Pink Think Tank 2014 reporting back

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At the Pink Elephant ITSM Conference for 2014 we locked 8 ITSM "thinkers" in a room for a day to consider a problem: increasing complexity of multi-supplier IT value streams.
We tasked them with coming up with pragmatic actionable advice.
This is the result. Well, this is a summary. Watch out for white papers, discussions, a web presence fro sharing and dialog, and other outcomes from this highly successful one-day session. There may be more.

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  • Coming late to this (I dont know how Slideshare notifies me of comments):
    I don't actually see how ITAM is relevant to supplier management and complex value chains. With the exception of paying somebody to manage my desktops, they are either my assets or the supplier's assets. I have no interest in the supplier's assets and i'm not seeing how they would have interest in mine.
    At the configuration level, i like to say that a supplier's service is a single CI. therefore all assets are hidden.
    In this discussion we are talking abut service suppliers not asset vendors. Suppliers of assets are a different discussion. This one is about composing value chains from external services.
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  • Jon - I see where our perspectives differ. I suppose it depends on how much agency cost and architectural control (cost) the customer may choose to bear.

    To take this to an absurd extreme, When I get takeout, I do not care what stove, cooking utensils or suppliers the chef at the restaurant uses. I am using a food service, and if it is good, and the quantity and the price are right, I am satisfied.

    I imagine that in this absurd example, you might be more interested in the stove, utensils, etc. than I.

    I tend to stick more to the service definition that includes '... without ownership of specific costs and risks.', as I focus almost exclusively on the '... facilitating outcomes customers want ....' and lump asset tracking and, yes, awareness, in the ownership of the costs that I am ceding to the supplier.

    To each their own risk tolerance. 8^)X
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  • That was a long answer, so I'll offer a short one to directly address your question: I think just one bullet point in the 'what to do on monday' would cover it at this level of detail. Something like 'Understand who you're buying each bit of your IT stuff from, and what that means for your services'.
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  • I don't think you can simply divest the oversight and governance of IT assets out to the suppliers of those assets. If you need to manage suppliers, you need to understand the *stuff' in your environment that comes from those suppliers, and what your obligations/risks/opportunities are.

    Our suppliers are supplying assets that are critical to our services. I don't think you can integrate Supplier Management and Service Management in a multi-sourced environment without taking control over the critical components of both - if you do, you only have two sides of the triangle. These slides cover some of the picture (contracts are there, for instance) but not actual governance over the software and hardware and logical assets which are a key part of the vendor relationship, and a key part of the services.

    What if you need to rip and replace a supplier? How do you know which 'things' are going to go with them, and what the impact - financial, technical, etc - will be? What happens, for instance, if you have a serious commercial issue with the supplier... I spoke with a big company recently who actually had to stop putting new retail lines in their shops because of a software asset compliance issue related to a supplier. How can you even understand the cost of a multi-sourced service, if some of that cost derives from vendor-supplied assets?

    A nagging worry I have is that our industry runs two different sub-professions, having two different sets of conferences. I go to both: I see Asset and operations professionals talking about managing their vendors, and I see ITSM professionals talking about managing the same vendors, but I rarely feel assured that each really has visibility about what the other is trying to do.
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  • Jon - What are you looking for? ITAM is a tactical function that the consumer of supplier services is paying the supplier to perform as part of the service. The TT highlights that the consumer has to figure out how to perform the equivalent of ITAM for the services their suppliers provide.

