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Considering the Customer Experience- Providing Enterprise Services

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Thavron's ITFMA 2014 ( Norfolk) presentation slides on the importance of the Customer Experience for today's Enterprise Service Owners

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Considering the Customer Experience- Providing Enterprise Services

  1. 1. Services from the Consumer Perspective A common sense approach to IT/Business alignment Copyright 2014 Thavron Solutions, LLC
  2. 2. Credentials • Me: Nan Braun • CEO Thavron Solutions • nbraun@thavronsolutions.com/ @thavronsol / http://thavron.com/blog • Corporate IT – many roles- “hands” on to BRM to architecture • CTO, ontological modeling • Director, TBM Practice • You? Copyright 2014 Thavron Solutions, LLC
  3. 3. Catalog & Asset Management Service Costing & Billing Product & Project Management Supplier / Vendor Management Service Portfolio A Framework for Business Service Success Copyright 2014 Thavron Solutions, LLC Financial LifecycleProduct Lifecycle TM
  4. 4. Catalog & Asset Management Supplier / Vendor Management IT Service Management Copyright 2014 Thavron Solutions, LLC IT Component Catalog Incident management IT Service Catalog Incident Prevention Business Service Catalog Customer Experience Management
  5. 5. IT as a Service Provider Copyright 2014 Thavron Solutions, LLC
  6. 6. IT as a Service Provider Copyright 2014 Thavron Solutions, LLC
  7. 7. IT as a Service Provider Copyright 2014 Thavron Solutions, LLC
  8. 8. The Customer Experience : Then Copyright 2014 Thavron Solutions, LLC
  9. 9. IT ? Here there be Dragons… Copyright 2014 Thavron Solutions, LLC
  10. 10. The Customer Experience : Now Copyright 2014 Thavron Solutions, LLC
  11. 11. What does this mean for customer experience? Copyright 2014 Thavron Solutions, LLC
  12. 12. Service Costing mistakes that break the customer experience: • Billing Consumers on actual costs when cost drivers are not scale-able • Service units that are difficult to manage • IT Component Services vs. Business Services • Services with bad proxy allocations to the business • Pass Thru SLAs Copyright 2014 Thavron Solutions, LLC
  13. 13. COST MODEL DEPENDENCIES THAT DO NOT SCALE Copyright 2014 Thavron Solutions, LLC
  14. 14. Here is what the customer is expecting…. Copyright 2014 Thavron Solutions, LLC $750/month
  15. 15. Here is what the customer is expecting…. Copyright 2014 Thavron Solutions, LLC $600/month
  16. 16. So when this happens…... Copyright 2014 Thavron Solutions, LLC $750/month
  17. 17. And then this happens.…. Copyright 2014 Thavron Solutions, LLC $650/month
  18. 18. This should not be a surprise. Copyright 2014 Thavron Solutions, LLC
  19. 19. How can this happen? Copyright 2014 Thavron Solutions, LLC $650/month $600/month VS.
  20. 20. PC Service Cost Modeling Copyright 2014 Thavron Solutions, LLC GL Account 6879099 GL Account 6879123 GL Account 6879224 Service Desk OnSite Support PCs PCXX23 PCXX34 PCXX45 PCXX56 PCXX67
  21. 21. PC Service Cost Modeling Copyright 2014 Thavron Solutions, LLC GL Account 6879099 GL Account 6879123 GL Account 6879224 Service Desk OnSite Support PCs PCXX23 PCXX34 PCXX45 PCXX56 PCXX67 1: 1 per PC
  22. 22. PC Service Cost Modeling Copyright 2014 Thavron Solutions, LLC GL Account 6879099 GL Account 6879123 GL Account 6879224 Service Desk OnSite Support PCs PCXX23 PCXX34 PCXX45 PCXX56 PCXX67 1: every up to 10 PCs
  23. 23. PC Service Cost Modeling Copyright 2014 Thavron Solutions, LLC GL Account 6879099 GL Account 6879123 GL Account 6879224 Service Desk OnSite Support PCs PCXX23 PCXX34 PCXX45 PCXX56 PCXX67 Tickets of type “PC” spread evenly
  24. 24. Or This Can happen…… Copyright 2014 Thavron Solutions, LLC Joe’s Windows Server : $400/month Sue’s Windows Server : $400/month Pat’s Windows Server : $400/month
  25. 25. Or This Can happen…… Copyright 2014 Thavron Solutions, LLC Joe’s Windows Server : $600/month Pat’s Windows Server : $600/month
