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Transcript of Martin Sarnovský Department of Cybernetics and Artificial Intelligence Faculty of Electrical...
Martin Sarnovský
Department of Cybernetics and Artificial IntelligenceFaculty of Electrical Engineering and Informatics
Technical University of Košice
Service StrategyService Strategy
ContentsContents
Introduction / ITIL v.3
Fundamentals of service strategy
Basic concepts of service strategy
Processes and roles established by service strategy
Example of a workflow during design of a service strategy
Conclusion
Service Service SStrategytrategy
Not products, but services!!! Publication Service Strategy – targeted towards higher level
management Key differences from ITIL v.2 Main content - description of the processes, roles, but also ideas,
methods... Basic objectives
What services? To whom? ...
Service StrategyService Strategy
Helps make IT organizations/departments a part of the entire business
The idea of functioning of business based on service management is kept here as a guiding principle, part of the strategy
Helps clarify the relationships between different services, used systems, processes, business model, strategies and objectives
Basic objectives of Service StrategyBasic objectives of Service Strategy
Objectives that the service provider sets for himself What services would be provided by a business?
(Portfolio/Catalogue) To whom should they be provided? (Request management) How is the business going to distinguish itself from the
competition? How do we really create “value” for the customer with the help of
services? (Value creation) How do we define the quality of service? (Evaluation) How do we effectively and efficiently assign resources to
services in the portfolio? (Assets/Resources/Capabilities) How do we resolve resource sharing conflicts?
Key ConceptsKey Concepts
BasicsBasics
• Publication describes:
• Planning, service strategy – tying business plans with IT strategy, service
portfolio and catalog service, or various forms of sourcing
• Categorizes service providers
• Categorizes alternatives of service delivery models
• It is based on
• The concept of service management and planning according to the “added
value“ of the service
• This type of planning uses an oriented pair Functionality - Warranty
Most important conceptsMost important concepts
• Assets/Resources/Capabilities
• Utility/Warranty
• Value Creation
• Type of service provision
• Service Portfolio
• Sourcing
4P Concept4P Concept
• Service Strategy defines key concept 4P
• Perspective – characteristic vision, direction
• Position – platform on which the provider will build upon and compete
• Plan – how provider will achieve his visions
• Profile – fundamental way of implementing things – characteristics, e.g. in
decision-making
PackagesPackages
• Service Level Package – SLP
• Measure of value of a certain Service Package
• Designed to meet the needs of a particular Pattern of Business Activity
• Always linked with...
• Core Service Package – CSP
• Service packages providing a platform for 2 or more SLPs
• Supporting Services
• Service that enables or enhances a CSP
• Service Package
• Detailed description of an IT Service that is available to be delivered to
Customers. A Service Package includes a Service Level Package and one
or more Core Services and Supporting Services.
ExampleExample
Evaluation of ServicesEvaluation of Services
Value – defined in business terms Service Utility / Functionality
What customer receives (outputs) Service Warranty
How service is delivered/suitability for use (availability, capacity, continuity, security)
Service
Service Utility
Functionality
“Meets a particular need“
Increases performance
Defined by
1. Supported outputs
2. Avoiding costs and risks
Service Warranty
Quality
“suitable for use“
Reduces variation in performance
Defined by1. Availability2. Capacity3. Continuity4. Security
Value CreationValue Creation
Value – depends also on customer’s own assets Value creation – transformation of service management offer into strategic assets =>
practical use (of capabilities and assets)
AssetsAssets, , ResourcesResources and Capabilitiesand Capabilities
Assets Any resource or capability Anything that could contribute to the delivery of a Service
Resources A generic term that includes IT Infrastructure, people, money or
anything else that might help to deliver an IT Service. Capability
The ability of an Organization, person, Process, Application, Configuration Item or IT Service to carry out an Activity
Service Management – strategic asset (service value)
Service ProviderService Provider
Type I Internal Embedded within a Business Unit within an Organization
Type II Shared Provides shared IT Services to more than one Business Unit
Type III External Provides services to multiple (external) customers
Sourcing – Sourcing – Structure for Resource AllocationStructure for Resource Allocation Internal (Type I)
Delivery of and payment for the service by internal employees Does not take into account the standardization of services across departments Greatest control / limited scalability
