Introduction
Common Terminology
IT Service Management
Service
Service Owner
Internal Service Provider
Shared Service Provider
External Service Provider
Processes & Functions
Process
Procedures
Work Instructions
Functions
Roles
Job Positions
Process Owner
Process Manager
Process Operatives
RACI Model
R – Responsibility
A – Accountability
C – Consult
I – Inform
Four perspectives (“4P’s”) or attributes to explain the concept of ITSM
Partners (Suplier)
People
Porducts (technologic)
Process
Formal structures on communication
Reporting
Meetings
Online facilities
Notice boards
Service Strategy
Goal
to help service providers to develop the ability to think and act in a strategic manner
Objectives
What services to offer to customers?
How to differentiate from competitors?
How to create value for customers?
How to make a case for strategic investments?
How to define and improve service quality?
How to efficiently allocate resources across a portfolio of services?
Scope
• strategy generation
• the development of markets (internal and external)
• service assets
• service catalogue
• implementation of strategy through the service lifecycle
• demand management
• financial management
• service portfolio management
• organizational development
• sourcing strategies
• strategic risks
Major Concepts
Mintzberg’s four Ps to formulate the strategy
Perspective
Position
Plan
Pattern
Creating Service Value
Utility - fitness for purpose
Warranty - fitness for use
Service Warranty + Service Utility = Service Value
Service assets of a service provider
Resources
Capabilities
Types of service providers
Type I: Internal service provider
Type II: Shared Services Unit
Type III: External service provider
forms of outsourcing
Internal outsourcing:
Traditional outsourcing
Multi-vendor outsourcing
Prime
Consortium
Selective outsourcing
Co-Sourcing
Service Packages includes
Core services
The basic critical services
Supporting Services
Provides differentiation or more effective use of Core Services
Service Level Packages
Defines level of utility and warranty provided by Service Package
Service Strategy Processes
Financial Management
GOAL
The goal of Financial Management is to provide cost effective stewardship of the IT assets and the financial resources used in providing IT services
Benefits
• Enhanced decision making.
• Increased speed of change.
• Improved Service Portfolio Management.
• Financial compliance and control.
• Improved operational control.
• Greater insight and communication of the value created by IT services.
answer important organizational issues, such as:
• Does our differentiation strategy result in higher profits and revenue, reduced costs or increased coverage?
• Which services cost most and why?
• Where are our greatest inefficiencies?
Activities
Funding
Traditional models to fund IT services
Rolling plan funding
Trigger based plans
Zero based funding
IT Accounting
Related functions and accounting properties
Service recording
Cost types
Cost classification
Variable Cost Dynamics (VCD)
Chargeback
chargeback models
Notional charging
Metered usage
Direct plus
Fixed or user cost
Other Terminology
Cost Types
Cost Elements
Direct Costs
Indirect Costs
Cost Units
Service Portfolio Management
Goal
The primary goal of Service Portfolio Management is to provide strategic direction and management of
investments into IT Service Management so that an optimum portfolio of services is continually
maintained
answer the following strategic questions
• Why should a client buy these services?
• Why should a client buy these services from us?
• What are the price and charge back models?
• What are our strong and weak points, our priorities and our risks?
• How should our resources and capabilities be allocated?
Service portfolio
Service Pipeline (services that have been proposed or in development).
Service Catalogue (live services or those available for deployment).
Retired Services (decommissioned services).
Activities
Define:
Analyze:
Approve:
Charter:
Investment Categories & Budget Allocations
Transform the Business (TTB):
Grow the Business (GTB):
Run the Business (RTB):
outcomes for existing services
RENEW:
REPLACE:
RETAIN:
REFACTOR:
RETIRE:
RATIONALIZE:
Demand Management
GOAL
The primary goal of Demand Management is to assist the IT Service Provider in
understanding and influencing Customer demand for services and the provision of Capacity to meet
these demands
questions asked here include
• When and why does the business need this capacity?
• Does the benefit of providing the required capacity outweigh the costs?
• Why should the demand for services be managed to align with the IT strategic objectives?
Activity-based Demand Management
Activity-based demand management: business processes are the primary source of
demand for services. Patterns of Business Activity (PBAs) have an impact on demand
patterns.
There are two ways to influence or manage demand
Physical/Technical constraints
Financial chargeback
Service Strategy activities
Defining the market
The development of the offer
The development of strategic assets
Preparation for execution
Five recognizable phases in organizational development
Stage 1: Network
Stage 2: Directive
Stage 3: Delegation
Stage 4: Coordination
Stage 5: Collaboration
Implementation and operation
Strategy and design
Strategy and transition
Strategy and operations
Strategy and CSI
Challenges and opportunities
IT organizations are complex systems
Coordination and control
Preserving Value
Effectiveness in measurement