  26. 26. TCO Service Costing: Copyright 2014 Thavron Solutions, LLC GL Account 68790992 GL Account 68791234 GL Account 68792244 DataCenter Storage Server hardware Software GL Account 68792254 Physical Server TCO Virtual Server: AAJoe123 AASue225 AAPat334$1200 $400/each
  27. 27. TCO Service Costing: Copyright 2014 Thavron Solutions, LLC GL Account 68790992 GL Account 68791234 GL Account 68792244 DataCenter Storage Server hardware Software GL Account 68792254 Physical Server TCO Virtual Server: AAJoe123 AAPat334$1200 $600/each
  28. 28. Exposing Actual Costs to Consumers is Dangerous • Not all Cost components are on a 1:1 ratio • Unit rates are the most important number for a consumer • If you are doing showback or chargeback, calculate the Consumer cost based on a fixed unit rate- not on actual costs. • Variance is for INTERNAL IT “run the business” decisions- not for exposure to the external consumer. Copyright 2014 Thavron Solutions, LLC
  29. 29. SERVICE UNITS THAT ARE DIFFICULT TO MANAGE Copyright 2014 Thavron Solutions, LLC
  30. 30. Imagine if this happened…… Copyright 2014 Thavron Solutions, LLC You can’t beat the price. It is only $1503 / Horsepower per minute
  31. 31. Please stop reporting/charging in units customer do not control….. • Gigacycles • LPARs • PC CPUs • Compute cycles • luns • Etc… • Gb transmitted Copyright 2014 Thavron Solutions, LLC
  32. 32. How to deal with awkward consumption data: • Unit conversion table in the model • Ignore the consumption data • Restructure the Service Copyright 2014 Thavron Solutions, LLC
  33. 33. IT COMPONENT SERVICES VS BUSINESS SERVICES Copyright 2014 Thavron Solutions, LLC
  34. 34. Non-TCO Service Costing: Copyright 2014 Thavron Solutions, LLC GL Account 68790992 GL Account 68791234 GL Account 68792244 DataCenter Storage Servers Database GL Account 68792254 DataCenter Storage Servers Database
  35. 35. TCO Service Costing: Copyright 2014 Thavron Solutions, LLC GL Account 68790992 GL Account 68791234 GL Account 68792244 DataCenter Storage Servers Database GL Account 68792254 SAP Email TimeEntry Sharepoint Servers Applications
  36. 36. SERVICES WITH BAD PROXY ALLOCATIONS Copyright 2014 Thavron Solutions, LLC
  37. 37. Not what you expect when shopping… Copyright 2014 Thavron Solutions, LLC Shoe sale today: $5/Finger
  38. 38. If you have to use a Proxy for consumption: • Make it related…. • At least make it scale in the same ratio as expected consumption… Copyright 2014 Thavron Solutions, LLC
  39. 39. PASS THRU SLAS Copyright 2014 Thavron Solutions, LLC
  40. 40. Subcontracting • Not all IT Services are going to be provided by your in-house team • There are a lot of times that it makes sense to buy, not build Copyright 2014 Thavron Solutions, LLC
  41. 41. Typical SLA scenario Copyright 2014 Thavron Solutions, LLC Outsourced Service Provider We can deploy new Virtual Servers in 6 hours What goes into the Service Catalog? Virtual Servers: “We can deploy new Virtual Servers in 6 hours”
  42. 42. What it actually takes to deploy a Virtual Server Copyright 2014 Thavron Solutions, LLC Business Request Form Request Received by BRM, vetted Request Review by Architecture Good ?No Request put in Queue in Ops Team OutSourced Service Provider Process Virtual Server Deployed 6 hrs later Yes
  43. 43. Bringing Business to the Center • To align and enable the business, IT must bring the business back to the center of what they do. • Put yourself in your customer’s shoes before releasing Service Definitions and costing to them • Business Value = Bottom line – Business Value= Order to Cash experience + Usage Value Copyright 2014 Thavron Solutions, LLC
  44. 44. Discussion Copyright 2014 Thavron Solutions, LLC Follow up questions? Nan Braun nbraun@thavronsolutions.com 765.252.4509 / http://thavron.com /@ThavronSol
  45. 45. Catalog & Asset Management Service Costing & Billing Product & Project Management Supplier / Vendor Management Service Portfolio Leverage ITFM info: build your platform for Success Copyright 2014 Thavron Solutions, LLC Financial LifecycleProduct Lifecycle TM

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