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1October 2016 - © 2016 SureSkills

Leveraging Best Practice Methods in an Age of Digital Transformation

Agenda

2

08:15 - 9:00 Registration - Tea/Coffee

09:00 - 9:15 Introductions & Why Best Practice Methodologies? - Ruaidhri McSharry, Director Service Management SureSkills

09:15 - 9:45 Developing Best Practice Framework - Phil Hearsum, ITSM Portfolio Manager at AXELOS

09:45 - 10:15 Digital Transformation - what challenges are organisations facing today? - Ruaidhri McSharry, Director Service Management SureSkills

10:15 - 10:45 Industry Examples / Case Studies

10:45 - 11:15 Adopt & Adapt with Real Business Value - How Best Practice Methodologies Work together? – Bill Heffernan, Service Management Expert, SureSkills & SP3 Services

11:15 - 11:45 Q&A with all SME's

11:45 - 12:30 1:2:1 Conversations/Networking

October 2016 - © 2016 SureSkills

Introductions

3

PHIL HEARSUM

ITSM Portfolio Manager

AXELOS Global Best Practice

Rosebery Court, St Andrews Business Park

Norwich NR7 0HS


BILL HEFFERNAN

SERVICE MANAGEMENT EXPERT

SURESKILLS | SP3 Services

14 Fitzwilliam Place

Dublin 2

RUAIDHRI MCSHARRY

DIRECTOR SERVICE MANAGEMENT

SURESKILLS


Dublin 2

IT Service Provision Learning Services

Provision

Training Service

Provision

IT Change

IT Transition

IT Support

Develop

Support

Manage

Certification Training

Tailored Training

Managed Training Services (Local)

SureSkills - Who We Are

Consulting &

Solutions

Learning

Services

Training

& Certification

Objectives for Event

5

Why the Event?

Help your organisation cope with the constant digital transformation (change) through effective Service Management?

Effective use of resources, people, process, & technology

Empower your employees and engage them with process and technology by using a proven framework breaking down the silos within a business?


Definition – Digital Transformation

6

Digital transformation is the profound &accelerating transformation of business

activities, processes, competencies & models to fully leverage the changes & opportunities of digital technologies &

their impact across society in a strategic & prioritized way.


Why Best Practice Methodologies

7

Best Practice?

Proven

Common Sense

3E’s – Effective, Efficient & Economical Use of Resources

Agile & LEAN

Assurance & Confidence

Governance & QA


Frameworks - Options


Best Practices Everywhere


Digital CIO Mindset


Digital Transformation Requires Total Organizational Commitment

Traditional Digital

Strategy Efficiency Innovation

Culture Hierarchy Collaboration

Talent Low Cost High Skills

Technology Legacy Cloud, Mobile, Apps, AI

User Experience “Who Cares?” Mission Critical

IT Philosophy Default to “No” Default to “Yes”

Project Management Waterfall Iterative (Agile)

Business Model Service & Support Relationship & Partner

Source: CXOTALK

Barriers to Digital Trend Adoption


Top Barriers That Impede TakingAdvantage of Digital Trends

Same Issues Facing Systems (IT) Change


Top 10 Barriers of Success for Systems Implementation (Digital)

The “What” & “How” of Digital Transformation


Four Types of Digital Maturity


These companies have implemented /experimented with many sexy digitalapplications. Some of these initiatives maycreate value, but many do not. motivated tobring on digitally powered change, but thedigital transformation strategy is not foundedon real knowledge of how to maximize businessbenefits.

Favour prudence over innovation. Understandneed for a strong unifying vision as well as forgovernance & corporate culture to ensureinvestments are managed well. Typicallysceptical of the value of new digital trends,sometimes to their detriment. Careful approachmay cause them to miss valuable opportunitiesupon which their more stylish competitors willpounce.

Truly understand how to drive value with digitaltransformation. Combine a transformative vision,careful governance & engagement, with sufficientinvestment in new opportunities. Through vision& engagement, they develop a digital culture thatcan envision further changes & implement themwisely. By investing & carefully coordinating digitalinitiatives, they continuously advance their digitalcompetitive advantage.

These firms do very little with advanced digitalcapabilities, although they may be mature withmore traditional applications such as ERP orelectronic commerce. Although companies maybe Beginners by choice, more often than notthey are in this quadrant by accident. They maybe unaware of the opportunities, or may bestarting some small investments withouteffective transformation management in place.

