How to build the business case for Service Catalog
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Service Catalog Building a Business Case Barclay Rae Global Head of Services
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To view this complimentary webcast in full, visit: http://forms.axiossystems.com/LP=321Faced with continued cost pressures, as well as growing business unit demand for new services and higher service levels, IT is about to make transformation. IT is having to align their services with the needs of the business, develop standardized process and improve overall internal customer satisfaction. Arguably the most important tool to deliver these demands is the Service Catalog.
Transcript of How to build the business case for Service Catalog
Service CatalogBuilding a Business Case
Barclay RaeGlobal Head of Services
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Agenda
Service Catalog – What is it?
What are the Benefits?
Building a Business Case
Going Forward
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WindowsWindows WebWeb Web 2.0Web 2.0Green-ScreenGreen-Screen
Axios founded
assyst Classic launched
assyst Enterprise launched
Entry into the US market
Axios ranked #1 vendor in HDI 'Customer Experience' report
Expansion into Canada
Axios retains #1 vendor ranking in HDI 'Customer Experience' report
assyst launched on Java architecture
Further expansion in the US, Europe and entry into Asia Pacific
Axios awarded Software Company of the Year
First in the world to achieve BS 15000 certification
Entry into Middle East and Africa
The number of
assyst end-users tops 10 million
Axios awarded Software Company of Year (again)
Axios rated #1 vendor for 3rd time in succession in HDI 'Customer Experience' report
Expansion into Russia, Eastern and Southern Europe and South America
Axios wins International ExcellenceAward
Expansion withinMiddle East
ITIL ITIL V1V1
ITIL V3ITIL V3ITIL ITIL V2V2
Axios Systems Timeline
assyst 8 Launched
US Expansion
European expansion begins
assyst 9 Launched
Service Catalog
SaaS
1988 2005199019951997 2000 2001 2003 2004 2006 2007 2008 2009/10
Service Catalog – What is it?
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The Service Catalog
This is a
Service
Catalog?
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The Service Catalog
It tells customers about services:
What they cost When they are available How long they can be used How to get them Who to call if you need support
What they are like The warranty should they fail
Even some photos!!
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User Request View
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Service Catalog – From Service Definition to Service Fulfillment
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Service Value Management and ITSM
CMDB
Service Catalog
IT components and infrastructure
Each business service or process is defined as a supply chain of IT components, taken
from the CMDB
The CMDB holds information on all IT infrastructure and components, and their relationships
IT Intelligence
Business Intelligence
IT business services
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Service Catalog Hierarchy
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Service Catalog Hierarchy – Non-IT
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Service Catalog Hierarchy – Non-IT
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Service Catalog Elements
Elements:
User Request Catalog
For the IT end-user Self-service request fulfillment
Similar to online shopping experience
Business Service Catalog View
For the business customer
In business terms
Specific non-IT information
Technical Service Catalog View
For the IT provider
Technical and supply-chain details
Component level service data
What are the Benefits?
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Service Catalog Benefits
So, what are the benefits?
Reduction in Operating Costs
Quality and Efficiency Improvements
Relationship/Communications Benefits
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Benefits – Cost Reduction
Reduced cost of a standard request between 20% and 40%
Reduced cost per non-standard request between 20% and 40%
Reduced/eliminated cost of manual errors and re-work
Reduced impact on the Service Desk calls for requests
and chasing
Optimized procurement costs through Demand
Management and reporting
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Benefits – Quality and Efficiency
Improved delivery time for standard requests
Improved delivery time for non-standard requests
Reduced administration and intervention of standard requests
Opportunity to charge and recover service costs
Improved availability (24x7) for logging and tracking
requests
Capability to increase request workload without impact
on resources
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Benefits – Quality and Efficiency
Capability to manage non-IT processes
Opportunity to recover/share some costs with other non-IT departments for requests
Opportunity to resolve cross-department issues with supply chain management and reporting
Opportunity to manage IT services end-to-end and monitor service availability
Opportunity to charge IT services end-to-end
Opportunity to manage multi-tenancy services and SLAs
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Benefits – Relationships/Communications
Improved customer satisfaction ratings
Improved image and engagement between IT and
the business
Improved transparency of IT processes
3 Steps to Building a Business Case
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3 Steps for Building a Business Case
1. Define a business-based service strategy Work with customers to understand their service expectations
and priorities Define the IT business services Use workshops for common understanding
2. Define the IT service ‘supply chain’ Define and design the services and IT components required Build the Service Catalog Review the efficiency and cost of key services Identify areas for improvement
3. Find the value Build an improvement plan with business objectives and costs Business case and ROI over 2/3 years Build a practical program to implement Get people on board
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CUSTOMERS
What IT services are key to you?
