Frameworks For Development Of IT

Literature Review 1

LITERATURE REVIEW: FRAMEWORKS FOR DEVELOPING EFFECTIVE IT PROCESSES

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Literature Review 2

Contents

Frameworks for Developing Effective IT processes ...................................................................... 1

Executive Summary ........................................................................................................................ 3

Frameworks for Developing Effective IT processes ...................................................................... 3

Six Sigma .................................................................................................................................... 3

Information Technology Infrastructure Library (ITIL) ............................................................... 3

Implementation of IT Frameworks on IT processes in Organizations…….……………................6

ITIL Implementation on IT Service Management Process ........ Error! Bookmark not defined.

Six Sigma Implementation on IT problem Management ........... Error! Bookmark not defined.

Conclusion ...................................................................................................................................... 7

References List................................................................................................................................ 9

Literature Review 3

Executive Summary

This piece of work covers frameworks used to ensure reliable IT processes. Two frameworks

have been covered namely: Six sigma framework and Information Technology Infrastructure Library

(ITIL). The main purpose of the Six Sigma is detection of defects and developing solutions for them. A

previous related study is discussed. Effectiveness of ITIL implementation has been supported. Two IT

process, service management process and auditing, and how their importance have been elevated by the

frameworks is determined.

Frameworks for Developing Effective IT processes

Several frameworks have been implemented in organizations to help improve effectiveness of

processes undertaken within them. The key areas used to enhance effective running of these frameworks

are determined by critical success factors (CSFs). Such CSFs include; teamwork of subordinates,

support by top managers and creating a hospitable environment for implementing the framework. Once

the factors fail the framework is negatively affected, thus objectives set are not attained. The importance

of this paper will be to determine to what extent IT processes frameworks contribute to effectiveness of

an organization.

Six Sigma

“Six Sigma is a popular approach to drive out variability from processes using powerful

statistical tools and techniques” (Banuelas & Jiju, 2002, p.99). Motorola introduced it back in 1986 to

measure performance of a product and work towards improving it. This is its major objective. This

framework is used to determine defects in business processes such as procurement, budgeting, software

process and IT value management.

Literature Review 4

(Banuelas & Jiju, 2002) state that six Sigma frameworks have been tested on effect on a software

process, which falls under IT industry. It was done on 100 software companies where each was given a

questionnaire. Only 15 companies responded and only 10 of them were using the Six Sigma framework.

The companies involved in the study were selected due to fame and global access. Among the

respondents, 80% had a managerial position, whereas the other percentages were general subordinates.

These questionnaires had two segments; the first segment was meant to determine issues like quality of

six sigma, its use in the software process, financial benefits from the framework, and the second

segment, which comprised of 12 CSFs, which were ranked in order of importance on scale. It was found

that majority of companies that used the framework made very high savings. This is because of the

ability of Six Sigma to identify and thus do away with defects of a product prior to its release to the

market. The criteria used by the participants to determine how effective Six Sigma was were; financial

benefits, ability to identify and reduce defection, ability to minimize costs of poor quality (COPQ),

improving capability of software process and increasing consumer satisfaction. Additionally, the

companies used the following tools to test their programs, a diagram showing flow of data, analyzing of

a gap, process mapping and analyzing customer response (Banuelas & Jiju, 2002). The first two tools

were used to indicate the flow in the process while the other two were used to capture what the

consumers require and expect from an organization.

The CFCs were to determine to what extent collected data was consistent to enhance a secure Six

Sigma implementation. The following features were considered more of much importance; engagement

of leaders and top management, changes in norms of organization, aligning the framework to business

goals and considering consumers satisfaction. The strategy is governed by strong principles, which will

enhance it last many years to come.

Literature Review 5

Information Technology Infrastructure Library (ITIL)

An increasing number of companies as a tool of improving their IT processes (Pollard & Cater-

Steel, 2009) have also embraced ITIL. Having been evolved from the Government of British, this

Information Technology Service Management (ITSM) framework is taking dominance in improvement

of IT processes. Over years, incorporation of ITIL in institutions globally has been evident. A research

carried out in the United States showed an increase in inquiries made by customers about implementing

ITIL. Between July 2007 and July the following year, a field study was carried out which revealed

almost more than 30% increment in inquiries about this framework compared to the same duration an

year before (Pollard & Cater- Steel, 2009).

A report provided by Pollard & Cater- Steel (2009) justifying the effectiveness of ITIL towards

four companies, two from the US and the other two from Australia, where they were equally divided

from the private and public sector. Choosing the organizations from both sectors of the economy, and

different continents was for getting a global view of the results. A case study was carried out, and

interviews taken on these four organizations. Those in charge of these IT processes were interviewed

one on one. The data collected was analyzed through content analysis. It was found that, a noticeable

improvement was present in these organizations due to ITIL implementation. Consumer fulfillment and

cut costs were present. The CSFs that led to a triumphant ITIL framework were; support from seniors,

collaborative departments, effective consultations, training and choosing the right software. All these

had a positive impact towards achieving this framework. After the study, three more CFCs were

developed which were; maintaining a hospitable environment for ITIL, focus on it whole-heartedly and

work towards customer satisfaction. Therefore, in future all these factors should be implemented in ITIL

frameworks.

