42131158 ITIL Session 03 04 Service Strategy

8/2/2019 42131158 ITIL Session 03 04 Service Strategy

http://slidepdf.com/reader/full/42131158-itil-session-03-04-service-strategy 1/55

ServesITProfessionals

ITManagementDevelopmentCenter(ITMDC)Sesi3&4:ServiceStrategyRDrianaLusmiarwanSoenarjadi,ST.,MTCCENT,CCNA(Voice,Security,Wireless),CCDA,CSE,CCNP,CCDP,ITIL,PMP,ENA,ECSP,ECDPHotelNovotelBandung,10-12November2010



CourseAgendaA.IntroductionB.BasicconceptsC.ProcessesandotheractivitiesD.OrganizationE.Methods,techniquesandtoolsF.ImplementationandoperationG.FinancialManagementH.ServicePortfolioManagementI.DemandManagementJ.ExamPrepQuestions




ObjectivesofSS


ServiceStrategydeliversguidancewithdesigning,developingandimplementingservicemanagementasastrategicasset.TheobjectivesofServiceStrategyaretoanswerquestionssuchas:•Whatservicestooffertocustomers?•Howtodifferentiatefromcompetitors?•Howtocreatevalueforcustomers?•Howtomakeacaseforstrategicinvestments?•Howtodefineandimproveservicequality?•Howtoefficientlyallocateresourcesacrossaportfolioofservices?




StrategyConsidered•Acknowledgeotherorganization•Decidedifferentiateobjective•MeetCustomer’sbusnessoutcomes•SuperiorperformanceVScompetingalternative



BuildingBlocksHighPerformanceServiceStrategy




ScopeTopicsofServiceStrategyinclude:


•Strategygeneration•Thedevelopmentofmarkets(internalandexternal)•Serviceassets•Servicecatalogue•Implementationofstrategythroughtheservicelifecycle•Demandmanagement•Financialmanagement•Serviceportfoliomanagement•Organizatinaldevelopment•Sourcingstrategies•Strategicrisks




Whatisfunction“AFunctionisateamorgroupofpeoplespecializedtoperformcertaintypesofworkandberesponsibleforspecificoutcomes.”




Whatisprocess“Processisastructuredsetofactivitiesdesignedtoaccomplishspecificobjective.”

••••

MeasurableHaveSpecificresultsHavecustomerRespondtospesificevent



ServiceManagementDrivenbySSServiceStrategyServicePortfolio


CustomerPortfolio

ContractPortfolio

OperationalCapabilities

OperationModel&Capacity

DesignCapabilities

TransitionCapabilities

OperationPlans&Schedule

ServiceDesign

ServiceModel

ServiceLevelsDelivered



FourP’sStrategy


Perspective

Plans

Strategy

Patterns

Positions

•Perspective-Haveaclearvisionandfocus.•Position-Takeaclearlydefinedstance.•Plan-Formaprecisenotionofhowtheorganizationshoulddevelopitself.•Pattern-Maintainconsistencyindecisionsandactions.




Resource&CapabilitiesFinancialCapitalManagement

Infrastructure

Organization

Capabilities

Resources

Applications

Processes

Informations

Knowledge

People




ServiceValueRealizationServiceProvisioningValueServiceAssetsServiceValuePotentialServiceLevelPerformanceDesigned&DeliveredPerformancePotential

CustomerAssets

UnlockedValuePotential

DesiredOutcomes

ServiceValueRealization




ValueCreationFitnessForUseLowImpactonbusinessoutcomesbutwithhighuncertainty(unbalancedvalue)ithwasueialtybVnegharrancilaHWBa

Warranty

eonZ

O

f

ithwuesalbiaVtyghtiliiHU

ithwasueialtybVanowarrLW

ithwueasalbiVityowUtilL

HighImpactonbusinessoutcomesbutwithlowuncertainty(unbalancedvalue)

Utility

FitnessForPurpose



ResourcesandCapabilities


Resourcesandcapabilitiesaretheserviceassetsofaserviceprovider.Organizationsusethemtocreatevalueintheformofgoodsandservices.•Resources-ResourcesincludeITInfrastructure,people,moneyoranythingelsethatmighthelptodeliveranITservice.Resourcesareconsideredtobetheassetsofanorganization.•Capabilities-Capabilitiesdevelopovertheyears.Serviceprovidersmustdevelopdistinctivecapabilitiesinordertomaintainservicesthataredifficulttoduplicatebythecompetition.Serviceprovidersmustalsoinvestsubstantiallyineducationandtrainingiftheyaretocontinuetodeveloptheirstrategicassetsandmaintaintheircompetitiveadvantage.




