Colin rudd-business-integration-and-value

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Business integration

and value

APMG International Showcase (28th June 2012)

Colin Rudd

FSM, FBCS, CITP, CEng, FIITT

Service Management consultant, mentor and coach

Chairman itSMF UK

ITIL Author

IT Enterprise Management Service Ltd.

[email protected]


mailto:[email protected]


Agenda

• What is value?

• Customers and delivering value

• Are all customers the same?

• Is all value the same?

• How should value be measured?

• The value network

• Enhancing value


Definition of service

A ‘service’ is a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks


Service value

• Dynamic, real-time demand and value

• Multiple delivery channels (internal / external),

deliver different value

• Output less valuable than outcome

• Value only exists when used by the consumer

• Value is carried in the relationship

• Service value varies over time


ITIL – Service assets

Capabilities Resources

Management

Organisation

Process

Knowledge

People

Financial Capital

Infrastructure

Applications

Information

People

(Experience, skills, (Numbers of employees) and relationships)


Service value

Management

Organisation

Processes

Knowledge

Capabilities

Information

Applications

Infrastructure

Financial capital Resources

Service

Increase performance

Reduce risk

Performance of customer assets

Increased value and ROV

Coordinate, control and deploy

People

Asset types



ITIL® – The service lifecycle

CSI register, improvement actions & plans

Continual Service Improvement

Service Operation

Operational /live services Achievements

Against targets

Serv

ice

Kn

ow

led

ge

Ma

na

gem

ent

Syst

em (

SKM

S)

(In

clu

din

g: t

he

Serv

ice

Po

rtfo

lio a

nd

Ser

vice

Ca

talo

gu

e

The Business / Customers

Service Transition

New/changed services

Tested solutions

SKMS Implementation of plans

Business value

Service Design

Solution designs

Architectures Standards

SDPs

Service Strategy

Strategies Policies

Resource and constraints

Change proposals

Requirements



Customers

• Different types of customer:

• Internal:

• Same business objectives

• IT is involved in their decision-making

• We work together to achieve common outcomes

• External:

• Different business objectives

• IT is involved in understanding their requirements

• We enable their outcomes so that we keep their

business


Value

Money spent

Value added

Value realized


What does this mean for IT?

• If IT wants to demonstrate value it has to

link its services to where value is realized,

not where value is added

• If IT can not do this it will always be

viewed as ‘money spent’ not ‘value added’


Customers and services

External

Customer

External

Customer

External

Customer External

Customer

External

Customer

Value added

Value realized

Business Unit Business Unit

IT Unit IT Unit IT Unit IT Unit

Money spent


What is value for you?

• Financial: increased revenue or profit

(or possibly reduced operating costs)

• Risk: reduced vulnerability

• Compliance: increased legal and regulatory

conformance

• Customer: increased quality and satisfaction

• Shareholders: increased share value or

improved image


IT service provider

Customers

Partners and suppliers

Services

Services

A simple value network


IT service provider


Services

Services

Internal customers

Customers

External customers

Customers


IT service provider


Services

Services

Internal customers

Customers

External customers

Customers

Services Services


IT service provider

Customers


Services

Services

The value network


IT service provider

Services

Services

Partners

External

suppliers and partners

Suppliers Partners Partners Partners Suppliers Suppliers Suppliers

Partners

Internal


Suppliers Partners Partners Suppliers Suppliers Suppliers Partners

Customers


IT service provider

Front office

Back office

Partners

External


Suppliers Partners Partners Partners Suppliers Suppliers Suppliers

Partners

Internal


Suppliers Partners Partners Suppliers Suppliers Suppliers Partners

Services

Services

Customers


Services

IT service provider

Front office

Back office

External


Partners Partners Partners Partners

Suppliers Suppliers Suppliers Suppliers

Internal


Partners Partners Partners Suppliers

Suppliers Suppliers Suppliers Partners

Services Services Services

Customers


IT service

provider

Front office

Back office

External




Internal





Services

Internal customers

Customers

External customers

Customers

Services Services

Service Catalogue


Corporate governance of IT

Business pressures

Business needs

Evaluate

Monitor

Pe

rfo

rman

ce

con

form

ance

Direct P

lan

s p

olic

ies

IT Governance

Project delivery

Service delivery

Business demand

Note: diagram based on ISO/IEC 38500

Enhance value

Invest in value


IT service

provider

Front office

Back office

External




Internal





Services

Internal customers

Customers

External customers

Customers

Services Services

Relationships


Relationships

The five questions:

• Readiness: Are we prepared for relationships?

• Connection: Are we willing to focus on other?

• Trust: Can we build mutual trust?

• Investment: Are we willing to invest in others?

• Synergy: Can we create a win-win relationship?

Ref: Winning with people, John C Maxwell

Good relationships are the foundation for achievement


The approach

• Agree the required business outcomes

• Agree the definition of value with the business

• Agree the measurement of value

• Deliver and measure delivered value

• Improve and increase value, as part of the

overall service strategy


New ‘cloud based’ value networks

Customers Customers Customers Services Services Services

Service Provider


Customers Customers Suppliers

Services

Suppliers

Management Hub

Mgmt. services Mgmt. services Management. services

Suppliers Suppliers


Summary

• Need to understand value from the customer

and business perspective

• Focus on value, outcome and quality, both

measurement and improvement

• Good relationships are essential in delivering

service value, both customer and supplier

• Integrate and automate to provide consistent

and accurate information

• And remember ..........


“Quality (value) in a product or service is not what

the supplier puts in. It is what the customer gets

out and is willing to pay for.’”

Peter Drucker

"People don’t buy products (services); they buy

the expectation of benefits“

Theodore Levitt, Harvard Business School


Business integration

and value


Any questions ?

APMG International Showcase (28th June 2012)

Colin Rudd

FSM, FBCS, CITP, CEng, FIITT

Service Management consultant, mentor and coach

Chairman itSMF UK

ITIL Author

IT Enterprise Management Service Ltd.

[email protected]

mailto:[email protected]

Colin rudd-business-integration-and-value

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