Service North 2018 - Successful sourcing for digital transformation
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Cor Winkler Prins from platinum sponsor 4me gave the keynote at Service North 2019, discussing successful sourcing for digital transformation.
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Service North 2018 - Successful sourcing for digital transformation
- 1. Successful Sourcing for Digital Transformation Cor Winkler Prins CEO cor.winklerprins@4me.com
- 7. DEALING WITH SERVICE COMPLEXITY Enterprise IT now typically supports more than 100 services This has led to organizations working with an average of 13.5 external service providers It is impossible to hire and retain the technical expertise needed to support all these services
Editor's Notes
- How the world of IT Service Management is evolving is an exciting story. This story consists of 2 parts. Before we start with the first part, let’s first take a look at a traditional ITSM environment. Here we see a service management environment that has been configured to support an enterprise IT department. In most organizations, the IT department was the first to offer a self service portal that all employees can use when they need help from IT. It was perhaps a first unconscious step in the digital transformation of the enterprise. But then something beautiful happened. This is were the first part of our 2-part ITSM evolution story begin.
- If this portal was pretty and user-friendly, and the HR director liked using it, the HR director would ask the IT director if they could also have a nice portal like that. After all, the employees were constantly asking the HR staff questions, and these questions were constantly getting lost. Typically, the directors would quickly recognize that it would be nice if the employees would not need to go to different portals. The employees should not need to know whether their request should go to the IT department or the HR department. As soon as HR added their services to the portal, the people in Facilities Management realized that it would be great if people could also submit a ticket whenever they noticed that a light bulb needed replacing or a dripping faucet needed fixing. Very gradually, more departments that provide support to the core business would allow the employees to get support from them through the portal. These could be: The Finance department (employees often need help when they need to order goods or services from suppliers) The Legal department (an employee may, for example, want to check before signing an NDA) The Security department The cafeteria or in-house catering staff That is how we went from IT Service Management to Enterprise Service Management (ESM). Most organizations completely understand the logic. It should be easy for their employees to get help when they are stuck. This increases productivity, and it improves employee retention. No matter how much they may dislike their job, people feel good when they get things done. They feel frustrated when they cannot proceed. Most organizations do not have an ITSM tool that makes the transition to Enterprise Service Management easy. But it should be pretty easy. Here’s how it should work: First, there should be a single directory that contains all employees, the entire organizational hierarchy and the all the facilities where people work. This directory data should be shared by all support domains. All that the support domains need to do to allow employees to submit requests to them, is: 1). Register their support teams 2). Register the services that these teams support This way, adding an additional support domain is typically just takes just a 2-day exercise. Now, when someone needs help, they can submit their request using the self service portal. This request automatically gets stored in the right domain. This is extremely important, because of privacy concerns. The IT specialists should, for example, not be allowed to see any of the HR requests. It is also important that these support domains can set up their service management environment in a way that works best for them, without affecting any of the other support domains. And, of course, these support domains also need to be able to work together on requests, changes and projects. Think for example of a request for onboarding a new hire. That requires the HR department to set up payroll and benefits, IT to provide a laptop and an email account, and facilities to make a desk available. But what about the 2nd part of the ITSM evolution story? Where the 1st part extended the scope horizontally beyond IT into all the support domains of the organization, the 2nd part extends service management beyond the boundaries of the enterprise. It allows organizations to work together on the services they provide and integrate to ensure that the employees are able to work efficiently. This is where ITSM becomes SIAM. It is were we move vertically down the service hierarchy and collaborate seamlessly with the external service service providers to which the enterprise has selectively outsource some of its services. Selective outsourcing allows each party to specialize. And specialization, in the end, is the key to increasing humanity’s standard of living. That is why it is important to help organizations become more successful at selective outsourcing. There are 2 ways we make this happen: 1). Allow organizations to collaborate seamlessly, yet securely. This allows a request, which initially appeared to be an HR payroll issue, to be passed on to the IT department’s MSP that maintains the organization’s SAP environments. 2). Give all parties real-time insight in the level of service they provide and receive. This means measuring each agreement that has been established between the parties that play a role in the delivery of the affected employee’s service.
- But what about the 2nd part of the ITSM evolution story? Where the 1st part extended the scope horizontally beyond IT into all the support domains of the organization, the 2nd part extends service management beyond the boundaries of the enterprise. It allows organizations to work together on the services they provide and integrate to ensure that the employees are able to work efficiently. This is where ITSM becomes SIAM. It is were we move vertically down the service hierarchy and collaborate seamlessly with the external service service providers to which the enterprise has selectively outsource some of its services. Selective outsourcing allows each party to specialize. And specialization, in the end, is the key to increasing humanity’s standard of living. That is why it is important to help organizations become more successful at selective outsourcing. There are 2 ways we make this happen: 1). Allow organizations to collaborate seamlessly, yet securely. This allows a request, which initially appeared to be an HR payroll issue, to be passed on to the IT department’s MSP that maintains the organization’s SAP environments. 2). Give all parties real-time insight in the level of service they provide and receive. This means measuring each agreement that has been established between the parties that play a role in the delivery of the affected employee’s service.
- And, naturally, HR is also outsourcing many of the services it provides to the enterprise employees, such as Payroll and Relocation.
- It is now common for an enterprise IT department to be responsible for supporting more than 100 services (source = 4me). It is impossible to retain the expertise for all those technologies. That is the main reason why organizations in the US already work on average with more than 10 external service providers. The number of MSPs that an enterprise selectively outsources services to is expected to increase as MSPs are now experiencing similar issues and have started to specialize. The same trend is seen in other support domains like HR, Finance, Legal, Facilities, etc. This trend toward greater specialization is what has historically enabled standards of living to rise. 4me is the first service focused on making selective outsourcing easier and more successful. 4me does this by making it possible for organizations to work together seamlessly with their MSPs, while 4me tracks the level of service each party provides. Sources https://www.charitydigitalnews.co.uk/2018/02/16/digital-transformation-challenged-by-scalability-lack-of-resources-and-application-backlog/ Quote: 82% of organisations can’t attract and retain the quality and quantity of software engineers required https://leanoutsourcing.org/2015/12/ Quote: The average U.S. IT shop is working with 13.5 service providers overall, according to Gartner. https://www.tmrresearch.com/service-integration-management-market Quote: Service integration and management models have been around for a long time, but are presently gaining more prominence as businesses deal with the challenges the transformation from the model of sourcing services from a single or small number of providers to services from a large number of small providers. As the services become more complex or critical, the level of service integration also deepens. The business world is presently embracing cloud computing and as an increasing number of businesses rely on cloud services, the demand for service integration and management solutions will increase. Companies are spending huge sums on internal and external IT services. However, only a small percentage of companies have mastered their sourcing approach and a massive percentage need to improve their level of competencies in order to successfully manage multi-sourcing. Thus, the scenario holds huge promise for SIAM in the near future.
- And, naturally, HR is also outsourcing many of the services it provides to the enterprise employees, such as Payroll and Relocation.