ITIL Practical Guide - Service Strategy


Published on

To view this complimentary webcast in full, visit:

Viewing the ITIL framework from a business perspective, this video shows how you can integrate IT with the business and align strategies throughout the lifecycle of a service.

  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • The Service Portfolio acts as “the spine” of the service lifecycle. It is the single integrated source of information on the status of each service together with other service details and the interfaces and dependencies between services. The information within the Service Portfolio is used by the activities within each stage of the service lifecycle. SERVICE STRATEGY – Looks at the Capabilities and Constraints This slide demonstrates the SPINE of all this is the SERVICE PORTFOLIO
  • Paras 1.3, 3.1/SS Perception/Preference/Attributes (p.31) – draw triangle/discuss?
  • Blocks – fig 3.24, para 3.5.1 p53+ Market space – p.70/71 Draw simplified diagram 3.23?
  • Some of the key concepts in Service Strategy are about value creation. Maybe use an example of buying a new car to explain U+ W? If you buy a new car what are the Utility and Warranty questions you need to ask/answer?
  • Talk through the logic of value creation through utility and warranty.
  • 4.1 – define market 4.2 – develop offerings 4.3 – develop strategic assets 4.4 - execution
  • 4.3 Virtuous cycle – see fig 4.14; 4.15 4.3.1
  • See next slide for 4 Ps
  • SS/3.5.2 Plans Action to move from one point to another. “ Intended strategy” Long-term Well-defined outcomes Patterns “ the way we do things here..” Patterns of action reinforced by success Identify opportunities Types of Pattern How to Boundary Priority Timing Perspective Governing set of beliefs/values/sense of purpose Not easily changed Do not underestimate Basis for Plans/Positions/Patterns Positions Distinctiveness in the mind of the customer Differentiated value-proposition Variety-based Needs-based Access-based
  • Capabilities like management, organisation, people, and knowledge are used to transform resources into valuable services. Capabilities represent an organisation’s ability to coordinate, control, and deploy resources to produce value experience-driven, knowledge-intensive, information-based embedded within an organisation’s people, systems, processes, and technologies. SS/3.2.1; 3.2.2; 11.1 People are common to both Assets - create value as goods/services Resources Financial capital/Infrastructure/Applications/Information People Capabilities Management/Organisation/Processes/Knowledge Units Business Units Bundle of assets to create value as goods/services Service Unit Bundle of service assets that create value as services
  • Para 5.5.4/p.133/SS Service packages allow development of differentiated offerings. Based on CSP/SLP combination. Draw diagram 5.27/p.134/SS Core services represent the value that the customer wants and for which they are willing to pay. Deliver basic outcomes desired by customers Enabling services are basic factors that qualify the provider for an opportunity to serve and enhancing services are excitement factors for differentiation.
  • P 41/SS para 3.3 – explain differences between the 3 types.
  • SS/3.3; 3.3.4 – transaction costs; aggregate/disaggregate “being there…” = incumbency. Not all foreign students will know that word. Probably a few native speakers as well init?! What are the pros/cons on incumbency? Discussion?
  • SS/3.4 Much of the value of service management is intangible and complex. It includes knowledge and benefits such as technical expertise, strategic information, process knowledge and collaborative design. Often the value lies in how these intangibles are combined, packaged, and exchanged. Linear models have shown themselves to be inadequate for describing and understanding the complexities of value for service management, often treating information as a supporting element rather than as a source of value. Information is used to monitor and control rather than to create new value. Value network A value network is a web of relationships that generates tangible and intangible value through complex dynamic exchanges through two or more organizations. Systems – 3.4.2 Services operate with efficiency of self-contained enterprise.
  • A critical document Provides the linkage between services Repository for up to date service information Uses status to track progression of services through their lifecycle from Requirement through to Retirement. It is registered in the Service Knowledge Management System
  • Intentionally blank page to be completed by Training Provider with additional information if desired
  • p.97/SS book “ do more, cost less” = increasing demand/greater operational visibility and control Applies to all SP types.
  • p.98-109 SS book. Paras 5.1.2-5.1.3 inc. Planning Confidence – Investment Analysis – Methods/models – 5.1.3
  • NB - Applies to SS/SD and CSI SS – 5.2 CSI – 4.4
  • ITIL Practical Guide - Service Strategy