FromAssetToServiceAssetsServices

ITServiceProvider

Utility

Customer

Resource

Warranty

Capabilities

Value



Differenttypesofserviceproviders


•TypeI:Internalserviceprovider-AninternalserviceproviderthatisembeddedwithinaBusinessUnit.TheremaybeseveraltypeIserviceproviderswithinanorganization.•TypeII:SharedServicesUnit-AninternalserviceproviderthatprovidessharedITservicestomorethanoneBusinessUnit.•TypeIII:Externalserviceprovider-AserviceproviderthatprovidesITservicestoexternalcustomers.Theserviceportfoliorepresentstheopportunitiesandreadinessofaserviceprovidertoservethecustomersandthemarketspace.




ServiceProviderTypesI

II

III



ChapterIIIServiceStrategy


Theserviceportfoliocanbedividedintothreesubsetsofservices:•Servicecatalogue-Theservicesthatareavailabletocustomers.•Servicepipeline-Theservicesthatareeitherunderconsiderationorindevelopment.•Retiredservices-Servicesthatarephasedoutorwithdrawn.



ProcessesandactivitiesofServiceStrategyTheServiceStrategyprocesses:


•Financialmanagement-Anintegralcomponentofservicemanagement.Itanticipatestheessentialmanagementinformationinfinancialtermsthatisrequiredfortheguaranteeofefficientandcost-effectiveservicedelivery.•Demandmanagement-Anessentialaspectofservicemanagementinwhichofferanddemandareharmonized.Thegoalofdemandmanagementistopredict,asaccuratelyaspossible,thepurchaseofproductsand,wherepossible,tobalancethedemandwiththeresources.•ServicePortfolioManagement(SPM)-Methodtomanageallservicemanagementinvestmentsintermsofbusinessvalue.TheobjectiveofSPMistoachievemaximumvaluecreationwhileatthesametimemanagingtherisksandcosts.



TheServiceStrategyactivities:


•Definingthemarket-Understandtherelationbetweenservicesandstrategies,understandthecustomers,understandtheopportunities,andclassifyandvisualizetheservices.•Thedevelopmentoftheoffer-Createaserviceportfoliothatrepresentstheopportunitiesandreadinessofaserviceprovidertoservethecustomersandthemarket.•Thedevelopmentofstrategicassets-Definethevaluenetworkandimprovecapabilitiesandresources(serviceassets)toincreasetheserviceandperformancepotential.•Preparationforexecution-Strategicassessment,settingobjectives,definingcriticalsuccessfactors,prioritizinginvestments,etcetera.




SSSteps1:DefineMarket



SSSteps2:DevelopOffering




SSSteps3:DevelopStrategicAsset•ServiceManagementasaclosed-loopcontrolsystem•ServiceManagementasaStrategicAssets




Organization


Therearefiverecognizablephasesinorganizationaldevelopmentwithinthespectrumofcentralizationanddecentralization:1.Stage1:Network-Anorganizationinstage1focusesonfast,informalandadhocprovisionofservices.Theorganizationistechnologicallyorientedandisuncomfortablewithformalstructures.2.Stage2:Directive-Instage2,theinformalstructureofstage1istransformedintoanhierarchicalstructurewithastrongmanagementteam.Theyassumetheresponsibilityforleadingthestrategyandforguidingmanagerstoembracetheirfunctionalresponsibilities.3.Stage3:Delegation-Instage3,effortsaremadetoenhancetechnicalefficiencyandprovidespaceforinnovationinordertoreducecostsandimproveservices.4.Stage4:Coordination-Instage4thefocusisdirectedtowardstheuseofformalsystemsasameansofachievingbettercoordination.5.Stage5:Collaboration-Duringstage5,thefocusisontheimprovementofcooperationwiththebusiness.ThegoaloftheServiceStrategyphaseistoimprovethecorecompetencies.Sometimes,itismoreefficienttooutsourcecertainservices.WecallthistheSOCprinciple(SeparationofConcerns,SOC):thatwhichresultsfromthesearchforcompetitivedifferentiationthroughtheredistributionofresourcesandcapabilities.



