3 service strategy
TRANSCRIPT
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© 2009 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice
Service Strategy
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Continual ServiceImprovement
ITIL v3 – Core Publications• ITIL Service Management
Practices – Core Guidance
−Service Strategy
−Service Design
−Service Transition
−Service Operation
−Continual Service Improvement
ServiceServiceStrategy
ServiceOperation
ServiceDesign
ServiceDesign
ServiceTransition
ITIL
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Service Strategy• Key concepts
−Utility and Warranty
−Value Creation
−Service Provider
−Delivery Model Options
−Service Model
• Processes−Service Portfolio Management (SPM)
−Demand Management
−Financial Management
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Utility 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”
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Service Provider• An organization supplying services to one or more
internal customers or external customers
• 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
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Type I – Internal Service Provider
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Type II – Internal Service Provider
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Type III – External Service Provider
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Service Model• Graphical representation of
the components that make up a service
• Documents workflow and dependencies
• Used to support design, analysis and communication
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© 2009 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice
Strategy Generation
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Strategy Generation - Activities• Define the Market
− Evaluate the services you could potentially offer, and who you may be able to offer them to
• Develop the Offerings− Continue to formulate the services you think it will be worthwhile
pursuing
− Utility and Warranty are considered at this stage
• Develop Strategic Assets− Look for opportunities to exploit your services and capabilities (to
allow more services to more customers)
− Develop Service Management so that it becomes a strategic asset
• Prepare for Execution− Take all the necessary steps to ensure that we are ready to go
ahead and it is worthwhile doing so
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© 2009 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice
Service Portfolio Management
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Service Portfolio Management - Objectives• Decide what services to offer
• Understand −Why should a customers buy these services?
−Why should they buy these services from us?
• Provide direction to Service Design−So they can manage and fully exploit the services into the
future
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Service Portfolio Management – Basic Concepts• Business Service
−A service that directly supports a business process
• IT Service−A service that the business does not think of in business
context or semantics
• Business Service Management−Considering service management in terms of business
processes and business value
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Business Service vs IT Service
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Business Service Management
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Service Portfolio Management - Activities
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Service Portfolio Management - Roles• Product Manager
−Own and manage a set of related services
−Evaluate market opportunities and customer needs
−Create business cases
−Plan new service development programs
• Business Relationship Manager−Identify and document customer needs
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© 2009 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice
Demand Management
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Demand Management – Objectives and business value• Understand customer requirements for services and
how these vary over the business cycle
• Ensure the provision of appropriate levels of service−By varying provision or influencing customer demand
• Ensure that the Warranty and Utility we offer matches the customer needs
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Demand Management – Basic Concepts• 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
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Demand Management – Basic Concepts• Pattern of Business Activity (PBA)
−Workload profile of one or more business activities
−Varies over time
−Represents changing business demands
• User Profile−Pattern of user demand for IT Services
−Each user profile includes one or more PBAs
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Demand Management – Basic Concepts• Service Package
−Detailed description of a service
−Includes a service level package and one or more core services and supporting services
• Service Level Package−Defined level of utility and warranty for a particular service
package
−Designed to meet the needs of a PBA. For example
• Gold, Silver or Bronze service
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Demand Management - Roles• Business Relationship Manager
−Document PBAs and user profiles
−Identify correct service level packages for their customers
−Identify unmet customer need
−Negotiate with Product Manager for creation of new services
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© 2009 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice
Financial Management
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Financial Management – Objectives and business value• Financial visibility and accountability• Financial compliance and control• Enhanced decision making• Operational control• Value capture and creation• Understand the value of IT Services
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Financial Management – Basic Concepts• Services valuation
−Cost of providing the service
−Value to the customers receiving the service
• Service investment 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
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Financial Management – Basic Concepts• 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
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Financial Management – Roles • All managers have some financial responsibility
• Senior IT Management own budgets and are ultimately responsible for decisions
• Many organizations appoint a financial controller to oversee day-to-day finances
• Accounting department provides governance framework and support