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224 Cards in this Set

  • Front
  • Back

An IT service needs to be ___,___ and ___ in order to continue working effectively.

measured, monitored maintained

service management

a set of specialized organizational capabilities for providing value to customers in the form of services’.

Capabilities refer to

how good an organisation is at carrying out a task or activity.

There are four specific challenges that shape an organisation’s service management capabilities. These challenges are:

the intangible nature of the output of a service process


demand for services is tightly coupled to the customer’s assets


the high level of contact between the service provider and the customer, or service consumer


the perishable nature of service output and capacity.

The intangible nature of the output of a service process

Examples of services could include application hosting, or data storage.


These can be difficult to measure and control. Many service providers have thought they were delivering a good service, only to have a customer complain about something like ‘slow performance’.

Demand for services is tightly coupled to the customer’s assets

Services are not tangible outputs, such as cars or televisions. They cannot be stockpiled if too many are produced. Service providers need to be able to respond to increases in customer demand, without having too much unused capacity.


Documents such as contracts and Service Level Agreements can help to address this challenge by defining, agreeing, documenting and reviewing customer requirements.

The high level of contact between the service provider and the customer or service consumer

Often, the customer and supplier of a service are part of the same organisation. Defining and managing the roles, interfaces and overlaps between them can be extremely difficult.


Many service providers adopt formal service management frameworks, like ITIL, to provide structure and replace informal agreements based on personal networks and relationships.

The perishable nature of service output and capacity

Customers need assurance that service will continue to be delivered to the required level of quality.


The service provider needs to be assured of ongoing customer demand before they will invest in services and infrastructure.


An ongoing relationship will provide certainty that will benefit the customer and the service provider.

Service management should be viewed as a

professional practice.

There is a global community of professionals that support service management, including organisations like

the IT Service Management Forum.

Service management is also supported by a scheme that provides quality assured

education, training and certification.

There is a wealth of service management information available – including academic research and formal standards related to services and service management, such as

ISO/IEC 20000.

Service management has developed as IT’s focus has moved from a ____ approach to an ____ approach.

technology-centric, end-to-end service

Service management has developed as IT’s focus has moved from a technology-centric approach to an end-to-end service approach. The new approach focuses on the __ and the quality of service they receive.

customer

IT service providers usually have to balance three areas:

what the customer wants


how the service performs


how much the customer is willing to pay.

Documents such as ____ can be used to help manage expectations and make sure the customer and service provider have a clear understanding of what is meant to be delivered for each service.

Service Level Agreements

A stakeholder is defined as

‘any person who has an interest in an organisation, project, IT service or other area.

A stakeholder is defined as ‘any person who has an interest in an organisation, project, IT service or other area. Stakeholders may be interested in

activities, targets, resources or deliverables.’

Stakeholders can be

anyone – internal or external to the organisation.

Stakeholders can be anyone – internal or external to the organisation. Service providers will often deal with three main groups:

Customers: ‘customers buy goods or services’. They will define what the service does, but may not use it regularly.


Users: use the service bought by the customer on a regular basis.


Suppliers: third parties who are involved in part or all of the service delivery.

Internal customers are part of the

same organisation as the service provider.

They can be ___ to talk to, as they are part of the same organisation, but __

easier, IT may find it has to balance the conflicting needs of different internal customers.

Internal customers can also be challenging, because the relationship with them is often

informal.

Internal customers might receive services that are __ as part of the organisation’s budgeting cycle.

centrally funded

External customers are not part of the same organisation as the service provider and will be paying ___ for goods and services.

directly

External customers may be easier to work with because

the nature of the relationship has been clearly defined from the start.

External customers are not part of the same organisation as the service provider and will be paying directly for goods and services. The relationship will probably be on a more __ level, backed up by __

formal, contractual agreements.

External customers may be easier to work with because the

nature of the relationship has been clearly defined from the start.

Type 1 Service Providers are also referred to as

internal service providers.

Type 1 Service Providers are also referred to as internal service providers. They are typically embedded ____, and will provide business functions such as __, __, __, __

within the business unit they serve, finance, logistics, IT and human resources.