OrganizationThefollowinggenericformsofoutsourcingcanbedelineated:


•Internaloutsourcing:−Type1Internal-Provisionanddeliveryofservicesbyinternalstaff;thisoffersthemostcontrol,butislimitedinscale.−Type2Sharedservices-WorkingwithinternalBUs;offerslowercoststhanType1andmorestandardization,butisstilllimitedinscale.•Traditionaloutsourcing:−Completeoutsourcingofaservice-Asinglecontractwithoneserviceprovider;betterintermsofscalingopportunities,butlimitedinbest-in-classcapabilities.•Multi-vendoroutsourcing:−Prime-Asinglecontractwithoneserviceproviderwhoworkswithmultipleproviders;improvedcapabilitiesandrisks,butincreasedcomplexity.−Consortium-Aselectionofmultipleserviceproviders;theadvantageisbest-inclasswithmoreoversight;thedisadvantageistheriskofthenecessityofworkingwiththecompetition.−Selectiveoutsourcing-Apoolofserviceprovidersselectedandmanagedthroughtheservicereceiver;thisisthemostdifficultstructuretomanage.−Co-Sourcing-Avariationofselectiveoutsourcinginwhichtheservicereceivercombinesastructureofinternalorsharedserviceswithexternalproviders;inthiscase,theservicereceiveristheserviceintegrator.



RolesandresponsibilitiesImportantrolesandresponsibilitiesare:


•Chiefsourcingofficer-ThechiefsourcingofficerreportstotheCIOandmanagestheimplementationofsourcing.•Directorofservicemanagement-Thedirectorsupervisestheprovideronbehalfofthebusiness.•Contractmanager-Thecontractmanagermanagestheservicecontractfromtheperspectiveoftheserviceprovider.•Productmanager-Theproductmanagerisakeyrolewithinserviceportfoliomanagement.Theroleisresponsibleformanagingtheservicesintheserviceprovider’sorganization.Workscloselywiththebusinessrelationshipmanager.•Businessrelationshipmanager-Thebusinessrelationshipmanagerbringscoordinationandfocustothecustomerportfolio.Thisrolerepresentsthecustomer.•Processowner-Theprocessownermanagestheprocessmodelsthathavebeendevelopedonbehalfoftheusers.•Businessrepresentatives-Theyrepresentthecustomers’interestsandmanagethesourcingrelationshipfromthatperspective.•Thefinancialmanager-ThefinancialmanagerisresponsibleforimplementingandmanagingtheITServiceprovidersbudgeting,accountingandcharging.



Methods,techniquesandtools


Servicesaresocio-technicalsystemswithserviceassetsastheoperationalelements.TheeffectivenessofServiceStrategydependsonawell-managedrelationshipbetweenthesocialandtechnicalsub-systems.Itisessentialtoidentifyandmanagethesedependenciesandinfluences.ToolsfortheServiceStrategyphasecanbe:•Simulation-SystemDynamicsisamethodologyforunderstandingandmanagingthecomplexproblemsofITorganizations.•Analyticalmodeling-SixSigma,PMBOK®andPRINCE2®offerwelltestedmethodsbasedonanalyticalmodels.TheymustbeevaluatedandadoptedwithinthecontextofServiceStrategyandservicemanagement.Threetechniquesforquantifyingthevalueofaninvestmentaresuggested:•Businesscase-Awayofidentifyingbusinessobjectivesthataredependentonservicemanagement.•Pre-ProgramROI-Techniquesusedtoquantitativelyanalyzeinvestmentsbeforecommittingresources.•Post-ProgramROI-Techniquesusedtoretroactivelyanalyzeinvestments.



ImplementationandoperationServiceStrategyprovideseveryphaseofthelifecyclewithinput:


•Strategyanddesign-Servicestrategiesareimplementedthroughthedeliveryoftheportfolioinaspecificmarketarea.NewlycharteredservicesorservicesthatrequireimprovementsinordertosuitthedemandarepromotedtotheServiceDesignphase.Thedesigncanbedrivenbyservicemodels,outcomes,constraintsorpricing.•Strategyandtransition-Toreducetheriskoffailing,allstrategicchangesgothroughServiceTransition.ServiceTransitionprocessesanalyze,evaluateandapprovestrategicinitiatives.ServiceStrategyprovidesServiceTransitionwithstructuresandconstraintsliketheserviceportfolio,policies,architectures,andthecontractportfolio.•Strategyandoperations-Thefinalrealizationofstrategyoccursintheproductionphase.Thestrategymustbeinlinewithoperationalcapabilitiesandconstraints.DeploymentpatternsinServiceOperationdefineoperationalstrategiesforcustomers.ServiceOperationisresponsiblefordeliveringthecontractportfolioandshouldbeabletodealwithdemandchanges.•StrategyandCSI-Duetoconstantchanges,strategiesareneverstatic.Servicestrategiesneedtobedeveloped,adoptedandcontinuallyreviewed.StrategicimperativesinfluencequalityperspectivesprocessedinCSI.CSIprocessesdeliverfeedbackforthestrategyphaseon,forexample:qualityperspective,warrantyfactors,reliability,maintainability,redundancy.



