Don't feel like I have a lot to contribute, but since no one is responding:
We use AtriumCMDB to publish service models to TSIM.
I know it is possible to create the models using just TSIM (we did that for a while) but I wasn't involved with that so I can't really help.
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You do not need another component to build a service model in TSIM. You can build models directly in TSIM using the Administrator Console. However, the preferred approach is the one Peter mentions, publishing the service models from the CMDB. Ideally, you would also have an automated discovery and dependency mapping tool like BMC Discovery creating application and/or service models in the CMDB.
If you don't have a CMDB and automated discovery, then the Administrator Console is where you would build your models. Here is a link to the documentation on how to do that. The title of the documentation page refers to "viewing and managing services", but you can also create and edit service models in this console.
One thing to keep in mind is that, while Service Impact Management is built in to TSIM, it can be licensed separately. You should check with your BMC Account Manager that you have licensed Service Impact Management before you put a lot of time into building models.