Type 1 Service Providers do not have a great degree of ___ and cannot set their own policies.

autonomy

Type 1 Service Providers do not have a great degree of autonomy and cannot set their own policies. They operate strictly within the requirements of the ____.

business unit

Type 1 Service Providers do not have a great degree of autonomy and cannot set their own policies. They operate strictly within the requirements of the business unit – which often funds them through ____

overheads.

Type 1 providers are very closely linked to ___, and ____, which removes some of the risks associated with working with an external supplier.

their customers, their customer’s required outcomes

The strategic direction of the Type 1 provider is normally set by the

managers of the business unit they are serving.

The strategic direction of the Type 1 provider is normally set by the managers of the business unit they are serving. It will be the business unit that defines __, __, __

he services on offer, the level of investment and the metrics to be reported against.

Because of the limited customer base of the Type 1 Service Provider, they are typically at greater risk of ___, as they are affected by peaks and troughs of demand.

market failure

Because of the limited customer base of the Type 1 Service Provider, they are typically at greater risk of market failure, as they are affected by peaks and troughs of demand. They can be compared unfavourably to competitors from outside the business unit, who

serve more than one customer, have more autonomy and can provide economies of scale.

Another issue associated with Type 1 Service Providers is the possibility of ____ and ___ when a number of Type 1 providers are maintained within one organisation.

duplication, greater cost

Type 2 Service Providers are also known as the

shared services unit.

Type 2 Service Providers are also known as the shared services unit. They offer services to

all business units in the organisation, rather than being embedded within one business unit, or department.

Type 2 Service Providers are also known as the shared services unit. They offer services to all business units in the organisation, rather than being embedded within one business unit, or department. This type of service provider has much more ___, and their direction is not necessarily set by __

autonomy, the individual business unit managers.

The shared services unit treats all business units as ___ , and behaves more like an ____

customers, external service provider.

Shared Services (Type 2 service provider)The Type 2 Service Provider is vulnerable to being compared with ___ and may be at risk of

external service providers, outsourcing, or substitution, if they are not competitive.

The Type 2 Service Provider is vulnerable to being compared with external service providers and may be at risk of outsourcing, or substitution, if they are not competitive. They need to be able to demonstrate ____ from the continuation of the shared services unit.

advantages

The customers of a shared services unit are business units within a common corporate

parent.

Some business units may receive a poorer service from the shared services unit than they would from a Type 1 provider, but this will be balanced out by

gains at the corporate level.

Any decisions about moving to a Type 2 provider will need to be made at a _____, or the _______,

senior management or corporate level, shared services unit will not be accepted.

Type 3 Service Providers are

external service providers.

Often, the core business of a Type 3 Service Provider is

service provision.

Often, the core business of a Type 3 Service Provider is service provision. They can ___ in this, unlike the service consumer who may see management of an area like the Service Desk as an unwelcome administrative headache.

excel

External suppliers may also be chosen when the business strategy is looking to ____, or is looking to become more _____

reduce fixed costs and operational risks, lean and flexible.


____ a service may suit the strategic direction better than operating the service in house.

Buying

There are risks associated with Type 3 Service Providers. These include

, choosing a service provider with different goals or priorities that do not align with the purchasing organisation; security risks where multiple customers from the same industry are served; and also the risk of a Type 3 Service Provider ceasing to trade.

There are risks associated with Type 3 Service Providers. These include, choosing a service provider with different goals or priorities that do not align with the purchasing organisation; security risks where multiple customers from the same industry are served; and also the risk of a Type 3 Service Provider ceasing to trade. Internal capabilities for the customer may also be reduced, as they are no longer

building up knowledge in house.

There are risks associated with Type 3 Service Providers. These include, choosing a service provider with different goals or priorities that do not align with the purchasing organisation; security risks where multiple customers from the same industry are served; and also the risk of a Type 3 Service Provider ceasing to trade. Internal capabilities for the customer may also be reduced, as they are no longer building up knowledge in house.