Shared Services (Type II) Set mechanism for payment for services, lower costs than Type I Similar level of control, less limited scalability
Full Service Outsourcing Single contract with single service provider Higher risks of delivery of services, difficult to change provider
Prime Single contract with single service provider Provider controls only service delivery, involves a number of providers Risk decreases / Complexity of supply increases
Consortium A set of service providers (recipient selects) Providers – required to meet a single interface for managing services Fulfills more requirements (than sourcing using single provider) Risks are increasing (providers = competitors must cooperate)
Selective Outsourcing Selection based on experience (1989, Kodak)
Co - sourcing
Sourcing Sourcing and Service Provision Modelsand Service Provision Models
Categorization and analysis of models that providers will use to secure resources and service delivery
Managed Service Business unit requesting the service funds the use of this service
for itself Shared Service
More services for one or more business units Shared infrastructure and resources
Utility Services provided based on how much and how often each
customer needs them
Service PortfolioService Portfolio and and Service Catalogue Service Catalogue
Portfolio contains all the resources that are used / created at different stages of service life cycle
Service Catalogue Subset of Service Portfolio The only part of portfolio visible to
the customer Part of the portfolio, which provides
for the payment of costs or profit generation
Services in catalogue – set and tuned to the needs of the customer
Catalogue – important outward indicator -> represents provider’s capabilities
ProcessesProcesses
Strategy GenerationStrategy Generation
Market Definition Evaluations, analyses What services can the organization offer
Offer Development A more detailed description of services that are worth moving
further Development of Strategic Assets
Examination of the possibility of reusing existing services Our capabilities of reusing them
Implementation Preparation Objective – to ensure that we are ready to deliver, what we
decided to pursue
Financial ManagementFinancial Management
Purpose – To provide business and IT departments financial statement of provided IT services, value of assets and qualification
Includes – management of budget, accounting and charging Process is highly interconnected with entire organization => financial information is
created / used by many parts of the business – aggregate, share financial data FM process includes
Quantifying the value of services Quantifying the value of components of services Determination of costs (various types), assignment of costs to services Classification of costs
Capital/Operational Fixed/Variable Direct/Indirect
Dynamics of variable costs understanding that some factors can affect a service and therefore also its
costs
Demand ManagementDemand Management
Purpose Understanding customer’s service requirements Influence and ensure capacity to fulfill these requirements
Strategic level Analysis of character of business activity Analysis of user profiles
Tactical level How can we motivate customers to use our IT services?
E.g. differential charging for use of IT service in less important periods
Service Portfolio ManagementService Portfolio Management
Continuous process - From Cradle to the Grave
Describes all services that are/will be/were
Definition – of catalogue services,
Ensuring of business cases,
Data in portfolio Analysis – maximizing portfolio value,
prioritization, balance between
demand and supply Approval – finalization of portfolio,
Confirmation of services/resources
Determination – allocation of resources
and services
Roles and responsibilitiesRoles and responsibilities
Business Relationship Manager BRM (sometimes referred to as Account Manager) Understands the business of the organization, creates a
relationship with the customer
Product manager Responsibility for the development and management of services
during the life cycle Responsibility for capacity management and service/solutions/
packages that are in the service catalogue Chief Sourcing Officer
Resource strategy in business Management and direction of departments, resources, and
development of resource strategy
ConclusionsConclusions
Service Strategy – difficult to read for IT workers, often incomprehensible Overlap with other ITIL publications, notably Service Design (Continuity,
Capacity management) Uses different terminology Requires background in finance Vaguely defines processes / functions / concepts
Questions?Questions?
More info – Subject Wiki page: https://chimera.fei.tuke.sk/rip
Info also at http://www.itsmf.sk
Applications ofApplications of ITIL ITIL inin SR SR
Knowledge of the ITIL approach in SR (207 respondents)
12,1 % - Organizations with more than 250 employees, mostly from the vicinity of BA
- those organizations that know of ITIL but do not use it
Applications ofApplications of ITIL ITIL