Challengesandopportunities:•Complexity–ITorganizationsarecomplexsystems.Thisexplainswhysomeserviceorganizationsarenotinclinedtochange.Organizationsarenotalwaysinapositiontoanticipatethelong-termconsequencesofdecisionsandactions.Withoutcontinuallearningprocesses,today’sdecisionsoftenendupastomorrow’sproblems.•Coordinationandcontrol-Thepeoplewhomakethedecisionsoftenhavelimitedtime,attentionandcapacity.Thereforetheydelegatetherolesandresponsibilitiestoteamsandindividuals.Thismakescoordinationthroughcooperationandmonitoringessential.•PreservingValue-Customersarenotonlyinterestedintheutilityandwarrantythattheyreceiveforthepricetheypay.TheywanttoknowtheTotalCostofUtilization(TCU).•Effectivenessinmeasurement-Measurementsfocustheorganizationonitsstrategicgoals,followtheprogressionandprovidetheorganizationwithfeedback.MostITorganizationsaregoodatmonitoringdata,butoftentheyarenotverygoodatprovidinginsightsintotheeffectivenessoftheservicesthattheyoffer.




Risks


Theimplementationofstrategyleadstochangesintheserviceportfolio.Thisinvolvesmanagementofrelatedrisks.Riskisdefinedasfollows:“ariskisanuncertainoutcome,orinotherwords,apositiveopportunityoranegativethreat.”Riskanalysisandriskmanagementmustbeappliedtotheservicepipelineandservicecatalogueinordertoidentify,curbandmitigatetheriskswithinthelifecyclephases.Thefollowingtypesofrisksarerecognized:•contractrisks•designrisks•operationalrisks•marketrisks




FinancialManagementITneedsofthebusinessactivitiesITPlans(IncludingBudgets)AccountingCharging

IdentifyFinancialObjectives

CostControlMethods

ChargingMethods

ServiceLevelManagement

FinancialManagement

Feedbackaboutplannedcharges

Activities:Budgeting,Accounting,Charging



FinancialManagementStrategyIntroduction


Financialmanagementisanintegratedcomponentofservicemanagement.Itprovidesvitalinformationthatmanagementneedstoguaranteeefficientandcost-effectiveservicedelivery.Ifstrictlyimplemented,financialmanagementgeneratesmeaningfulandcriticaldataonperformance.Itisalsoabletoanswerimportantorganizationalissues,suchas:•Doesourdifferentiationstrategyresultinhigherprofitsandrevenue,reducedcostsorincreasedcoverage?•Whichservicescostmostandwhy?•Whereareourgreatestinefficiencies?FinancialmanagementensuresthatthechargesforITservicesaretransparentviatheservicecatalogueandthatthebusinessunderstandsthem.Thebenefitsare:•improveddecision-making•inputsforserviceportfoliomanagement•financialcomplianceandcontrol•operationalcontrol•valuecaptureandcreation



FinancialManagementBasicconceptsTwovitalvalueconceptsforservicevaluationaredefined:


•Provisioningvalue-TheactualunderlyingcostsofIT(creationcosts),bothtangibleandintangible.Examplesofthesecostsinclude:hardwareandsoftwarelicensecosts,annualmaintenancecosts,facilitycosts,taxes,compliancecosts.•Servicevaluepotential-Thevalue-addingcomponentbasedonthecustomer’svalueperceptionortheexpectedadditionalutilityandwarrantythatthecustomerscanobtaincomparedtotheirownassets.Looksattheservice’sindividualvaluecomponentstodeterminethetruevalueoftheservice.Determinestheeventualvalueoftheservicebyaddingthesecomponentsandcomparingthemagainstthecosts(provisioningvalue).FinancialManagementensurescorrectfundingforthepurchaseandthedeliveryofservices.TheexpecteddemandforITservicesisqualifiedandtranslatedintofinancial.



FinancialManagementStrategy


Thisplanmayhavethreeprimaryareas,eachofwhichdeliversfinancialresultsthatarenecessaryforcontinuedtransparencyandservicevaluation:•Operatingandcapitalplanning(generalandfixedassetledgers)-TranslationofITexpenditurestocollectivefinancialsystemsaspartofthecollectiveplanningcycle.•Demandplanning-NeedforanduseofITservicesasdescribedearlier.•Regulatoryandenvironmentalplanning(compliance)-drivenfromthebusiness.Financialmanagementactsasabridgebetweenfinancialsystemsandservicemanagementsystems.Aserviceorientedaccountingfunctionresultsinfarmoredetailandunderstandingofthedeliveryandconsumptionofservices,aswellastheproductionofdatafortheplanningprocess.Relatedfunctionsandaccountingpropertiesare:•Servicerecording-Allocatingacostcenterforaservice.•Costtypes-High-levelexpenses,suchashardware,software,personnelcosts,administration.−Oncethebasisforcostadministration(e.g.perdepartment,serviceorcustomer)isestablished,costtypesaredeterminedforcostentry.−Thenumberofcosttypescanvarydependingontheorganization

ssize.−Costtypesmusthaveaclearandrecognizabledescription,sothatcostscanbeeasilyallocated.−Thecosttypescanthenbesplitupintocostitemsandsettlementforeachcostitemmaybeestablishedatalaterstage.•Costclassification-Toensuregoodcostcontrol,itisimportanttogaininsightintothetypesofcoststhatoccur.Costscanbesplitupaccordingtovariousaspects.