Literature Review 6

Implementation of IT Frameworks on IT processes in Organizations

ITIL Implementation on IT Service Management Process

Information Technology, even with its gradual improvement is a company asset not well

attended to (Spremic, Zmirak & Kraljeric ….). Effective IT processes should be enhanced to ensure

successful organizations. Effectiveness of ITIL methodology on IT service management process has

been evaluated in previous research by (Spremic, Zmirak &…). A case study was carried on a company

that operated in Croatia. Its IT service management program could not meet all demands of its

customers. The company realized that implementing an ITIL methodology would help improve

processes involved in the department. This would help to increase satisfaction of customers. Before

implementing the framework, the firm had several negative encounters; “lack of quality control,

undefined communication among people in IT department, undefined change execution, repeated tasks

and unrecognizing goals from IT staff point of view” (Spremic, Zmirak & Kraljeric…., 245). Results to

be gotten by the implementing ITIL were based on several Key Performance Indicators (KPIs) which

tested to what extent customer satisfaction was enhanced.

Positive results were observed after implementation of ITIL. Based on the KPIs, the company

improved measurably, this led to its achievements. There were both direct and indirect benefits to the

company; improvement in quality of services offered in the IT department, daily activities were

improved, necessity of management was realized and number of problems encountered reduced. This is

sufficient evidence that ITIL improves IT processes.

Six Sigma Implementation on IT Problem Management

To illustrate effectiveness of Six Sigma is in process improvement, a case study was carried out

in reducing newspaper errors, specifically publishing (Snee, 2004). According to Snee (2004), accuracy

Literature Review 7

of information published in newspaper must be established. The newspaper had published about a new

executive in a US corporation but had the name misspelled. They received a call from an unsatisfied

customer due to that. On a typical day, the number of errors that could be fixed was around 20. The

implementation was categorized into four phases, definition of the project, measurement, analysis,

improvement and finally the control phase.

After implementation of Six Sigma, error reduction was by 65%. As a result, savings per year

was more than $226,000. Fewer pages required redoing due to this error reduction. Other benefits

accrued include; missing of deadlines was fewer, reworking was reduced, the editors’ work was less and

information source was reliable. It is evident that implementation of Six Sigma in the error reduction

process was efficient. It benefited the newspaper company by reducing costs therefore increasing on

profits.

Conclusion

According to the literature provided, it is evident that IT frameworks are one of the major

contributors towards effective running of a company or organization. Six Sigma showed ability to give

quantifiable financial data. With this, it is a powerful framework. The framework still has a future if it

continues to provide the same. ITIL too showed evidence of beneficence to an organization. The

company evaluated, after implementing ITIL realized huge benefits.

IT processes, service management and problem management discussed also have a considerable

impact in an organization. For service management, it enhances customer satisfaction. With customer

satisfaction a business runs efficiently therefore realizing huge benefits. Problem management is also an

important aspect in business, since it, helps identify possible errors and fix existing ones. Just like the

Literature Review 8

case of the newspaper company, it is evident that profits were increased due to proper management of

errors.

New advanced frameworks and software should continue being developed to enable

competitiveness with the continuous development of the internet and technology.

Literature Review 9

References List

Abu- Musa, A, A., 2004.Auditing E- Business: New Challenges for External Auditors.Journal of

American Academy of Business, 4, pp.28- 41.

Alles, M., 2006.Continuous monitoring of Business Process Controls: A Pilot Implementation of a

Continuous Auditing System at Siemens.International Journal of Accounting Information

Systems, pp.137- 161.

Banuelas, C. R and Jiju, A., 2002. Critical Success Factors for the Successful Implementation of Six

Sigma Projects in Organizations.The TQM Magazine, 14(2), pp.92-99.

Blecken, A., 2010. Supply Chain Process Modeling for Humanitarian Organizations. Journal of

Physical Distribution and Logistics Management, 40(8/9), pp.675- 692.

Cagliano, R, Caniato, F & Spina, G., 2003. E- Business Strategy: How Companies are shaping their

Supply Chain through the Internet? International Journal of Operations and Production

Management, 23(10), pp.1141- 1162.

Liao, S et al., 2003. A Web- Based Architecture for Implementing Electronic Procurement in Military

Organizations. Technovation, 23(6), pp.521- 532.

Pollard, C and Cater- Steel, A., 2009. Justifications, Strategies and Critical Success Factors in

Successful ITIL implementations in US and Australian Companies: An Exploratory Study.

Information Systems Management, 26(2), pp.164 -175.

Spremic, M., Zmirak, Z. and Kraljeric, K., 2008. IT business process performance management: case

study of ITIL implementation in finance service industry. Information Technology Interfaces.

DOI: 10.1109/ITI.2008.4588415

Literature Review 10

Snee, R. D., 2004. Six Sigma: the evolution of 100 years of business improvement methodology.

International Journal of Six Sigma and Competitive Advantage, 1(1), 4-20.

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