The customer organisation will have to make a balanced decision based on benefits, such as

cost savings, weighed against risks, such as the loss of internal knowledge.

ISO/IEC 20000 is the standard for

service management, and is used to certify an organisation’s processes and management systems.

ITIL is successful because:


It’s vendor neutral: ITIL is not linked to one supplier, or one technology, or one industry. This means it can be adopted across all types and sizes of organisation.


It’s non-prescriptive: Organisations need to adopt and adapt the elements of ITIL that work for them and their customers.


It’s best practice: ITIL draws on experience from service management practitioners across the globe.

Best practice simply means

‘proven activities or processes that have been successfully used in multiple organisations’.

ITIL is seen as being preferable to the proprietary knowledge that builds up in organisations and staff members. Proprietary knowledge isn’t usually documented in a

consistent way.

ITIL is seen as being preferable to the proprietary knowledge that builds up in organisations and staff members. Proprietary knowledge isn’t usually documented in a consistent way. It exists because it has built up over time. This means it is not

challenged or improved – and can cause a real risk if an experienced staff member leaves and takes their proprietary knowledge with them.

Redraw Service Management Practice

The ITIL definition of a process is:


is a structured set of activities designed to accomplish a specific objective. A process takes one or more defined inputs and turns them into defined outputs.’

To be effective, service management processes should be set up as

closed-loop systems.

To be effective, service management processes should be set up as closed-loop systems. This means that

they request feedback, and use that feedback to improve the way they perform.

To be effective, service management processes should be set up as closed-loop systems. This means that they request feedback, and use that feedback to improve the way they perform. If processes don’t work on this closed-loop model,

they will not improve and no lessons will be learned.

Processes should also be ____, so they can be shared and used throughout an organisation.

documented

Processes should also be documented, so they can be shared and used throughout an organisation. If there isn’t a definitive agreed version of a process, different teams will carry out the activities in

different ways – all of them believing they are following the process properly.

Processes are directed by ____.

policies.

Processes are directed by policies. Policies are used to document

management expectations and their intentions for the process.

Processes are directed by policies. Policies are used to document management expectations and their intentions for the process. The policy is then used to make sure the process development and implementation is done in a way that is

consistent with management intentions.

Within service management, one of the ways that processes deliver value is by being

reusable.

Reusable processes can be

measured, monitored and improved.

To support organisational understanding of processes, we can document them using a

process model.

Draw process model

Process enablers are t

he resources that we use to make the process work, for example, technology or people.

A perfect process will deliver no value if there aren’t

enough resources to implement it.

Remember: a process model doesn’t have to be

complicated

Remember: a process model doesn’t have to be complicated. You can start by brainstorming the process with a group of

stakeholders

Remember: a process model doesn’t have to be complicated. You can start by brainstorming the process with a group of stakeholders. This will help you to get the right steps documented, so that they can be agreed. Once a common process is defined and agreed, you can

automate it using a service management toolset, if appropriate.

Process models are also useful for , as they are a quick and easy way to explain a process to staff members who need to learn about it.

education

draw your own process model? Incident and Change Management are great places to start.

d

process: Measurable

If we cannot measure a process, then it will not fit the definition of closed loop, as no feedback will be available.


Measuring a process allows it to be performance driven.


Different measurements will be required for different audiences, for example, managers may be interested in the cost of the process, while customers may be interested in the outcome.

process Delivers specific results

The results of a process need to be identifiable, measureable and countable. Again, without a clear result the process cannot be managed, measured and controlled.


If a process does not have a defined result, or end-point, it could in theory go on forever.

process Delivers to a customer or stakeholder

The customer or stakeholder can be internal or external, but it is their expectations that shape the overall process.

process Responds to specific triggers

The trigger or input to the process is important for measurement and control. Unless we understand when the process starts, we won’t know what point to measure from.

‘A function is

a team or group of people and the tools or other resources they use to carry out one or more processes or activities.’

Functions are used to structure

organisations.

The individual resources that make up a function need to

communicate well with each other and with other functions.

A key part of service management is making sure that functions interact

effectively.

