Service Strategy Class Notes Flashcards
Strategy Management for IT Services Purpose
How a provider will enable an organistion to achieve its business outcomes
estqablish critera and mechanism to deicide which services will be best suited to meet business outcomes and best ways to mangage these services
SM 4 IT Svcs Objectives
SWOT
constraints
agree the ServProv’s perspective
establish the postion of the ServProv
Produce and maintain strategy planning docs
ensure that strategic plans have been xlated into tactical and operational plans
-Manage changes to the strategies and related documents
SM 4 IT Svcs Scope
-Responsibility of executives
-enables objectives to be set to align
-specify how the org will meet these objectives
-provides guidance on prioritising investments required to meet them
-not limited to a single doc or dept–have to align tho
-most likely to be several strategies within each org:
-strat mgmt linked together
-strat mgmt for IT services has to ensure that the services and the are manged support the overall strategy of the enterprise
(“IT” needs to have a seat/voice at the top table”)
The golden thread
alignment of all strategies within an objective
Value to the business
Clear goal–know where we are going to go
- Cost savings => validated business obj’s
- increased levels of investment for key projects or service improvements
- shifting investment priorities
- the Serv Prov will be able to defocus attention from 1 svc and refocus on another ensuring the their efforts and budget are spent on the areas with the highest level of bus. impact.
Policies & Principles
- An org is defined by its execs
- if the org is an external svc prov with a core business of providing svcs the Service Strategy will be the central component of the org’s strat
- in Internal Srvc provs the Service Strat will support the overall enterprise strategy and provide a tactical plan for the interal service provider
- It is therefore vital the the IT strategy be defined in terms of the organiastions overall strategy
Strategy Mgmt 4 IT Services Process
- Strategic Assessment
- Strategy Generation
- Strategy Execution
- Measurement & Evaluation
Strategic Assessment
- Analyse internal factors
- Analyse external factors
- Define Market spaces
- Identify strategic industry factors
- Establish objectives
Strategy Generation
- Determine perspective
- Form a position
- Craft a plan
- Adopt patterns of action
4 p’s of strategy- Positions
- Variety Based Positioning
- Needs-based Positioning
- Access-based positioning
- Demand-based positioning (variety based approach to appeal to a broad range of customers
4 p’s of strategy- Perspective
What the org is, what it does, who it does it for and how it works
4 p’s of strategy - Plan
- How will the strategic objectives be achieved?
- How much will be invested in order to achieve (how much will it costs?)
- SHOULD BE compared to actual events over time and adjustments made
4 p’s of strategy - Pattern
The way in which an org organizes itself to meet its objectives
-can be internal or external
(Could be an operating model)
required to ensure consistency of approach and to enable investment to be accurately predicted.
(Financial pattern key–is it making money for us?)
Strategy Measurement and Evaluation
CSI
Expansion & Growth
Strategy execution
- Other Service Management processes
- Align Assets with customer outcomes
- optimise critical success factors
- prioritise investments
Strategy Management Process - Triggers
- Annual Planning Cycles
- New Business Opportunity
- Changes to internal or external environments
- Mergers or Acquisitions
Strategy Mgmt process - Challenges
conducted at the wtong level
- lack of accurate info about extrenal environ
- lack of support by stakeholders
- lack of appropriate tools or understanding of how to use the tools
- lack of appropriate document control mechanisms & procedures
- operational targets need to be matched to the strategic objectives–dailure to do so will result in operational managers strive to achieve targets that are not in the support of the strategy
Strategy Mgmt process - Inputs
- Existing plans
- Research specialised Orgs
- vendor strategies & product road maps
- customer interviews & strategic plans to indicate potential future reqs
- service portfolio to indicate the current and planned future service commitments
- Service reporting to indicate the effectiveness of the strategy
- Audit reports that indicate compliance with (or deviation) the org’s strate3gy
Strategy Mgmt process - Risks
- a flawed governance model
- short-term priorities override the directives of the strategy
- making strategic decisions when there is missing info about the internal or external environments or using info that is incorrect or misleading
- the risk of choosing the wrong strategy
- Strategies are seen as an exercise that happens once a year and that no bearing on what happens for the rest of the year
Srvc Portfolio Mgmt - Purpose
- Ensure the Svc Prov has the right mix of services to balance the investment in IT with the ability to meet business outcomes
- tracks the investment in services throughout their life cycle and works with other serv mgmt processes to ensure that the appropriate returns are being achieved
- ensures that svcs are clearly defined and linked to the achievement of business outcomes thus ensuring that all design transition and operation activities are aligned to the value of the services
Srvc Portfolio
describes a providers services in terms of business value–it articulates business needs and the providers response to those needs
Srvc Portfolio Mgmt - Objectives
- Provides a process and mechanisms to enable an organisation to investigate and decide on which services to provide
- maintain the definitive portfolio of services provided
- provide a mechanism for the org to evaluate how services enables them to achieve their strategy
- control which services are offered, under what conditions, and at what level of investment
- track the investment in services throughout their life cycle
- analyse which services are no longer viable and when they should be retired
Srvc Portfolio Mgmt - Scope
- All svcs that a Svc Prov plans to deliver those currently delivered and those that have been withdrawn from service.
