Innovation& it service_management_v1.2


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Innovation& it service_management_v1.2

  1. 1. “ Driving innovation”INNOVATIONin IT Service ManagementErsen Celebi
  2. 2. Contents1 Introduction to ITSM2 Innovation3 Driving Innovation4 Innovation Management5 German Study Case6 Case Study: Samsung7 Case Study: DHL First Choice8 Conclusion9 Back-Up: ITIL10 Q/A 2
  3. 3. Introduction to ITSM Providers of IT services can no longer afford to focus on technology and their internal organization[;] they now have to consider the quality of the services they provide and focus on the relationship with customers No one author, organization, or vendor owns the term "IT service management" and the origins of the phrase are unclear. 3
  4. 4. Introduction to ITSM IT service management (ITSM or IT services) is a discipline for managing information technology (IT) systems, philosophically centered on the customers perspective of ITs contribution to the business. ITSM stands in deliberate contrast to technology- centered approaches to IT management and business interaction. The ITSM framework can be defined as “a set of processes that co-operate to ensure the quality of live IT services, according to the levels of service agreed to by the customer”. 4
  5. 5. Introduction to ITSM It can also be seen as a philosophy for orientation toward market, service, life-cycle and process in general. The main focus of the framework is not the development of IT applications, but rather the management of services. The most frequently adopted ITSM resource is the IT Infrastructure Library (ITIL), the de facto standard for IT Service. Other ITSM frameworks include HP ITSM, CobiT and ISO 20000.. 5
  6. 6. InnovationInnovation can be defined as: “the application of new ideas to the products, processes or any other aspect of a firm’s activities.” Innovations can also be understood as: “improvement, and when implemented in the market, they expand the competitiveness of the innovator for at least a limited amount of time” “innovation as an idea that is new to the people involved, even though it may appear to others as an imitation.” “Innovation is the adoption of an idea or behavior that is new to the organization adopting it” 6
  7. 7. Driving innovation CEOs view innovation as the lifeblood of thrivingorganizations. They see the integration of business andtechnology as essential to the success of innovativeefforts designed to enable organizations to reach theirhighest potential. IT’s ability to control service quality and costs, andto enable increased innovation, is now a businessimperative. 7
  8. 8. Driving innovationAs a result, IT can be better positioned to: Create value by driving or responding to new projectand service requests through timely, high-quality and on-budget delivery. Manage value in real time with an agile, integratedinfrastructure that runs efficiently and cost-effectively. 8
  9. 9. Driving innovation 1 2So many By distributingbusiness decision rightsprocesses and accountability,depend on IT effectivethese days that governance can help to ensure 3 4when a serviceproblem arises, service-orientedit’s often decision making IT must get outheadline news. across silos. Breaking down of firefighting silos to improve mode before it service can focus on excellence customer requirements. 9
  10. 10. Driving innovation 5 6 7 UK banking GroupManaging a was to create a Service excellenceservice desk is centralized identity means more thanmore than call management model. continual processtracking—it The group improved improvement— itshould provide a its ability to rapidly means continuallyreliable, single respond to improving andpoint of contact opportunities and adding value tofor all service saved $11 m. the customerrequests. annually trough process efficiencies 10
  11. 11. Innovation Management “Innovation Management is about learning to find the most appropriate solution to the problem of consistently managing this process” It can also be defined as: “planning, organizing, executing and controlling all activities related to the development and implementation of innovations” 11
  12. 12. Innovation Management To stay competitive and to promote innovation, companies cannot rely on chance alone. It is crucial to manage the innovation process systematically, providing both structure and goals This necessity is based on limited financial,material and human resources 12
  13. 13. Innovation ManagementInnovation Management as consisting of five activities: technological integration the process of innovation strategic technology planning organizational change business development 13
  14. 14. Innovation Management The Need for Innovation: Innovation is composed of four components-creativity, strategy, implementation, and profitability. Three Types of Innovation:  Efficiency Innovation  Evolutionary Innovation  Revolutionary Innovation The Seeds of Innovation:  Creative Thinking  Strategic Thinking  Transformational Thinking 14
