lack of maturity means unused benefits in service integration and management (siam)

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licMaturity of Service integration and management (SIAM) in the Nordics, 2016

Research conducted by IDC on behalf of Tieto

August 2016

© Tieto Corporation

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Key findings

SIAM is quite new for most organisations in the Nordics. This is not just a challenge; it is a huge opportunity at the same time.

SIAM is about aligning LoB and IT, and creates an opportunity for Nordic organisations to raise their business value even higher when implementing a SIAM office function.

Larger organisations as well as the IT & Telecom and Banking, Finance and Insurance sector have come the furthest in their SIAM efforts and maturity while the difference by country is small.

VSM “thrivers” are the organisations who have the highest SIAM maturity. They are focusing on business outcome while lowering total cost rather than cutting cost.

Most Nordic organisations believe that a strong partner for the implementation and management of SIAM can help them make the leap into the future a much faster, better and customer focused ride.

Source: IDC research on behalf of Tieto: Maturity of SIAM in the Nordics, 2016


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Research Summary

IDC conducted a survey that covered general vendor and sourcing management questions and more specific SIAM (Service Integration And Management) questions.

The main purpose is to outline the maturity of vendor and sourcing management and SIAM capabilities with any differences between industries and countries among the participating organisations in the survey.

The 300 respondents are based in Finland, Norway and Sweden (100 in each country), from all industries, and work at an organisation with 100 or more employees.



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Service Integration & Management is tricky business. Only 15% of Nordic organisations having implemented SIAM consider running it themselves

Do you use or consider using external resources for providing SIAM or other service integration capabilities?

Use of External Resources For Providing SIAM or Other Service Integration Capabilities

Use external re-sources today, 37%

Use internal resources only, but consider using external providers, 48%

Use external re-sources today, but consider insourcing

completely, 15%



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Cost, quality and freeing up resources are by far the main advantages, while supporting business is surprisingly low.

What do you see as the main advantages of SIAM or other service integration models?

Perceived Advantages of SIAM and Other Service Integration Models

Reduce cost

Improve performance or quality of service

Free up internal resources

Ensure compliance

Make better use of skills and competencies

Ensure consistent service levels

Improve transparency

Assign responsibility

Reduce business risk

Improve governance

Improve agility and reduce time to market

Support changing business models

None of these

0% 5% 10% 15% 20% 25% 30% 35% 40%



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Almost one third (32%) of the respondents have a formalised SIAM (or similar) model in place. Many of respondents don’t know if they are using such a model, as awareness is low

Do you use or have you considered using a formalized SIAM model?

7% 8%17% 13% 10%

45%



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37% of the large companies have 10+ suppliers and would strongly benefit having a clear SIAM implementation

How many suppliers do you have an agreement with today to operate your IT environment?

Finland Norway Sweden0%

20%

40%

60%

80%

100%

45%53% 61%

22%17%

17%6% 7%8%

22% 18% 11%

-999 1000+

59%45%

21%

15%

6%

8%

9%

29%

0 1-5 6-1011-15 15+

Manufacturing, Trade & Logistics

Public Sector Other

66%54% 46%

13%22%

19%

9%4%

8%

10%18% 20%

Agreement to Operate IT Environment Across Countries, Company Sizes and Industries



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25% believe they will have more suppliers in the future

How do you expect the number of suppliers to change in the coming years?

Expected Change in the Number of Suppliers

We will have significantly more suppliers

We will have a few more suppliers

We will have the same number of suppliers

We will have fewer suppliers

Don’t know

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

5%

20%

40%

14%

21%



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Overall Nordic SIAM Maturity 2016 based on Tieto SIAM Maturity scale

0 1 2 3 4 5

7%

18%

31%28%

15%

4%

Managed (pre-emptive)Processes are refined to the level of best practice. Measurement is used to monitor KPI’s. Tools are used to support workflow & automation.

SustainedThe processes, training and protocols have been followed at Level 4 continuously for more than 12 months

Defined (pro-active)Processes have been standardized, documented and communicated but unsophisticated. Team members are trained consistently

Repeatable (active)Different people doing the same task follow similar procedures; limited training; high reliance on the individual.

Initial (re-active)There are no standardized processes; individual or case by case approach.

Non-existingComplete lack of any recognizable process


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IDC recommendations The importance of integrating IT services into business

services by implementing SIAM has never been as substantial as it is now, when the digitalization of everything is becoming the only way forward.

Organisations that have weak overall vendor and sourcing management must establish an organisation to manage and guide their sourcing activities across the organisation and ensure committment on group top management level.

Using a strong partner for the implementation and management of SIAM can help the organisation to make the leap into the future a much faster, better and customer focused ride.


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For more information: Download our Whitepaper:http://pages.tieto.com/SIAM-Maturity.html

Visit: www.tieto.com/services/outsourcing/service-integration-and-management

ContactErik JohannissonHead of Marketing, Technology Services and Modernization at Tieto+46 73 08 25 [email protected]

http://pages.tieto.com/SIAM-Maturity.html

http://pages.tieto.com/SIAM-Maturity.html

http://www.tieto.com/services/outsourcing/service-integration-and-management

http://www.tieto.com/services/outsourcing/service-integration-and-management

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