How to think and act in a strategic manner How to transform Service Management into a strategic asset

Understand the cost and the value of services

develop and implement Service Management not only as an organizational capability but as a strategic asset. .  Provides guidance on the principles underpinning the practice of Service Management. Provides guidance on how to design.

Key concepts    Utility and Warranty Value Creation Strategy Generation Processes     Demand Management Service Portfolio Management (SPM) Financial Management Strategy Generation .

. develop and implement Service Management not only as an organizational capability but as a strategic asset. •To understand how to define service quality.•To understand what services we offer •To set policies and objectives of services •To understand how we create value •To offer advice on strategic Investments Provides guidance on how to design.

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Utility •What does the service do? •Functional requirements Warranty •How well does the service do it? •Non-functional requirements •Features. inputs. availability… •“fit for use” . performance. outputs… •“fit for purpose” •Capacity.Utility and Warranty define services and work together to create value for the customer.

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information. infrastructure.Service Management as a Strategic Asset  The use of ITIL to transform service management capabilities into strategic assets  SM used to provide the basis for core competency. control and deploy resources to produce value.  Ex. people . Capabilities  An organization’s ability to coordinate. processes. an organization assets  Ex. applications. knowledge. Management. people. Resources  Direct inputs for production. organization. distinctive performance and durable advantage from resources and capabilities. Financial Capital.

and who you may be able to offer them to. Market Develop the  Continue to formulate the services you think it will be worthwhile pursuing  Utility and Warranty are considered at this stage. . Offerings Develop  Look for opportunities to exploit your services and capabilities (to allow more services for the customers)  Develop Service Management so that it becomes a strategic asset Strategic Assets Execution Prepare for  Take all the necessary steps to ensure that we are ready to go ahead and it is worthwhile doing so.Define the  Evaluate the services you could potentially offer.

Type 1  Internal  Embedded in the business unit it serves Type 2  Shared  Provide services to multiple business units Type 3  External  Provides services to many customers .An organization supplying services to one or more internal customers or external customers.

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•Graphical representation of the components that make up a service •Documents workflow and dependencies .

serenesoftware.SOURCE: http://www.com/ .

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Service Portfolio Management 3.Financial Management .1.Demand Management 2.

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 Understand customer requirements for services and how these vary over the business cycle Ensure the provision of appropriate levels of service • By varying provision or influencing customer demand Ensure that the Warranty and Utility we offer matches the customer needs   .

Processes. Pattern of Business Activity (PBA) ◦ ◦ ◦ ◦ Workload profile of one or more business activities Varies overtime Represents changing business demands Attributes: Frequency. Volume.Applications . Duration  User Profile ◦ Pattern of user demand for IT Services ◦ Each user profile includes one or more PBAs Examples of UPs: People. Location. Functions.

.  EXAMPLE: Gold. Silver or Bronze Service. Service Package ◦ Detailed description of a service ◦ Includes a service level package and one or more core services and supporting services  Service Level Package ◦ Defined level of utility and warranty for a particular service package ◦ Designed to meet the needs of a PBA.

. Core Service ◦ An IT Service that delivers outcomes desired by one or more customers  Supporting Service ◦ A service that enables or enhances a core service.  EXAMPLE: A directory service or a backup service.

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Decide what services to offer  Understand ◦ Why should customers buy these services? ◦ Why should they buy these services from us?  Provide direction to Service Design ◦ So they can manage and fully exploit the services into the future. .

 ◦ A service that the business does not think of in business context or semantics.  Business Service Management ◦ Considering service management in terms of business processes and business value . Business Service IT Service ◦ A service that directly supports a business process.

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 Part of the Service Portfolio Services available for deployment or use   Information to be shared with customers Business Service Catalogue ◦ Services of interest to customers Technical Service Catalogue ◦ Underpinning services of interest to IT   .

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•Financial visibility and accountability •Financial compliance and control •Understand cost of providing services •Understand value from using services customers get •Enhanced decision making across the complete service lifecycle .

 Services Valuation ◦ Cost of providing service ◦ Value to the customers receiving the service  Service Investment Analysis ◦ Understand the total lifecycle value and costs of proposed new services or projects  Accounting ◦ Keeping track of what has been spent. assigned to appropriate categories .

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