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itSMF and Dansk∙it IT Service Management Conference 2014
October 29th 2014, Køge, Denmark
Professional Service Management: How, when, and which ITSM processes contribute most to IT performanceTill J. Winkler
Assistant Professor
Department of IT Management
Copenhagen Business School
In collaboration with:
Jochen Wulf (University of St.Gallen)
Walter Brenner (University of St.Gallen)
Slide 2
CBS ITM – Who we are
Department
• 57 people on staff
• 4 degree programs
• Leading IS research
department in Europe
Key Research Themes
• Cashless Society
• Internet of Things
• Social Business
• Mergers and Acquisitions
More…
• CIO Talks
• Renowned Scholar Seminars
Our Mission:
Co-creating knowledge with enduring
consequences through the study of
the interrelationships among people,
information and technology
Connect with us on facebook:
facebook.com/CBS.ITM
Slide 3
Agenda – 3 Questions
• How does ITSM contribute to IT performance ?
• When and in which company context ?
• Which ITSM processes can contribute most ?
Slide 4
Business and IT Practice
• Wide adoption of ITIL & Co.
(75% in DK, 28% worldwide)
• Industry papers
• Established methods to
measure ITSM maturity: CMMI-
SVC, COBIT 4.1, ITILv3, etc.
Research
• Few good research on ITSM
(0% in top journals)
• Mostly case-based evidence
• Existing survey studies have
used basic measures (e.g.,
ITSM implementation degree)
The Research Vs. Practice Gap
(How) does ITSM maturity contribute to IT performance?
• in different contexts (IT as source of innovation vs. IT support role)
• in different companies (small vs. large)
Slide 5
ITSM Process Maturity Scale
Slide 6
Agenda
• How ITSM contributes to IT performance
• When and in which company context
• Which ITSM processes contribute most
Slide 7
Theoretical angle: Alignment supports IT Performance
Business/IT Alignment
the degree to which the IT
function supports the goals
and priorities of an
organization’s business
functions
Measurements:
The ITSP is aligned with…
• business activities
• business demands
• business user needs
• business priorities
• business objectives
IT Performance
the degree to which an IT
service provider fulfills the
client’s multifaceted IT
service and business related
goals
Measurements:
• Efficiency
• Quality of the services
• User satisfaction
• Support of business
processes
• Effectiveness in supporting
strategic goals through IT
ITS
M P
roc
es
sM
atu
rity
Slide 8
Online survey in cooperation with
Participate at itil.selfsurvey.org !
Slide 9
230 ITSM professionals worldwide took part
Participant Countries Participant Expertise
DE74
DK22RU
21
CH17
ZA14
other62
n/a20
Foundation69
Practitioner29Expert
67
Master2
n/a24
None39
Slide 10
Descriptive results:ITIL is primarily used for standardizable IT Services
0 50 100 150 200
IT project management & planning
Software development
Application customization & integration
Application management
Datacenter operations
Network & infrastructure management
Desktop & printers management
Support & help desk
IT training & communication
Which IT services do you have in the portfolio; with or without using ITIL?
Not part of theportfolio
Part of the portfolio,no ITIL use
Part of the portfolioand ITIL used
Slide 11
ITSM maturity is positively related to Alignment
* Averaged measures / process maturities (1. None, 2. Initial, 3. Repeatable, 4. Defined, 5. Managed, 6. Optimized)
R² = 0.25
1
2
3
4
5
6
7
0 1 2 3 4 5 6 7
IT A
lignm
en
t*
ITSM Maturity*
Slide 12
Alignment is positively related to IT performance
* Averaged measures
R² = 0.57
1
2
3
4
5
6
7
0 1 2 3 4 5 6 7 8
IT P
erf
orm
ance*
IT Alignment*
Slide 13
Theory supported: ITSM contributes to IT perfor-mance through supporting Business/IT Alignment
Business/IT
AlignmentIT Performance
ITSM Process
Maturity
0.72***0.50**
*** p<.01
0.36***
Slide 14
Agenda
• How ITSM contributes to IT performance
• When and in which company context
• Which ITSM processes contribute most
Slide 15
Bringing some company context in…
Business/IT Alignment
IT Performance
ITSM Process
Maturity
IT Strategy
• Conservative strategy (-): exploiting
standard routines for managing IT
and business efficiently
vs.
