INFORMATION TECHNOLOGY SERVICE MANAGEMENT

Information Technology Service Management (ITSM) refers to a collective of behaviors,
processes, competencies, and technologies that drive an organization’s ability to deliver the right
Information Technology services, and at the right performance levels (Laudon & Laudon, 2000,
4). ITSM serves to provide a way through which an organization can be accountable for the end-
to-end coordination and visibility as it relates to the delivery of IT services. Through the
application of systematic tracking of the improvement in the quality of service offered, efficiency
and risk reduction, ITSM makes it possible to provide accountable service delivery. ITSM
provides a framework for managing IT as a service to the organization. Since IT is a service, it is
only able to optimize whatever it manages. While most people contend that IT benefits
organizations, there exist significant differences in the benefits that an organization can gain
from mature as opposed to immature IT service organizations (Aurich, Fuchs & Wagenknecht,
2006, 1481). The widening gap between the deliverables between established IT systems and
those that are not is the reason for the need for ITSM. ITSM thus addresses the need to deliver a
sophisticated IT services to organizations.

Importance of ITSM

Current State of IT Service Management at Ho Chi Minh Securities
Ho Chi Minh Securities (HCS) is in a position where their IT services have an inward
focus on the technology itself. The company stance on responding to problems can be labeled
one of “firefighting” since it is slanted towards responding to incidents after they have occurred.

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IT services within the organization give undue importance to the users of the services without
due regard for the value that a customer or client would derive from it. Moreover, service
delivery has been centralized and all amenities that IT affords the businesses processes are done
in-house. Even more disconcerting about the service delivery at HCS is that IT has an internal
perspective with informal methods and a particular operational implementation of services.
ITSM can significantly benefit HCS. First, focus on IT services will be shifted to operations with
a keener emphasis on prevention of problems through a proactive approach rather than a reactive
one. Also, service delivery could be distributed or sourced from outside the firm so as to improve
the quality of services offered (Berkley & Gupta, 1994, 109). Furthermore, formal best practices
could be adopted over the informal ones with a service orientation in the pace of the operational
specific IT infrastructure that existed beforehand. In essence, some far-reaching changes can be
expected at HSC as a result of implementing ITSM.

Benefits of ITSM to HSC

The apparent benefits of ITSM can be categorized regarding what particular group of
persons in the business operations chains benefits. Customers and clients will take advantage of
the quality of service improvements (Laudon & Laudon, 2000, 24). ITSM ensures that incidents
are acknowledged faster and resolved quickly as well. There will be shorter turn-around cycles
for Service Request fulfillment and decreased impacts arising from outages whenever the IT
changes. In addition, HSC customers will benefit from increased IT performance against service
level targets, a factor that will result in increased customer satisfaction (Goo et al., 2009, 134). IT
teams at HSC will gain from ITSM as well. Costs associated with increasing capacity, incident
response, and IT request activity will be considerably lower while time spent on change and
incident handling, manual coordination and internal auditing of IT services will decrease. Aside

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from the gains in reduced time and costs, ITSM will translate to benefits in the manner in which
HSC can allocate resources for project work and operational support work, with the emphasis
being given to the former.
For the organization leadership at HSC, there will be advantages arising from risk
reduction. ITSM will result in a decrease in the number of emergency or unplanned changes, and
when the changes are needed, a reduction in collisions. ITSM also improves IT service quality
and support efficiency while enhancing the governance and transparency of the IT department,
making for a more proactive IT department (Berkley & Gupta, 1994, 112). In addition, the
service framework results in lower IT service costs in the long run following improvements in
the resource allocation and process management. Similarly, ITSM makes it much easier to attain
compliance requirements in the IT services since preventive, detective and corrective IT controls
are well-documented and tested. In the same vein, compliance with legal and other regulatory
requirements is a cinch. Finally, due to the higher levels of customer satisfaction, a firm is more
likely to meet its business objectives.
For a company to fully benefit from the advantages that ITSM proffers, it has to take
considerable care in how the service framework is implemented. ITSM, like many other
improvement programs, is susceptible to the Improvement Paradox. The paradox is characterized
by programs that are meant to improve the business resulting in worsened performance and
decreased morale. In essence, a firm reflects no gains even after implementing a program that
was supposed to improve the company’s ability to meet its business objectives. ITSM is
particularly susceptible to the Improvement Paradox because it sometimes distracts from the core
reason that IT departments exist in business, and that is to provide value to the firm (Karimi,
Somers & Gupta, 2001, 142). IT operations are meant to aid in the broader business objectives

IT Service Management 9
whether it is growth in profits, expansion of the enterprise itself, or delivering better customer
service (Karimi, Somers & Gupta, 2001, 135). We hold a strong belief in the value that a
disciplined ITSM approach can bring to business, particularly if it is in line with the fundamental
business objectives.