FinancialManagement3.2.1FinancialManagement…(cont’d)


VariableCostDynamics(VCD)analyzesandsearchesforinsightintothemanyvariablesthathaveanimpactontheservicecosts.TheVCDanalysisisabletodeterminetheexpectedimpactofeventslikeacquisitions,divestmentsandchangesintheserviceportfolioorservicealternatives.ActivitiesDuringservicevaluationactivities,thefollowingdecisionsaremade:•Directcostsversusindirectcosts-Cancostsbeattributeddirectlytoaspecificserviceoraretheysharedbyseveralservices(indirectcosts)?Oncethedepthandwidthofthecostcomponentshavebeenidentified,rulesorpolicyplansmayberequiredtoindicatehowthecostsmustbespreadacrosstheservices.•Laborcosts-Developasystemtocalculatethewagecostsforacertainservice.•Variablecosts-Variableexpensesthatdependone.g.thenumberofusersorthenumberofoccurringevents.Topredictvariablecosts,youcanuse:−Tiers-Identifypricebreakstoencouragecustomerstobuyaspecificvolumethatisefficienttothecustomerandprovider.−Maximumcosts-Describethecostsofaservicebasedonmaximumvariation.−Averagecosts-Setthecostsatanaveragecalculatedoveradefinedperiod.•Translationofcostaccountdatatoservicevalue-Canbedoneonlyifthecostsarelinkedtoservices.Afterhavingestablishedthefixedandvariablecostsforeachservice,thevariablecostdriversandvariationlevelofaserviceshouldbedetermined.



FinancialManagementTraditionalmodelstofundITservicesinclude:


•Rollingplanfunding-Aconstantfundingcycle;suitableforaservicelifecycleforwhichafundingobligationisincurredatthestartofacycleandcontinuesuntilchangesoccurorthecycleends.•Triggerbasedplans-Criticaltriggersactivateplanningforaspecificevent;thechangemanagementprocess,forinstance,couldactasatriggerfortheplanningprocessforallapprovedchangesthathavefinancialconsequences.•Zerobasedfunding-Onlyincludetheactualcostsofaservice.TheBusinessImpactAnalysis(BIA)representsthebasisforplanningbusinesscontinuity.BIAidentifiesthefinancialandoperationalimpactthatmayresultfromaninterruptionofbusinessoperationsaswellastheimpactonassetsandcustomers.Thisinformationcanhelpshapeandimproveoperationalperformance.Thisisbecauseitenablesimproveddecision-makingwithregardtoprioritizationofincidenthandling,thefocusofproblemmanagement,changemanagement,releaseanddeploymentmanagement,andprojectprioritization.BIAoffersanadditionaltooltodeterminethecostsofservicefailureandtherelativevalueofaservice.Thecostsofaservicefailureconsistofthevalueoflostproductivityandincomeforaspecificperiod.



FinancialManagement


Someconceptsinfinancialmanagementhaveabigimpactonthedevelopmentofservicestrategies.Anumberofthesearehighlighted,allowingeachorganizationtodeterminewhichthebestalternativesareforitsServiceStrategy:•CostRecovery,ValueCenter,orAccountingCenter?-IT’sfinancialcyclestartswithinvestmentinresourcesthatcreatetheoutputs.Customersidentifythoseoutputsasvalue,reinitiatingthecycle.Dependingontheacknowledgementoftheaddedvalue,ITisthenconsideredacostcenteroravaluableassetforthebusinessobjectives.•Chargeback:tochargeornottocharge?-AchargebackmodelforITcanenablejustificationandtransparency.Chargingincreasesthecustomerorganization’sawarenessofthecostsincurredtoprovideitwithinformation.



