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IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
IT Service Strategy Part 2
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IT Service Strategy Part 2

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Developing a service strategy where customer introduced variability requires specific planning. IN this part, considerations for using reduction and accommodation strategies are covered. Part 1 is …

Developing a service strategy where customer introduced variability requires specific planning. IN this part, considerations for using reduction and accommodation strategies are covered. Part 1 is available here on SlideShare.

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  • 1. Developing an IT Service StrategyPart 2: Dealing With Variability<br />Jerry Bishop<br />Blog.TheHigherEdCIO.com<br />Creative Commons Attribution-ShareAlike 3.0 Unported License.<br />
  • 2. Acknowledgements & References<br />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.<br />Breaking the Trade-Off Between Efficiency Versus Service, HBR Nov 06<br />
  • 3. Part 1 REcapservice Variability<br />5 categories of customer introduced variability<br />Developing an IT Service Strategy Part 1<br />
  • 4. Arrival Variability<br />Customers do not want service at the same times which is not always convenient for the company.<br />
  • 5. Request Variability<br />Customers’ wants and needs are not the same.<br />
  • 6. Capability Variability<br />Some customers are more capable of assisting in the service while others require hand-holding.<br />
  • 7. Effort Variability<br />When customers must perform a role in a service interaction, it’s up to them how much effort they apply to the task.<br />
  • 8. Subjective Preference Variability<br />Customers’ opinions vary widely on what it means to get good service.<br />
  • 9. Part 2: Dealing with variability<br />Dealing with variability will follow on blog.thehigheredcio.com and be posted to slideshare.net<br />
  • 10. The Challenge<br />The challenge for service managers is how and how much to reduce or accommodate customer introduced variability in their service model<br />
  • 11. Balancing Service with Efficiency<br />Services must support <br />Consistent and repeatable results<br />Achieving a clear value (cost – quality) target<br />Capable (How) of handling variability<br />Efficiency must provide<br />Boundaries to maintain the value target<br />Capacity (How Much) to handle variability<br />
  • 12. Reality for Services Business<br />Customers introduce tremendous variability<br />You cannot drive out all variability since it is how many customers judge value and quality<br />Since customers are directly involved you can’t eliminate all variability even if you wanted to<br />
  • 13. Conventional Wisdom<br />Variability = Cost<br />Faulty Conclusion<br />Accommodate customers various desires or reduce variability and risk customer satisfaction and defection<br />
  • 14. Frie’s Alternative Perspective<br />Source: Harvard Business Review • Nov ‘06<br />
  • 15. Reduction vs. Accommodation<br />Look for low cost options to accommodate more variability <br />Find ways to reduce variability without compromising the experience<br />
  • 16. 5 Reduction Strategies for IT<br /><ul><li>Develop Service Catalogues (menus) to define the standard IT services, options, and tiered support
  • 17. Create transparency for IT Service costing
  • 18. “Show-back”, chargeback, allocation or metering
  • 19. Reduce user rights on desktop in exchange for improved quality of experience and more options
  • 20. Create incentives for users to complete training
  • 21. Target users based on demand data from Problem Management</li></li></ul><li>5 Accommodation Strategies for IT <br /><ul><li>Incorporate power users in your service delivery model for broader support options</li></ul>Leverage automation strategically for a lower cost high touch staffing model<br />Selectively use self service where it will be perceived as a flexible or faster value-add<br />Use lower cost labor to expand capabilities including student workers <br />Use strategic sourcing solutions to increase capability or support coverage<br />
  • 22. Which Strategy to Pursue<br />Organizations low end of competitive landscape must rely on strategies to reduce variability<br />Organizations under financial pressures must rely on reduction strategies<br />Markets which can support premium prices can rely more on accommodation strategies<br />
  • 23. Questions<br />Jerry Bishop<br />blog.thehigheredcio.com<br />

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