Developing an IT Service Strategy Part 1 Describing the Challenge

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Part 1 of this 2 part set covering the challenge of defining an IT Service Strategy. This presentation is supported by the posts at blog.thehigheredcio.com and is intended to be interactive with stakeholders.

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  • Split and include value chain notations
  • Developing an IT Service Strategy Part 1 Describing the Challenge

    1. 1. Developing an IT Service Strategy Part 1: Describing the Challenge Jerry Bishop Blog.TheHigherEdCIO.com Creative Commons Attribution-ShareAlike 3.0 Unported License .
    2. 2. ACKNOWLEDGEMENTS & REFERENCES <ul><li>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. </li></ul><ul><li>Breaking the Trade-Off Between Efficiency Versus Service , HBR Nov 07 </li></ul>
    3. 3. Just for Context… <ul><li>Imagine the effects on a manufacturing businesses efficiencies and quality if they had to deal with their customers walking around the production line involving themselves in the process that makes up the physical value chain. </li></ul>
    4. 4. Now consider… <ul><li>By contrast, in a service business the customer is an integral part of the value chain, which in many cases is virtual, and customers introduce a tremendous amount of variability while simultaneously demanding quality and consistency of service at a low price. </li></ul>
    5. 5. SERVICE VARIABILITY <ul><li>5 categories of customer introduced variability </li></ul>
    6. 6. ARRIVAL VARIABILITY
    7. 7. Customers do not want service at the same times which is not always convenient for the company.
    8. 8. Arrival Variability Classic IT Approach: Require appointments or reservations The IT Challenge: Users cannot predict or plan for when they will need support and they often cannot wait for assistance. The Result: Inefficiencies and queuing
    9. 9. REQUEST VARIABILITY
    10. 10. Customers’ wants and needs are not the same.
    11. 11. Request Variability Classic IT Approach: No substitutions, set expectations, service catalogues The IT Challenge: Customers want custom, personalized computing experiences The Result: Needs aren’t being met
    12. 12. CAPABILITY VARIABILITY
    13. 13. Some customers are more capable of assisting in the service while others require hand-holding.
    14. 14. Capability Variability Classic IT Approach: User Training, mentors for executives, help desk The IT Challenge: More important when customers are active participants in the delivery of a service and support is remote The Result: Frustration, slow response times
    15. 15. EFFORT VARIABILITY
    16. 16. When customers must perform a role in a service interaction, it’s up to them how much effort they apply to the task.
    17. 17. Effort Variability Classic IT Approach: Create incentives The IT Challenge: Few incentives to offer of any value, attitudes towards self-support The Result: Impact on service quality and cost, either directly for the engagement at hand or indirectly for other customers
    18. 18. SUBJECTIVE PREFERENCE VARIABILITY
    19. 19. Customers’ opinions vary widely on what it means to get good service
    20. 20. Subjective Preference Variability Classic IT Approach: Set expectations, tiered services The IT Challenge: Culture of customer is always right, difficult to manage expectations down The Result: Makes it that much harder to serve a broad base of customers
    21. 21. Considerations for Outsourcing <ul><li>Customers may feel like they have given something up under outsourcing – jobs, higher cost </li></ul><ul><li>Customers expect something more in return usually in the form of premium results </li></ul><ul><li>When you take something away you have to replace it with something of equal or greater value to those affected by it </li></ul><ul><li>Requires deliberate plan to address the value expectation or variability will shift dramatically compounding the situation </li></ul>
    22. 22. PART 2: DEALING WITH VARIABILITY <ul><li>Dealing with variability will follow on blog.thehigheredcio.com and be posted to slideshare.net </li></ul>
    23. 23. QUESTIONS <ul><li>Jerry Bishop </li></ul><ul><li>blog.thehigheredcio.com </li></ul>

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