  15. 15. Efficiency Innovation Efficiency Innovation focuses on identifying new ideas for improving what already exists. This approach requires minimal investment since the team is building on the past and only looking for small changes in what’s already being done. The strategy for efficiency innovations is usually to cut costs, reduce cycle time,improve quality, offset a competitor’s move or attract new customers. Typically, only small gains are realized 15
  16. 16. Efficiency InnovationITSM as a Methodology to empower Innovation 16
  17. 17. Efficiency Innovation1. Phase 1 illustrates the situation before introducing ITSM. Expressed as a ratio, 100% of the time is used for original tasks.2. The efficiency of IT increases by using best practices. The workload from the original IT activities is reduced over the medium term. Sustained optimization and expansion of the use of ITSM can attain a further reduction of the load and open up corresponding 17
  18. 18. Efficiency Innovation3. In the third step, the innovation potential is set free. Other changes must be made to the way of thinking and acting. Using technology stabilizes the use of innovation potential4. In the final state (for the time being), the workload is reduced and the resources thus freed up are used to create innovation on infrastructure, business process and product and service level. 18
  19. 19. Evolutionary InnovationEvolutionary Innovation focuses on identifyingideas that represent something distinctly new and better. An example was the introduction of automatedbanking machines, which changed the way banksviewed their staffing needs and shifted banking habitsfrom set hours to banking at any hour. 19
  20. 20. Evolutionary InnovationEvolutionary innovation requires looking morebroadly than Total Quality Managementimprovements and cost savings to see the biggerpicture of what’s really needed in the organizationand marketplace.Instead of duplicating what already exists, the teammust look for new ways to bring value to theorganization and the customer. 20
  21. 21. Revolutionary Innovation Revolutionary Innovation focuses on radically newand better ideas that don’t operate within the existingstructure of the organization and marketplace but mayin fact dismantle that structure. For example, Dell Computer’s direct-to-consumer salesstrategy in the computer industry. 21
  22. 22. German Case StudyThis study is about the comparing the results of theITSM and Innovation process implementation indifferent companies. Six different companies have beeninvestigated in the scope of this study: 22
  23. 23. German Case StudyThe results based on: considering separately ITSM adoption and Innovation Management implementation ‘the interviewees’ perception of the impact of ITSM on their Innovation Management. 23
  24. 24. German Case StudyIn case A: No direct impact of ITSM on Innovation Management. The two need to be considered as separate processes. Only when all ITSM processes have been installed properly and reached a certain maturity level can Innovation Management follow as a next step, to optimize and develop processes. 24
  25. 25. German Case StudyCase B: Describes ITSM and Innovation Management as “natural enemies.” the adoption of an innovative process distracts from the main objective of ITSM frameworks 25
  26. 26. German Case StudyCase C: They could identify impact of ITSM on Innovation Management. “Plan-Do- Check-Act” cycle Plan Do Innovation Management within their ITSM framework shows three basic types of impact: Check Act significant increase of customer satisfaction image improvement product and service quality improvement 26
  27. 27. German Case StudyCase D: it is not a question for them whether there is an impact, but rather how great this impact is. Specifically, they have noticed that, due to the faster adoption of innovations via the ITSM, customers’ needs can be handled more efficiently 27
  28. 28. German Case StudyCase F: For them ITSM as the superior model. After first implementing ITSM, they later introduced Innovation Management into the framework as an independent process. Innovation Management as a new strategic process was possible since case F’s ITSM consists of not only operational processes (e.g. Incident Management) but also strategic processes 28
  29. 29. Transformational Thinking Organizational Innovation The Innovation Systems Architecture Model  Shared Innovation Vision and Strategy  Innovation Environment Supports  Innovation Resource Allocation  Innovation Process Networks  Innovation Programs  Innovation Skills Development  Innovation Rewards and Recognition  External Stakeholder Innovation (Customers and Partners) 29
  30. 30. Transformational Thinking The Innovative Organization Assessment: A Holistic Approach Two ways to measure these efforts:  Innovation output  Innovation throughput 30
