RiO Application Operations
Module 1
Capsule 1
Slide 1
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Background music
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Character 1
Welcome to the video course on Application Operations. You are now watching Module 1 on
Introduction to ITIL and Core Concepts. Capsule 1 introduces you to the basics of ITIL.
Slide 4
Andrew
Hello, I am Andrew, an ITIL Certified Professional.
I will be your mentor for this module. I am a Service Delivery Manager and I am in this role for the past 5
years.
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Andrew
At the end of this video, you will be able to explain:
ITSM
ITIL and its History
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Andrew
Before we begin our session, let’s look at a scenario.
You go to an ATM…
You insert your debit card. The application does not prompt for a password. But you can withdraw
money from ATM.
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Andrew
Let us look at another Scenario
You go to an ATM…
You provide all the required information and wait for the ATM to dispense the cash.
But you do not get the cash and the receipt indicates the amount has been deducted from your account.
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Andrew
In the scenario’s, you have seen that the bank has provisioned an ATM for its customers, however, it has
failed to provide the service that the customer requires, that is, to be able to withdraw cash quickly,
accurately, and securely.
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Andrew
Why do companies fail to deliver the service that their customers expect?
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Andrew
This is because, either they cannot afford an on-board IT operations team, or, because they are too large
to be able to handle all their IT operations; or in simple terms, IT distracts them from their business
focus.
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Andrew
How can the bank provide better service to the customer?
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Andrew
Bank should perform better IT Service Management or Outsource to an IT Organization capable of
providing better IT Service Management.
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Andrew
To understand how these IT organizations manage to provide better services, we need to understand
what ITSM is.
ITSM stands for Information Technology Service Management. It is a set of organizational capabilities to
provide value to the customer in the form of services.
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Andrew
I have used the term ‘Service’ quite often. Let me help you understand this term better.
By definition, "Service is a means of delivering value to customers by facilitating the outcomes that the
customers want to achieve without the ownership of specific costs and risks."
In other words, when we do something for another party, that gives them something they want or
value, we’re providing a service.
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Andrew
Airline, hospitality, catering, banking, and desktop services are some examples of traditional services.
Similarly, social networking sites like Facebook and Twitter, search engines like Google and Bing, and
online retail outlets like Flipkart and Amazon are some of the contemporary services.
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Andrew
Let us take the example of ATM to understand this better. In our example, Bank is the Customer. Say
TCS is the IT Service Provider. TCS provides Service to Bank.
Service is a means of
Delivering value to customers: IT Service Provider (TCS) delivers value that the customers (Bank) want,
i.e., for the users of the ATM to withdraw their money quickly, accurately and securely.
By facilitating the outcomes that the customers want to achieve: The IT Service Provider (TCS) facilitates
the outcome the customer (Bank) wants by doing set of activities like procurement of the ATM machine,
the installation of the software in the ATM machine, managing the communication links etc.
Without the ownership of specific costs and risks: The bank does not want to own the cost or risk which
may arise while carrying out this activity. So they shift the risk and cost to the IT Service Provider (TCS).
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Andrew
Now that you have learnt about ITSM, do you know the most widely accepted approach to IT Service
Management?
That brings us to a framework called ITIL.
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Andrew
ITIL stands for “Information Technology Infrastructure Library”.
ITIL is a set of best practices for IT Service Management (ITSM) that focuses on aligning the IT services
with the needs of business.
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Andrew
Why should we implement ITIL?
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ITIL is globally accepted as the blueprint for IT to deliver business values.
ITIL has become the choice of industry leaders worldwide.
ITIL is Vendor Neutral, non-prescriptive and considerably a best practise framework.
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Andrew
Adopting ITIL helps in.
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Lowering IT cost
Improving the service
Increasing productivity
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Andrew
Let’s take a quick look at the history of ITIL.
 ITIL was originally developed in the 1980s by UK government agency – CCTA, forerunner of OGC
and it was mainly used by government agencies.
 Version 1 of ITIL, originated as a collection of books, each covering a specific aspect of IT service
provision.
 Further updates and consolidation to improve clarity and consistency led to subsequent versions
published in 2001 and 2007.
 Since January 2014 - ITIL is owned and managed by Axelos, a joint venture between UK
Government and Capita Plc.
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Andrew
It is good to know the different versions of ITIL. Here are the ITIL versions in chronological order.
 ITIL Version 1 focused on infrastructure management and grew into more than 30 books. Each
book covers a specific aspect of IT service provision.
 The initial version was revised and replaced by 9 more closely connected and consistent books
in Version 2, with focus on Service Delivery and Service Support.
 ITIL Version 2 was further enhanced and consolidated into 5 core books in ITIL Version 3, which
focuses on a service lifecycle approach.
 Improved clarity and consistency was brought into the ITIL version 3 through updates in 2011.
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Andrew
We are almost at the end of this capsule. Before I leave, let me ask you a question. Do you have a clue
on the organizations that have implemented ITIL?
Several large international organizations like Microsoft, IBM, Atos, Caterpillar, Shell Oil, Boeing and
many more have implemented ITIL
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Character 1
These are the key learning points in this video.
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Character 1
Thank you for watching this video on the Basics of ITIL.