    I believe the linking of ITAM and SACM has been temporarily (ok, arguably eternally) constrained by inadequate user requirements and data definitions/structures. Use cases that occur in high enough volume will drive the work. So far, GAAP has driven what little there is, and the requirements are not specific enough to be of much value to ITSM.
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  • Why we did itDiscussed at PINK13 the opportunity of having ITSM philosophers come togetherThe energy / stimulation of the conferenceHow we choseA committee40 namesLimit of 8 – small groupRecognised “thinkers”Published“Balanced diversity”: ITIL establishment, itSMF, skeptic, cultural change, MSI service provider, cloud, leadership/CIO, architect, service deskBut no attempt to cover all constituenciesWhat we wantedTangibleactionable
  • The business and technology landscaping is shifting rapidly. The supplier and the business are squeezing IT because IT is perceived as slow to respond and the business has increasing choices from increasing number of suppliers to go around IT. The business is being forced to change and must reduce time to market as a competitive competence. Probably you, trad IT, are not ready to address the shift. Suppliers have become very good at managing commoditized environments. The end result of this is the need to dynamically manage a complex multi-supplier ecosystem. Everything that IT has been doing in the past is now no longer enough. IT presents more susceptible in a multi-sourcing approach as it is susceptible to emergent/complex behavior possibly leading to black swans. This is an emerging space, it is complex and not necessarily clear yetThe question is how will you remain relevant in IT today and tomorrow?
  • As commoditization increases, the traditional IT role moves to service providersBusiness innovation will accelerate through the use of emergent technologies and embedding those inside business practicesAnything that doesn’t demonstrate differentiating value is a candidate for externalizationA single set of outcomes can be provided by multiple suppliersSuppliers are aggressively pursuing this market Suppliers will standardize at a low level (e.g. EDI for Service Management, API, XML, etc.)Suppliers will develop service solutions, and tools to support them, that an individual organization cannot do on its ownOpen standards are emergingSupplier strata evolve, and contract duration shortensEvolving nature of multi-supplier will drive changes to how IT is organized and managedThe future is IT Governance, Service Management, and Assurance
  • Your organisation needs to be doing:Build a robust corporate governance policy, process, roles and assurance for Supplier ManagementKnow your business: Assess your understanding of your industry vertical and IT value in this spaceIT needs to define a value driven operating model that is embedded with common/core belief system and operating practices that span the enterprise (the Empire”)Define which Operating Model capabilities must be core - (“the Roman roads”)Service management (ITIL) should continue to be used, but with changed emphasis and prioritiesElevate IT Supplier Management as an enterprise core functionHave a multi-supplier ecosystem that supports a balance of organizational innovation and commoditizationUnderstand which services are strategic to the organization and which are not.Understand the difference between strategic and commodity suppliers.The drivers for the multi-sourcing model can be cost and/or business agility and the solution must be balanced across these.Multi-sourcing is going to change the way people work: address this as cultural change.IT needs to aim for the role of trusted advisor for the use of technology across the enterprise
  • Pink Think Tank 2014 reporting back

    1. 1. Pink Elephant’s Pink Think Tank Pink Elephant – Leading The Way In IT Management Best Practices
    2. 2. The Pink Think Tank  Topic: Increasing multi-supplier value streams  Objective: pragmatic actionable advice <Insert presentation title> © Pink Elephant, <year>. All Rights Reserved. 2
    3. 3. Introducing the PTT members <Insert presentation title> © Pink Elephant, <year>. All Rights Reserved. 3
    4. 4. Problem  The squeeze  Everything is changing  Multi-supplier  SI, MSI, SIAM…  Complexity  You are not ready Mainstreaming of IT into business Pressure Traditional IT function Pressure Supplier-driven commoditization <Insert presentation title> © Pink Elephant, <year>. All Rights Reserved. 4
    5. 5. Trends  As commoditization increases, the traditional IT role moves to service providers  Anything that doesn’t demonstrate differentiating value is a candidate for externalization  Suppliers will develop service solutions, and tools to support them, that an individual organization cannot do on its own  Evolving nature of multi-supplier will drive changes to how IT is organized and managed <Insert presentation title> © Pink Elephant, <year>. All Rights Reserved. 6
    6. 6. Solution Statement             Corporate governance Know your business Operating model Core Changed priorities Supplier Management Complexity Balance Strategic services Strategic suppliers Cost and agility Change the way people work Trusted advisor <Insert presentation title> Innovation Commoditization © Pink Elephant, <year>. All Rights Reserved. 7
    7. 7. Further findings, further development <Insert presentation title> © Pink Elephant, <year>. All Rights Reserved. 8
    8. 8. Options  Do nothing  Wait until something happens  Start this Monday <Insert presentation title> © Pink Elephant, <year>. All Rights Reserved. 9
    9. 9. Monday – What Are You Going To Do About This?  Understand how your services are adding value to the organization  How will the evolving nature of a multi-sourcing environment change my role or job in the future?  Understand what you can do, and set priorities  For Supplier Management  Discover your existing practices to manage contracts and suppliers  Inventory existing contracts, ownership and relationships  Map the contracts to business outcomes and/or SLA  Evaluate existing supplier management capabilities and skills  Reprioritize Supplier Management, Portfolio Management, BRM  Get help <Insert presentation title> © Pink Elephant, <year>. All Rights Reserved.
    10. 10. Panel discussion on Wednesday  Questions and discussion: #pinktt <Insert presentation title> © Pink Elephant, <year>. All Rights Reserved. 11

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