Demand-Based ITSM as Business Resource Management

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Management paradigms change in IT. Most often this occurs on the "supply" side. But demand-based management is what reflects the business and why it cares about ITSM.

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Demand-Based ITSM as Business Resource Management

  1. 1. Demand-based ITSM as Business Resource Management An Archestra Notebook © 2014 Malcolm Ryder / archestra research
  2. 2. Preface In this notebook: • The discussion is intended to describe, not to prescribe; any prescriptive use can be based only on making comparisons of the description to current observations about particular real circumstances or locations • The discussion is about ITSM; however, it is neither about ITIL nor based at all on ITIL terminology • Terminology in this discussion is defined in the first section of the content • “IT” or “I.T.” means “information technology”, used in the same way that we would use the terms “personnel” or “funding” • “IT” or “I.T.” is not used as the name of an organization or department; a provider of IT is a role that can be played, however this entire discussion is based on the point of view of the customer/client/recipient regardless of provider. All text and images in this discussion © 2014 Malcolm Ryder / archestra research
  3. 3. Content • Discussion terminology • Discussion Overview • Business Overview of Enablement • Management Planning • Business Performance Management • Business Value of IT • Business Resource Management and IT
  4. 4. Discussion Terminology
  5. 5. Acronyms and Ideas • Dependency Hierarchy Business decisions are independent variables that have after-effects which are dependent variables. The dependent variable is the [state] expected to change whenever the independent variable is altered. In a test, the "independent variables" represent the inputs or causes... the "dependent variable" represents the output or effect. Higher-level decisions are inputs that require consideration of necessary changes to lower-level conditions Lower-level decisions are inputs that require consideration of probable impacts on higher-level conditions • Management Processes BPM – Business Process Management CRM – Customer Relationship Management ERP – Enterprise Resource Planning ITSM – Information Technology Service Management BRM – Business Resource Management
  6. 6. Enterprise, Defined A collection of multiple instances of Operations, with Agreements that both manage their co-operation and co-manage their property
  7. 7. Business, Defined A set of co-ordinated and underwritten operations to convert acquired property of one party into delivered benefits for another party Property may be tangible or intangible
  8. 8. Service, Defined On-demand delivery of designated outputs of an operation, within terms of agreement between provider and user A “service” is a status of an operation; an operation may or may not be a service
  9. 9. Operation, Defined A continual, managed process for organizing a pre-designated affect on an opportunity Operations are “business abilities”
  10. 10. Resource, Defined An item, influence or party subscribed to an operation for a prescribed purpose
  11. 11. Capability, Defined A functional competency already held in the form of an executable-on-demand action Technology-dependent execution is of special interest to the business
  12. 12. Business Needs, Defined VALUE: a critically beneficial distinction in the market, created and sustained by how the business operates WORKFLOW: prescribed behaviors and interactions, organized to intentionally execute requirements CAPACITY: level of resource supply maintained for commitment to expected (or desired) demand PLATFORM: integrated utilities and facilities used to host and enable workflow at needed capacity (types, scale and volume/strength) Business value; Business workflow; Business capacity; Business platform.
  13. 13. Value Propositions Capability Resource Operation A functional competency already held in the form of an executable-on-demand action An item, influence or party subscribed to an operation for a prescribed purpose A continual, managed process for organizing a pre-designated affect on an opportunity Business Ability Solution Relevance Service Delivery Impact Availability IT Function Effect Alignment a critical distinction, created and sustained for an objective E.G. – for a Service, the value is in the delivery of the capability; as a resource the value of the delivery is its expected impact; and the value of the impact to an operation is in the planned availability of that impact . Otherwise, the business would choose to use something different. ©2014MalcolmRyder/archestraresearch
  14. 14. Discussion Overview Approaching business opportunity with Capability
  15. 15.          OPERATIONS BUSINESS NON- BUSINESS MANAGEMENT SERVICES   General retail  Community services  Municipal administration  Communications & travel  Corporate and market operations  Education  Business products  Executive administration  Legal  Medical, Security All of the managed coverage of “business concerns” (examples here) assumes that events, intentions and support can be sufficiently coordinated to allow success. This picture represents only that there are multiple kinds of operations and services that the company ‘s business management expects and can intentionally leverage or influence. © 2014 Malcolm Ryder / archestra research Management Landscape
  16. 16. Business Needs Business chooses what help it wants to use, and the help must co-ordinate itself to the business needs Now and going forward, the default assumption is that help is equally likely to be available and obtained externally of the company as internally. Coordination will include ongoing circumstances of new or additional help being brought in to replace, integrate, or collaborate.
