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Service
Service Strategy
Strategy
• Key Concepts:
- Utility and Warranty
- Value Creation
- Service Provider
- Delivery Model Options
- Service Model
• Processes:
- Service Portfolio Management (SPM)
- Demand Management
- Financial Management
Service Strategy – Utility and Warranty
• Utility and Warranty define services and work together to create value for the
customer
Utility:
- What does the service do?
- Functional requirements
- Features, inputs, outputs…
- “fit for purpose”
Warranty:
- How well does the service do it?
- Non-functional requirements
- Capacity, performance, availability…
- “fit for use”
Service Strategy
Value Creation
Increase in
possible gains
Return on
from the
assets
performance of
customer assets.
Service
Performance
average Utility
Performance of
customer assets
Performance
Variation Warranty
Service Strategy – Service Provider
Type 1:
- Internal
- Embedded in the business unit it serves
Type 2:
- Shared
- Provide services to multiple business units
Type 3:
- External
- Provide services to many customers
Service Strategy – Delivery Model options
Delivery
Description
Strategy
In-sourcing Utilizing internal organizational resources for all stages in the lifecycle
Business Process Formal arrangement between two organizations to relocate and manage on
Outsourcing (BPO) entire business function (payroll or call-center) from a low-cost location
Knowledge Process Provision of domain based processes and business expertise requiring
Outsourcing (KPO) advanced analytical and specialist skills from the outsourcer
Service Strategy – Service Model
- Evaluate the services you could potentially offer, and who you may be able to
offer them to!
-Look for opportunities to exploit your services and capabilities (to allow more
services to more customers)
- Take all the necessary steps to ensure that we are ready to go ahead and it is
worthwhile doing so
Service Strategy
Service Portfolio
Management
Service Strategy – Service Portfolio Management
Objectives
• IT Service
- A service that the business does not think of in business context or semantics
- A strategy and an approach for linking key IT components to the goals of the
business. It enables you to understand and predict how technology impacts the
business and how business impacts the IT infrastructure.
Project Charter
Activities Service
Strategy
• Inventories
Define
• Business Case
• Value proposition
Analyze
• Prioritization (Supply and
Demand)
• Communication Decisions
Charter
• Resource allocation
• Charter Services
Service Strategy – Service Portfolio Management
Roles
• Product Manager
- Sources on Demand
Demand Management
Service Strategy – Demand Management
Basic Concepts (1 of 3)
• Core Service
- An IT service that delivers outcomes
desired by one or more customers
• Supporting Service
- A service that enables or enhances a core
service. For example
- A directory service or a backup service
Service Strategy – Demand Management
Basic Concepts (2 of 3)
Basic Concepts (3 of 3)
• Service Package
Roles
Financial Management
Service Strategy – Financial Management
Basic Concepts (1 of 2)
• Service Valuation
- Cost of providing the service
- Value to the customers receiving the service
• Business Impact Analysis
- Understand the total lifecycle value and costs of
proposed new services or projects
• Accounting
- Keeping track of what has been spent, assigned to
appropriate categories
Service Strategy – Financial Management
Basic Concepts (2 of 2)
• Business Case
- A decision support and planning tool that predicts
outcomes of a proposed action
- Used to justify investments
• Business Impact Analysis
- Understanding the financial cost of service
outages
Service Strategy – Financial Management
Roles