The Service Desk and second-line support are common IT

functions.

If functions are not working as well as they should, senior management may look to

restructure the organisation into a different functional structure.

If functions are not working as well as they should, senior management may look to restructure the organisation into a different functional structure. They might also

introduce processes that link functions together, to show the teams how they should be working.

Functions are used ___, for example, there may be a Change Management function responsible for the Change Management process, or a Service Level Management function responsible for agreeing and maintaining Service Level Agreements.

across the service lifecycle

‘A role is

a set of responsibilities, activities and authorities granted to a person or team. A role is defined in a process or function. One person or team can have multiple roles.’

Roles are carried out by , and need to be

people, clearly outlined so that people understand what they are supposed to do.

If roles are not clear, tasks may be

duplicated – or not done at all.

Remember: a single person can fulfil many

roles – that’s why it is so important to map roles carefully.

RACI models are used to

manage resources and roles for the delivery of a piece of work or task.

The RACI model is used to track who is doing what. It provides clear

mapping of roles across the different teams in the organisational structure.

RACI stands for

Responsible, Accountable, Consulted and Informed.

Only one person can be __ for any task.

Accountable

Any number of people can be ___ as part of the RACI model.

Responsible

These are the workers who will get the actual tasks done, and they will report to the ___ resource about their progress.

Accountable

Sometimes resources are ___` to get a task done.

Consulted

Other resources need to be ___. These resources are stakeholders who need to track and understand exactly how the task is progressing, or they may need an output from the task. Business sponsors, for example, will typically be informed about progress as part of a project.

Informed

When RACI is applied to service management processes, the ___ will be accountable for all the process activities, even if they are not responsible for carrying them out.

process owner

RACI models are often shown as a matrix. To build a RACI matrix, these steps need to be followed:


identify activities


identify roles


assign RACI codes


identify gaps or overlaps


distribute the chart for feedback


monitor the roles.


A ___ is responsible for ensuring that a process is both fit for purpose and performing adequately. The process owner’s accountabilities include:

process owner

The process owner’s accountabilities include:


defining the process strategy


assisting with process design, including the design of process metrics


making sure the process is documented


auditing the process


addressing any issues or opportunities for process improvement


defining policies and standards related to the process


sponsoring the process.

The process owner role should be assigned to a

single person – it should not be shared.

The process owner role should be assigned to a single person – it should not be shared. A team, for example, should not be allocated ownership of a process – it has to be a single person or role. This allows the process owner to manage the process effectively with

no duplication or confusion.

The process manager

is accountable for the operational management of a process.

There can be more than one manager for each process, for example, an organisation might have

regional change managers, each providing process management for their area.

In a small organisation, the process manager and owner might be the

same person.

In a small organisation, the process manager and owner might be the same person. In a larger organisation, they may be

separate.

The process manager’s accountabilities include:


working with the process owner


making sure all process activities are carried out


appointing staff to process roles and managing resources


monitoring and reporting on process performance


working with service owners and other process managers to make sure processes support services


identifying improvements and working with the Continual Service Improvement manager to prioritise them


making improvements to process implementation.

This role actually carries out the process activities.

process practitioner

process practitioner actually carries out the process activities. In smaller organisations, this role may be combined with the

process manager.

This role actually carries out the process activities. In smaller organisations, this role may be combined with the process manager. In larger organisations there may be multiple

practitioners for each process.

Examples of process practitioners could include

incident analysts, change management analysts, service level reporting staff, etc.

The process practitioner will be responsible for the following areas:


carrying out process activities


understanding how their role links to services and creates value


working with other stakeholders involved with the process


making sure that inputs, outputs and interfaces are correct


creating or updating records of their activities.

The service owner is

accountable for the delivery of a specific IT service.

The service owner is accountable for the delivery of a specific IT service. As with the process owner, the service owner may not carry out all the activities involved in service delivery, but they do need to make sure

that all of the work is carried out and the service is delivered as agreed.

The service owner is responsible to the customer for

the initiation, transition and ongoing maintenance and support of the service.

