End To End IT Services Explained PDF

Information Technology Practice
CIO Executive Board
End-to-End IT
Services Explained
A Primer for IT Leaders
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TABLE OF CONTENTS
1. What is a service?
2. How do end-to-end IT services differ from other services?
3. What is driving interest in end-to-end IT services?
4. What does the transition path look like?
5. How can CEB help IT leaders transition to end-to-end IT services?
This document provides an introduction to end-to-end IT services. It is also available in PowerPoint form so that it can be customized for
specific audiences.
If you are already familiar with end-to-end IT services as a concept and want more detailed implementation guidance, please refer to the
following resources:
■ The Path to End-to-End Services study
■ Restructuring for Responsiveness study
■ Maturity Diagnostic for End-to-End Services
■ The Define End-to-End Services engagement
CIO Executive Board

IT Practice
www.cio.executiveboard.com
© 2012 The Corporate Executive Board Company.

All Rights Reserved. CIO2348512SYN
3
A service provides
ongoing delivery
1. WHAT IS A SERVICE?
and enhancement of
functionality to support Distinguishing Between Projects and Services
an activity.
Project Service
■ Before defining end-to-
end IT services, it is useful
to understand the key
Point-in-time effort to build new functionality Ongoing management and enhancement
characteristics shared by
of functionality
services of any type.
■ This is in contrast with a

project, which is a point- Deploys a specific application or infrastructure Supports an activity (i.e., customer onboarding
in-time effort to build new technology (i.e., ERP or network) and related or collaboration) and may include several
functionality. business change applications or infrastructure technologies
■ Projects and services

often coexist in the same Led by a project manager who moves on to a Led by a service manager who has ongoing
organization. new project when the current project goes live responsibility
Metrics that focus on project delivery Metrics that focus on service performance
(schedule, budget, scope) (quality, cost, volume, value-delivered)
Projects and services can (and often do) coexist. Organizations

may be selective in defining services, or functionality may be
built as a project and managed as a service.
CIO Executive Board

IT Practice
How End-to-End IT
What is a service? Drivers of Interest Transition Path CEB Resources
© 2012 The Corporate Executive Board Company. Services Differ
4
End-to-end IT services
use many of the
2. HOW DO END-TO-END IT SERVICES Differ from
service management
concepts pioneered in
OTHER SERVICES?
Infrastructure and expand
them to IT as a whole. Evolution of Service Management
Enterprise-
Wide
■ As such, end-to-end IT Multifunctional Shared Services Limitation:
services address the Needs strong
limitations faced by Combines IT and non-IT CEO support
infrastructure services. resources required to deliver and extensive
a specific business outcome organizational
change.
■ Infrastructure services and
end-to-end IT services can
coexist.
End-to-End IT Services
■ Multifunctional shared Packages all the technologies,
Organizational Reach
services have different processes, and resources across

origins and usually emerge IT-Wide
IT needed to deliver a specific
outside IT. business outcome
Infrastructure Services
Limitation: Infrastructure
Partially realigns the services alone cannot drive
infrastructure team around business outcomes or solve
business needs.
service lines
Service Catalogs Limitation: A definitional exercise

only; no change to IT structure
Defines service lines (technology or governance and so doesn’t
bundles that business partners improve delivery performance or
Infrastructure can understand and compare) responsiveness to business needs.
Only
2001 2006 2011 2016
Time
CIO Executive Board
IT Practice
How End-to-End IT
5
An end-to-end IT
service directly supports
EXAMPLE OF AN END-TO-END IT SERVICE
one or more business
capabilities by providing Hypothetical Example of an End-to-End IT Service for Budgeting and Planning
all the technology,
information, and IT
support required. Business Capability Budgeting and Planning
(Level 1) Definition: Build and manage an annual budget and operating plan.
■ A business capability is Business Outcomes:
an activity that results
in a specific, measurable
■ Budgets and plans are completed efficiently and on time.
business outcome.
■ Budgets and plans accurately estimate financial outcomes.
■ Investments are directed at strategic priorities.
■ Services can be defined as
a single level 1 capability or
several more granular level 2
or 3 capabilities.
■ In total, IT may offer 10 to 20

end-to-end IT services. End-to-End Budget and Planning IT Service
IT Service
Provides all the technology, information, and IT support needed by Finance and business
unit managers to prepare and manage annual budgets and operating plans (but does
not mean that IT does the budgeting and planning itself)
Other Examples
■ Customer onboarding
■ Knowledge sharing and
collaboration
■ Acquisition/divestiture
■ Employee development
For more examples of end-to-

end IT services see the service
definition repository at
www.cio.executiveboard.com.
CIO Executive Board

