Service Strategy

Week 4

I T Service Delivery

INSS 470

Service Strategy

Copyright 2009 Troy A. Zinderman

Service Strategy Scope

1. Defining a strategy whereby a service provider will deliver services to meet a customers business outcome. 2. Defining a strategy for how to manage those services.
I T Service Delivery INSS 470 Service Strategy Copyright 2009 Troy A. Zinderman

Service Strategy Activities

Defining the market Development of strategic assets

Service Strategy Process

Preparation of Implementation Development of the offer

I T Service Delivery

INSS 470

Service Strategy

Copyright 2009 Troy A. Zinderman

Defining the Market

Customers do not buy services. They buy the fulfillment of a particular need. Therefore, the value of a service is determined by what a customer wants, what a customer believes, and what a customer actually gets.
Business Outcome

Value
Preferences Perceptions

I T Service Delivery

INSS 470

Service Strategy

Copyright 2009 Troy A. Zinderman

Value of IT Services
What services does IT provide? What do the services achieve? How much does the services cost?

I T Service Delivery

INSS 470

Service Strategy

Copyright 2009 Troy A. Zinderman

Service & Technology Combinations

5 5 Basic Basic ways ways technology technology contributes contributes to to communication communication with with the the customer: customer:
1. 1. Communication Communication without without technology technology
Consulting Consulting services services

2. 2.

Communication Communication assisted assisted by by technology technology

Airline Airline check-in check-in services services via via an an employee employee

3. 3.

Communication Communication facilitated facilitated by by technology technology

Instant Instant messaging messaging online online support support

4. 4.

Communication Communication accomplished accomplished through through technology technology

Service Service Desk Desk support support from from distant distant locations locations

5. 5.

Communication Communication generated generated by by technology technology

Automated Automated Teller Teller Machines Machines
I T Service Delivery INSS 470 Service Strategy Copyright 2009 Troy A. Zinderman

Business Patterns
Most business processes have a certain pattern to how the customers use services. For example:
Tax Services Retail Services Payroll Services

A Pattern of Business Activity is a workload profile of one or more business activities.

I T Service Delivery

INSS 470

Service Strategy

Copyright 2009 Troy A. Zinderman

Demand management
Avoids underutilized assets in the form of excess capacity. Avoids insufficient capacity in the form of slow systems, running out of disk or unfulfilled valuable IT investments.

Copyright 2009 Troy A. Zinderman

Activity Based Demand Mgt

Links IT resources to the business Cycle. Taking NASA as an example. One could envision resources as:
Resource Incident Management Problem Management Release Management Change Management Continual Service Close to Launch More More Less Less Less Far From Launch Less Less More More More

At the extreme point is when the Shuttle is up; during this time one could envision NASA would want as little change as possible to any IT system.
I T Service Delivery INSS 470 Service Strategy Copyright 2009 Troy A. Zinderman

Activity Based Demand Mgt.

Whereas support resources track directly to sales activity; project resources are inversely related to sales. There is desire to change little when sales are highest.

Copyright 2009 Troy A. Zinderman

Services Portfolios
The Service Portfolio is the complete set of services that are managed by a service provider.
Service Portfolio
Service Pipeline Service Catalogue Retired Services

Configuration Management System

Customer Portfolio

Application Portfolio

Supplier & Contract Management System

Customer Agreement Portfolio

Project Portfolio

I T Service Delivery

INSS 470

Service Strategy

Copyright 2009 Troy A. Zinderman

Portfolios create Clarification

Why should a customer buy these services? Why should they by from us? What are the pricing / chargeback models? What are our strengths & weaknesses, our priorities & risks? How should our resources be allocated?

Copyright 2009 Troy A. Zinderman

Service Catalogs
A Service Catalog contains information about all the live IT services available for customer use. Service Catalogs can be designed in many ways, but they always represent the services available to the customer and those supporting services that make the outward facing services possible.
Copyright 2009 Troy A. Zinderman

Increasing the Performance Potential

The services of a service provider represent the potential for improving the performance of customer assets. ITIL poses a number of core questions to that regard:
What What is is our our market? market? What What does does the the market market want? want? Do Do we we have have something something unique unique to to offer offer to to the the market? market? Do Do we we have have the the right right portfolio portfolio for for a a specific specific market? market? Do Do we we have have the the right right catalog catalog for for a a specific specific customer? customer? Is Is every every services services designed designed so so that that it it leads leads to to the the desired desired result? result? Is Is the the implementation implementation of of every every service service such such that that it it leads leads to to the the desired desired results? results?

Do Do we we have have the the right right models models & & structures structures to to be be a a service service provider? provider?
I T Service Delivery INSS 470 Service Strategy Copyright 2009 Troy A. Zinderman

Business cases
A Business Case describes the objectives and the likely outcome of a business decision. They contain:
1. 2. 3. 4. 5. Instructions Methods & Assumptions Business Impacts Risks & Contingencies Recommendations
I T Service Delivery INSS 470 Service Strategy Copyright 2009 Troy A. Zinderman

Business Case

Copyright 2009 Troy A. Zinderman

Copyright 2009 Troy A. Zinderman

Risks
Assets Threats
Vulnerabilities

Risks
A Possible event that could cause harm or loss, or affect the ability to achieve objectives.
Copyright 2009 Troy A. Zinderman

Countermeasures

Risks
Group 1: Earthquake in MD Group 2: Hacker theft of associates SSN, DOB, Income, & home address Group 3: Verizon Strike results in East Coast Verizon outage

Copyright 2009 Troy A. Zinderman

Group 1 : Earthquake Group 2: Hacker theft Group 3: Verizon Strike

Risks

1. 2. 3. 4. 5. 6.

How would you monitor? What countermeasures are available. How would you go about determining if they are worth it? 1-10 scale : Probability What assets would be impacted How could one assess the enterprise vulnerability?
Copyright 2009 Troy A. Zinderman

Accounting
Generally speaking IT is funded via chargebacks to other groups Profit and Loss Statements. Those with P&L responsibility must understand the cost (service recording); characteristics of the cost such as hardware/software and how it impacts the financial statements (Capital/operational)

Copyright 2009 Troy A. Zinderman

Service Strategy Key Terms and Concepts

When studying Service Design Review Flow Chart at the end

Working your way out from the center, you must know the first and second levels very well. Create flashcards for yourself with questions like Which of these is not an objective of Service Strategy Use the Web, practice exams, other materials.

Copyright 2009 Troy A. Zinderman