The service owner is responsible to the customer for the initiation, transition and ongoing maintenance and support of the service. They are also accountable to

the IT director for service delivery.

The service owner is responsible to the customer for the initiation, transition and ongoing maintenance and support of the service. They are also accountable to the IT director for service delivery. The role is responsible for

continual improvement of their service and management of any changes associated with it.

The service owner is responsible to the customer for the initiation, transition and ongoing maintenance and support of the service. They are also accountable to the IT director for service delivery. The role is responsible for continual improvement of their service and management of any changes associated with it. In a smaller organisation, one person may fulfil the service owner role for

many services.

Other responsibilities for the service owner include:


attending the Change Advisory Board to assess the impact of changes to their service


attending internal and external service review meetings


communicating with customers about service-related enquiries and issues


serving as a point of escalation (including for major incidents)


participating in Service Level Agreement and Operational Level Agreement negotiations.

To make sure their service is working as it should, Service owner will interface with many service management processes,

including Business Relationship Management.

The volumes are:


Service Strategy


Service Design


Service Transition


Service Operation


Continual Service Improvement.

The core is also supplemented by another series of books known as

complementary guidance.

The core is also supplemented by another series of books known as complementary guidance. The complementary publications provide further guidance that is more specific to

industry sectors, organisation types, operating models, and technology architectures.

As ITIL becomes more widely adopted and matures further, the amount of complementary guidance available will

increase.

Service Strategy is the

hub that drives the lifecycle.

Continual Service Improvement looks for improvement opportunities in

all stages.

Service Design, Transition and Operation work together as a

network.

Service Strategy is the

centre of the lifecycle and the hub that all the other phases revolve around.

The purpose of Service Strategy is to

define what a service provider needs to do in terms of service delivery to support its customer(s).

The purpose of Service Strategy is to define what a service provider needs to do in terms of service delivery to support its customer(s). The strategy that is adopted must support

the customer’s desired business outcomes.

As part of its purpose, Service Strategy will define

plans, patterns, a position and perspective for how the service provider will behave.

As part of its purpose, Service Strategy will define plans, patterns, a position and perspective for how the service provider will behave. These are used to

help cascade the strategy down through the organisation, and make sure that all parts of IT behave consistently.

The Service Strategy objectives include:

understanding what services are, and who the organisation’s customers are

The Service Strategy objectives include:


understanding what strategy is


understanding what services are, and who the organisation’s customers are


understanding how value is created and delivered


creating a service provision model to show how services will be delivered and funded


understanding if the service provider organisation is capable of delivering the strategy, and what needs to be done if it isn’t


identifying opportunities to offer services and being able to act on them


understanding what service assets make up services and managing them appropriately


putting processes in place to make sure the strategy is delivered

understanding what services are, and who the organisation’s customers are

Service Strategy

understanding how value is created and delivered

Service Strategy

creating a service provision model to show how services will be delivered and funded

Service Strategy

understanding if the service provider organisation is capable of delivering the strategy, and what needs to be done if it isn’t

Service Strategy

identifying opportunities to offer services and being able to act on them

Service Strategy

understanding what service assets make up services and managing them appropriately

Service Strategy

putting processes in place to make sure the strategy is delivered.

Service Strategy

The scope of Service Strategy includes

defining principles and processes for service management, which then apply to the rest of the service lifecycle.

Internal and external IT service providers both need a coherent __ to make sure their services deliver value.

strategy

The scope of Service Strategy can be broken down into two areas:

defining a strategy for how the service provider will deliver services that meet customer needs


defining a strategy for ongoing management of services.

Effective Service Strategy helps organisations to:


offer appropriate services that meet business needs


offer the services in a timely way


link IT activities and assets to business outcomes to show the true value of IT


demonstrate return on IT investment and value for money


be seen as a trusted partner by customers.

Once a strategy has been defined and communicated, services can be __ to meet the strategic objectives.

designed

The purpose of the Service Design stage of the lifecycle is to

design services that fulfil the strategic objectives, which are based on business requirements.