IT Practice
How End-to-End IT
6
An end-to-end IT service
packages together
EXAMPLE OF AN END-TO-END IT SERVICE (Continued)
all the IT people,
processes, technology, Hypothetical Example of an End-to-End IT Service for Budgeting and Planning (Continued)
and information needed
to support a business
capability. End-to-End IT Service
(Owned by a Budget and Planning IT Service
Service Manager)
■ The service is designed
and delivered using
resources that cut across
IT’s functional towers (e.g., Sample Functionality
Applications, Infrastructure). Provide
Enter Review and Track Create
regular
budget data. approve. actuals. dashboards.
reports.
Shared Apps and Infra

(Owned by a Budgeting Application ERP BI
Central Apps and
Infrastructure Team)
Hosting, Storage, and Network
Benefits of an End- 1. Reduced Complexity for Business Leadership: Business leaders know who in IT is
to-End IT Service responsible for supporting a given business capability and understand what IT does
for them and what it costs.
2. Fast, Flexible, Business Outcomes–Driven Responses from IT: Service managers have
the necessary business relationships and domain knowledge and control over the
technologies and IT resources involved.
3. Preserves Central IT Efficiency: IT remains centralized.
CIO Executive Board

IT Practice
How End-to-End IT
7
Fifty-four percent of
CIOs expect to have at
END-TO-END IT SERVICES HAVE EMERGED RAPIDLY
least some end-to-end
IT services by the end of Change in IT Service Models Over Five Years
2012. Percentage of Organizations Offering Type of Service
■ Almost two-thirds of CIOs

have moved beyond siloed
infrastructure or application
services. 12% 10% 9% No Formally Defined Services
17%
Multifunctional Shared Services
32% 8% 11%
■ Many of the organizations in 20% End-to-End IT Services
9%
the 54% are experimenting
Infrastructure/Apps Services
with end-to-end services
and few have moved entirely 11%
41%
to this model. 36%
54%
27% 51%
38% 39%
30%
25%
20%
FY 2009 FY 2010 FY 2011 FY 2012 (E) FY 2013 (E)
n = 151.
Source: CIO Executive Board IT Budget Benchmark, 2011.
CIO Executive Board

IT Practice
How End-to-End IT
8
The shifts predicted by
CEB in The Future of
3. WHAT IS DRIVING INTEREST IN END-TO-END
Corporate IT, combined
with globalization and
IT SERVICES?
economic volatility, are
driving rapid changes in Analysis of Changes to Demand in IT
demand for IT.
Business Partner
IT leaders’ long-standing What’s Driving Change How IT Must Respond
Demands
■
goal of being fast and

efficient is under renewed
stress. Information over process drives large ■ Rapid time to market for small
1. F
ast, Innovative,
numbers of small, fast changing projects. and/or experimental initiatives
User-Centric IT
■ CIOs have tried many Business partner responsibility leads ■ Help for business partners going
other organizational and to a new relationship with IT. it alone
governance models but Consumerization changes end-user ■ Metrics for business growth
find that none offer the expectations for IT.
combination of flexibility and
efficiency required.
Economic volatility drives the need ■ Standardized global delivery

2. E
fficient, Standard,
for cost-efficiency and variability.
Global IT ■ Market comparability
Globalization makes enterprise ■ Metrics for business efficiency
standards setting harder.
and quality
The cloud offers an alternative
to internal provision.
IT must do both.
CIO Executive Board