  17. 17. Demand-based Business Management of Services “Service Management” necessarily refers to both (a.) the management that forms a service and (b.) the management that chooses to use a service. The existence of a service for a business inherently requires “management”. In effect, without management, there is no service. The business conducts “management operations” to assure a supply of viable services. Business also presumes that the value of a service is cultivated by management. The main purpose of a service is to fulfill demands of “business operations”.
  18. 18. Organize specifically for diversity and change Continually meeting business demand requires awareness of the hierarchy of variable key dependencies where changes may occur to decisions that the business had already made. The business decisions are based on whether the right outcomes are being obtained from the right utilizations of feasible and reliable forms of enablement. Business management of IT is not Technology Management; instead, it is management of the business utilization of technology, facing constant change. Support Provision Selection Source Validation Operate Production Planning Direction APPROPRIATE (WHY) FEASIBLE (HOW) RELIABLE (WHAT) Configure, deploy, implement Design, evaluate, approve Test, secure, offer Find, procure, build Scope, allocate, assign Supervise, control, modify Demand Criteria Business Decisions Critical Variables Business Requirements © 2014 Malcolm Ryder / archestra research
  19. 19. Management of IT-based Services ITSM, or IT Service Management, is one form of management, of one kind of service among many kinds of services used by the business. The role of “IT” in the enterprise is to provide capabilities for business operations, by enabling capabilities that are delivered as supportable resources. A service makes an IT-based capability deliverable on demand. This means that the purpose of a service is to be a supported business resource. The business requirement for ITSM is to mature as Business Resource Management.
  20. 20. Business Overview of Enablement
  21. 21. Business Needs Business chooses what help it wants to use, and the help must co-ordinate itself to the business needs CAPACITY WORKFLOW PLATFORM VALUE
  22. 22. Overview of Business Enablement Business “Intents” held Business “Operations” managed Business “Objectives” managed Emphasize preferences Strategy Demand Discover opportunity Environment Engagement Organize co-operation Architecture Development Obtain resources Infrastructure Provision Select and Synchronize these “abilities” with each other Define and Direct these “priorities” towards each other Direct and Task “management” per these requirements Approaching Opportunity with Capability ©2014MalcolmRyder/archestraresearch
  23. 23. Organization of Enablement CRM BPM ITSM ERP CRM BPM ITSM ERP Business “Operations” with management solutions Business “Objectives” with management solutions ©2014MalcolmRyder/archestraresearch Details within operations and within objectives face constant change
  24. 24. Co-Operation for Value: CRM BPM ITSM ERP Business Operations CRM BPM ITSM ERP Business Objectives Operations for Objectives
  25. 25. Co-Operation for Workflow: CRM BPM ITSM ERP CRM BPM ITSM ERP Business Operations Business Objectives Operations for Objectives
  26. 26. Co-Operation for Capacity: CRM BPM ITSM ERP CRM BPM ITSM ERP Business Operations Business Objectives Operations for Objectives
  27. 27. Co-Operation for Platform: CRM BPM ITSM ERP CRM BPM ITSM ERP Business Operations Business Objectives Operations for Objectives
  28. 28. Strategy: bridging Capacity and Value CRM BPM ITSM ERP Capacity CRM BPM ITSM ERP Value
  29. 29. Architecture: bridging Platform and Workflow CRM BPM ITSM ERP Workflow CRM BPM ITSM ERP Platform
  30. 30. Management Planning Business Responsibilities of Management Solutions
  31. 31. VALUE: a critically beneficial distinction in the market, created and sustained by how the business operates WORKFLOW: prescribed behaviors and interactions, organized to intentionally execute requirements CAPACITY: level of resource supply maintained for commitment to expected (or desired) demand PLATFORM: integrated utilities and facilities used to host and enable workflow at needed capacity (types, scale and volume/strength) BUSINESS NEEDS Primary responsibilities ©2014MalcolmRyder/archestraresearch