IT processes, practices and policies also need to be designed to make sure that services are

high quality, cost effective, and meet customer needs.

The main objective of Service Design

is to deliver a service which works.

All Service Design activities must have ____ embedded in them, so that solutions and designs are always getting better.

continual improvement

The scope of Service Design includes t

he design of appropriate and innovative services that meet business needs – now and in the future.

Service Design will be influenced by

requirements, business benefits and constraints.

If the business has set a budget for a service, Service Design has to make sure

it stays within that budget.

Service Design helps organisations to:


improve service quality, so that services meet business needs from the start


make sure services are implemented well and consistently


make sure services perform in line with agreed business requirements


reduce service costs, including the cost of redesign and rework


improve governance and decision making


improve service management and process design.

Service transitions need to be carefully planned and managed, as they have the potential to

negatively affect live services.

Service transitions need to be carefully planned and managed, as they have the potential to negatively affect live services. A transition might fail, meaning a new service is not accessible. That will be bad for the business, but it’s even worse if

the transition affects existing services as well and creates problems there.

The purpose of Service Transition is

to make sure that new, modified or retired services meet the business expectations documented during Service Strategy and Service Design.

retiring a service is a ___, as well as releasing a new service, or making a change to an existing one.

transition

A service retirement needs to be ___ and ___, just like a new service going live.

communicated, managed

. Insourcing or outsourcing a service would also be managed as

a transition.

To fulfil its role, Service Transition has a number of objectives:


Service Transition needs to manage service changes efficiently and effectively


it needs to manage any risks related to changes to services


it needs to deploy releases successfully


it needs to set expectations about how services will perform and be used


it needs to ensure that service changes create the expected business value


it needs to provide knowledge and information about services and service assets that make up services.

The adoption of Service Transition practices should lead to an organisation

developing and improving its capabilities for getting new and changed services into the live environment.

Processes need to be in place for release build, test and deployment to make sure that

changes do what they are supposed to do and don’t create any unnecessary problems.

The scope of Service Transition also includes the ___ of services and __ of services between providers.

retirement, movement

Requirements are __ in Service Strategy and __ in Service Design.

mapped, designed

Service Transition then needs to transfer the service and make sure that value is delivered in

Service Operation.

Service Transition needs to be aware that:


services and processes are complex and changes are consequently more complex too


new services and innovation need to be allowed and encouraged, but without negative effects


services will change and evolve, and be discontinued – which all needs to be managed.

Any change to a service can initiate

transition activity.

Changes to the service provider’s ___ – for example moving to a new supplier – can also initiate transition processes and planning.

capabilities

Service Transition uses ___ processes to help it manage changes to services.

seven

are the Service Transition processes that are involved in the whole service lifecycle.

Change Management, Service Asset and Configuration Management, and Knowledge Management

are the processes that only operate within Service Transition.

Transition Planning and Support, Release and Deployment Management, Service Validation and Testing, and Change Evaluation

Service Transition helps organisations to:


deliver successful changes


improve communication, expectation setting and confidence in changes


reduce costs, delays, and timing and scheduling issues


improve control of service assets and configuration items.

Service Operation deals with the management of

live services.

Service Operation deals with the management of live services. This includes all

business as usual (BAU) activities required to keep services stable on a day-to-day basis.

The purpose of Service Operation is to

undertake activities and processes to manage and deliver services at the levels agreed with business users and customers.

Service Operation manages

the technology used to deliver services and collects information on performance and defined service metrics.

Service Operation manages the technology used to deliver services and collects information on performance and defined service metrics. It is vital for

effective service management.

Service Operation manages the technology used to deliver services and collects information on performance and defined service metrics. It is vital for effective service management. Services can be well designed and transitioned smoothly, but they still need to be managed in the live environment to make sure they

continue to work well.

Service Operation staff need

processes and tools to support them.

It is important to focus on __, not just single technology components.

services

Any external suppliers involved in service delivery also need to be part of the

Service Operation view.

The objectives of Service Operation include:


maintaining business confidence and satisfaction by delivering services effectively and efficiently


minimising the effect of any service downtime for the business


ensuring that only authorised users have access to services.