Challenges to successful ITSM integration

Most organizations display an inability to maintain the benefits initially achieved from
successful integration of ITSM as a process improvement program, or even worse fail to see any
advantage entirely, due to some reasons. The most common reason for this stems from an
inability to articulate why they are implementing ITSM or what improvements they seek. A
similar situation arises from the wholesale implementation of ITSM without tailoring the
program for the company specific development goals. Other times, the perceived ineffectiveness
of the study stems from a failure to measure the current baseline or track improvement.
Similarly, not addressing any fundamental governance issues related to the program or failing to
manage organizational change will result in ineffectiveness in processes even with the
implementation of the ITSM the service framework. A final issue arises from focusing on the
tool as opposed to the processes and services to be improved. Here at Fictional Company, we
have perfected the implementation of ITSM, a consequence years of experience working with
medium-sized to large organizations aiming at helping them improve the quality of their service
delivery.
If ITSM is to be implemented effectively for HSC, the program has to be applied with
very specific considerations in mind. For one, a broad range of stakeholders has to be involved in
the planning and implementation of the program. Secondly, the focus has to be placed on the
optimization of processes. Another important point to consider is that the application has to be

IT Service Management 10
with the realization that if meaningful metrics are to be achieved, consistent process execution
has to be done first. Similarly, we have come to discover the need for new roles in advancing the
current process capabilities, the knowledge that HSC will benefit. Aside from the considerations
already identified, it is of the essence to provide a common automation platform for any new
capabilities that are desired, but without placing an emphasis on the tools at the expense of well-
designed processes. A final consideration arises from how to entrench the program into the
lifeblood of the firm. For the realization of maintainable changes, the company should consider
cultural shift as the most significant investment.
ITSM is, in essence, a set of components working together towards the achievement of
process improvement and enhanced quality of service. Two of the main elements of ITSM are
Service Strategy and Service Design. However, before embarking on a study of how these two
items can be used to impact IT operations of HSC positively, we have to look at what services
are. In the context of ITSM, services can be thought of as ways and means through which a firm
can provide value to their customers by enabling the outcomes that a client wants, but without
subjecting the business to the ownership of specific costs and risks. As such, services are a
means to facilitate outcomes by improving upon the performance of associated tasks and getting
rid of the effect of restrictions on business operations. As a consequence, services typically result
in an increased probability of the realization of the desired outcomes.

Service Strategy
Service Strategy Overview

The Service Strategy component of ITSM provides guidance on how to apply services
towards the achievement of goals. Service Strategy thus provides direction on the design,
development, and implementation of service management not only as a way to improve on

IT Service Management 11
organizational capability but also as a strategic asset to the firm (Cannon et al.,2011, 12). In the
context of Service Design, Service Operation, Service Transition, and Continual Service
Improvement, all correlated aspects of performance improvement in IT operations, Service
Strategy guidance is very useful. HSC could apply the advice and direction the Service Strategy
provides to align the firm’s objectives and expectations of performance towards better serving
their clients and market spaces, and in the identification, selection, and prioritization of
opportunities. Service Strategy is aimed at ensuring that organizations can handle the expenses
and hazards related to their Service Portfolios, and are prepared to handle operational
effectiveness just as well as they can feel unique performance.
Objectives of a Service Strategy

There are several objectives for having a Service Strategy in place. The goals
underline the essential operations of any company and assist the firm in developing a service
framework. One of the purposes of a Service Strategy is to show the organizations what services
to provide and to whom, and how to move service management away from an organizational
capability and more towards it being a strategic asset (Cannon et al., 2011, 12). The shift helps
organizations to think and act in a strategic manner. The Service Strategy is also essential for
clarifying the relationship between various systems, processes or services and the strategies,
objectives, or business models they support. Central to the aims of a Service Strategy is the
provision of a business stakeholder with value while differentiating an organization from their
competitors. Also, a well-implemented service strategy makes it possible for a company to
resolve conflicts in demand for business services and improve the quality of services that they
offer.