FinancialManagementThereareseveralchargebackmodels:


−Notionalcharging-Anaccountingmethodthatprovidesinsightintothecoststhatwouldbechargedforaspecificsettlementmethod.−Meteredusage-Settlingcostsonthebasisofcarefullyestablishedconsumptionunits;appliesexclusivelyfororganizationsthathavemadeseriousprogressinintroducingfinancialmanagement.−Directplus-Lesscomplexsettlementmodelinwhichtheallocateddirectcostsofaserviceareincreasedbyapercentageofthegeneralindirectcostsforsharedservices.−Fixedorusercost-Simplestsettlementmodelinwhichthecostsaredividedonthebasisofanacceptedcomputingfactor,suchasthenumberofusers;thismethoddoesnotallowformuchdistinctionandthereforemakestheleastcontributiontocostawareness.•FinancialManagementimplementationchecklist-Anumberofexampleimplementationstepsforphasedimplementation:plan,analyze,design,implement,measure.InputsandoutputsFinancialManagementgathersdatainputsfromthewholeorganizationandhelpstogenerateanddisseminateinformationasanoutputtobasecriticaldecisionsandactivitieson.



ServicePortfolioManagementIntroduction


Aserviceportfoliodescribestheservicesofaproviderintermsofbusinessvalue.Itisadynamicmethodusedtogoverninvestmentsinservicemanagementacrosstheenterprise,intermsoffinancialvalues.WithServicePortfolioManagement(SPM),managersareabletoassessthequalityrequirementsandaccompanyingcosts.Thegoalofserviceportfoliomanagementistorealizemaximumvaluewhilemanagingrisksandcosts.BasicconceptsByfunctioningasthebasisofthedecisionframework,theserviceportfoliohelpstoanswerthefollowingstrategicquestions:•Whyshouldaclientbuytheseservices?•Whyshouldaclientbuytheseservicesfromus?•Whatarethepriceandchargebackmodels?•Whatareourstrongandweakpoints,ourprioritiesandourrisks?•Howshouldourresourcesandcapabilitiesbeallocated?



ServicePortfolioManagement


WithanefficientportfoliohavingoptimalROIandrisklevels,anorganizationcanmaximizethevaluerealizationonitsconstrainedandlimitedresourcesandcapabilities.Productmanagersplayanimportantroleintheserviceportfoliomanagement.Theyareresponsibleformanagingservicesasproductsduringtheentirelifecycle.Productmanagerscoordinateandfocustheorganizationandowntheservicecatalogue.TheyworkcloselytogetherwiththeBusinessRelationshipManagers,whocoordinateandfocusontheClientPortfolio.Inessence,SPMisaGovernancemethod.Theserviceportfoliocoversthreesubsetsofservices:•Servicecatalogue-Thatpartoftheserviceportfoliothatisvisibletocustomers.Theservicecatalogueisanessentialstrategytoolbecauseitcanbeviewedasthevirtualprojectionoftheactualandavailablecapabilitiesoftheserviceprovider.•Servicepipeline-Consistsofallservicesthatareeitherunderconsiderationorindevelopmentforaspecificmarketorcustomer.TheseservicesaretobeappliedintheproductionphaseviatheServiceTransitionphase.Thepipelinerepresentsthegrowthandstrategicanticipationforthefuture.•Retiredservices-Servicesthatarephasedoutorwithdrawn.ThephasingoutofservicesisacomponentofServiceTransitionandisnecessarytoguaranteethatallagreementswithcustomerswillbekept.



FinancialManagementActivities


SPMisadynamicandcontinuousprocessthatentailsthefollowingworkmethods(seeFigure3.1):•Define-Makinganinventoryofservices,businesscasesandvalidatingtheportfoliodata;startwithcollectinginformationonallexistingandproposedservicesinordertodeterminethecostsoftheexistingportfolio;thecyclicnatureoftheSPMprocesssignifiesthatthisphasedoesnotonlyinventorytheservices,butalsovalidatesthedataoverandoveragain;eachserviceintheportfolioshouldhaveabusinesscase.•Analyze-Maximizingtheportfoliovalue,tuning,prioritizingandbalancingsupplyanddemand;inthisphase,thestrategicgoalsaregivenaconcreteform.Startwithaseriesoftop/downquestionssuchas:Whatarethelong-termgoalsoftheserviceorganization?Whichservicesarerequiredtorealizethesegoals?Whichcapabilitiesandresourcesarenecessarytoattaintheseservices?Theanswerstothesequestionsformthebasisoftheanalysis,butalsodeterminethedesiredresultofSPM.Serviceinvestmentsmustbesubdividedintothreestrategiccategories:−RuntheBusiness-RTBinvestmentsconcentrateonmaintainingtheserviceproduction.−GrowtheBusiness-GTBinvestmentsareintendedtoexpandthescopeofservices.−TransformtheBusiness-TTBinvestmentsaremeanttomoveintonewmarketspaces.•Approve-Finishingtheproposedportfolio,authorizingservicesandresourcesandmakingdecisionsforthefuture.Therearesixdifferentoutcomes:retain,replace,

rationalize,re-factor,renewandretire.