Maturity by Industry


Digital Maturity Matters in Every Industry


BeginnersPharmaceuticals – Executives see threat in digital transformationbut less opportunity than other industries do, perhaps because ofregulation.

CPG – Digital opens new possibilities for firms to engage directlywith customers. 24% of firms surveyed stand out as Digirati, whileothers lag far behind.

Manufacturing – Traditionally slow to react to digital,manufacturing is on the cusp of emerging from Beginner status.Efforts in digital remain focused on operational efficiencies andworker enablement

ConservativesInsurance – High expectations for digital and strong vision andgovernance suggest that the insurers should be leading the digitalrevolution. Yet, this is not the case for most firms.

Utilities – For the Conservative Utilities industry, efficiency is thename of the game in digital transformation. Constant pressure toreduce costs and the advent of smart metering create digitalopportunities in customer experience, worker enablement, analyticsand process improvement

FashionistasTelecom – Facing ever-increasing levels of connectivity and dataconsumption, Telecom firms have been quick to respond.

Travel & Hospitality – Since the advent of the web, digital hasturned the industry upside down. The industry has responded, with81% of firms in the Digirati or Fashionista quadrants and noBeginners. Opportunities exist to improve worker enablement inmany companies.

DigiratiBanking – Digital is revolutionizing the relationship between customersand retail banks, who have responded with strong capabilities in customerservice, analytics and even social media.

Retail – A decade-long history with digital disruption has seasoned retailersand produced a number of Digirati (26% of firms surveyed). Retailers aregenerally confident in the potential for social and mobile, as well as theirdigital skill set.

High-Tech – For High-tech, digital is close to home. Firms generally enjoywell-developed capabilities and high digital maturity. They are also – notsurprisingly – enthusiastic about digital’s potential.

Digital Leaders & Change


1. Business/IT relationship is key (closing the gap between both,focusing on the same goals & NOT overlooking the role of IT)

2. There is a common DNA among digital leaders and the path todigital transformation shows common traits (even if contextmatters)

3. As said, each industry is impacted, including your industry.Customers, employees, partners, nor competitors or new,disruptive players, will wait for business to catch up, regardless ofindustry

4. Digital transformation is led from the top (or at least requires firmbuy-in from the top – and all stakeholders)

Four Digital Transformation Realities to Emphasize


MYTH REALITY

Digital is primarily about the customer experience

Huge opportunities exist in efficiency, productivity & employee leverage

Digital primarily matters only to tech or B2C companies

Opportunities exist in all industries with no exceptions

Let a thousand flowers bloom, bottom-up activity is the right way to change

Digital transformation must be lead from the top

If we do enough digital initiatives, we will get there

Transformation management intensity is more important for driving overall performance

Digital transformation will happen despite our IT

Business/IT relationships are key, & in many companies they must be improved

Digital transformation approach is different or every industry & company

Digital leaders exhibit a common DNA

In our industry we can wait & see how digital develops

There are digital leaders outperforming their peers in every industry today

Agenda

19










PHIL HEARSUM


PHIL HEARSUM

ITSM Portfolio Manager

AXELOS Global Best Practice

Rosebery Court, St Andrews Business Park

Norwich NR7 0HS

AXELOS.com

PUBLIC

PUBLIC

Phil HearsumITSM Portfolio manager

DIGITAL TRANSFORMATION HOW BEST PRACTICE IS EVOLVING

AXELOS, the AXELOS logo, the AXELOS swirl logo, ITIL are registered trade marks of AXELOS Limited.

PUBLIC

PUBLIC

Who am I and what is AXELOS• My name is Philip Hearsum

• I am the ITSM portfolio manager at AXELOS.

• I have worked in IT for 35+ years and ended up working for the UK government. During that time I became an evangelist for ITSM and ITIL® in particular

• ITIL was created in the 80’s by the UK government to help their provision of IT

• It undertook several revisions over the years becoming the de facto framework for ITSM in the world

• In 2012 a joint venture to look after ITIL and the others in the Global Best Practice stable was created. A tender was undertaken which resulted in AXELOS.

