Back to the future - thoughts on SM 2.0!

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1 Back to the future - thoughts on SM 2.0! Matthew Burrows WEDNESDAY 23 THURSDAY 24 AUGUST 2017 SOFITEL MELBOURNE ON COLLINS

2 Overview Introduction ITIL and ITSM so far What next? SM 2.0 or whatever! What will always be true (I think) Conclusions?

3 Insert section title

4 Vote Do you want to hear a joke? a) Yes, and am happy with it being slightly risqué b) Yes, but keep it very clean c) Yes, tell me both d) No thanks

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9 Please be patient Michael J. Fox says that he used to walk the walk and talk the talk. Now, he confesses, he stumbles the stumble and mumbles the mumble.

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12 What do you think SM 2.0 is? Up-to-date IT Service Management? Applying ITSM principles outside of IT? ITSM, but using different terminology because people have got fed up with, or misused, existing terms? Something else?

13 Caveats I ve got an incurable degenerative brain disorder What I say might be rubbish It is OK to disagree I am human therefore I make mistakes and am sometimes wrong

14 What was ITIL and ITSM?

15 Outcomes It s always been about outcomes But often many forgot Outcomes CUSTOMERS (AND OTHER INTERESTED PARTIES) Requirements Services SERVICE PROVIDER

16 Business Processes Service CUSTOMERS AND SERVICE USERS Services Products ITSM BSM Suppliers Supporting Services Business Services BUSINESS SERVICE PROVIDER (BUSINESS UNIT) OTHER SERVICE PROVIDER(S) IT Services IT SERVICE PROVIDER Products & Services OTHER SUPPLIERS OTHER BUSINESS UNITS IT Services

17 xsm OTHER INTERESTED Outcomes PARTIES CUSTOMERS Requirements Requirements Business Service Management (BSM) Enterprise Service Management (ESM) IT Service Management (ITSM) CORPORATE GOVERNANCE AND OTHER FUNCTIONS Objectives Objectives Requirements Requirements BUSINESS / ORGANIZATION BUSINESS SERVICE PROVIDER (BUSINESS UNIT) IT SERVICE PROVIDER Business Services IT Services Products & Services EXTERNAL SERVICE PROVIDER(S)

18 According to ITIL 2011 Edition Business services are delivered to the end customers, for example financial services to the customers of a bank.

19 According to ITIL 2011 Edition Business service management is performed by business units, and is a customer-centric business-focused approach, recognising the value required by the customer and other stakeholders, and the dependency on IT services.

20 According to ITIL 2011 Edition IT service management is positioned by ITIL as supporting business service management ITIL provides guidance for IT service management Guidance for business service management?.deliver customer and business value by facilitating outcomes

21 According to ITIL 2011 Edition Business services are generally delivered to external customers IT services can be customer-facing services It could be argued that all IT services should be customer facing that customers may be internal or external

22 According to ITIL 2011 Edition Delivery of business services is performed by business units utilising business service management IT services are delivered by IT service providers using IT service management. IT service providers may also be a business unit

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30 Observations Development of ITSM Service Management didn t start in IT Origin in business marketing Introduced to product management c.1982 Some of this was 1960 s 1970 s & 1980 s Theodore Levitt (Marketing Myopia); Richard Normann (Service Management: Strategy and Leadership in Service Businesses); Eiglier and Langeard (Servuction); Pine, Gilmore (Experiential economy); Fisk, Grove, John (Interactive service marketing); Lovelock, Wright (Principles of service marketing & management); Christian Gronroos (Service marketing); Mary Jo Bitner (Service Encounters); Richard B Chase (Customer perspective of service management); James A Fitzsimmons (Service Operations Management); and more. Service is a type of product - Customer First or Outside-In Acknowledgment to Ian Clayton Therefore, ITIL isn t the only source of input!

31 Key Trends - Professionalization Education, Training & Qualifications Credentials Demonstrating Continual Professional Development Post-nominals Professional bodies Code of Ethics Body of knowledge Best practices, methodologies, etc. Mentoring Skills framework

32 RISK - Cost Cutting without Value Consideration Understanding cost alone leads to poor decision making Need to also understand business importance, value and strategic imperative What is a cynic? A man who knows the price of everything and the value of nothing. Oscar Wilde Lack of available, timely and accurate data Only as strong as the weakest part

33 RISK ITIL Implementation ITIL is guidance ITIL is a framework You can t implement ITIL ITIL isn't the destination, it's something that you might want to use to help you on the journey - but where are you going? Projects should have clear business outcomes and objectives, and focus on those rather than on one of the tools they might have in their toolkit for helping them reach that destination

34 RISK No-one will ever do all of ITIL When are we going to stop lying? No one is going to do all of ITIL Malcolm Fry Ignore ITIL for a minute Take a look at ISO/IEC Then use ITIL (and other things) for more detail Minimum level at which you can demonstrate you are competent at Service Management You don t have to go for certification Alignment is worth considering

35 RISK Project/Programme Silo Projects are delivery mechanisms for change* * Service Management change There is always a service context By bringing Project/Program/Portfolio Management and Service Management together much stronger more effective and efficient Knowledge & skills sharing Working together in a customer-centric service-orientated operating model.

