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
    Jerry Bishop
    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 06
  • 3. Part 1 REcapservice Variability
    5 categories of customer introduced variability
    Developing an IT Service Strategy Part 1
  • 4. Arrival Variability
    Customers do not want service at the same times which is not always convenient for the company.
  • 5. Request Variability
    Customers’ wants and needs are not the same.
  • 6. Capability Variability
    Some customers are more capable of assisting in the service while others require hand-holding.
  • 7. Effort Variability
    When customers must perform a role in a service interaction, it’s up to them how much effort they apply to the task.
  • 8. Subjective Preference Variability
    Customers’ opinions vary widely on what it means to get good service.
  • 9. Part 2: Dealing with variability
    Dealing with variability will follow on and be posted to
  • 10. The Challenge
    The challenge for service managers is how and how much to reduce or accommodate customer introduced variability in their service model
  • 11. Balancing Service with Efficiency
    Services must support
    Consistent and repeatable results
    Achieving a clear value (cost – quality) target
    Capable (How) of handling variability
    Efficiency must provide
    Boundaries to maintain the value target
    Capacity (How Much) to handle variability
  • 12. Reality for Services Business
    Customers introduce tremendous variability
    You cannot drive out all variability since it is how many customers judge value and quality
    Since customers are directly involved you can’t eliminate all variability even if you wanted to
  • 13. Conventional Wisdom
    Variability = Cost
    Faulty Conclusion
    Accommodate customers various desires or reduce variability and risk customer satisfaction and defection
  • 14. Frie’s Alternative Perspective
    Source: Harvard Business Review • Nov ‘06
  • 15. Reduction vs. Accommodation
    Look for low cost options to accommodate more variability
    Find ways to reduce variability without compromising the experience
  • 16. 5 Reduction Strategies for IT
    • 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
  • 5 Accommodation Strategies for IT
    • Incorporate power users in your service delivery model for broader support options
    Leverage automation strategically for a lower cost high touch staffing model
    Selectively use self service where it will be perceived as a flexible or faster value-add
    Use lower cost labor to expand capabilities including student workers
    Use strategic sourcing solutions to increase capability or support coverage
  • 22. Which Strategy to Pursue
    Organizations low end of competitive landscape must rely on strategies to reduce variability
    Organizations under financial pressures must rely on reduction strategies
    Markets which can support premium prices can rely more on accommodation strategies
  • 23. Questions
    Jerry Bishop