Executive IT Insights: Navigating Business, Tech, and Security

In the IT sector, internal and external relationships are often governed by legal or quasi-legal documents. In IT and ITSM, the terms "Master Service Agreement" and "Service Level Agreement" are often used interchangeably. 

However, there are differences between the two kinds of agreements that can impact how you want to use them in your organization. While both can be used for similar purposes — such as establishing clear expectations for internal IT service providers or external vendors — what separates them and how they're used are sufficiently different that it's worth taking the time to understand why this is important.

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So, what is the meaning of an SLA, or what does SLA stand for, anyway?

The term Service Level Agreement (SLA) is basically self-defining: two parties (service provider and customer) officially agreeing on the level of service by which they both are willing to abide. However, defining and creating an effective SLA between an ITSM team and the rest of the organization, or between a third-party provider and a business isn't always that easy.

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IT asset life cycle management is a mission-critical function for every business.

Whether those IT assets are cloud based from software vendors, hardware, or on-site systems, the planning, procurement, management, and maintenance of them is crucial to the operational success of an organization.

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IT and IT Service Management (ITSM) is a data-intensive business and operational function. In most cases, everything that can be measured is measured in some way. 

Key Performance Indicators (KPIs) and other metrics play a mission-critical role in the management of an IT team. It's also the main way IT operations managers can show senior business leaders how their team is performing.

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In today's society, several factors can impact the business continuity of IT environments. In addition to physical threats like theft and natural disasters, the Internet — despite its many benefits — can also wreak havoc. Downtime, in any form, can cost a company money and, perhaps, its reputation if not managed correctly.

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New and seasoned businesspeople know that a well-thought-out business model and strategy are two key ingredients needed to create a successful company. 

However, something discussed less frequently is an operating or operational model. This outlines important details about a company, including those regarding employees, processes, systems and technology.

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In most organizations there is a generic form of the Information Technology Infrastructure Library (ITIL®), that provides a detailed outline and operating procedure for IT operations and activities.

In many ways, this ITIL operational management process controls and oversees IT Service Management (ITSM), IT Help Desks, and relationships with external vendors, such as Software as a Service (SaaS) providers.

In recent years, the idea of  becoming "ITIL compliant" has become more popular. However, this leaves many IT leaders wondering:

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In ITIL and ITSM, it's mission-critical that everyone has a clear understanding of their roles, responsibilities, and how this aligns with business objectives and Key Performance Indicators (KPIs).

One way for IT leaders and CIOs to manage and monitor this is using a Responsibility Matrix, also known as a RACI Matrix. Another way to describe this is a Linear Responsibility Chart (LRC).

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In the software and IT sector, software companies and IT help desks and service centers manage customer relationships and expectations using Service Level Agreements (SLAs).

Service Level Agreements are integral to the smooth running of relationships between IT help desks and Software as a Service (SaaS) companies, cloud-providers, other technology vendors, and customers.

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