IT Practice
How End-to-End IT
9
Demand to deliver
greater flexibility and
PRESSURE FOR CHANGE ACROSS IT
efficiency together
creates multiple pressure Six Pressure Points on the IT Organizational Model
points within traditional
IT organizational models.
High Degree
IT Finance of Pressure to Change
■ Six functions within IT find
CIO Medium Degree
themselves under strain of Pressure to Change
as simultaneous demands IT HR
for responsiveness and
efficiency require more
distributed decision making,
1 2 4 5
prioritization, and execution. Business Applications Infrastructure
PMO
Relationship Managers Development Shared Services
■ Given the breadth of the
changes required, partial or
6
Enterprise Architecture
incremental solutions will Business Maintenance and
not be enough. Relationship Managers Enhancement
Vendor Management
3
Business Integration and
Relationship Managers Configuration Information Risk
Business Relationship Managers Integration and Configuration PMO

1 3 5
■ Often become powerless ■ Still immature function ■ Most project prioritization moves to
intermediaries ■ Not set up to manage the volume service lines

■ Project management methodologies
of small projects
ill suited to small projects
Applications Development Infrastructure Shared Services Enterprise Architect
2 4 6
■ Insufficiently agile ■ Not structured to support rapid, ■ Architecture defined for each service
■ Teams not structured to manage ■ Slow to respond to requests for
iterative enhancements
many small projects ■ Incomplete cost transparency variation
CIO Executive Board

IT Practice
How End-to-End IT
10
The end-to-end IT
services model is flexible
ONE MODEL FOR ALL DEMAND
enough to provide speed
and efficiency. How the End-to-End IT Services Model Flexes to Meet Diverse Demand
■ IT needs a model that can

provide fast user-centric IT Demands on IT How IT Must Respond How End-to-End IT Services Meet These Needs
and efficient standard global
IT without requiring wasteful
parallel structures and Rapid time to market for small ■ Service managers have the relationships and
1. F
ast, Innovative,
governance. and/or experimental initiatives domain knowledge to understand changing
User-Centric IT
demand.
■ Service managers have the authority and
resources to rapidly iterate on service design.
Help for business partners ■ If required, the service can focus narrowly on
going it alone integration and vendor management advice.
Metrics for business growth ■ The service is designed to support growth.

■ The service manager is incentivized on growth.
Standardized global delivery ■ One standard service is offered globally.

2. E
fficient, Standard,
Global IT Market comparability ■ Service cost and performance are transparent
and defined in market-comparable terms.
■ Service managers closely track external
offerings.
Metrics for business efficiency ■ The service is designed to support efficiency

and quality and quality.
■ The service manager is incentivized on
efficiency and quality.
CIO Executive Board

IT Practice
How End-to-End IT
11
The transition to end-
to-end IT services is
4. WHAT DOES THE TRANSITION PATH LOOK LIKE?
complex and risky, so
organizations typically Transition Path to End-to-End IT Services
follow a gradual
migration starting with
Typical
service definition.
Transition
Path 1. Define End-to-End 2. Develop Service 3. Realign Governance 4. Reorganize Along
IT Services Managers to Services End-to-End IT
■ A gradual transition is Services
typically phased across Create definitions Identify and develop Redesign IT
two to three years. and performance full-time service governance (strategy, Align IT resources
measures for each managers. budgeting, portfolio and reporting lines
end-to-end IT management, to services.
service. architecture) to
support service
development and
delivery.
Indicators ■ IT offers services ■ Service managers ■ The organization has ■ Dedicated teams
of Maturity that include all the have a full-time role. a service architecture support each service
at Each infrastructure and role or responsibility. manager.
■ Service managers
Phase of the apps needed to
are responsible for ■ Governance
Transition deliver a specific
delivering business processes have been
business outcome.
outcomes (not streamlined to give
■ IT measures the just infrastructure service managers
Use the Maturity Diagnostic
business outcomes services). more autonomy.
for End-to-End Services to
enabled by each
assess the maturity and impact ■ IT reports and/or
service.
of each step in the transition. recovers the costs
To learn more, visit https://cio. of each service.
executiveboard.com/Members/
Benchmarking/Maturity_
Diagnostic_for_End_to_End_
Services.aspx.
CIO Executive Board

