‘Information technology’ is a commonly used term that
changes meaning with context. From the first perspective,
IT systems, applications and infrastructure are components
or sub-assemblies of a larger product. They enable or are
embedded in processes and services.
From the second perspective, 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.
From the third perspective, IT is a category of services
utilized by business. They are typically IT applications and
infrastructure that are packaged and offered as services
by internal IT organizations or external service providers
IT costs are treated as business expenses.
From the fourth perspective, 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.
1.2.2 Good practice in the public domain
Organizations operate in dynamic environments with th
need to learn and adapt. There is a need to improve
performance while managing trade-offs. Under similar
pressure, customers seek advantage from service
providers. They pursue sourcing strategies that best serv
their own business interest. In many countries,
government agencies and non-profit organizations have
similar propensity to outsource for the sake of operation
effectiveness. This puts additional pressure on service
providers to maintain a competitive advantage with
respect to the alternatives that customers may have. The
increase in outsourcing has particularly exposed internal
service providers to unusual competition.
To cope with the pressure, organizations benchmark
themselves against peers and seek to close gaps in
capabilities. One way to the close such gaps is the
adoption of good practices in wide industry use. There
are several sources for good practices including public
frameworks, standards and the proprietary knowledge
of organizations and individuals (Figure 1.1).
■ Proprietary knowledge is deeply embedded in
organizations and therefore difficult to adopt,
replicate, or transfer even with the cooperation of the
owners. Such knowledge is often in the form of tacit
knowledge which is inextricable and poorly
documented.
■ Proprietary knowledge is customized for the local
context and specific business needs to the point of
being idiosyncratic. Unless the recipients of such
knowledge have matching circumstances, the
knowledge may not be as effective in use.
■ Owners of proprietary knowledge expect to be
rewarded for their long-term investments. They may
make such knowledge available only under
commercial terms through purchases and licensing
agreements.
■ Publicly available frameworks and standards such as
ITIL, COBIT, CMMI, eSCM-SP, PRINCE2, ISO 9000,
ISO/IEC 20000 and ISO/IEC 27001 are validated across
a diverse set of environments and situations rather
than the limited experience of a single organization.
They are subject to broad review across multiple
organizations and disciplines. They are vetted by
diverse sets of partners, suppliers and competitors.
■ The knowledge of public frameworks is more likely t
be widely distributed among a large community of
professionals through publicly available training and
certification. It is easier for organizations to acquire
such knowledge through the labour market.
gnoring public frameworks and standards can needlessly
place an organization at a disadvantage. Organizations
should cultivate their own proprietary knowledge on top
of a body of knowledge based on public frameworks and
standards. Collaboration and coordination across
organizations are easier on the basis of shared practices
and standards.
changes meaning with context. From the first perspective,
IT systems, applications and infrastructure are components
or sub-assemblies of a larger product. They enable or are
embedded in processes and services.
From the second perspective, 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.
From the third perspective, IT is a category of services
utilized by business. They are typically IT applications and
infrastructure that are packaged and offered as services
by internal IT organizations or external service providers
IT costs are treated as business expenses.
From the fourth perspective, 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.
1.2.2 Good practice in the public domain
Organizations operate in dynamic environments with th
need to learn and adapt. There is a need to improve
performance while managing trade-offs. Under similar
pressure, customers seek advantage from service
providers. They pursue sourcing strategies that best serv
their own business interest. In many countries,
government agencies and non-profit organizations have
similar propensity to outsource for the sake of operation
effectiveness. This puts additional pressure on service
providers to maintain a competitive advantage with
respect to the alternatives that customers may have. The
increase in outsourcing has particularly exposed internal
service providers to unusual competition.
To cope with the pressure, organizations benchmark
themselves against peers and seek to close gaps in
capabilities. One way to the close such gaps is the
adoption of good practices in wide industry use. There
are several sources for good practices including public
frameworks, standards and the proprietary knowledge
of organizations and individuals (Figure 1.1).
organizations and therefore difficult to adopt,
replicate, or transfer even with the cooperation of the
owners. Such knowledge is often in the form of tacit
knowledge which is inextricable and poorly
documented.
■ Proprietary knowledge is customized for the local
context and specific business needs to the point of
being idiosyncratic. Unless the recipients of such
knowledge have matching circumstances, the
knowledge may not be as effective in use.
■ Owners of proprietary knowledge expect to be
rewarded for their long-term investments. They may
make such knowledge available only under
commercial terms through purchases and licensing
agreements.
■ Publicly available frameworks and standards such as
ITIL, COBIT, CMMI, eSCM-SP, PRINCE2, ISO 9000,
ISO/IEC 20000 and ISO/IEC 27001 are validated across
a diverse set of environments and situations rather
than the limited experience of a single organization.
They are subject to broad review across multiple
organizations and disciplines. They are vetted by
diverse sets of partners, suppliers and competitors.
■ The knowledge of public frameworks is more likely t
be widely distributed among a large community of
professionals through publicly available training and
certification. It is easier for organizations to acquire
such knowledge through the labour market.
gnoring public frameworks and standards can needlessly
place an organization at a disadvantage. Organizations
should cultivate their own proprietary knowledge on top
of a body of knowledge based on public frameworks and
standards. Collaboration and coordination across
organizations are easier on the basis of shared practices
and standards.
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