from finance department of the
organization.

Charging:
After calculating all cost set a charge to a specific service.
Demand Management
Demand management is the critical aspect of service
management. Poorly handle demand is a source of risk for service
providers because of uncertainty in demand.

Service production cannot occur without demand. It is a pull system

where consumption cycles stimulate production cycles.
Consumption produces demand and production consumes demand.

ITIL Service Design

ITIL service design provides guidance for the design and
development of services and service management process.
In ITIL service design is primarily upon the 4 Ps

People
Process

Products
Partners

Service design processes

Service level management
Capacity management
Availability management
IT service continuity management
Information security management
Service catalogue management
Supplier management

Service level management:

Service level management ensure that right service to the
right customers.
Capacity Management:
The capacity management process understand the business
requirements, the organizational operation and IT infrastructure. It
ensures the current and future capacity and performance aspects of
the business requirements are provided cost effectively.
Availability Management:
Available IT services to support the business
IT service continuity management:
IT services can recover and continue even after a serious
incident occurs.
Information security management:
Information Security management is very important overall
the system. It ensures that information is secure for the both
parties.
Service catalogue management:
It ensures all the service details to the customers and
future contact information.
Supplier management:

Supplier management ensure that services provide from the

supplier are enough to support the IT and organizational
expectation.
ITIL Service Transition
ITIL Service transition provides guidance for the development and
improvement of capabilities for transitioning new and changed
services into operation.

ITIL Service Operation

The main objectives are delivering IT services effectively and
efficiently. It concern about customer request, problem
management, resolving service failure etc.

Continual Service Improvement

ITIL continual service improvement concern about the
quality of service. Take experience from past failure and apply best
process for the IT services improvement.

Bibliography:
1.
2.
3.
4.
5.
6.
7.

8.
9.

http://www.best-managementpractice.com/gempdf/ITIL_and_Corporate_Risk_Alignment_Guide.pdf
https://www.ucisa.ac.uk/~/media/Files/members/activities/ITIL/Service_Strategy/ITIL_Introducing
%20Service%20Strategy%20pdf.ashx
https://www.ucisa.ac.uk/~/media/Files/members/activities/ITIL/service_design/ITIL_Introducing%
20Service%20Operation%20pdf.ashx
https://www.ucisa.ac.uk/~/media/Files/members/activities/ITIL/service_transition/ITIL_Introduci
ng%20Service%20Operation%20pdf.ashx
https://www.ucisa.ac.uk/~/media/Files/members/activities/ITIL/service_operation/ITIL_Introduci
ng%20Service%20Operation%20pdf.ashx
https://www.ucisa.ac.uk/~/media/Files/members/activities/ITIL/service_continual_service_impro
vement/ITIL_Introducing%20Service%20Operation%20pdf.ashx
http://wiki.en.it-processmaps.com/index.php/

http://wiki.en.itprocessmaps.com/images/thumb/0/0c/Overview_service_transition_itilv3.jpg/459pxOverview_service_transition_itilv3.jpg

Introduction To eTom:
Etom is a business process frameworkor model. It is widely accepted and
recognized by service providers around the world as their operations
business process framework, and many vendors use the TOM as the basis for
product development and sales.
At present, TOM 2.1 is the TM Forum member approved business process
framework or model. It is widely accepted and recognized by service
providers around the world as their operations business process framework,
and many vendors use the TOM as the basis for product development and
sales.

Purpose of eTom Business Process Framework:

Traditionally, telecommunication service providers supply the end-to-end
services. Therefore, a single enterprise controlled the entire value chain; if
necessary it can be interconnected with other service providers.
Nevertheless, in the liberalized market, service providers, for example the
internet service providers need to cope with the situation of an increasing
numbers of customers, and at the same time, provide superior and

competitive services to the customer. Thus, they keep expanding their

markets and business relationship.

Etom operation Process:

eTOM is a business process framework that defines all major business
processes in telecom service providers. Actually, it is one of Next Generation
Operations Systems and Software frameworks. It has almost four levels in
details from 0 to 3 level in which 0 level shows the highest conceptual level
of the eTOM and level 1 shows how the major process areas Strategy,
Infrastructure& Product and Operations are decomposed and levels 2 and 3
are further decomposition of the previous processes view.

eTom Architecture:
The highest conceptual view of the eTOM framework is illustrated below.
In the upper two major boxes in the diagram, it provides an
overall
context that differentiates strategy and lifecycle processes from the
operations processes in two large process areas. The key functional areas
horizontally lay across these process areas. In addition, there is also the
internal and external entities that interact with the enterprise such as
customer, suppliers/partners, shareholders, employees and other
stakeholders. After the conceptual overview of the eTOM architecture, there
is a need to dedicate into deeper levels of eTOM framework to master the

mechanism of utilizing eTOM to solve problems.

Benefits or Strength of eTom framework:
1.
It makes available a standard structure, terminology and
classification scheme for describing business processes and their constituent
building blocks
2.
eTOM is widely used in the service provider industry because it
provides important benefits, such as:

3.
It makes available a standard structure, terminology, and
classification scheme for describing business processes and their constituent
building blocks

4.
It supplies a foundation for applying enterprise-wide discipline to
the development of business processes
5.
It provides a basis for understanding and managing portfolios of IT
applications in terms of business process requirements

Etom Needs continual Evaluation:

What benefits will level 4 bring? :
Vendors benefit as Level 4 provides clearer interfaces between different
functional modules and essential functions, which can greatly reduce
integration costs. Moreover, vendors can more easily understand their
customers business requirements as additional details are provided by
further eTOM decomposition. Ultimately, development costs and delivery
time can be reduced.

Bibliography