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Service Strategy is crucial in the creation of value for stakeholders, stakeholders here
referring to both customers and investors. When looking for investments, a well-executed
Service Strategy is important to for demonstrating value to the stakeholders. For investors, the
strategy makes it possible to provide visibility and control over value creation. As such, it is very
easy for them to access a company for money-making potential. For the firm, the clear
correlation between how financial services are managed and the value the company has will
make it easier for the enterprise to gain funding (Melville, Kraemer, Gurbaxani, 2004, 284).
Service Strategy is also instrumental in the definition of what service quality entails. Towards
improved service quality, service strategy makes it possible to choose different paths to higher
service quality. At the same time, Service Strategy makes it trivial to allocate resources
efficiently across a portfolio of services while resolving conflicting demands for shared
resources. Thus, implementing an effective Service Strategy is essential to any business thinking
of applying ITSM to improve its service management.
Value of a Service Strategy

The value of Service Strategy to an organization of a business of Service Strategy lies in
the guidance it provides. Service Strategy guides and organization into how to design and
establish service management as a strategic asset for the firm. At the same time, an efficient
strategy sets the values and philosophies required for developing service management guidelines,
policies, and processes across the entire service lifecycle. Perhaps the most value derived from
the Service Strategy by any organization is that it sets expectations and objectives of
performance towards serving clients and market spaces (Papazoglou et al., 2007, 40). A service
strategy is also valuable because it helps in the identification of and prioritization of
opportunities in IT service management (Aurich, Fuchs & Wagenknecht, 2006, 1484). Similarly,

IT Service Management 13
the approach makes it possible for organizations to manage the costs and risks that are tied to
their service portfolios since they have a framework within which they can ask questions and
plan for how to do something before progressing.

Service Design
Service Design Overview

The Service Design component of an ITSM provides direction for the design and
development of services and Service Management processes in an organization (Fitzsimmons &
Fitzsimmons, 2013, 42). Simply, the principal objective of Service Design is to outlay the
methods and principles for translating strategic objectives of the organization into collections of
services and service assets. It is worth noting that Service Design is not limited in its scope to
new services, but it can stretch to cover the changes or improvements needed to maintain value
to the customers over the entire lifecycle of services (Erl, 2008, 13). Also, applying Service
Design to already existing services makes it possible to ensure continuity in the service offering,
attainment of service offerings, and conformance to standards and regulations. Service Design
guides the firm on ways in which it can fashion its design capabilities so as to meet Service
management considerations for the company.

Objectives of Service Design

The principal objective of the Service Design stage in the IT Service Management
lifecycle is the development of new or changed services for entry into the business environment
as a live implementation putting in mind the Service Strategy that was previously chosen. In the
elaboration of a new application, the design should not be done in isolation (Fitzsimmons &
Fitzsimmons, 2013, 64). Instead, the plan should factor in the overall impact of the service, the
architectures already in place, the technologies being used, management systems and tools like

IT Service Management 14
Service Catalog and Service Portfolio, the Service Management processes, and the necessary
measurements and metrics. Doing this ensures that the management and operational
requirements, as well as the functional elements, are addressed as an essential part of the design
and not as a second thought.
As previously stated, the main aim of Service Design is the scheming of new or changed
services with the Service Portfolio providing the requirements for the new services. As each
element is pulled out of the Service Portfolio, it is analyzed and documented, then a solution
design is made. The design has to conform to the corporate and IT policies in place, and the
means through which this is achieved is by comparing it to the strategies and constraints
underlined in the Service Strategy (Goldstein et al., 2002, 124). It is essential that each Service
Design component is considered in conjunction with other aspects of Service Design. When
looking at the Service Management systems and tools, particularly the Service Portfolio, it is
necessary to ensure that any new services or changes to preexisting services are consistent with
all other services (Erl, 2008, 13). Conversely, it is important as well that all other existing
services that support, interface, or depend on the new service are consistent with the new service.
If the consistency between new and old or changing and other existent services is not ensured,
either the design of the already established services and those that are being changed or
introduced will have to adapt.
Another component of service design is the technology architectures and management
systems. For interoperability between the new or modified and pre-existing systems, it is
imperative to ensure that all the management systems and technology architectures are consistent
with services being introduced. It also becomes apparent that this component is tied to the
Service Design part because changes in the structures or management systems in place has to be

