Concept of ITIL Overview
ITIL stands for information technology information library; the purpose of ITIL overview is to help the business to combine IT in their daily operations. It is a framework for information technology service management; currently, the latest version is ITIL 4 which is built upon years of practice and observation. It is created keeping a wider perspective on customer service, digital transformation, and adding value to the company. Companies can enhance their services using IT services. ITIL overview service Value Systems- This is a key component of the ITIL 4 framework as the name suggests, it helps companies synchronize all the components that are used to deliver service to their customers. It helps identify all the components and can also evaluate the contribution of each component. They can determine if any component lacks efficiency and can be further improved or worked on, or to eliminate a component as well.
Top 4 Factors in ITIL Overview
For companies the most important aspect is to generate profits, if a component is not adding to profits then it is of no use to the company. There are four essential components of ITIL service value systems. Below is the list of the 4 factors.
1. Organizations and People
The organization needs to operate in a smooth and efficient manner, with all departments clearly defined and know of their role and duties and the way they are contributing to the overall productivity and profitability of the organization.
Often in today’s modern age, companies have their operation spread across geographies. No department can work and operate in isolation, there needs to be easy interconnectivity between teams. And clogs that can slow down operations need to be identified and rectified immediately.
People are the key resources of an organization, only when workers of an organization are happy and satisfied will operate at the highest efficiency. The organization needs to take care of its employees. There are multiple ways to increase both intrinsic and extrinsic motivation of employees.
- Giving employees responsibility and autonomy.
- Including their suggestions in the decision-making process.
- Allowing exploring different ways of working and giving them the flexibility to do their job.
- Tying their pay to their performance.
- Giving them a fair and decent raise every year.
2. Information and Technology
This refers to the organization having modern IT management systems in place, that aid in the overall development of the organization. Working with the latest technology help the organization stay relevant and cut costs, as modern technology reduces dependency on humans and increases efficiency.
3. Partners and Suppliers
They are key players that help the organization function. Partners are the ones who supply with financial funds and suppliers provide raw materials needed to produce the services that the organization can sell. Both of them are essential to the company to function. With the help of IT and a systematic database can be created that can help track the number of funds and raw materials each partner and supplier has provided.
4. Value Streams and Process
The company can use IT services to streamline existing processes and services. As time passes, the existing process can become obsolete, with the help of technology patterns where a slow process can be identified and worked up. At the same time value creation is essential to the success of the organization.
Coming up with new channels to create value should be the target of the company. IT service management can help in identifying new trends to create value. ITIL 4 factors take into consideration these four components that were not part of previous versions. It focuses on creating value by-products and the services it provides.
Who Can Use ITIL?
All organizations can use ITIL, irrespective of their size, business, and industry in which they operate. They can use ITIL to solve technical and business-related issues they face. By using ITIL optimize and enhance their service quality keeping customer needs and current trends and demand in mind.
Why do Companies Use ITIL?
Companies can use ITIL for the following purposes:
- Demand Management – Effectively managing the demand of the clients, making sure they have resources in place to meet the existing demand, simultaneously making provisions to prevent inventory from becoming obsolete from the drop in demand.
- Financial Management – Managing funds or Financial Management is extremely important. Effective management of funds is essential so that there is no delay in paying suppliers, employees, meeting fixed and variable costs. Having some surplus funds to meet unforeseen events is advised.
- Developing Market Spaces – This means creating a market for their products and services, identifying customer types, their demands, needs, and what can be done to better their services to meet their demands.
- Business Relationship Management – Maintaining relations with suppliers and clients is crucial for having a long term relationship with them and developing trust with them. Loyal customers will continue to bring business in a sustainable way.
- The Service Portfolio and Implementation of Strategy – Using IT to create an overview of all the services a company is providing and identifying potential opportunities where they can create new services. Once a full list is created they can be added to the portfolio of assets of the company.
- Helps the company deliver services in a quick and efficient way by taking advantage of the latest IT mechanisms.
- Aligning the strategic and long term objectives of the company with IT.
- Improving the way in which companies deliver their products and increasing customer satisfaction.
- Saving costs by using modern IT practices and systems.
- Overall increasing organizational efficiency and productivity.
- It can also be used to change the structure of the organization if there is scope for improvement.
- It can be used to manage the resources of the organization in an effective and productive way. This includes workforce, raw materials, and other key factors that the business uses in its day to day workings and operations.
This is a guide to ITIL Overview. Here we have discussed the concept, Top 4 factors, and uses of ITIL in companies. You can also go through our other suggested articles to learn more –