Service Operation covers all areas of service delivery, including:


services


service management processes


technology


people.

Service Operation helps organisations to:


reduce the impact and frequency of outages


provide access to standard services


provide data to justify investment.

Continual Service Improvement (CSI) interacts with

all of the other phases in the lifecycle.

The purpose of CSI is to

identify improvements to allow IT services to stay aligned with changing business needs.

The objectives of CSI include:


reviewing, analysing and prioritising improvements across the whole service lifecycle


reviewing whether services meet their agreed targets


identifying and implementing activities to improve service quality


improving cost effectiveness without affecting service performance


using quality management to support improvement


making sure processes have clearly defined objectives and measures


understanding what to measure, and why.

The scope of CSI covers four main areas:


the health of IT service management overall


alignment of services with business needs, both now and in the future


maturity and capability of the organisation, management, processes and people


continual improvement of all IT services and service assets.

CSI helps organisations to:


improve quality and reduce cost


align IT services with business requirements


improve services, structure, processes, capabilities and communication.

Service Strategy is the

centre of the service lifecycle and the axis that all the other phases revolve around.

The purpose of Service Strategy is

to define what a service provider needs to do to support its customer.

The Service Strategy adopted must

support the organisation’s overall business outcomes.

As part of its purpose, Service Strategy will define

plans, patterns, a position and perspective for how the service provider will behave.

Service Strategy has a number of objectives. These objectives will help

to define how the rest of the service lifecycle works

The Service Strategy objectives include:


understanding what strategy is


understanding what services are, and who the organisation’s customers are


understanding how value is created and delivered


creating a service provision model to show how services will be delivered and funded


understanding if the organisation is capable of delivering the strategy


identifying opportunities to offer services and being able to act on them


understanding what service assets make up services and managing them appropriately


putting processes in place to make sure the strategy is delivered.

Service Strategy areas:

Concepts, Strategy Management for IT Services, Portfolio, Financial, Demand, Business Relationship, Putting strategy to work

The scope of Service Strategy includes

defining principles and processes for service management, which then apply to the rest of the service lifecycle.

The scope of Service Strategy can be broken down into two areas:

defining a strategy for how the service provider will deliver services that meet customer needs


defining a strategy for ongoing management of services.

Service Strategy helps organisations to:


offer appropriate services that meet business needs


offer the services in a timely way


link IT activities and assets to business outcomes to show the true value of IT


demonstrate return on IT investment and value for money


be seen as a trusted partner by customers.

If a service doesn’t deliver value to a customer, the customer won’t

want to use it and they certainly won’t want to invest in it.

A customer must understand how the service is giving them

value.

Services on their own aren’t worth anything; they only deliver value when they are being used to

deliver business outcomes and meet business objectives.

If the customer can’t see that a service is making them more productive, they won’t see any

value.

Think about these statements related to value

:


Value is defined by the customer, not the service provider.


Services need to have an affordable mix of desirable features to attract customers.


Value is not just measured in financial terms, services can fulfil a moral or ethical need.


Value changes over time; what a customer values today may not be what they value tomorrow.

Customers must feel that the value of a service outweighs

the cost of using the service.

To be successful, an IT service provider must understand

what their customer wants AND how much they are willing to pay.

IT needs to be able to articulate:

what services it provides


what those services achieve


how much the services cost.

Service costs include

any ongoing and maintenance costs, as well as the original purchase price of the service.

Service costs include any ongoing and maintenance costs, as well as the original purchase price of the service. This would be defined as

the total cost of ownership (TCO), or total cost of utilisation (TCU).

. Other services provide value which is intangible and harder to quantify. In this instance, the service provider needs to consider other factors such as

customer expectations and perception.

Value is more than simply what the service costs and what it does. It will be influenced by

business outcomes achieved, customer preferences and the customer’s perception of what was delivered.

If value is intangible, it must be

clearly defined and communicated.

If value is intangible, it must be clearly defined and communicated. Otherwise, customers won’t understand

why they should purchase, or use, a service.