    2. 2. V3 and Organisations? <ul><li>V2 – provides core processes </li></ul><ul><li>V3 – moves IT from a position of supplier to partner </li></ul><ul><li>Levels of maturity – V2/V3 </li></ul><ul><ul><li>V2 – helps organisations move to a minimum of level 3 </li></ul></ul><ul><ul><li>V3 – increase maturity toward levels 4 and 5 </li></ul></ul>
    3. 4. Purpose and Principles of Service Strategy <ul><li>Purpose </li></ul><ul><ul><li>Develop the ability to think and act strategically. </li></ul></ul><ul><ul><li>Use strategic assets to achieve goals </li></ul></ul><ul><ul><li>Define the dependencies between Strategy and SM processes </li></ul></ul><ul><li>Principles </li></ul><ul><ul><li>Outcome - Fulfilment of need/s </li></ul></ul><ul><ul><li>Create value </li></ul></ul>
    4. 5. Objectives <ul><li>To be able to answer questions such as: </li></ul><ul><li>What services should we offer and to whom? </li></ul><ul><li>How do we differentiate ourselves from competing </li></ul><ul><li>alternatives? </li></ul><ul><li>How do we truly create value for our customers? </li></ul><ul><li>How do we capture value for our stakeholders? </li></ul><ul><li>How can we make a case for strategic investments? </li></ul>
    5. 6. Goals <ul><li>Show how to transform service management into a strategic asset </li></ul><ul><li>See the relationships between various services, systems or processes that are managed and the business models, strategies, or objectives they support </li></ul>
    6. 7. Basics <ul><li>A Strategy is not a Plan </li></ul><ul><li>Building blocks of high performance </li></ul><ul><ul><li>Market </li></ul></ul><ul><ul><li>Performance </li></ul></ul><ul><ul><li>Capabilities </li></ul></ul><ul><li>Value Capture – what the provider keeps </li></ul><ul><li>Market Space – desired customer outcomes supported by one or more service/s </li></ul><ul><ul><li>Opportunity to deliver value through one or more services </li></ul></ul>
    7. 8. Value = Utility and Warranty <ul><li>From the customer’s perspective, the business value of a </li></ul><ul><li>service is created by the combination of two elements: </li></ul><ul><li>Utility is the functionality offered by a product or service from the customer’s perspective (Fitness for Purpose) </li></ul><ul><li>Warranty is a promise or guarantee that a product or service will meet its agreed requirements. This may be a formal agreement such as a Service Level Agreement or Contract, or may be a marketing message or brand image (Fitness for Use) </li></ul>
    8. 9. UTILITY WARRANTY T/F T/F T/F Fit for purpose? Fit for use? OR AND Performance supported? Constraints removed? Available enough? Capacity enough? Continuous enough? Secure enough? T: True F: False Value-created AND Value Creation © Crown Copyright 2007. Reproduced with permission from OGC
    9. 10. Scope <ul><li>Service Strategy main activities </li></ul><ul><ul><li>- Define the market </li></ul></ul><ul><ul><li>- Develop the offerings </li></ul></ul><ul><ul><li>- Develop strategic assets </li></ul></ul><ul><ul><li>- Prepare for execution </li></ul></ul><ul><li>Financial Management </li></ul><ul><li>Service Portfolio Management </li></ul><ul><li>Demand Management </li></ul>
    10. 11. SM as a Strategic Asset <ul><li>Capabilities to control and coordinate resources to support a catalogue of services </li></ul><ul><li>Virtuous cycle demonstrates </li></ul><ul><ul><li>Value + Perceived benefits </li></ul></ul><ul><ul><li>On-going relationship/partnership </li></ul></ul><ul><ul><li>Return on investment/assets </li></ul></ul><ul><li>Improvements – closed-loop system </li></ul><ul><li>Increase potential – Service/Performance </li></ul>
    11. 12. Forming Strategy Needs fig 4-19!!!!
    12. 13. The four Ps <ul><li>Plans </li></ul><ul><li>Patterns </li></ul><ul><li>Perspective </li></ul><ul><li>Positions </li></ul><ul><li>Entry points to Service Lifecycle </li></ul><ul><li>Service Strategy forms </li></ul>Strategy Perspective Patterns Plans Positions