ServicePortfolioManagementServiceStrategyDefine•Inventories•BusinessCase


Analyse

•ValueProposition•Prioritization

Approve

•ServicePortfolio•Authorization

Charter

•Communication•ResourceAllocation



ServicePortfolioManagement3.2.2ServicePortfolioManagement…(cont’d)


•Charter-Communicatingdecisions,allocatingresourcesandcharteringservices.Startwithalistofdecisionsandactionitemsandcommunicatetheseclearlyandunambiguouslytotheorganization.Decisionsmustbeintunewiththebudgetdecisionsandfinancialplans.NewservicesproceedtotheServicesDesignPhaseandexistingservicesarerenewedintheservicecatalogue.InputsandoutputsFinancialmanagementisakeyinputtoserviceportfoliomanagement.Byunderstandingcoststructuresappliedintheprovisioningofaservice,servicecostscanbebenchmarkedagainstotherproviders.ThisITfinancialinformationcanbeusedtogetherwithservicedemandandinternalcapabilityinformation.Thisway,beneficialdecisionscanbemaderegardingwhetheracertainserviceshouldbeprovisionedinternally(theoutput).Serviceportfoliomanagementprovidesinputforrefreshingservicesintheservicecatalogue.




DemandManagement



DemandManagementIntroduction


Demandmanagementisavitalaspectofservicemanagement.Italignssupplywithdemandandaimstopredictthesaleofproductsascloselyaspossibleand,ifpossible,evenregulateit.Servicemanagementmustdealwiththeadditionalproblemofsynchronousproductionandconsumption.ServiceOperationisimpossiblewithouttheexistenceofademandthatconsumestheproduct.Itisapull-system,inwhichconsumptioncyclesstimulatetheproductioncycles(Figure3.2).Itisnotpossibletoproduceserviceoutputandstoreituntildemandarises.Theproductioncapacityoftheresourcesavailableforaserviceisthereforeadjustedinaccordancewithdemandprognosesandpatterns.Activity-baseddemandmanagement:businessprocessesaretheprimarysourceofdemandforservices.PatternsofBusinessActivity(PBAs)haveanimpactondemandpatterns.Basicconcepts•Servicepackages-AservicepackageisadetaileddescriptionofanITservicethatcanbedeliveredtocustomers.AservicepackageconsistsofaServiceLevelPackage(SLP)andoneormorecoreservicesandsupportingservices.•ServiceLevelPackage(SLP)-Adefinedlevelofutilityandwarrantyforaparticularservicepackage,fromtheperspectiveoftheuser.EachSLPisdesignedtomeettheneedsofaparticularPatternofBusinessActivity(PBA).



DemandManagement3.2.3DemandManagement…(cont’d)


•CoreServicePackage(CSP)-Adetaileddescriptionofacoreservicethatmaybesharedbytwoormoreservicelevelpackages.•LineofService(LOS)-Acoreserviceorsupportingservicethathasmultipleservicelevelpackages.Alineofserviceismanagedbyaproductmanagerandeachservicelevelpackageisdesignedtosupportaparticularmarketsegment.ActivitiesCoreservicesdeliverthebasicresultstothecustomer.Theyrepresentthevaluethatcustomersrequireandforwhichtheyarewillingtopay.Coreservicesrepresentthebasisforthevalue-propositiontothecustomer.Supportingservicesenablethatvalueproposition(enablingservicesorBasicFactors)orimproveit(EnhancingservicesorExcitementFactors).Bundlingcoreservicesandsupportingservicesareavitalaspectofamarketstrategy.Serviceprovidersshouldthoroughlyanalyzetheprevailingconditionsintheirbusinessenvironment,theneedsofthecustomersegmentsortypestheyserve,andthealternativesthatareavailabletothesecustomers.Thesearestrategicdecisions–theyshapealong-termvisionthatisintendedtoenabletheorganizationtocreatelastingvalueforcustomers,evenifthemethods,standards,technologiesandregulationsinanindustrychange.BundlingsupportingserviceswithcoreservicesaffectsServiceOperationsandrepresentschallengesfortheDesign,TransitionandCSI(ContinualServiceImprovement)phases.



DemandManagement3.2.3DemandManagement…(cont’d)


Serviceprovidersmustfocusontheeffectivedeliveryofvaluethroughcoreservices,whileatthesametimekeepinganeyeonthesupportingservices.Researchhasshownthatcustomersareoftendissatisfiedwithsupportingservices.Somesupportingservices,suchasthehelpdeskortechnicalsupport,aregenerallybundledbutcanalsobeofferedseparately.Thisisanimportantconsiderationinthestrategicplanningandreviewoftheplans.Thesestrategicdecisionscanhaveamajorimpactontheserviceprovider’ssuccessattheportfoliolevel.Theyareimportantprimarilytoserviceproviderswhosupplymultipleorganizationsorbusinessunitswhileatthesametimebeingforcedtoreducecostsinordertopreservethecompetitivenessoftheirportfolio.



