Developing an IT Service Strategy Part 1 Describing the Challenge

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Part 1 of this 2 part set covering the challenge of defining an IT Service Strategy. This presentation is supported by the posts at blog.thehigheredcio.com and is intended to be interactive with …

Part 1 of this 2 part set covering the challenge of defining an IT Service Strategy. This presentation is supported by the posts at blog.thehigheredcio.com and is intended to be interactive with stakeholders.

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  • Split and include value chain notations

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  • 1. Developing an IT Service Strategy Part 1: Describing the Challenge Jerry Bishop Blog.TheHigherEdCIO.com Creative Commons Attribution-ShareAlike 3.0 Unported License .
  • 2. ACKNOWLEDGEMENTS & REFERENCES
    • This presentation was inspired by the work of Frances X. Frei, Professor Harvard Business School who has written extensively and very insightfully on managing service businesses.
    • Breaking the Trade-Off Between Efficiency Versus Service , HBR Nov 07
  • 3. Just for Context…
    • Imagine the effects on a manufacturing businesses efficiencies and quality if they had to deal with their customers walking around the production line involving themselves in the process that makes up the physical value chain.
  • 4. Now consider…
    • By contrast, in a service business the customer is an integral part of the value chain, which in many cases is virtual, and customers introduce a tremendous amount of variability while simultaneously demanding quality and consistency of service at a low price.
  • 5. SERVICE VARIABILITY
    • 5 categories of customer introduced variability
  • 6. ARRIVAL VARIABILITY
  • 7. Customers do not want service at the same times which is not always convenient for the company.
  • 8. Arrival Variability Classic IT Approach: Require appointments or reservations The IT Challenge: Users cannot predict or plan for when they will need support and they often cannot wait for assistance. The Result: Inefficiencies and queuing
  • 9. REQUEST VARIABILITY
  • 10. Customers’ wants and needs are not the same.
  • 11. Request Variability Classic IT Approach: No substitutions, set expectations, service catalogues The IT Challenge: Customers want custom, personalized computing experiences The Result: Needs aren’t being met
  • 12. CAPABILITY VARIABILITY
  • 13. Some customers are more capable of assisting in the service while others require hand-holding.
  • 14. Capability Variability Classic IT Approach: User Training, mentors for executives, help desk The IT Challenge: More important when customers are active participants in the delivery of a service and support is remote The Result: Frustration, slow response times
  • 15. EFFORT VARIABILITY
  • 16. When customers must perform a role in a service interaction, it’s up to them how much effort they apply to the task.
  • 17. Effort Variability Classic IT Approach: Create incentives The IT Challenge: Few incentives to offer of any value, attitudes towards self-support The Result: Impact on service quality and cost, either directly for the engagement at hand or indirectly for other customers
  • 18. SUBJECTIVE PREFERENCE VARIABILITY
  • 19. Customers’ opinions vary widely on what it means to get good service
  • 20. Subjective Preference Variability Classic IT Approach: Set expectations, tiered services The IT Challenge: Culture of customer is always right, difficult to manage expectations down The Result: Makes it that much harder to serve a broad base of customers
  • 21. Considerations for Outsourcing
    • Customers may feel like they have given something up under outsourcing – jobs, higher cost
    • Customers expect something more in return usually in the form of premium results
    • When you take something away you have to replace it with something of equal or greater value to those affected by it
    • Requires deliberate plan to address the value expectation or variability will shift dramatically compounding the situation
  • 22. PART 2: DEALING WITH VARIABILITY
    • Dealing with variability will follow on blog.thehigheredcio.com and be posted to slideshare.net
  • 23. QUESTIONS
    • Jerry Bishop
    • blog.thehigheredcio.com