ITIL Service Strategy Poster.pdf
-
Upload
dominic-benedito -
Category
Documents
-
view
172 -
download
13
description
Transcript of ITIL Service Strategy Poster.pdf
-
Preserving Value
Effective Measurement
SERVICE STRUCTURE IN THE IN THE VALUE
NETWORK:
Understand Market space A set of business outcomes
which can be facilitated by a service.
Customers normally prefer those with lower costs and
risks
HOW TO
DEFINE
SERVICES
Step 1 : Define the market and identify
customers.
Step3 : Quantify the outcomes.
Step5 : Understand the opportunities
Step 6 : Define service based on outcomes.
Step 7 : service models.
Step 8 : Define service units and packages.
Analyzing how to most effectively source and deploy the resources and capabilities required to deliver outcomes to customers.
Deciding what to source - Substitution/change, Disruption/interference & Distinctiveness.
Sourcing structures - Choosing a sourcing structure i.e. outsourcing, insourcing etc.
Multi-vendor sourcing Multiple providers to spread the risk and reducing the cost.
Service provider interfaces used to ensure multiple parties in a business relationship have the same point of reference for defining, delivering and reporting services.
Sourcing governance refers to the rules, policies and processes by which businesses operate.
Critical success factors cost, best location, moving/change disruption.
Value chains to value networks creating and maintaining value chains. Strategies include:o Marshal external talent.o Reduce costso Change focal point of distinctiveness.o Increase demand for complementary services.o Collaborate
Using value networks serve to communicate the model in a clear and simple wayExample to the left
applied inputs for the required outputs such as:Vision Mission Strategies Strategic plans Service portfolio Change proposals Financial information
Strategy tools and procedures
Outcomes and restraints
Service models
Patterns and business activity
Business impact analysis
Business relationship management
IMPACT OF SERVICE
STRATEGY
Service TransitionWhen a service moves from design
and build into operation
Effects of service on Transition
Moulding the strategy
Defining the changes needed
Test and validate service
Service OperationUnderstand the outcomes
Give support with effectiveness and efficiency
Measure the success
Meets the objectives
Dynamics The activities, flow of resources, coordination and interactions.
SERVICE STRATEGIES FOR
CUSTOMER SATISFACTION
Service attributesAre the characteristics that provide form
and function to the service.Linear factor The degree to which the
customer needs are met determines their satisfaction.
Non-linear factor If only a fraction of customer needs are met there is still a
high level of customer satisfaction.
The Kano Model
This figure shows a relationship between the level of fulfilment of customer needs
and the level of satisfaction the customer feels.
3 factors involved in customer satisfactionBasic Factors - must-have utility. Performance factors - One-dimensional utilities. Excitement factors - nice-to-have utility.
Should only be offered under 3 circumstances:AttractionMarketing campaign and offered at a limited time.Customer dissatisfaction with service
Outcomes for review:Service Catalogue Services should be clearly linked to defined and quantified outcomesService pipeline Used for the success of service design and validationService level agreement Specifying the service and outcomes it is designed to support.
SERVICE
ECONOMICS
BUSINESS
RELATIONSHIP
MANAGEMENT
Purpose establish and maintain a business
relationship understanding the customer and their
business needs
Policies/Principles/Basic concepts
Customer Portfolio is a database or structural document used to record all customers of the IT service provider.
Customer agreement portfolio database or structured document used to manage service contracts or agreements between an IT service provider and its customers.
Customer Satisfaction - Customer satisfaction is measured against service provider performance taking into account, targets and previous scores
Service Requirements - This involves investigating the business need or opportunity, validating it, defining a business case and evaluating both the warranty and utility needed.
Objective Ensures high level of customer
satisfaction making sure that the customers needs are met to the requirement
Scope aligning objectives of the
business with the activity of the service provider
Risks Poor integration between service
provider and customer facing processes will result in bad business relationship management
Business Value ability of the service
provider to articulate and meet the business needs of its customers
Activities/Methods/Techniques Represent the service provider to its customers
through coordinated marketing, selling and delivering activities.
Work with service portfolio management and design coordination to ensure that the service providers response to customers requirements is appropriate.
Information Management customer portfolio and customer agreement
are updated and validated customer surveys are also put into action and
the service catalogue is an important reference in communicating consistently
Critical Success Factors and Key Perfomance Indicators
CSF Ability to document and understand customer requirements of service, Ability to measure customer satisfaction and to know what action to take with the results.
KPI Customer satisfactory levels are consistently high and are used as feedback into portfolio management.