IT Practice
How End-to-End IT
12
To manage end-to-end
IT services effectively,
DEVELOP SERVICE MANAGERS
service managers
must have authority How the Service Manager Role Changes with End-to-End IT Services
over service-related
IT planning, portfolio
management, and
End-to-End
delivery processes. IT Services
End-to-End IT Service Manager
■ Service managers who ■ Develops service strategy from
depend on influence as demand forecasts and business
their primary means of partner engagement
driving decisions usually ■ Has direct authority over planning,
fail to improve satisfaction portfolio management, and delivery
with the cost, quality, processes related to a given service
and composition of their
Nature of Service Definitions
services.
■ Sets service prices and owns
service-line profit and loss
■ The service manager role ■ Makes cost and capability
is designed to oversee transparent to business partners
the planning, cost, and
performance for a service
across functional silos Infrastructure Service Manager
within IT. ■ Manages assets aligned by
infrastructure towers
■ This requires the ability to ■ Tactical role focused on incident,
direct investments and set
problem, event, and configuration
performance targets across
management
those functional boundaries.
■ Little involvement in strategy
Infrastructure
Services
Low High
Degree of Responsibility for Resource Allocation
CIO Executive Board
IT Practice
How End-to-End IT
13
End-to-end IT services
have a greater impact
REALIGN GOVERNANCE to SERVICES
on planning and
prioritization than How Key IT Processes Will Be Impacted by End-to-End IT Services
on daily operations.
Impact Impact on
Process Within Business Nature of Impact
■ Both business partners IT Partners
and IT staff will be impacted
by these changes.
1. Enterprise Development of service architecture skills and the use of
Architecture business architecture to define services
■ CIOs will need to sustain
change management efforts
2. Portfolio Prioritization driven by service development needs rather that by
within IT and with business
Management demand for a system or technology
partners.
3. Strategic IT strategic planning that will be driven largely by the services

Management organization and service strategy processes
4. Budgeting/ Funding models that will change to align with business services
Funding and costs to consumption
5. Organizational New reporting structures for Applications and Infrastructure and

Structure the addition of service management roles
6. Skills Increased value of IT finance, service planning, stakeholder

Development management, and business planning skills
7. Value Enabled performance reporting and objectives aligned against

Measurement business outcomes
8. Opportunity Will more closely resemble marketplace product identification

Identification processes
Significant Impact Some Impact Minor Impact
CIO Executive Board

IT Practice
How End-to-End IT
14
In a mature organizational
structure for end-to-end IT
REORGANIZE Along END-TO-END IT SERVICES
services, service managers
directly control resources Representative IT Organizational Structure for End-to-End Services
aligned to their services
and act as “mini CIOs.”
Office of the CIO
(Strategy, PMO, EA, Security, Finance, HR)
■ Shared applications and
infrastructure resources are
diminished and may report
to the same leader.
■ The business relationship Business Relationship Service Managers Shared Applications

manager role becomes Managers and Teams and Infrastructure
streamlined, helping
business units select and
exploit the right services.
■ Manages Applications
and Infrastructure
Business shared by several
Unit services
■ One leader
Vendors
Business
■ Service managers
Unit oversee vendors
who support only
their service.
■ Helps shape BU IT strategy ■ Shared applications
and introduces BU leaders
and infrastructure
to service managers ■ Teams include team oversees shared
■ In global organizations, may resources dedicated vendors.
selectively localize services to a specific service.
CIO Executive Board

IT Practice
How End-to-End IT
15
5. HOW CAN CEB HELP IT LEADERS TRANSITION TO END-TO-END IT SERVICES?
CIO Executive Board Infrastructure Executive Council Applications Executive Council Service Management Boot Camp
Summary of ■ Overall services strategy, ■ Service manager role, processes ■ Changes required to applications ■ Service manager competency
Coverage business case, and maturity path and competencies delivery and integration assessment
processes.
■ Defining services on business ■ Infrastructure service definitions ■ Experiential learning for key
outcomes and catalogs ■ Impact on applications service manager skills.
governance and organizational
■ Overall impact on IT governance ■ Impact on infrastructure
structure
and org. structure. governance and financial
management
End-to-End
Services
Strategy
Define End-to-
End Services
Develop Service 3
Managers
Realign 1 3 4
Governance
Reorganize to 2 3 4
Services
Key Resources ath to End-to-End