    13. 14. Service Assets <ul><li>Service assets are used to create value in the form of goods and services </li></ul><ul><li>Resource is a generic term that includes IT Infrastructure, people, money or anything else that might help to deliver an IT service. </li></ul><ul><ul><li>Resources </li></ul></ul><ul><ul><ul><li>Information/Applications/ Infrastructure/Finance </li></ul></ul></ul><ul><li>Capability is the ability of a service organisation, person, process, application, configuration item or IT service to carry out an activity. Capabilities are intangible assets of an organisation. </li></ul><ul><ul><li>Capabilities </li></ul></ul><ul><ul><ul><li>Management/Organisation/People/Knowledge </li></ul></ul></ul>
    14. 15. Service Packages <ul><li>A Service Package is a detailed description of an IT Service that is available to be delivered to customers. A Service Package includes one or more core services and supporting services as well as a Service Level Package </li></ul><ul><li>Core services deliver the basic outcomes desired by the customer </li></ul><ul><li>Supporting services either enable or enhance the value of a service </li></ul>
    15. 16. Service Providers <ul><li>Type I </li></ul><ul><ul><li>Internal Service Provider (ISP) </li></ul></ul><ul><li>Type II </li></ul><ul><ul><li>Shared Services Unit (SSU) </li></ul></ul><ul><li>Type III </li></ul><ul><ul><li>External Service Provider (ESP) </li></ul></ul>
    16. 17. Service Providers <ul><li>How to decide…? </li></ul><ul><li>Transaction costs – overall costs of conducting business with a provider . Purchase cost + + + + + + +? </li></ul><ul><li>Internal (aggregate)/External (disaggregate) </li></ul><ul><li>“ Incumbency” </li></ul><ul><li>Build lasting relationships based on - </li></ul><ul><li>Strategic planning and control </li></ul><ul><li>Common Objectives </li></ul><ul><li>Shared Knowledge </li></ul><ul><li>Experience influences planning </li></ul>
    17. 18. Service Structures <ul><li>Value Chain or Value network (Value net)? </li></ul><ul><li>Chain – linear/production line </li></ul><ul><li>Net – collaborative exchanges </li></ul><ul><li>Service Systems </li></ul>
    18. 19. Service Knowledge Management System Service Portfolio © Crown Copyright 2007. Reproduced with permission from OGC Service Portfolio Service Lifecycle Service Status: Requirements Defined Analysed Approved Chartered Designed Developed Built Test Released Operational Retired Service Pipeline Service Catalogue Retired Services Customer/support team viewable section of the Service Portfolio (the Service Catalogue, with selected fields viewable) Services under development, build or test Services no longer live
    19. 20. Demand Management - Objectives <ul><li>To avoid excess capacity generating costs without creating value </li></ul><ul><li>To prevent insufficient capacity impacting the quality of services provided </li></ul><ul><li>Business Relationship Manager </li></ul><ul><li>Product Manager/Service Owner </li></ul>Demand Management - Roles
    20. 21. Concepts <ul><li>Activity-based demand management </li></ul><ul><li>Patterns of business activity </li></ul><ul><li>User profiles </li></ul><ul><li>Differentiated offerings </li></ul><ul><li>Differentiated service levels </li></ul>
    21. 22. FM - Objectives <ul><li>To provide operational visibility, insight and superior decision making </li></ul><ul><li>To provide the business and IT with the quantification, in financial terms of the value of IT services, the value of the assets underlying the provisioning of those services, and the qualification of operational forecasting </li></ul>
    22. 23. FM - Concepts <ul><li>Service valuation </li></ul><ul><ul><li>- Provisioning value </li></ul></ul><ul><ul><li>- Service value potential </li></ul></ul><ul><li>Demand modelling </li></ul><ul><li>Service portfolio management </li></ul><ul><li>Service provisioning optimisation </li></ul>
    23. 24. Return on Investment (RoI) <ul><li>Quantify the value of an investment (cost/benefit) </li></ul><ul><li>Measure ability to use assets to generate value </li></ul><ul><li>Issues </li></ul><ul><ul><li>Simplistic approach </li></ul></ul><ul><ul><ul><li>Net profit of investment divided by net worth of assets </li></ul></ul></ul><ul><ul><li>Hard to identify financial return for specific aspects of SM </li></ul></ul><ul><ul><li>Understand the business imperative </li></ul></ul><ul><ul><li>Short term </li></ul></ul><ul><ul><li>What’s the cost of not doing it? </li></ul></ul>