  32. 32. from Area To CRM To BPM To ERP To ITSM Value / CRM n/a Request capability for: - engagement - environment Request resources for: - demand - strategy Set constraints on: platform VALUE: a critically beneficial distinction in the market, created and sustained by how the business operates
  33. 33. from Area To CRM To BPM To ERP To ITSM Workflow / BPM Give resource for: - engagement - environment n/a Set constraints on: Capacity Request capability as: - development - architecture WORKFLOW: prescribed behaviors and interactions, organized to intentionally execute requirements
  34. 34. from Area To CRM To BPM To ERP To ITSM Capacity / ERP Give resource for: - demand - strategy Set constraints on: workflow n/a Request capability as: - provision - infrastructure CAPACITY: level of resource supply maintained for commitment to expected (or desired) demand
  35. 35. from Area To CRM To BPM To ERP To ITSM Platform / ITSM Set constraints on: value Give resource for: - development - architecture Give resource for: - provision - infrastructure n/a PLATFORM: integrated utilities and facilities used to host and enable workflow at needed capacity (types, scale and volume/strength)
  36. 36. from Area To CRM To BPM To ERP To ITSM Value / CRM n/a Request capability for: - engagement - environment Request resources for: - demand - strategy Set constraints on: platform Workflow / BPM Give resource for: - engagement - environment n/a Set constraints on: capacity Request capability as: - development - architecture Capacity / ERP Give resource for: - demand - strategy Set constraints on: workflow n/a Request capability as: - provision - Infrastructure Platform / ITSM Set constraints on: value Give resource for: - development - architecture Give resource for: - provision - infrastructure n/a A “Co-Operations” agenda, including I.T. The business management of IT: what to source and support ©2014MalcolmRyder/archestraresearch
  37. 37. Business Performance Management The Benefit of the Resource
  38. 38. The effectiveness of a capability is provided as a resource; the impact of a resource is provided as a benefit For a Resource: the performance of a resource is evaluated in terms of the benefit that the effort of the resource creates. It reflects “doing the right thing”. The benefit is understood as a level of actual impact achieved versus the planned level for that resource effort. Lesser effort reduces the probability of higher impact. A resource performance must be relevant to the business needs. For a Capability: the performance of a capability is evaluated in terms of the alignment with expected effects that the capability availability creates. It reflects “doing things right”. The alignment is understood as an actual degree of effects versus the expected degree supported by the quality of the provided supply. Lower quality reduces the probability of strongly meeting expectations. A capability performance may be technology-dependent. The on-demand availability of relevant capability is a key to the resource’s level of applied effort The deliverability of technology-dependent capability is a key to the recognized quality of the capability Performance = “strong or weak” Performance = “high or low”
  39. 39. Managing Performance (Benefit) of Resources Managing Performance (Alignment) of Capabilities There is no presumption of business performance without “planning”; the plan prescribes the relevance of the resource. There is no presumption of business performance without “support”; support prescribes the availability of the capability. The performance of a resource is “the degree of planned impacts made @ the confirmed level of the applied effort” by the resource. The performance of a capability is “the degree of supported effects met @ the confirmed level of the advertised quality“ of the capability. I.T. note: The on-demand availability of relevant capability is the key to the level of applied effort by a resource I.T. note: The deliverability of technology-dependent capability is key to its perceived quality Resources are committed to business opportunities. Business opportunities are defined through managed decisions, as a form of demand. Capabilities are acquired from business sources. Business sources are defined through managed production, as a form of supply.