IT Service Management 15
amended so as to ensure it can seamlessly connect to a new or improved service. Service Design
should also ensure that the processes, responsibilities, roles, and skills have the inherent capacity
to support and maintain the new or enhanced service (Moritz, 2005, 34). Barring this, the design
of the new service has to be altered to reflect compatibility with the preexisting. Similarly, the
measurement methods and metrics should be such that they can provide measurements and
metrics for the new or improved program.
Completion of all the related components of the Service Design stage ensures that
minimal issues are arising from the subsequent steps in the Service lifecycle. As such, Service
Design should offer a consolidation of the different components of the design while integrating
the fundamental design principles for ITSM processes within its design processes (Moritz, 2005,
34). As a final consideration, Service Design is important for any business because of the
connection it has to the measurement of business performance. For a business to be able to
measure and demonstrate its value, there is a need for the company to link the outcomes,
objectives, and their underpinning processes to the IT services and the underlying processes,
assets, and functions. Business value should be articulated by agreeing on service levels, Service
Level Agreements, and targets across the enterprise (Fitzsimmons & Fitzsimmons, 2013, 47;
Goo et al., 2009, 140). In summary, Service Design is essential since it makes it possible to map
business processes to IT infrastructure and trade and service measurements while at the same
time mapping support resources to services.

ISO/IEC 20000 Certification
Advantages of ISO Certification

Any organization that implements ISO standards benefit from some advantages. The ISO
20000 specification has certain advantages to the firms that choose to implement it, steeped in

IT Service Management 16
the value that the standards cans add to the products and services of the company. Standards
contribute to the harmonization of technical specifications of the goods and services, thus
making the industry processes more efficient. Conformity to Standards also acts as a reassurance
to the clients or consumers on the safety, efficiency, and value of products and services made by
a firm. For companies that choose to implement the ISO standards, the broad-level advantages
include cost savings as a result of optimized operations and enhanced customer satisfaction from
the improvement in quality and speed of services. Similarly, firms that adopt ISO standards will
gain access to new markets as a result of the elimination of trade barriers, and a larger market
share subject to the increased productivity and competitive advantages the standards offer.

Advantages of ISO/IEC 20000 Certification

When addressing the benefits to organizations that are unique to ISO/IEC 20000, one of
the first that comes to mind is the increased benefits with full effectiveness for each process.
ISO/IEC 20000 also brings about consistency, traceability, and control provided across
processes. Another derived benefit of ISO 20000 is that it makes it possible to restore a service
based on an IT continuity plan while providing better alignment of IT services with the business
services it supports. At the same time, business relationships are improved by having the
certification since clients get improved quality while suppliers can be handled in a consistent and
efficient way. Moreover, an ISO certification gives a business better reputation on the market.
Since having an ISO 20000 certificate is still not common, having attained the certification
proves that a company is serious about its business. Even more important than that, ISO/IEC
20000 helps companies overcome natural barriers between the organizational units. For instance,
the sales department has to foster better relations with the IT department so as to offer a better
quality of service to the customer (Karimi, Somers & Gupta, 2001, 142). As a result of the inter-

IT Service Management 17
department communication, vertical communication within units in the organization is greatly
enhanced.

Disadvantages of ISO/IEC 20000 Certification

ISO 20000 also features some disadvantages. First, firms that get into the process of
certification without a clear idea of the requirements usually end up wasting time, resources, and
efforts. ISO 20000 certification is a very costly process and as such directing company efforts
towards the process without having an awareness of the requirements will result in wasted time
and effort. Moreover, the achieving of the ISO 20000 certification can prove to be a very costly
process, especially for smaller firms. At the same time, ISO’s exacting documentation typically
take up much time. As such, a business can lose substantial business as a result of the extensive
documentation and redirected priorities. Furthermore, the length of the process proves to be a
huge disadvantage. On average, ISO certification takes about 15 months from the early stage to
the audit. It is not uncommon for the certification process to take over one year.

Conclusion and Recommendations

While ITSM proves to be a very detailed and engaging process for any firm, it is essential
that a company with a background in IT services takes up the framework for the management of
their IT services. ITSM proves to have considerable advantages that would benefit the operations
of a firm and go a long way towards assuring the quality assurance of the enterprise. Similarly,
based on the paybacks outlined, HSC will be served by pursuing ISO 20000 certification. While
the company will incur some costs and have to face some challenges in the route towards
accreditation, in the end, the certification will prove to be worth the trouble.

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