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About ITIL

ITIL® is a framework that contains a collection of best practices in IT Service Management.
It was created and documented by a UK Government department in the late 1980s, and has consolidated actual knowledge and know-how on IT operations. Over one thousand members throughout the world participate in itSMF, a user forum that raises awareness of and promotes ITIL®, and in Europe and the U.S., ITIL® has been recognized as a de facto standard in the industry.

IT Service Management is an approach to establish processes necessary for planning, developing, providing, and maintaining high quality IT services that satisfy customer requirements, so that the levels of services defined in a service level agreement are achieved.

Best practices are those IT operation processes that have been successfully practiced.

Framework indicates a collection of best practices from the entire IT operations.

ITIL® consists of Service Support that describes methods of daily operations, and Service Delivery that describes management methods for mid-and-long term services.

Service Support
Service Desk, Incident Management, Problem Management, Configuration Management, Change Management, Release Management
Service Delivery
Service Level Management, Financial Management for IT Services, Capacity Management, IT Service Continuity Management, Availability Management

By applying ITIL®, and designing and establishing IT process, high quality processes that are clear to providers and receivers of the service and are flexible to changes can be achieved at low cost.

Clarification (by using SLA)
High quality (by using best practice that showed effectiveness)
Low cost (because of using best practice, not necessary to start from zero)

Flexible to changes (completeness and universality because of using a framework)



The following are activities of four companies that have been successful in applying ITIL® among the overseas cases presented at ,itSMF USA Conference 2003 & Expo (15 - 7 Sept. 2003 at St. Louis), as well as of Procter & Gamble Asia Pte Ltd. in Japan.
1 State Farm is a company that places insurance companies and banks under its umbrella and has over 79,000 employees. Their IT system includes five data centres, over 21,000 servers and over 30 mainframes. Not only they had problems in sharing information, but also it took through the night to update system changes, and contacting insurance salespeople (agents) was not smooth.
2 Caterpillar is a company that had sales of $20.15 billion in fiscal 2002, sells over 300 kinds of construction machinery and industrial turbines in 200 countries worldwide, and has 68,000 employees. They aimed to cut down cost of the IT infrastructure by 10%, and to reduce $30 million by the end of fiscal 2003.
3 Intel is the largest semiconductor manufacturer in the world, and is also a worldwide manufacturer of computer, network, and communication products. According to this case, they applied ITIL®/MOF to their server management process, resulting in successful cost reduction of management effort.
4 General Mills is a food manufacturer with sales of $10.5 billion a year, 27,000 employees, and business in over 35 countries. After take-over of the company in November 2001, they established an ITIL®-based information system instead of using the previous information system.
5 Procter & Gamble Asia Pte Ltd. (hereafter P&G) manufactures and sells daily necessities and paper products, and has over 300 brands in 160 countries worldwide. By applying ITIL®, they have been obtaining successful results in continual cost reduction and improvement in user satisfaction.

For details, see the following documents:
No.CompanyIndustry Operation Effect Document
1. State Farm (USA)Finance - Incident Management
- Problem Management
- Change Management
- Configuration Management
- Service Level Management
 - Achieving agent locator
- Beginning proactive Incident Management		 -
2. Caterpillar (USA)Machinery - Incident Management
- Problem Management
- Change Management
- Service Desk
 Expecting the following improvement:

- Cutting down cost of the IT infrastructure by 10%
- Reducing $30 million by the end of 2003
- Establishing IT performance standards of the entire company
- Reducing service disruptions and improving CS		 -
3. Intel (USA)Electronics Full application of ITIL®
+ Other measures
 Expecting the following improvement:

- Reducing project management and administration by 65%
- Reducing the time to server operation to 70%
- Achieving 95% of data accuracy in Configuration Management
- Improving ROI		 -
4. General Mills (USA)Food - Incident Management
- Change Management
- Configuration Management
 - Availability: over 98.5%
- Reducing resolution time by 10%
- Reducing cost of the infrastructure to the cost of three years ago		 -
5. P&G (Japan)Chemical - Problem Management
- Change Management
- Service Level Management
- Service Desk
 - Improving reliability (approximately by 15%)
- Increasing the transparency of workload and efficiency
- Strengthening linkage and cooperation between departments
- Improving morale of system personnel
- Reducing cost of system support (reducing personnel by 45%)
- Reducing Help Desk calls (by over 60%)		 -
* The ITIL® copyright is owned by the OGC (Office of Government Commerce), a part of the UK government.
For queries regarding copyrights and trademarks, contact the OGC.