Information Technology (IT)

Information technology (IT) is a commonly used term that changes meaning depending on the different perspectives that a business organization or people may have of it. A key challenge is to recognize and balance these perspectives when communicating the value of IT service management (ITSM) and understanding the context for how the business sees the IT organization. Some of these meanings are:

IT is a collection of systems, applications and infrastructures which are components or sub-assemblies of a larger product. They enable or are embedded in processes and services.

IT is an organization with its own set of capabilities and resources. IT organizations can be of various types such as business functions, shared services units and enterprise-level core units.

IT is a category of services utilized by business. The services are typically IT applications and infrastructure that are packaged and offered by internal IT organizations or external service providers. IT costs are treated as business expenses.

IT is a category of business assets that provide a stream of benefits for their owners, including, but not limited to, revenue, income and profit. IT costs are treated as investments.

Every IT organization should act as a service provider, using the principles of service management to ensure that they deliver the outcomes required by their customers.

Definitions

IT service management (ITSM): The implementation and management of quality IT services that meet the needs of the business. IT service management is performed byIT service providers through an appropriate mix of people, process and information technology.

IT service provider: A service provider that provides IT services to internal or external customers.

ITSM must be carried out effectively and efficiently. Managing IT from the business perspective enables organizational high performance and value creation.

A good relationship between an IT service provider and its customers relies on the customer receiving an IT service that meets its needs, at an acceptable level of performance and at a cost that the customer can afford. The IT service provider needs to work out how to achieve a balance between these three areas, and communicate with the customer if there is anything which prevents it from being able to deliver the required IT service at the agreed level of performance or price.

A service level agreement (SLA) is used to document agreements between an IT service provider and a customer. An SLA describes the IT service, documents service level targets, and specifies the responsibilities of the IT service provider and the customer. A single agreement may cover multiple IT services or multiple customers.

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