  40. 40. Measurement: the performance of a capability is different from the performance of a resource bringing the capability IMPACT from provided RESOURCE Planned Actual highlow None Example of relatively low performance. Note that greater effort from resource can heighten plans. EFFECT from provided CAPABILITY Expected Actual strongweak None Example of relatively strong performance. Note that higher-quality capability can raise expectations. © 2014 Malcolm Ryder / archestra research
  41. 41. Managing Performance (Benefit) of Resources vs. Demand Allowed the least flexibility Allowed the most flexibility DECIDE PortfolioOpportunity PLAN ModelImpact PERFORM TargetEvent BUSINESS INSTANCE BUSINESS REFERENCE Resource management can focus on the types of opportunity and the modelling of impacts representing business intentions. © 2014 Malcolm Ryder / archestra research
  42. 42. Managing Performance (Alignment) of Capability from Supply SOURCE LifecycleProduction SUPPORT ModelDelivery PERFORM FrameworkOperation INSTANCE REFERENCE Capability management can focus on the lifecycle of production and the modelling of delivery, representing resource requirements. © 2014 Malcolm Ryder / archestra research
  43. 43. Use a Lifecycle Use a Model Use a Framework Perform Required quality Support Required access Source Required supply ORGANIZING CAPABILITY Definition IT Assurance Delivery Relevance Perform Effectiveness @ level of offered quality Quality Process Usage / Use Case Support Sustained availability Usability Provision Function Source Production of supply Type Deployment Needs CAPABILITY ALIGNMENT (WHY) Definition IT Assurance Delivery Relevance Quality Framework Matrix of contiguous and concurrent operational factors Platform Policy Portfolio Access Model A configuration of essentials, defining a type System Service Offering Supply Lifecycle Birth-to-death stages of continued presence Sourcing Fulfillment Program CAPABILITY STANDARDS (WHAT) ©2014MalcolmRyder/archestraresearch Managing the Business Performance of IT
  44. 44. Business Value of IT IT as a Resource
  45. 45. Business Reality: high level Business chooses why it wants to do something, and it chooses what help it wants to use Needs turn into requirements and vetted providers, while strategy and architecture assign the business resources to the business needs
  46. 46. Make technology deliverable in order to maximize the availability of capability Manage capability to maximize resource achievement of business objectives Business Management of I.T. going forward: sourcing Capabilities, and supporting Resources
  47. 47. Demand-based Overview of IT’s Value Delivery Relevance Framework Value Portfolio Model Service Offering Lifecycle Fulfillment Program IT CAPABILITY STANDARDS Value Capability A functional competency already held in the form of an executable-on-demand action Business Ability Service Delivery IT Function What Demand wants from Business What Business wants from IT ©2014MalcolmRyder/archestraresearch
  48. 48. “Capability” deliverable as a Service Capability packaged as a service produces a resource for operations On-demand access Availability Supportability Quality Configuration Demand-based Support Model of Delivery Technology (sourced re: a capability) Resource (provided to an operation)
  49. 49. OVERVIEW: Capabilities for business “resources” Is a business Operator The Customer, on behalf of business, using a Resource that may be under: • Ownership • Sharing • Change The business Operator needs a Capability made Available as an: • Interface • Facility • Orchestration The Capability has a target Effectiveness that can be Dependent on: • Data-driven events • Automated mechanics • Stabilized systems Issue: RELEVANCE Addresses resourcefulness Issue: DELIVERY Addresses availability Issue: IT ASSURANCE Addresses dependency © 2014 Malcolm Ryder / archestra research
  50. 50. User Capability via IT Provision The business Operator needs a Capability made Available as an: • Interface • Facility • Orchestration The Capability has a target Effectiveness that can be Dependent on: • Data-driven events • Automated mechanics • Stabilized systems Managed IT-based Services: Effective capabilities are Sourced and Supported for the Demand presented by the Operator Sourcing includes assurance Assurance includes - Requirements definition - Development - Contracting Support includes delivery Delivery includes - Service definition - Demand Agreements - Capability validation Business has management operations that cover the business operator’s need for IT. The need is for effective capability. ITServices
  51. 51. Capability Types in Defined Service Types User Needed Service Capability Types Technical type Systematical type Functional type Interface service Voice, bluetooth Diverse clients/channels Cross-device Facility service Virtual machines Ubiquitous access points Collaboration workspaces Orchestration service Account linking Networked procedures Compound apps, mashups Examples: Technology Enablement • Legacy • Enhancements • Innovations
  52. 52. Business Resource Management and IT
  53. 53. ITSM as Resource Management • “Enterprise” agreements govern the property that occurs in business operations • Business resource management controls the alignment of resources to business operations • A service can provide IT as a resource to operations • Continual management of IT-based Resources can itself be conducted as a service to the business • The effective role of ITSM has been to conduct management of IT-based resources for the business • In effect, ITSM is a subset of business resource management, by functioning as a component service of business resource management
  54. 54. An IT-based capability can be a service provided as a resource to operations of the business. In effect, ITSM is a subset of business resource management. IT property/non-IT property … IT capability/non-IT capability … IT business service/non-IT business service… Property I.T. Capability With agreements With requirements BUSINESS OPERATION Service With assignments RESOURCE  ITSM as Resource Management, Demystified © 2014 Malcolm Ryder / archestra research
  55. 55. © 2014 Malcolm Ryder / archestra research mryder@malcolmryder.com

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