ITE690 :Special Topics in IT Service Management Week 2: Service Strategy. Faculty of Information Technology, Information Technology Service Science

Transcription

1 ITE690 :Special Topics in IT Service Management Week 2: Service Strategy Faculty of Information Technology, Information Technology Service Science

2 ITIL Service Management (v3)

3 Core ITIL v3 Library Service Strategy (SS) Service Design (SD) Service Transition (ST) Service Operations (SO) Continual Service Improvement (CSI)

4 Key links, inputs & outputs of the service lifecycle stages *SLP = Service Level Package *SDP = Service Design Package

5 Service Strategy A process to enable Service Providers Act and think in a strategic manner and achieve their goals and objectives by using Service Assets To support the organization in transforming service management into strategic asset To see relationship between systems, processes, functions, services and business models. and the organization s vision Cost Effectiveness Value to the customer Standardized Process Value Creation

6 Service Strategy Objectives

7 Service Assets Resources--direct input parameter for the service delivery People Information Applications Infrastructure Finances Capabilities-- skills and help the organization to develop and control the resources in order to generate added value Management Organization Processes Knowledge Skills Resources and Capabilities are strategic assets of each service provider to enable goods or services to be produced

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9 Service Provider Deliver services to one or more external or internal customers Types: Type-I: Internal Service Provider Type-II: Shared Service Provider Type-III: External Service Provider

10 Service Provisioning Model Managed Service: where a business unit requiring a service fully funds the provision of that service for itself Shared Service: the provisioning of multiple services to one or more business units through shared infrastructure and resources Utility: services are provided on the basis of how much is required by each customer, how often, and at what times the customer needs them.

11 Principles of Service Strategy Value Creation Utility Warranty 4 P s of SS Perspective Position Plan Pattern Service Structure Value Chain Value Network

12 Value Creation Utility Functionality of service or product Satisfy specific need What is does? What a customer gets? Increases performance Warranty A promise or commitment Meets agreed requirements Concerns availability, capacity, continuity and security Reduces fluctuation in service delivery

13 Value Creation

14 4 P s of Service Strategy Perspective: the distinctive vision and direction Position: the basis on which the provider will compete Plan: how the provider will achieve their vision Pattern: the fundamental way of doing things distinctive patterns in decisions and actions over time.

15 Vision and mission We will be a best-inclass service provider for our law firm Policies and Distinctiveness Differentiate ourselves through our attorney centric service offerings and legal industry know-how Strategy Ongoing actions and adjustments Decisions on portfolio, technology. Sourcing, training and promotions are to be consistent with our position Method and execution Achieve this position through will understood steps, and by an agreed date budget

16 Service Structure Value Chain The service provider acquires goods and services from its suppliers and assembles them to produce new services to meet the needs of the business Value Network Web of relationships that generates tangible and intangible value through complex dynamic exchanges through two or more organizations

17 Value Chain and Value Network

18 Strategy Generation Define Market Understand Customer Understand Opportunity Clarify and Visualize Develop Offerings Understand Market Space Develop Outcomes Classify and Visualize

19 Strategy Generation(cont) Develop Strategic Assets Develop and Maintain Service Assets Understand Customer s Assets Map Assets Design, Develop, Operate Services Controls Costs Prepare for Execution Set Objectives Define Critical Success Factors Prioritize Investments Explore Business Potential Align to Customer needs

20 Service Strategy Processes Financial Management Service Portfolio Management Demand Management

21 Financial Management Covers the functions and process responsible for managing IT Service Provider s budgeting, accounting and charging requirements To provide quantification of value of Assets and IT Services and qualification of operational forecasting To help identify, document and agree value of current and future services

22 Financial Management Concepts As a Strategic Tool Improves decision making capabilities Supports financial change assessment Substantiate the value of various services as contained in Service Portfolio Ensure Financial Compliance and Control Visualize costs of operational control Track Value Capture and Creation

23 Business Case Supports Decision Making Where do we need to spend? Business Impact Where are we spending? Improved Reliability Improved Maintainability Improved Services Business Objectives Insight into cost of services Lower Cost Increased Customer Satisfaction Improved Marketing Image

24 Service Valuation Service provisioning value (Pain) The cost to IT related to provisioning a service How much is IT spending on IT??? Relatively easy to calculate Service value potential (Gain) Value addition based on customer s perception How much customer earning from IT use???? More Challenging to calculate

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26 Financial Management Key Process Activities Budgeting How much money is needed to deliver and support IT services against demand Accounting Keeping track of where, when, how, when and why and by whom money is being spent Charging Optionally recovering some of the money incurred with the provisioning of IT services

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28 Service Portfolio Management Dynamic method for controlling service management investments throughout the enterprise and actively managing their value. The aim of this is to turn service management into strategic assets Define: inventory services, ensure business cases and validate portfolio data Analyze: maximize portfolio value, align and prioritize and balance supply and demand Approve: finalize proposed portfolio, authorize services and resources Charter: communicate decisions, allocate resources and charter services.

29 Service Portfolio Management Why should customers buy this service? Why should they buy it from us? What form does the pricing structure take or how does the refund system work? What are our strengths and weaknesses, priorities and risks? How should we apply our resources and capabilities?

30 Service Portfolio The complete set of services that are managed by a service provider The service portfolio is used to manage entire lifecycle of all services, and includes three categories Service pipeline Proposed or in development Service catalogue Live or available for development Retired Services Services no longer offered

31 Service Portfolio Services Proposed or in development Services actively delivered Retired Services Planning and Managing Services from Cradle to Grave

32 Service Portfolio and Service Catalogue

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34 Demand Management To understand and influence customer demand for services To provide the capacity to meet these demands What if. You have too much capacity (over-capacity) You don t have enough capacity (under-capacity).to meet customer demands????

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36 Demand Management + Supply Supply and demand is and economic model based on price, quality and quantity in a market In a competitive market, price will function to equalize The quality and quantity demanded by customer The quality and quantity supplied by service provider.resulting in an equilibrium of price, quality and quantity

37 Price Quantity

38 Demand Management Challenges Poorly managed demand and supply is a source of risk Over-capacity Planned Unplanned Insufficient capacity Simultaneous demand and delivery Influencing demand yes Completely controlling demands no

39 Demand Management Challenges(Cont) Consumption and production of services Tightly coupled Productive capacity of resources adjusted to: Demand Forecasts Demand Patterns Some types of capacity can be quickly increased Increased Decreased

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