[6430]FoundationsofITILV3-pg24-31

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24 Foundations of IT Service Management Based on ITILV3

Service Srratcgy assisrs organizarions ro think and do busincss in a srraregic manncr. Theimplemenli.uion of rhe straregy rakes place rhrollgh rhe use of srrarcgic asscts.hnally, a n111lridisciplinary approach is necessary in order ro answcr quesrions such :IS: Whar kind of services I1111Stwe offer, and ro whom? Hov\' do wc stand our above rhe comperirion? How can we jllstify srrategic invesrmenrs? Haw can we acrually create value for rhe cusromer and ollr srakcholders? How can we efficiendy allocare resources in a service ponfolio? How can we use financial managemenr ro enSllre insighr and conrrol ovcr valuc crearion?To survivc, organizarions rnllsr undersrand how rhe)' create value for rhcmselves and for rheCllsromer. The mission of the Scrvice Srraregy phase is ro dcvelop the capacit)' ro achieve andmainrain a srratcgic advantage. The associated objecrives are: defining srrategic objecrivcs dercrrnining the direction for growth opporcunities. .. .. .... settlng II1vestmenr pnOfltleS defining OUlcomes, learning abour effecriveness. . creanng srrateglc assers identifying rhe competirion surpassing rhe competirion by delivering disrinctive pcrformance


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Lifecycle Phase' Service Strategy 25

The uriliry iswhar rhe cusromer receives, anel rhe warramy affirms how ir will be delivered. Ir isadvisable ro view rhese rwo aspecrs separarei)' in order ro arrive ar rhe besr possible design anddevelopmenr. See Figure 3.2 for rhe combined sreps towards value crearion.

UTllITY

Constraints removed?T/Ferformance supported?

Fit forpurpose?

AND Value-createdAvailable enough?Large enough? Fit for use?

Continuousenough?Secure enough?

T/F T: TRUEF: ~ALSEWARRANTY

Figure 3.2 Combining utility and warranty for value creation

Communicating utility and warrantyThe urility of a service is communic.:1ted rhrough rhe suppore of cenain resulrs or by prevemingceflain risks and costs. Customers are very eager ro oursollrce rhe management or assersrharremove financial resources in rheir core asscrs. They also wanr to prevent a shonage in capaciry.Customers are unable to lIseservices rhar are nor suitable for use. \'{farram)' guarantees rhe uriliryaf a serviceby ensuring char ir is avaiJableand rhar ir offers sumcienr capaclty, conrinuity andsecuriry: Availabillty - AvailabiJiry is rhe mosr fundamemal aspecr in rhe delivery of services to acustomer. It otlers the cusromer rhe assurancethac rhe services are availableaccording to rheagreed rerms and condirians. Capacit)' -Withour rhe effective moniroring af capacicy issues, service providers are nor n aposirion ro offer rhe miJiry af mosr services. Continuity - Conrinury ensures thar the service supporrs che business even during times ofgrear difficulry ar orher disasters. Security - Securiry assures rhe cusromers rhar rhey can make use af lhe service safely andsecurely.

Value crearion is a combinarion of rhe effects of uriJiry and \Varramy. Bmh are necessary for thecrearion af value for rhe cusromer. See Figure3.3 for rheetfeccrhar che combinarion of llriliryand warranryhas on the cusromer'sassers.ServicestructuresThe value crearion process is complex ro slIch an extem rhar tradirional servce models areinadequate. Rather man concemraring on a fixed chronoJogy of activi[ies in a chain, rhe tocusduring rhe Service Srr2regy phase musr be placed on the value crearion sysrem irself. Servicemanagemem srands for patterns af cooperation.

