Reduced cost/incident Reduced hidden costs that traditionally increases substantially the TCO Better asset utilization The economic impact of an organization adopting ITIL will be felt in all of the areas listed above.
The benefits can also be viewed in terms of direct savings and indirect, the later being derived as a result of the strategy but not directly related to the actions being taken, such as minimizing the missed opportunity costs, the cost of not been able to operate.
These indirect benefits as well as the direct benefits may vary greatly from one organization to another. Many high-profile U.S.
Organizations have adopted the best practices described in ITIL.
Companies such as Procter and Gamble, IBM, Caterpillar, Shell Oil, Boeing, and the Internal Revenue Service have all reported great success and significant operational cost savings as a direct result of ITIL adoption.
Procter and Gamble publicly attributes nearly $125 million in IT cost savings per year to the adoption of ITIL, constituting nearly 10% of their annual IT budget.
Similarly, Shell Oil utilized ITIL best practices when they overhauled their global desktop PC consolidation project, encompassing 80,000 desktops.
After this project was completed, they can now do software upgrades in less than 72 hours, potentially saving 6000 man-days working days and 5 million dollars. ITIL Glossary Information Technology Information Library (ITIL) is a set of best practices used to deliver high quality IT services.
The best practices described in ITIL represent the consensus derived from over a decade of work by thousands of IT and data processing professionals’ world-wide, including hundreds of years of collective experience.
Because of its depth and breadth, the ITIL has become the defacto world standard for IT best practices. Let’s have a look on ITIL Glossary (from A-I): Absorbed Overhead: Overhead which, by means of absorption rates is included in costs of specific products or saleable services, in a given period of time.
Under or over-absorbed overhead is the difference between overhead cost incurred and overhead cost absorbed: it may be split into its two constituent parts for control purposes. Absorption Costing: A principle whereby fixed as well as variable costs are allotted to cost units and total overheads are absorbed according to activity level.
The term may be applied where production costs only, or costs of all functions are so allotted. Allocated Cost: A cost that can be directly identified with a business unit. Application Portfolio: An information system containing key attributes of applications deployed in a company.
Application portfolios are used as tools to manage the business value of an application throughout its lifecycle. Apportioned Cost: A cost that is shared by a number of business units (an indirect cost).
This cost must be shared out between these units on an equitable basis. Asynchronous/Synchronous: In a communications sense, the ability to transmit each character as a self-contained unit of information, without additional timing information.
This method of transmitting data is sometimes called start/stop.
Synchronous working involves the use of timing information to allow transmission of data, which is normally done in blocks.
Synchronous transmission is usually more efficient than the asynchronous method. Balanced Scorecard: An aid to organizational performance management.
It helps to focus, not only on the financial targets but also on the internal processes, Customers and learning and growth issues.
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