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Friday, March 16, 2012

Relationship with other Service Management Processes

IT Financial Management is central to IT Service Management, and it has links with many of the other Service Management disciplines. They are:

Service Level Management

Service Level Management (SLM) needs to work with Financial Management in relation to the costs of proposed levels of service required to meet the organization’s current and planned business needs. These costs will feed into the debate about what is affordable and deliverable and, therefore, what can be agreed in Service Level Agreements (SLAs). If charging is in place, Financial Management will be involved in determining charges, including the use of differential charging as part of Demand Management. Financial Management will assist in costing changes and evaluating new investments required to meet business needs.

Service Portfolio Management

Financial Management is concerned with business case development, assessment of investment opportunities, evaluation of different service options, the evaluation of financial risks and the determination of service value. All these are central to decisions about what should be included in the Service Portfolio or removed from it. Financial Management is able to contribute to decisions on how best to provision a given service, whether this should be through the in-house IT service provider or a third-party provider. Financial Management is also responsible for ensuring that funding is available to support the delivery of the Service Portfolio and for ensuring budget allocations align with it.

Capacity Management

Both Availability and Capacity Management are concerned with cost-effective delivery of services, and Financial Management can assist by providing costing information to enable assessment of the financial impact of desired levels of Capacity and Availability. Proposals to invest in new capacity or in increased resilience can be assessed by Financial Management before action is taken to purchase. Where charging is in place, Capacity Management will be able to provide information on resource usage that will help Financial Management determine charges.

Configuration Management

Configuration Management manages and maintains the Configuration Management Database (CMDB), which holds financial and other information on assets that are required by Financial Managements for a variety of uses. For example, from the CMDB, it should be possible to identify all the components required to deliver a given Service and this information is used by Financial Management to determine the overall cost of the Service. The CMDB also holds information on assets, such as equipment replacement dates and license termination/renewal dates, which can be used in budget development and longer-term financial planning.

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Next: Introduction to Operations Management

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