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26 Foundations of ITService Management Basedon ITILV3

Figure3.3 Effect of utility and warranty on customer assetsITIL defines rhe value ner\Vorkas follows:

A vallle 1IetWQ1.ksa web of rekztionshipsthat generates tangib/e and intangible lJa/u;through ~lcomplex tlnd d)'tlamic exchtmgesthrough two 01'more orgarliZlltions.The following quesrions play a role in the consuuct:ion af a service mode!: \X'ho are rhe parricipams in rhe service? \X1harare rhe panerns in exchanges and rransactions? \X!har is rhe impacr or \vhat are rhe producrs ((Jbe delivered from each rransaccion and cachpanicipam? Whar is rhe besr way ro generare value?ServiceassetsResources and capabilitiesResources and capabiliries are rypes of assers. Organizaclons use rhem ro (rcate value in rheform af goods and services.Resourcescomprise rhe direcr inpur for producrion. Managemenr,organizarion, people and knawledge converr resources imo value. Capabiliries represem rhecapaciry of an organizarion ro coordinare, manage and apply resources in order to produce "alue.Resources are afren based 0/1 experiences; rheyare knowledge-lIlrensive, based 011il1formarion,and deeply imbedded in rhe people, systems, processes and rechnologies of an organizarion. Ir isrelarively easy to acquire resources compared to capabiliries.CapabiJities develop over rhe years. The developmem af disrinctive capabilities is srimulared bybroadening and deepening of experiencesacquired duough the number and varieryof custOmer,markers, conteacrs and services. Experience is gained chrough problern-sulving, handlingsiruarions, managing risks and analyzing misrakes. Service providers musr develop disrinctivecapabiliries in order tO rerain cusromers wirh services rhar are difficulr to duplicare b)' rhe

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Lifecycle Phase: Service Strategy 27

competition. Service providers musr also invest subsranriaUy in education and rraining if rhcy areto continue to develop rheir srrategic assers.Capabiliries alone cannor produce value wirhout adequare and appropriare resollrces. Theproducrive capaciry of a service provider depends on rhe availability of resources. Capabiliries areused tOdevelop, implemenr anel coordinare the producrive capaciry.Asset typesTogerher resources and capabilities form rhe basis ~or rhe value of a sen'ice (see f~igure.3.4).

Service Provider

W'

I ,I ,I ,PEOPLE

RESOURCESCAPITAL

INFRASTRUCTUREAPPLlCATIONSINFORMATION

CAPABILlTIESMANAGEMENTORGANIZATION

PROCESSESKNOWLEDGE

I I II IC CUSTOMER ASSETS =:JI I II II ICUSTOMER

RESUlTCustomer

Figure 3.4 Resources and capabilities are the basis for value creation

Below is a lisr of descriprions of asser rypes: Management - Managemenr is a sysrem rhar indudes leadership, adminisrrarion, policy,pertormance, regularions and incentives; rhis layer cultjvares, coordinares and oversees orherasser rypes Organization -Organizational assers are active configurarions of people, processes, applicationsand infrastruCtures rhat impIement alI organizational acriviries; this layer includes the functionalhierarchies, social networks of groups, reams and individuais, and ali of rhe sysrems thar rheyuse for working rogerher rowards collectivc goals. Process - Process assets consisr of algorithms, merhods, procedures and rourines [har drive theimplemenration and managemem of activiries and inreracrions. Knowledge - KnowIedge assers are accumulations of realization, experience, information,insight and inteHecrual properry [har are associared with specific activiries and comcxts. People - People as assers represem rhe capaciry for creativiry, analysis, perceprion, educarion,assessmem, leadership, communicarion, coordination, emparhy and truSl.

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28 Foundations of IT Service Management Based on ITILV3

Informationdata thal areprod ucrion. Applications -Applicarion assers are greatly varied in rype and include arrefacrs, auromarionand tools for supporring rhe performance of orher asser rypes; applicarions derive rheir valuefi.om thcir rdarionships wirh orher assets. Infrastructure - lnfrasrrucrure assers exisr in the form of layers [har are ddlned by rheirrelarionships wirh orher assers rhar lhey surr0rt (reople and applicarions, in parricular). Financial capital - Financial assers are necessary in arder (O supporr rhe ownership or use ofali rypes of assers.