DemandManagement3.2.3DemandManagement…(cont’d)Inputsandoutputs


Businessprocessesaretheprimaryinputsfordemandmanagement.PatternsofBusinessActivity(PBAs)influencethedemandforecastsandpatterns.AnalyzingPBAswithindemandmanagementcandeliverinputstootherservicemanagementprocessessuchas:•ServiceDesign-Tomakethedesignsuitthedemandpatterns.•Servicecataloguemanagement-Tohavetheappropriateservicesavailable.•Serviceportfoliomanagement-Toapproveinvestinginadditionalcapacity,newservices,changestoservices.•Financialmanagement-Toapprovesuitableincentivestoinfluencedemand.Inputs:•resourceutilizationprofilesofservices•PBAsOutputs:•financialconstraints(e.g.pricingandchargingpolicies)•physicalconstraints(e.g.limitedavailability)



SSSteps:PrepareForExecution•StrategicAssesment•SettingObjective•AligningServiceassetwithcustomeroutcomes•DefiningCSFs•CmpetitiveAnalysis•PrioritizingInvestments•ExploringBusinessPotential•Alignmentwithcustomerneeds•Expansion&Growth•Differentiationinmarketspace




ContohSoal1.WhichITIL®processisresponsiblefordrawingupachargingsystem?a)AvailabilityManagementb)CapacityManagementc)FinancialManagementforITServicesd)ServiceLevelManagement2.WhichofthefollowingactivitiesisNOTanactivityintheFinancialManagementprocess?a.Servicedevaluationb.ServicePortfolioManagementc.ServiceInvestmentAnalysisd.Compliance


3.WhichofthefollowingidentifiestwoServicePortfoliocomponentswithintheServiceLifecycle?a)RequirementsPortfolioandServiceCatalogueb)ServiceKnowledgeManagementSystemandServiceCataloguec)ServiceKnowledgeManagementSystemandRequirementsPortfoliod)RequirementsPortfolioandConfigurationManagementSystem



ExamPrepQuestionsContohSoal4.AServiceLevelPackageisbestdescribedas?a)AdescriptionofcustomerrequirementsusedtonegotiateaServiceLevelAgreementb)Adefinedlevelofutilityandwarrantyassociatedwithacoreservicepackagec)Adescriptionofthevaluethatthecustomerwantsandforwhichtheyarewillingtopayd)AdocumentshowingtheServiceLevelsachievedduringanagreedreportingperiod


5.SettingpoliciesandobjectivesistheprimaryconcernofwhichofthefollowingelementsoftheServiceLifecycle?a)ServiceStrategyb)ServiceStrategyandContinualServiceImprovementc)ServiceStrategy,ServiceTransitionandServiceOperationd)ServiceStrategy,ServiceDesign,ServiceTransition,ServiceOperationandContinualServiceImprovement6.Aserviceownerisresponsibleforwhichofthefollowing?a)DesigninganddocumentingaServiceb)CarryingouttheServiceOperationsactivitiesneededtosupportaServicec)ProducingabalancedscorecardshowingtheoverallstatusofallServicesd)Recommendingimprovements7.Theutilityofaserviceisbestdescribedas:a)Fitfordesignb)Fitforpurposec)Fitforfunctiond)Fitforuse



ExamPrepQuestionsContohSoal8.The4P’sofITSMarepeople,partners,processesand:a)Purposeb)Productsc)Perspectivesd)Practice9Thecontentsofaservicepackageinclude:a)BaseServicePackage,SupportingServicePackage,ServiceLevelPackageb)CoreServicePackage,SupportingProcessPackage,ServiceLevelPackagec)CoreServicePackage,BaseServicePackage,ServiceSupportPackaged)CoreServicePackage,SupportingServicesPackage,ServiceLevelPackages


10.WhichofthefollowingconceptsandactivitieshelpDemandManagementinmanagingthedemandforservices?1.Differentiatedofferings2.Differentiatedservicelevels3.MajorIncidentManagement4.Analysingandtrackingtheactivitypatternsofabusinessprocessa.4onlyb.1and2onlyc.1,2and4onlyd.Alloftheabove







IT-MDCITManagementConsultingandTrainingPartneritmanage.forum@gmail.com

54



Documents

42131158 ITIL Session 03 04 Service Strategy