Professional Service Management: How, when, and which ITSM processes contribute most to IT performance
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1 itsmf and Dansk it IT Service Management Conference 2014 October 29th 2014, Køge, Denmark Professional Service Management: How, when, and which ITSM processes contribute most to IT performance Till J. Winkler Assistant Professor Department of IT Management Copenhagen Business School In collaboration with: Jochen Wulf (University of St.Gallen) Walter Brenner (University of St.Gallen)
2 CBS ITM Who we are Department 57 people on staff 4 degree programs Leading IS research department in Europe Key Research Themes Cashless Society Internet of Things Social Business Mergers and Acquisitions More CIO Talks Renowned Scholar Seminars Our Mission: Co-creating knowledge with enduring consequences through the study of the interrelationships among people, information and technology Connect with us on facebook: facebook.com/cbs.itm Slide 2
3 Agenda 3 Questions How does ITSM contribute to IT performance? When and in which company context? Which ITSM processes can contribute most? Slide 3
4 The Research Vs. Practice Gap Business and IT Practice Wide adoption of ITIL & Co. (75% in DK, 28% worldwide) Industry papers Established methods to measure ITSM maturity: CMMI- SVC, COBIT 4.1, ITILv3, etc. Research Few good research on ITSM (0% in top journals) Mostly case-based evidence Existing survey studies have used basic measures (e.g., ITSM implementation degree) (How) does ITSM maturity contribute to IT performance? in different contexts (IT as source of innovation vs. IT support role) in different companies (small vs. large) Slide 4
5 ITSM Process Maturity Scale Slide 5
6 Agenda How ITSM contributes to IT performance When and in which company context Which ITSM processes contribute most Slide 6
7 ITSM Process Maturity Theoretical angle: Alignment supports IT Performance Business/IT Alignment the degree to which the IT function supports the goals and priorities of an organization s business functions IT Performance the degree to which an IT service provider fulfills the client s multifaceted IT service and business related goals Measurements: The ITSP is aligned with business activities business demands business user needs business priorities business objectives Measurements: Efficiency Quality of the services User satisfaction Support of business processes Effectiveness in supporting strategic goals through IT Slide 7
8 Online survey in cooperation with Participate at itil.selfsurvey.org! Slide 8
9 230 ITSM professionals worldwide took part Participant Countries Participant Expertise other 62 ZA 14 n/a 20 CH 17 RU 21 DE 74 DK 22 n/a 24 Master 2 None 39 Expert 67 Foundation 69 Practitioner 29 Slide 9
10 Descriptive results: ITIL is primarily used for standardizable IT Services Which IT services do you have in the portfolio; with or without using ITIL? IT project management & planning Software development Application customization & integration Application management Datacenter operations Not part of the portfolio Part of the portfolio, no ITIL use Part of the portfolio and ITIL used Network & infrastructure management Desktop & printers management Support & help desk IT training & communication Slide 10
11 IT Alignment* ITSM maturity is positively related to Alignment 7 6 R² = ITSM Maturity* * Averaged measures / process maturities (1. None, 2. Initial, 3. Repeatable, 4. Defined, 5. Managed, 6. Optimized) Slide 11
12 IT Performance* Alignment is positively related to IT performance 7 6 R² = IT Alignment* * Averaged measures Slide 12
13 Theory supported: ITSM contributes to IT performance through supporting Business/IT Alignment 0.36*** ITSM Process Maturity 0.50** Business/IT Alignment 0.72*** IT Performance *** p<.01 Slide 13
14 Agenda How ITSM contributes to IT performance When and in which company context Which ITSM processes contribute most Slide 14
15 Bringing some company context in IT Strategy Conservative strategy (-): exploiting standard routines for managing IT and business efficiently vs. Innovator strategy (+): flexibly react to environmental changes through exploring new uses of IT Organization Size Measured by number of employees Hypothesis: The larger the company the greater the impact of ITSM 0.09 ns -0.10** ITSM Process Maturity Business/IT Alignment IT Performance ns not significant; * p<.1; ** p<.05; *** p<.01 Slide 15
16 Alignment* Small vs. Large organizations Small organizations Large organizations ITSM Maturity* * Averaged measures, process maturities: 1. None, 2. Initial, 3. Repeatable, 4. Defined, 5. Managed, 6. Optimized Slide 16
17 Agenda How ITSM contributes to IT performance When and in which company context Which ITSM processes contribute most Slide 17
18 Service Operation Service Transition Service Design Service Strategy Factor Analysis Results ITIL domains and ITSM processes Component* Service Strategy Service Portfolio Mgt Financial Mgt Demand Mgt Business Relationship Mgt Service Catalog Mgt Service Level Mgt Availability Mgt Capacity Mgt IT service Continuity Mgt Information Security Mgt Supplier Mgt Design Coordination Trans. Planning & Support Change Mgt Asset and Configuration Mgt Release and Deployment Mgt Service Validation & Testing Evaluation Mgt Knowledge Mgt Event Mgt Incident Mgt Request Fulfillment Problem Mgt Access Mgt Continual service improvement * components with substantial loadings >0.6 and cross-loadings <0.4 highlighted Slide 18
19 Three dimensions of ITSM Maturity Service Planning Maturity Service Transition Maturity ITSM Maturity (R 2 =.96) Service Operation Maturity * p<.001 Slide 19
20 Service Operation has the strongest impact Service Planning Maturity.220 *** Service Transition Maturity.046 ns Business/IT Alignment IT Performance Service Operation Maturity.313 *** ns not significant; * p<.1; ** p<.05; *** p<.01 Slide 20
21 The impact of Service Operation is reinforced under conservative IT strategies IT Strategy conservative(-) vs. innovative(+) Service Planning Maturity.045 ns ** Service Transition Maturity.005 ns Business/IT Alignment IT Performance Service Operation Maturity ns not significant; * p<.1; ** p<.05; *** p<.01 Slide 21
22 Alignment* IT conservative firms derive greater benefits especially from Service Operation processes Conservative Innovative Service Operation Maturity* * Averaged measures, process maturities: 1. None, 2. Initial, 3. Repeatable, 4. Defined, 5. Managed, 6. Optimized Slide 22
23 Summary Our 3 questions: How does ITSM contribute to IT performance? When and in which company context? Which ITSM processes can contribute most? Slide 23
24 Summary How: ITSM contributes to IT performance through supporting Busines/IT Alignment When: In small companies, as well as in those with conservative IT strategies, ITSM has the greatest impact Which: Operational ITSM processes have an even greater influence on IT Alignment and IT Performance than planning processes Slide 24
25 Practical Implications Don t underestimate the business/it alignment benefits of ITSM practices ITIL is not only for large organizations; small and medium sized companies have a huge unveiled potential for professionalizing ITSM Focus on operational ITSM processes first when implementing ITIL; do ITSM planning processes then in the next step Slide 25
26 Our tool provides domain- and process-specific benchmarks based on a novel prediction-algorithm Participate at itil.selfsurvey.org Slide 26
27 Selfsurvey delivers a detailed Roadmap pointing out the most critical processes for improvement Participate at itil.selfsurvey.org Slide 27
28 Thank you! Dr. Till J. Winkler Assistant Professor Department of IT Management Copenhagen Business School Web: Twitter: Selfsurvey project: itil.selfsurvey.org
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