- Tracking investments in services and compare them to the desired business outcomes
- internal service providers will need to work with the business units in the organisation to link each services to the business outcomes before they can compare investment with returns
- external service providers tend to evaluate more directly as each services needs to be able to generate revenue directly or support revenue generating services
- it evaluates the value of services throughout their life cycles and must be able to compare what newer services have offered over the retired services they have replaced
Service Portfolio Management
Policies
-SPM ensures that the service provider has an understanding of all services that it provides its investments strategy and objectives of each service
(Should prevent mistakes)
Service Portfolio Management
Value to the business
- Enables the business to make sound decisions about investments
- customers are able to understand exactly what the service provider will deliver to them and how enabling them to make decisions about whether the service is a good or bad investment
- The service provider is viewed as a steward of service assets that are key to the customers success and provided the service provider delivers what they promised, the service provider can equip their customers to build their strategies
Service Portfolio Management -
Define
Strategy
- Request from Business
- Service Improvement opportunities
- Service Suggestion
- Existing services
- Service, Customer & business outcomes
- Impact on service portfolio (existing)
- Impact on service model (existing services)
Service Portfolio Management -
Service Economics
Balance Between:
- The cost of providing services - The value of the outcomes achieved - The returns that the services enable the service provider to achieve
Service Portfolio Management -
Service Economics - Business Case
A means to identify business imperatives that depend on svc mgmt
-pre-programme ROI
Techniques for quantively analysing an investment in service mgmt
-post programme ROI
Techniques for retroactively analysing an investment in service mgmt
Service Economics - Business Case
Format
- introduction
- methods and assumptions
- Business Impacts
- Risks and contingencies
- Recommendations
Service Portfolio Management -
Service Economics - Business Case
A means to identify business imperatives that depend on svc mgmt
-pre-programme ROI
Techniques for quantively analysing an investment in service mgmt
-post programme ROI
Techniques for retroactively analysing an investment in service mgmt
Service Economics - Business Case
Format
- introduction
- methods and assumptions
- Business Impacts
- Risks and contingencies
- Recommendations
Service Economics
Pre-Programme ROI
Capital budgeting decisions fall into 2 broad categories
(screening & preference decisions)
-Screening Decisions are usually made using a discounted cash flow method of net present value (npv)
-Preference decisions are usaully made using a discounted cash flow method of internal rate of return (IRR)
Service Economics
Business Impact Analysis
- Resources from the business and IT will work together
- identify all of the major services for designation as critical, secondary and tertiary
- identify the core analysis points for use in assessing risk and impact
- score the services against the weighted elements of risk and impact and total their individual risk scores
- generate a list of services in order of risk profile
- decide on a time period with which to standardise the translation of services outage to cost
- generate a list of services in order of impact
Service Portfolio Management
Approve
The 7 Rs of portfolio mgmt
is the service or change feasible?
New service or Retain Replace Reationalise refactor renew retire
Service Portfolio Management
Approve
(Change)
Change Proposal
Change mgmt authorization
Change proposal authorised?
(needs to be a strong link between Svc Portfo;io and CHM)
Service Portfolio Management
Approve
(Change)
Change Proposal
Change mgmt authorization
Change proposal authorised?
(needs to be a strong link between Svc Portfolio and CHM)