- lnformarion assets are collecrions, patterns and meanlOgful abstractions ofapplied in rhe conrcxr of cusromers, conrraClS, scrviccs, evenrs, projecrs and

Type of service providerITTl disringuishes berween rhe variOllS rypes of scrvice prov,dcrs. Although most aspeClS ofserviccmanagemenr apply to ali rypes, rhere are aIso aspect$, such as cllsromers. contracts. comperition,markers and incomes, which are differenl for each rype.lTI L defines the following rhree archerypes:type I - internal service providertype 11 - Shared Services Unirtype III - exrernal service provi derType I - Internal service providerr TYpe I p1'oviders are providers who detiver their services witln their own business units."1ype r providers (Figure 3.5) are found in organizarions where lT. R&D, markering ormanufacruring determine the comperirive position af the organization, for which a high degreeof contrai i.snecessary.

.1Human ResourcesFinance &AdminCustomer CareIT

.1..Human ResourcesFinance & AdminCustomer CareIT

.LHuman ResourcesFinance & AdminCustomer CareITFigure 3.5 Type I providers

- - - -- --- - - - --- 1

Corporate(Corporate BusinessFunction)

I I IMarketing R&D Coatings Plastics TextilesStraregic Planning (BU) (BU) (BU)Government Affairs" -


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Advalllages af (his type: short lines ofcommunication - dose eomact with (he eusromcr rhrollgh whieh cenain COSlS-and risks c.:anbe avoided customer-oriented - speeialized in a limited set af business needs, which makes it possible robe very ellstomer-oriented limited desion rights - deeision righrs by the manager of (he bllsiness unitOisadvan (ages:- limited opportunities for growth - grow(h is ried to the growth of the bllsiness unirCornperition: open market - pruviders ou[Side rhe busincss unirObjecrive: value contribution - the arrainmem af fi.lllerional exeellence and rerurn for the business unitto whieh the)' belong

Corporate

Coatings(BU) Plastics(BU) Textiles(BU)Human Resources

Finance&AdministrationCustomer Care

LogisticsInformationTechnologyBU: Business UnitSSU: Shared Services Unit

Figure 3.6 Type 11 provider

Type 11- Shared Services Unit (SSU)FlInctions sueh as finance, IT, human resollrces and logistics are nor alwa}'s at the core af anorganization's c.:ompc(itive advanrage, and need not be maimained at the eOl'parare leveI. Theserviees of such shan:d funcrions are often consolidated into an allronomous unit called a sharedserviees unit.rype II providers deliver scrtJices to Business Units that operate under the same collective strategy.

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30 Foundations of IT Service Management 8ased on ITIL V3

lhe adv


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Disadvamages: greater risks for the customers extra costsObjective: ro ofIer customers flexibility and external knowledge, experience, scale, scope, capabilities andresOllrcesCustomers consider the followng issues when choosing 01' changing a cenain type of serviceprovider (see Figure 3.8): Transanion costs:- the rotal cosrs of a service provider- should we keep the activiries in-house (aggregarion)?- should we oUtsourcc (disaggregarion)? stratcgic facrors core comperencles risk managemenr capabilities

Figure 3.8 Customer's choice of type of service provider

3.3 Processes andotheractivitiesActivitiesThe following sections deal wirh the [our most importam acrivities of the Service Suategy processas denned by ITIL (see Figure 3.9):J. denning the marketa. understanding tbe CllStOmerb. understanding the opportunitiesC.classifying and visualizing rhe services

FromfTo Type I Type" Type 111

Type I Functional Disaggregation Outsourcingreorgan ization

Type" Aggregation Corporate Outsourcingreorganization

Type 111 Insourcing Insourcing Value netreconfiguration

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[6430]FoundationsofITILV3-pg24-31