  31. 31. Case Study :SAMSUNG-TRIZ Shared Innovation Vision and Strategy  At SAMSUNG VIP center the goal is to train every engineer and researcher in TRIZ think.  “We put ideas on the table they put ideas on the table and we go from there” says TRIZ specialist Lee.  SAMSUNG Six Sigma Method (SS DFSS) Drives Innovation leading with TRIZ and other tools. TRIZ is a family of tools providing potential solution paths to technical problems.  3.000.000 patents have been investigated making the TRIZ methodology statistically significant 31
  32. 32. TRIZ Innovation Resource Allocation  SAMSUNG have 50 Full Time TRIZ Experts in SAIT(SAMSUNG Advanced Institute of Technology) Innovation Environment Supports  SAMSUNG invested TRIZ by building expertise Training & Infrastructure to Deploy TRIZ Innovation Skills Development  Now TRIZ part of basic technology training. 32
  33. 33. TRIZ Innovation output: DVD Player This project resulted in  ~$100M in cost reduction  9 Patents  Reduction in components from 8 to 4  Increased reliabilty. 33
  34. 34. ITIL approachITIL can provide a mechanism for fosteringinnovation.The value network must be addressed in order to seamlesslybring suppliers togetherStakeholders demands value from IT.A common dictionary is needed.There is no value without fit for purpose and fit for use. 34
  35. 35. ITIL approachLower cost of ownership can enable IT to address the lowmargin markets.Customers will ultimately base their service selection on price.Resources can be diverted to new capabilities needed toservice low margin markets.Provide distinct and measurable competitive differentiation.Recovered resources can be allocated to the creation ofdisruptive services.Identify potential disruptive technologies.Build the markets and the supporting services.The exploitation of disruptive technologies create results. 35
  36. 36. ITIL approachIT Leaders must demonstrate capability for optimal ITService delivery Reportable metrics drive action.  Customers recognize tangible value.  Performance information is motivation for moving the needle.  Control objectives enable on-demand capability audits.  Point in time readings validate improvements.  Regulatory compliance no longer becomes an issue.  Identifies acceptable levels of risk. 36
  37. 37. ITIL approach Continuous improvement is the key to success.  Deming’s PDCA  Continuous value delivery keeps customers engaged.  Creates consistent and cost-effective services. 37
  38. 38. ConclusionRegarding to all of the content above:In a ITSM environment, innovation is supported by theImprovement Process in most of the cases.Innovative ideas can be transformed to the real life incase there is an effective Improvement process in place.There are some standards such as ITIL, which helps toincrease the quality of the ITSM environment and alsobrings solutions to stumbling blocks for innovation. 38
  39. 39. Q&A
  40. 40. BACKUPIn the following slides you can findITIL approach to Innovation & Innovation Management ina ITSM environment: 41
  41. 41. ITILThe Information TechnologyInfrastructure Library® (ITIL®)helps companies andgovernment agencies improvethe quality and reduce the costsof IT services that support theirbusiness objectives. 42
  42. 42. ITILThe Federal government recognized that by leveragingITIL’s recommendations and best practices agency ITdepartments could decrease overall IT spending andcontinually improve IT service management. 43
  43. 43. ITIL History ITIL originated in the 1980s when the British government determined that it was not receiving a sufficient level of IT service quality. First released as the Government Information Technology Infrastructure Management (GITIM) framework by the United Kingdom’s Office of Government Commerce, this series of 31 books provided best practices and guidelines for managing and maintaining IT infrastructures. 44
  44. 44. ITIL History In the 1990s, the second version of ITIL was released and rapidly accepted by companies and government agencies in Europe and throughout the world. With ITIL V2, the number of books was reduced from the original 31 to 10. 45
  45. 45. ITIL History In 2007, ITIL V3 was introduced. With ITIL V3, V2’s ten books were consolidated into five books, each approximately 300 pages in length and dedicated to a major activities such as: Service Strategy Service Design Service Transition, Service Operation Continual Service Improvement (Innovation Management) 46
  46. 46. ITIL - Continual Service Improvement Continual Service Improvement describes proven practices for continual improvement in the quality of the services that the IT organization delivers to the business. Key areas of this volume are :Service ReportingService Measurement BusinessService Level Management. 47
  47. 47. ITIL - Improvement Process Standardize Standardize Standardize Standardize Automate Automate Optimize OptimizeInfrastructure Infrastructure Process Process 48
  48. 48. References Influence of IT Service Management on Innovation Management: FirstInsights from Exploratory Studies M. Kießling*, M. Marrone† and L. M. Kolbe‡Service Innovation Studie 04 Arthur D. LittleINNOTRAIN ProjectThe Seeds of Innovation (ISBN 0814471463)SAMSUNG TRIZDHL FIRST CHOICEWikipedia 49