PUBLIC

PUBLIC

Traditional ITSM facts and fiction

• ITIL is process based

• ITIL is heavy influenced by infrastructure, hence the name

• ITIL works best for traditional IT that have a more waterfall

approach to ITSM

• You don’t need ITSM if you have your services in the cloud.

PUBLIC

PUBLIC

How did we end up with these views?

• The core ITIL books consist of a lot about process.

• However it also talks about people and culture.

• It talks about outcomes not outputs but shows outputs for each process

• Adopt and adapt is talked about a lot but we have relied on consultants and trainers to provide guidance to the enterprise.

• Change is rigid and controlled and heavily based on the CAB

• This is an often quoted misconception

PUBLIC

PUBLIC

What has ITIL to offer to digital transformation?• ITIL is non prescriptive

• It is flexible

• It is based on outcomes not outputs

• By using your risk appetite and technology enablers you can adopt and adapt ITIL to your organization

• New guidance has been released The ITIL practitioner

PUBLIC

PUBLIC

ITIL Practitioner

Continual Service Improvement

CommunicationMeasurement

& Metrics

Organizational

Change Management

PUBLIC

PUBLIC

PUBLIC

PUBLIC

What are my top tips?1. Always remember that YOU are accountable for YOUR service.

2. Outcomes are what matters not outputs, define what you want and measure them.

3. Communication is vital.

4. Create an organizational culture around service management.

5. Ensure that measures are MEANINGFUL and contribute towards outcomes.

6. Work in small steps ensuring that the changes are embedded.

7. Understand your needs and partner with your service provider if possible.

PUBLIC

PUBLIC

ANY QUESTIONS?

COMMERCIAL IN CONFIDENCE

COMMERCIAL IN CONFIDENCE

Agenda

33










What is the Reference Point for Digital Transformation?


Digital Transformation - Music


Industry Digital Transformation

36

Used technology to improve in-store experience & increase

operational excellence

Automating mining operations to improve efficiency & safety while

creating new business opportunities


Developed vision & governance capabilities before it began toimplement new digital services in its cars

Built a digital division (Nike Digital Sport) to coordinate & extend thesuccessful activities it had builtseparately in social media, digitalproduct design, custom manufacturing

How Digital Transformation Changes the Nature of Work


Digital Transformation

38

Organisations today are “rushing” to become more digital - So what does digital mean? new shiny technology

new way of engaging with customers, suppliers &employees

new way of doing business

By definition if we are surrounded by technology – pervading every aspect of our working & social lives. effort to maximise the value the organisation

effective service management is at the core of great organisations – delivering effective, efficient & economical use of “resources” in terms of People, Process, Technology



The Digital Transformation Divide

Digital Strategy is Not Yet Business Strategy


Stages of Digital Transformation


Business as Usual: Organizations operate with a familiar legacy perspective of customers, processes, metrics, business models, and technology, believing that it remains the solution to digital relevance.

Present and Active: Pockets of experimentation are driving digital literacy and creativity, albeit disparately, throughout the organization while aiming to improve and amplify specific touchpoints and processes.

Formalized: Experimentation becomes intentional while executing at more promising and capable levels. Initiatives become bolder, and, as a result, change agents seek executive support for new resources and technology.

Strategic: Individual groups recognize the strength in collaboration as their research, work, and shared insights contribute to new strategic roadmaps that plan for digital transformation ownership, efforts, and investments.

Converged: A dedicated digital transformation team forms to guide strategy and operations based on business and customer- centric goals. The new infrastructure of the organization takes shape as roles, expertise, models, processes, and systems to support transformation are solidified.

Innovative and Adaptive: Digital transformation becomes a way of business as executives and strategists recognize that change is constant. A new ecosystem is established to identify and act upon technology and market trends in pilot and, eventually, at scale.

7 Layers of Digital Transformation


Know where to startCustomer

Experience

Culture

Organization

BusinessModel

Processes

Infrastructure

Leadership &Capabilities

Creating a Digital Transformation Engine


Digital Transformation: Catalysts & Inhibitors


DIGITAL ETHNOGRAPHYFocus on the new customer

journey

DIGITAL DARWINISM EVOLUTION

DIGITAL DARWINISMAdapt to new technology or

die

BEHAVIORAL ECONOMICSDigital opens new touch

points

LEADERS LEADEmpowerment is top down,

inspiration cascades

DATA PARALYSISActionable insight need new support paradigm

CAUSE EFFECTNo dedicated

resources

TUNNEL VISIONSilos prevent CX

collaboration

EDUCATIONExecs need to know

what they don’t know

No common vision

Competitive disadvantage

Lack of sense of urgency

Broken experience

Internal collaboration

Expand market opportunities

Culture of innovation

Hero’s journey, customer inspire change

CSI

Dynamic Value Opportunity


BUT………….