• Innovator strategy (+): flexibly react
to environmental changes through
exploring new uses of IT
Organization Size
• Measured by number of employees
• Hypothesis: The larger the company
the greater the impact of ITSM
-0.10**0.09ns
ns not significant; * p<.1; ** p<.05; *** p<.01
Slide 16
Small vs. Large organizations
1
2
3
4
5
6
7
0 1 2 3 4 5 6 7
Alig
nm
en
t*
ITSM Maturity*
Smallorganizations
Largeorganizations
* Averaged measures, process maturities: 1. None, 2. Initial, 3. Repeatable, 4. Defined, 5. Managed, 6. Optimized
Slide 17
Agenda
• How ITSM contributes to IT performance
• When and in which company context
• Which ITSM processes contribute most
Slide 18
Factor Analysis ResultsITIL domains and ITSM processes
Component*
1 2 3
Se
rvic
e
Str
ate
gy
Service Strategy .58 .53 .12
Service Portfolio Mgt .61 .40 .23
Financial Mgt .63 .15 .24
Demand Mgt .70 .14 .39
Business Relationship Mgt .77 .24 .20
Se
rvic
e D
esig
n
Service Catalog Mgt .44 .53 .23
Service Level Mgt .63 .51 .08
Availability Mgt .76 .30 .27
Capacity Mgt .81 .23 .24
IT service Continuity Mgt .67 .29 .30
Information Security Mgt .57 .39 .25
Supplier Mgt .58 .18 .45
Design Coordination .63 .09 .48
Se
rvic
e T
ran
sitio
n Trans. Planning & Support .54 .32 .45
Change Mgt .30 .71 .29
Asset and Configuration Mgt .21 .62 .46
Release and Deployment Mgt .23 .36 .74
Service Validation & Testing .27 .24 .83
Evaluation Mgt .34 .18 .76
Knowledge Mgt .40 .28 .52
Se
rvic
e
Op
era
tio
n
Event Mgt .53 .50 .21
Incident Mgt .11 .87 .17
Request Fulfillment .19 .78 .10
Problem Mgt .28 .64 .40
Access Mgt .40 .49 .34
Continual service improvement .42 .46 .44
* components with substantial loadings >0.6 and cross-loadings <0.4 highlighted
Slide 19
Three dimensions of ITSM Maturity
ITSM Maturity
(R2 =.96)
Service Transition
Maturity
Service Operation
Maturity* p<.001
Service Planning
Maturity
Slide 20
Service Operation has the strongest impact
Service Transition
Maturity
Service Operation
Maturity
.220***
.046 ns
.313***
Service Planning
Maturity
Business/IT Alignment
IT Performance
ns not significant; * p<.1; ** p<.05; *** p<.01
Slide 21
The impact of Service Operation is reinforcedunder conservative IT strategies
Service Transition
Maturity
Service Operation
Maturity
Service Planning
Maturity
Business/IT Alignment
IT Performance
ns not significant; * p<.1; ** p<.05; *** p<.01
IT Strategy
conservative(-) vs. innovative(+)
.045ns
.005 ns
-.122**
Slide 22
IT conservative firms derive greater benefitsespecially from Service Operation processes
1
2
3
4
5
6
7
0 1 2 3 4 5 6 7
Alig
nm
en
t*
Service Operation Maturity*
Conservative
Innovative
* Averaged measures, process maturities: 1. None, 2. Initial, 3. Repeatable, 4. Defined, 5. Managed, 6. Optimized
Slide 23
Summary – Our 3 questions:
• How does ITSM contribute to IT performance ?
• When and in which company context ?
• Which ITSM processes can contribute most ?
Slide 24
Summary
• How: ITSM contributes to IT performance
through supporting Busines/IT Alignment
• When: In small companies, as well as in
those with conservative IT strategies, ITSM
has the greatest impact
• Which: Operational ITSM processes have
an even greater influence on IT Alignment
and IT Performance than planning processes
Slide 25
Practical Implications
• Don‘t underestimate the business/IT
alignment benefits of ITSM practices
• ITIL is not only for large organizations; small
and medium sized companies have a huge
unveiled potential for professionalizing ITSM
• Focus on operational ITSM processes first
when implementing ITIL; do ITSM planning
processes then in the next step
Slide 26
Our tool provides domain- and process-specific benchmarks based on a novel prediction-algorithm
Participate at itil.selfsurvey.org
Slide 27
Selfsurvey delivers a detailed „Roadmap“ pointing out the most critical processes for improvement
Participate at itil.selfsurvey.org
Thank you!
Dr. Till J. Winkler
Assistant Professor
Department of IT Management
Copenhagen Business School
Email: [email protected]
Web: www.cbs.dk/en/staff/twitm
Twitter: https://twitter.com/tilljwinkler
Selfsurvey project:
itil.selfsurvey.org