Key people
Key systems
Key departments
Key times/targets
When do you need them?
How quickly do you need them restored?
What support information do you need?
What reviews do you need?
CUSTOMERS
What IT services are key to you?
Key people
Key systems
Key departments
Key times/targets
When do you need them?
How quickly do you need them restored?
What support information do you need?
What reviews do you need?
IT SERVICE PROVIDER
What IT services do you provide?
Infrastructure
Networks
Applications
Service/Help Desk
Procurement
Projects
What are your resource levels?
3rd party contracts?
What levels of service can you provide?
IT SERVICE PROVIDER
What IT services do you provide?
Infrastructure
Networks
Applications
Service/Help Desk
Procurement
Projects
What are your resource levels?
3rd party contracts?
What levels of service can you provide?
SLM PROJECT
Planning
Workshops
Negotiation
Facilitation
Documentation
Build Service Catalog
Set up reporting
Set up review mechanisms
Plan full implementation
Ongoing support as needed
SLM PROJECT
Planning
Workshops
Negotiation
Facilitation
Documentation
Build Service Catalog
Set up reporting
Set up review mechanisms
Plan full implementation
Ongoing support as needed
Building a Business Case
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Business Case Example
Cost per standard request
Total intervention cost per year:
No. of human interactions x average time per interaction x no. of requests x loaded staff cost
Cost of unproductive time:
No. of requests x elapsed delivery time x cost per (user) unproductive time
Cost per non-standard request
Total intervention cost per year:
No. of human interactions x average time per interaction x no. of requests x loaded staff cost
Cost of unproductive time:
No. of requests x elapsed delivery time x cost per (user) unproductive time
Service Desk cost of handling requests
Service Desk annual costs:
No. of users x requests per year x Service Desk staff time per request x loaded staff cost
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ROI
Summary of Expected Savings &
Project Costs
Year 1 Year 2 Year 3 TotalAnnualize
dNPV
Savings Expected 0 416,450
832,900
1,249,350 416,450
Project Costs 170,000 70,000 60,000 300,000 100,000
Net Cost/Benefit
-170,000 346,450
772,900 949,350 316,450 17
Going Forward
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Going Forward
Use the Service Catalog to implement SLAs
Develop and automate integrated ITIL processes
Build business-based reporting and monitoring systems to deliver value-based services
Use the power of tools to deliver CMDB and Service Catalog functionality and automation
Use a pilot and phased approach for service and SLA implementation
Get the right team and get started…
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Basic implementation
Strategy workshopStrategy workshop
Design - workshop & buildDesign - workshop & build
TrainingTraining
Build services in Service Catalog
Build services in Service Catalog
Process developmentProcess development
Publish and reviewPublish and review
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Service Catalog Workshops
Take individuals and organizations in 1 day from a standing start to practical action. At the end of these sessions, participants will:
Have common awareness and understanding of Service Catalog concepts, practicalities and business value
Have started to define business services – high level catalog
Be clear about the issues and how to deal with them Have confidence about how to proceed
The workshops are a great way for an organization to galvanize themselves into starting a Service Catalog.
They provide a combination of practical education and awareness, plus interactive sessions on how to achieve success.
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5 Top Tips for a Service Catalog
1. Carry out a Service Catalog workshop
2. List the dependencies of each service
3. Decide usage parameters
4. Start with a reasonable number of services
5. Make sure you know your requirements before investigating automation tools
From Sharon Taylor White Paper – Service Catalog: 5 Top Tips
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Any Questions?
Axios Systems Details:www.axiossystems.com [email protected] http://twitter.com/axios_systems http://www.servicecatalogblog.blogspot.com
Service Catalog Resources:Sharon Taylor Webcast Sharon Taylor White Paper
Webcast Series:03/14/10 Designing Your Services Within A Service Catalog 04/21/10 Rapid & Relevant SLAs: Integrating Service Catalog
With Your Business 05/19/10 Service Catalog Reporting: Step Your Metrics Up A Gear
More information can be found on the Axios Systems website.
Information on the assyst Service Catalog can be also be found on our website.