Six Steps to Getting Digital Transformation Started


Digital Reshape

47

Digital can reshape every aspect of a modern enterprise


Building Digital Maturity: Digital DNA

48

1. Transformative Vision

2. Digital Governance

3. Engagement

4. IT-Business relationships


Four key transformation management practices that enable companies to align their digital efforts under a common vision & coordination structure, & engage the company in making that vision a reality:

Conducting Your Own Digital Transformation

49

Frame the Digital Challenge1. Understand the threats

2. Access your firms digital maturity

3. Create/have a transformative digital vision

4. Senior team should have common vision


Focus Investment1. Identify where the company should excel

2. Decide if you need to adapt your business model

3. Develop strong enterprise level governance

Engage the Organization at Scale1. Putting the organization in motion early

2. Continuous two-way communication

3. Encourage employees to ID new practices & opportunities

Sustain the Transformation1. Fill the skills gaps

2. Quantify & monitor progress

3. Iterate & improve

You Don’t Become Digitally Mature Overnight


51

Digital Service Management


Digital Innovation

Digital Workplace

360 Customer Engagement

Digital Marketplace

IoT AutomationCustomer Internal

Service Requests

Business Enablement

Service OptimizationOpen ITIL Process & Solution Content

Digital Service Management


Go from Zero to One

Leverage the world where your clients experience

does not exist (yet)

Nespresso; iPhone; Amazon; Groupon

Instagram

What does Transformation of Legal Business mean to you?

Just 5 words?

“The best way to predict the future is to create it” Peter Drucker

Focus on:client experience, new

customers & users, profitability, quality of

life

PAIN + LOVEHellven (hell + heaven)


Adoption of AI/IAcontract review of risk & value

Voice Recognition & Digitizedno paper

Mobile First -> AI Firstquick & easy to use

Drafting 2.0 Case/Project Management

Where will the Transformation Happen?

Consulting Features

57

Lean 6 Sigma

Non FE’s becoming FE’s

Value Billing

New Corporate entities (LS; Consulting; More…)

International Focus

IT & R&D Function


Five Previous Transformations


Lessons from Previous Transformations


Agenda

60










BILL HEFFERNAN


BILL HEFFERNAN

SERVICE MANAGEMENT EXPERT

SURESKILLS | SP3 Services


Dublin 2

Why Me?

62

30 years experience in IT

15+ years specialising in IT Management Best Practice

Customers Public & Private Sector

Small, medium & Large

Targeted improvements to Organisation transformation

But mostly because …….


I like to give out!


So what is ITIL®

65

• A Framework

• Service Management

• Lifecycle approach

• Deliver value

• Continually improve

• Process based but 4 P’s


“ITIL is not Agile”

66

CSI Incremental Improvement

PDCA (Deming) -> LEAN, 6 Sigma

Communication & Control Framework Inherent CSI

Cross functional Collaboration

Internal & External Communication & Collaboration

Manage Delivery- People (Resources), Process (activities), Products (technology & automation),

Partners

Services – Utility & Warranty


Strategic Objectives to Incremental Improvement


Objectives / Outcomes in all plans & CSI registerIncremental Changes towards objectives, not projectsPriorities assessed Weekly, Monthly, Bi-Annual, AnnualOpportunities identification – metrics, Customers (BRM), Service Owners, Process Owners

Business Strategy

IT Strategy Year 1 Year 2 Year 3

Annual Plan Cycle 1 (Q1 & Q2) Cycle 2 (Q3 & Q4)

Cycle PlanCSI Register u M1 u M2 u M3 u M4 u M5 u M6

Realities – This Example

68

Service TransformationUtility to Trusted Partner

Service Provider (not Technology management)

Business Aligned (Value Adding)

Trusted Partner

Local to Global


Year 1 Establish core (basic) Organisation,

processes, systems Relatively ‘Waterfall’

Year 2 + 3 Organisation Objectives (e.g.