Challenges History of poor service may
make it difficult for business relationship management to function effectively
Using theory to support strategy
Strategy must enable service providers to deliver value
A basic approach to deciding a strategy
Service management as a strategic asset
Strategy synthesis opposing dynamics
Strategy as a means to outperform competitors
Government and non-profit organizations Perspective Describes vision and direction of organization Positions Describes how the service provider intends to
compete in the market
Plans Describes how the service provider will transition from their current situation to their desired situation
Patterns Describes ongoing actions a service provider will have to perform to continue meeting its strategic objectives
Customers Those who buy goods or services, customer of an IT service provider is the person or group who defines and agrees the service level targets.
Internal Customers people or departments who work in the same organization as the service provider
External Customers people who are not employed by the organization
Services Means of delivering value to customers by facilitating outcomes customers want to achieve without ownership of specific risks and costs.
Value Value of a service can be considered to be the level at which service meets a customers expectations.
Value Chain A sequence of processes that creates a product or service that is value to a customer.
CUSTOMER &
SERVICES
Types of IT Services
Supporting Service Not directly used by the business, is required by the IT Service Provider to provide other IT ServicesInternal Customer Facing Service IT Service that supports a business process managed by another business unitExternal Customer Facing Service IT Service that is provided by IT to an external customer
Step 4 : Classify and visualize the service
Service conditions should have clarity and have context on how
resources are useful to justify the expense of a service.
Service packagesA collection of two or more services combined to offer a solution to a specific kind of
customer meet specific business outcomes.
It can be a combination of core, enabling and enhancing
services
IT organizations are complex systems needing to interact with other components
They are interdependent This complexity explains why some service
organizations resist change
Should be achieved through:
Eliminating or reducing deviations in performance
Maintaining operational effectiveness and efficiency
Reducing hidden costs
Publicizing and substantiating hidden benefits Use of automation, web-based functionality,
support tools
Measurement Principles:
Begin on the outside of the service organization
Responsiveness to customer
Think of process and service as equal
Numbers matter
Compete as an organization
Definition of Risk A possible event that could cause harm or loss
Two distinct phases in dealing with Risk:
Risk Assessment - Concerned with gathering information about exposure to risk so organization can make appropriate decisions and manage risk properly
Risk Management Involves having processes in place to monitor risks, access to reliable and up-to-date information about risks
Design Risks
Customers expect services to have a beneficial impact on performance of assets [Utility from their perspective]
Always a risk that services designed fail to deliver the expected benefits in utility
Major cause of poor performance is poor design
5 Operational Risks
Two levels of Risk must be considered from a Service Management perspective:
Risks faced by the business, and the business services it uses
Risks to the IT services that underpin the business and its processes
Critical Success Factors
All challenges and risks already mentioned can be inverted to become critical success factors (CSFs)
Other factors critical to success of a Service Management organization:
Experienced, skilled and trained staff
Adequate support from business (Funding)
Appropriate and effective support tools
DEMAND
MANAGEMENT
Objective Identify and analyse
patterns of business activity to understand the level of demand that will be placed on a service
Scope Identify and analyse how
different types of user influence the demand for service
Risks Lack of, or inaccurate
configuration management information, which results on the impact of changing demand on the service providers infrastructure and applications.
Purpose
To understand, anticipate and influence customer demand for services and to work with capacity management to ensure the service provider has capacity to meet this demand
Activities/Methods/Techniques
Business Plans
Marketing Plans
Sales Forecast
New Product launch plans
Challenges The customer might
find it difficult to break down individual activities that make sense to the service provider.
Business Value Main value of demand
management is to achieve a balance between the cost of a service and the value of the business outcomes it supports
Policies/Principles/Basic Concepts
To be fully active demand needs to be active throughout the whole lifecycle.
Critical Success Factors and Key Performance Indicators
CSF A process exist whereby services are designed to meet the patterns of the business activity and meet business outcomes
KPI Capacity plans include details of patterns of business activity corresponding to workloads.
Information Management The service Portfolio and
Customer Portfolio
Minutes of meetings between business relationship managers and customers
RolesService Owner Ensuring that the on-going service delivery and support meet the agreed customer requirements
Process owner ensuring that a process is fit for purpose
Process Manager accountable for operational management of a process
Process Practitioner responsible for carrying out one or more process activities.
Text
Service EconomicsThe cost of providing services and the
value of outcomes achieved
Relies on 4 main areas
Continual Service Improvement
Evaluate
Check changes in outcomes
The relevance of services
Improvements
Type I (Internal Service Provider)Type I Service Providers are dedicated to, and often embedded within, an individual business unit.