P Service Manager Handbook perating Applications in an
O sk your account manager
A
Services study End-to-End Services Model about upcoming cohorts
study
Restructuring for Service Catalog Design
Responsiveness study engagement reating a World-Class
C
Integration Organization study
aturity Diagnostic for
M even Steps to Better
S
End-to-End Services Service Economics study
Service Definition Repository The Talent Shift study
2012 Annual Executive Retreat 2012 Annual Executive Retreat
Full It-Wide Coverage of Implications 1 Governance outside and between applications and infrastructure. 3 Skills, governance, and org. model within Infrastructure.
Coverage for a Specific It Sub Function 2 CIO direct reports and roles outside applications and infrastructure. 4 Governance and organizational model within Applications.
CIO Executive Board

IT Practice
How End-to-End IT
16
KEY TAKEAWAYS
1. Refocus IT on Business Outcomes: An end-to-end IT service directly supports one or more business capabilities by
providing all the technology, processes, information, and IT support required.
2. Obtain Flexibility, Efficiency, and Faster Decision Making: End-to-end IT services allow IT to be both responsive and
efficient. The model streamlines decision making and supports services that require innovation and iteration, alongside
services that require standardization and efficiency.
3. Stage Transitions to Reduce Risk: The transition to end-to-end IT services is complex and risky. Organizations typically
follow a staged migration starting with service definition and progressing to service managers, service governance, and
a service-aligned organization.
4. Empower Service Managers: End-to-end IT service managers must have authority over service-related planning,
portfolio management, and delivery processes. In the most mature organizations, they control resources directly aligned
to their services and act as “mini CIOs.”
5. Streamline IT Planning and Governance: End-to-end IT services have a greater impact on planning, prioritization,
and financial management than on daily operations.
CIO Executive Board

IT Practice

17
Information Technology Practice
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Information Technology Practice

CIO Executive Board

2. How do end-to-end IT services differ from other services?

3. What is driving interest in end-to-end IT services?

4. What does the transition path look like?

5. How can CEB help IT leaders transition to end-to-end IT services?

CIO Executive Board

© 2012 The Corporate Executive Board Company.

■ This is in contrast with a

■ Projects and services

Projects and services can (and often do) coexist. Organizations

CIO Executive Board

services have different processes, and resources across

Service Catalogs Limitation: A definitional exercise

■ In total, IT may offer 10 to 20

For more examples of end-to-

CIO Executive Board

Shared Apps and Infra

Hosting, Storage, and Network

CIO Executive Board

■ Almost two-thirds of CIOs

FY 2009 FY 2010 FY 2011 FY 2012 (E) FY 2013 (E)

CIO Executive Board

goal of being fast and

Economic volatility drives the need ■ Standardized global delivery

CIO Executive Board

Business Relationship Managers Integration and Configuration PMO

intermediaries ■ Not set up to manage the volume service lines

CIO Executive Board

■ IT needs a model that can

Metrics for business growth ■ The service is designed to support growth.

Standardized global delivery ■ One standard service is offered globally.

Metrics for business efficiency ■ The service is designed to support efficiency

CIO Executive Board

CIO Executive Board

3. Strategic IT strategic planning that will be driven largely by the services

5. Organizational New reporting structures for Applications and Infrastructure and

6. Skills Increased value of IT finance, service planning, stakeholder

7. Value Enabled performance reporting and objectives aligned against

8. Opportunity Will more closely resemble marketplace product identification

Significant Impact Some Impact Minor Impact

CIO Executive Board

■ The business relationship Business Relationship Service Managers Shared Applications

CIO Executive Board

Key Resources  ath to End-to-End

Service Definition Repository The Talent Shift study

2012 Annual Executive Retreat 2012 Annual Executive Retreat

CIO Executive Board

CIO Executive Board

© 2012 The Corporate Executive Board Company.

© 2012 The Corporate Executive Board Company.

S-ar putea să vă placă și

Key Resources ath to End-to-End

Service Definition Repository The Talent Shift study

2012 Annual Executive Retreat 2012 Annual Executive Retreat