Globalised services) Service Improvements /

Remediation

The Bottom Line?


Digital Transformation – Service Managers Perspective

70

Using earlier slides: Digital CIO Mindset

What & How of Digital Transformation

Six Steps to getting Digital Transformation Started

Digital Transformation Realities to emphasise


Issues Facing Systems (IT) Change


Digital CIO Mindset


Digital Transformation Requires Total Organizational Commitment

Traditional Digital

Strategy Efficiency Innovation

Culture Hierarchy Collaboration

Talent Low Cost High Skills

Technology Legacy Cloud, Mobile, Apps, AI

User Experience “Who Cares?” Mission Critical

IT Philosophy Default to “No” Default to “Yes”

Project Management Waterfall Iterative (Agile)

Business Model Service & Support Relationship & Partner

Source: CXOTALK

What & How of Digital Transformation


Six Steps to Getting Digital Transformation Started


ITIL Value

ITIL Service Perspective (4P’s)

ITIL Metrics

ITIL – Service Requirements

ITIL – CSI

ITIL – Knowledge & People Management

1. Business/IT relationship is key (closing the gap between both,focusing on the same goals & NOT overlooking the role of IT)

2. There is a common DNA among digital leaders and the path todigital transformation shows common traits (even if contextmatters)

3. As said, each industry is impacted, including your industry.Customers, employees, partners, nor competitors or new,disruptive players, will wait for business to catch up, regardless ofindustry

4. Digital transformation is led from the top (or at least requires firmbuy-in from the top – and all stakeholders)

Four Digital Transformation Realities to Emphasize


MYTH REALITY

Digital is primarily about the customer experience

Huge opportunities exist in efficiency, productivity & employee leverage

Digital primarily matters only to tech or B2C companies

Opportunities exist in all industries with no exceptions

Let a thousand flowers bloom, bottom-up activity is the right way to change

Digital transformation must be lead from the top

If we do enough digital initiatives, we will get there

Transformation management intensity is more important for driving overall performance

Digital transformation will happen despite our IT

Business/IT relationships are key, & in many companies they must be improved

Digital transformation approach is different or every industry & company

Digital leaders exhibit a common DNA

In our industry we can wait & see how digital develops

There are digital leaders outperforming their peers in every industry today



Top Barriers That Impede TakingAdvantage of Digital Trends

Barriers to any change?

But effective ITSM can help.

Same Issues Facing Systems (IT) Change


Top 10 Barriers of Success for Systems Implementation (Digital)

Standard IT Change issues?

Resistance to business agility?

ITIL® & Digital Transformation – My View

77

Different types of services but still services

Different service delivery models

Driving greater IT & Business collaboration


Digital TransformationChallenging for Service Providers

But Not for Service Management

ITIL is not suitable for digital age?

78

Beware the evangelist!

Manage process but focus on outcomes – bureaucracy, fail to manage, all or nothing

ITIL® says ……

Understand business value

Manage culture – business & IT

Communications & Control – channels & content (MI)

Relationship Management (Business & Suppliers)

Continual Service Improvement - leadership


Remember Pragmatic ITSM – Theory into Practice

79

Practitioner Principles

Focus on Value

Design From Experience

Start Where You Are

Work Holistically

Progress Iteratively

Observe Directly

Keep It Simple

Collaborate

Be Transparent


Grumpy’s Principles

Understand the Customer & Market

Understand the Service Provider

Validate / Create Strategic Vision

Understand / Focus on value

Engage Senior Stakeholders

Don’t implement ITIL®

Get visibility (services & delivery)

Communication & Control Framework

Incremental Improvement

Service Managers in charge (not process)

Parting Advice


One Solution does NOT Fit AllITIL®, DevOps, Lean, 6 Sigma, PRINCE2™, SCRUM….

Adopt & Adapt

What Digital Transformation means to me?

81

Digital Transformation: Does not require a new service management framework

Does not challenge ITIL® Principles

Can help transform the business perspective of services and service delivery …….


OPPORTUNITY

IT as Service Champions in the business?

Questions – SO WHAT!!


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Thank you

Ruaidhri McSharry

Director Service Management

SureSkills

Phil Hearsum

ITSM Specialist

Axelos

Bill Heffernan

ITSM Expert

SureSkills | SP3 Services