Type II (Shared Services Unit)Functions as Finance, IT, Human Resources and Logistics are not always at the core of
a n organizations competitive advantage.
Type III (External Service Provider)Type III Service Provider is a service provider that provides IT services to external customers
FINANCIAL MANAGEMENT FOR IT SERVICES
BenefitsConduct business in a financially responsible manner
*Understand IT services costs and maintain profitability*Ability to make sound business decisions
Process*Budgeting -> Predicting and controlling cash flow
*Accounting -> Enables IT organization to account for money spent*Charging -> Billing customers for service
CRITICAL SUCCESS FACTORS*There is an enterprise framework to identify, manage and
communicate information*Funding is available to support provision of services
*Service provider is able to charge for service
FINANCIAL MANAGEMENT FUNDING*IT service management refers to means an IT service obtains
financial resources*Types of funding models
Rolling plan -> is for a fixed period (monthly)Trigger based -> Is initiated by an event
Zero based -> Is allocated according to financial periods
FINANCIAL MANAGEMENT COSTS*Accounting is responsible for identifying costs and managing variance from budget
*An accounting cost model is a framework that determines the cost of a service and ensure adequate allocation
COSTS CLASSIFICATION*Capital costs the cost of purchasing something that will be a financial asset*Operational costs costs resulting in
running the IT service
TYPES OF COST MODELS*Cost by it - accounts for cost and reports to management
*Cost by service cost is reported according to service*Cosy by customer service is paid for by service provider and
allocated to customers*Cost by location - service is paid for by service provider and
allocated to location*Hybrid cost model a combination of different models
Governance is the single overarching area that ties IT and business together. Services are
on way of ensuring that the organisation is able to execute
governance
GOVERNANCE
What is governance?The rules, policies and processes
by which a business are operated, regulated +
controlled.Defined by board of directors, stakeholders or constitution.
Who Governs?A person or group of people who are responsible for the
governance of the organisation.Appointed by shareholders or
members of organisation.
What is the difference between governance and management?
Governance performed by governors. Insures organisation
adheres to rules and policies.Management performed by executives and people whp
report to them. Job is to execute rules, processes and operations.
Governance Framework:Establish responsibilitiesStrategy to set and meet organisations objectivesAcquire for valid reasons
Ensure performance when required
Ensure conformance with rulesEnsure respect for human factors
What is IT governance?It does not exist as separate are.
Governed by same rules as organisation. CIO enforces
corporate governance through set of applied strategies, policies
and plans
How is Corporate governance of IT defined, fulfilled and enforced?
CIO ensures that corporate strategies, policies, rules and plans
include a high-level overview of how IT will be governed.
Management consultants provide assistance to governors.
Final decision stays with governor as the are accountable for governance
How does service strategy relate to governance?
Governors are responsible for the strategy of the organisation, and ensuring all parts of organisation
are aligned to strategy.CIO and IT steering committee will
oversee strategy management.
Used to direct and control the service management activities.
Should be a strategic decision for a business.
Relationships between processes are implemented in different way by different service providers.
Due to common elements between managements systems, organisations manage these systems in integrated way.
Management needs to analyse requirements of relevant management standard in details.
Compare to others already incorporated
STRATEGY
MANAGEMENT
FOR IT
SERVICES
A service strategy is a subset of the overall strategy for the organisation.
In the case of an IT org, the IT strategy will encompass the IT
service strategy
ITIL Service Strategy Processes
Benedito, Christian, Kara, Abrahams, Peters, Smith, Nombewu
Markets can be defined by one or
more criteriaIndustry,
Geographical,Demographic,
Corporate relations (group of companies)
STRATEGY
Structure - Particular service assets needed and the
patterns in which they are configured
CHALLENGES
RISKS
CRITICAL SUCCESS
FACTORS
Service portfolio management
Return on investment
Business impact analysis
Financial management for IT services
Demand management
Also
SERVICE
PROVIDERS
SOURCING
STRATEGY:
SERVICE STRATEGY
INPUTS & OUTPUTS
ORGANISING FOR SERVICE STRATEGY - ROLES
SERVICE PORTFOLIO
MANAGEMENT
Application Portfolio
Project portfolioCritical success factors
Key performance indicators
Configuration management system
Service catelouge
Retired services
Value to business
Purpose & Objectives
Policies, principles & basic concepts
ITIL Service Strategy Poster.vsdxPage-1