36 RISK Too much focus on technology These are just types of technology Solution, platform or delivery mechanism used as part of some services Some service components have been delivered externally for years Dependency on an external service provider More new technologies, services and operating models will come along - Service Management should be able to continually improve and adapt to meet these challenges

37 RISK Poor Use of 3 rd Party Advisors Understanding the difference between Consultant and Contractor Contractors are for filling gaps they fit in A good consultant s role is not to blend in with the norm but to change it Daily rate isn t a measure of value There can be good reasons for engaging 3 rd parties Article provides a process approach, a checklist, and some suggestions

38 RISK Relationship between IT and the business Is IT part of the business or just a supplier? Why don t we hear HR, Marketing or Finance talking about business alignment? How do services support the end customer and the overall business objectives? Do we want a Customer-Centric Service- Orientated culture & operating model? Does the language we use match the relationship & behaviour we want? If we want to be part of the business, stop using the word customer or the business to refer to our colleagues

39 Service Cost Modelling Dependencies Service Portfolio & Catalogue (set of services agreed with the customers) Service Modelling (mapping components to services) Resource effort reporting and existing cost data (by service) Service Contracts & Charging model (Customers, internal & suppliers) Capability Service Cost Management Business importance/value, strategic imperative and relative priority of Services needs to be understood or else decisions could be made purely on cost which undermine the support of strategic objectives Outcome/Benefit Visibility of cost for each service Well-informed business decision making Maturity, benchmarking & Best Practice Influence behaviour & service consumption Effort prioritisation based on value Service Chargeback (if required)

40 Transformation It is very popular for organisations to have a digital transformation initiative, but the failure rate is just as high as the average for all IT projects WHY? Why do they think they need transformation? Are they really doing anything transformational? Why do they still fail?

41 The Transformation... Journey

42 Transformation or Continual Improvement? What is the difference between Transformation and Continual Improvement?

43 SERVICE MANAGEMENT BASICS HAVE YOU GOT IT YET? What we all have to understand before doing anything else

44 Overview What everyone absolutely has to understand before starting any other Service Management activity We (our organisation as a whole) stay in business by generating revenue from external customers for the products and services we provide ICT and technology are a vital part of the organisation, working with our colleagues from other departments to focus on these business goals Demonstrating how ICT supports the goals of the organisation, how they deliver business value, is impossible unless it is put in this context

45 Common Mistakes Starting with the technology without understanding the true value & context Around 75% of IT projects fail to meet expectations or deliver the benefits in the business case Focus purely on the support of business processes The processes represent how you do something the something is deliver Products/Services to Customers (the what ) Forgetting that project success relies on People, Culture, Communications and several other factors not just technology

46 Basics for most commercial organisations Business value, business goals = revenue from customers for products and services No revenue = no business = no IT To put IT Services in to context, demonstrating the business value they add, we must express them in this context Relationship to End Customer and the Products/Services of the organisation as a whole not the IT department

47 To demonstrate business value, we must: Understand our business (not just IT) Products & Services delivered to... External Customers by... People/Organisation/Functions using... Business Processes Relate everything to this context Not just focussed on supporting business processes How ICT supports external customers How ICT enables revenue generation and the delivery of the Products & Services to external customers

48 What were we seeing 20 years ago? Utility / On-Demand BYOD ASP / Cloud / xaas Outsourcing / Service Integration Staff Transfer ITIL / Service Management BS15000 / ISO20k COBIT Y2K Digital

49 What about the next 20 years? Digital Utility / On-Demand BYOD xaas SIAM? No Employees? x Service Management? ISO standards? Artificial Intelligence Cyber Security Wearables / Implants Ethics / Professionalism

50 What will always be true? Need to know: What you do? The Products and Services you deliver Who you do it for? You customers, users, colleagues, stakeholders Why you do it? The outcomes which have to be achieved Then, work out how (processes) and with what (resources human, financial, information, technical)

51 CONTACT DETAILS Matthew