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Service Strategy (Business Relationship Management Process (Mitigating…
Service Strategy
Business Relationship Management Process
Establish/maintain business relationship between service provider and customer
Identify customer needs and ensure
service provider can meet the needs
Mitigating Needs
Understand, inform, and meet
customer’s perceived needs
Communicate needs inside the service
provider’s organization
Identifying Trends
Identify technology trends that could impact the services to a particular customer
Identifying Changes
Identify changes in a customer’s
environmen
Mediation
Mediate requirements when multiple customers need different things from the service
Complaint Methods
Create formal complaint methods and procedures for each customer
Ensure you consider the escalation process
Internal/External Providers
Type I/Type II
BRM involves senior IT managers
with heads of business units
Type III
BRM involves account managers to
maintain commercial relationships
Financial Management Process
Relevant in all stages, but introduced
first in Strategy
Purpose is to manage financial
resources and costs for services
Purpose
Secure funding to design, develop, and deliver services to support business processes
Ensure service provider doesn’t
promise what they cannot deliver
Maintain balance of cost and quality;
supply and demand
Financial Management
Fundamentals
Budgeting
Forecasting of cost to support ongoing
and proposed services
Link requirements to agreed upon
business processes
Accounting
Money is divided into cost centers to keep track of expenditures for business units or services
Each expense is tracked against the cost center and back to the original budget
Charging
Charging isn’t mandatory
Type I/II may not conduct charging
(but some organizations do)
Type III always charge
(it is how we create profit)
Business Case
Argues the benefits and costs of a
particular service
Created for new or changing services
Provides an expected Return on
Investment (ROI)
Parts of a Business Case
Introduction
Short summary of business issues
driving the change
Provides background to leadership
Contains a statement of objectives
Methods and Assumptions
Describes the method used in the
business case
Assumptions states the growth projections, technological advances expected, socioeconomic conditions,etc
Business Impacts
Return on Investment (ROI)
Expected financial growth
Value of Investment (VOI)
Expected non-financial return, such as an increase in reputation
Utility and Warranty drives business
impact
Risks and Contingencies
Details the uncertainties identified
during previous analysis
Proposes a countermeasure or
mitigation for each identified risk
Recommendations
Provides conclusions based on the
business case
Provides proposal for future action with alternatives also presented with their cost
Service Portfolio Management Process
Ensure a correct mixture of services to balance IT investment to support the business objectives
Overlapping Pieces
Service Pipeline
Information on all services from
concept to operations
Restricted visibility to those who have a
need-to-know
Service Catalog
Information on all services in operational environment and those being prepared for rollout (resources allocated)
Customers can view info
Retired Services
ITIL doesn’t state when services are
retired
Many organizations keep them in the
service catalog for reference
Other organizations choose to delete
their retired services from the catalog
Resources are released
Process begins in Service Strategy, but we will see it in every stage of the lifecycle since resources are allocated throughout the lifecycle of every service
Who allocates resources, anyway?
Resources are allocated to resources throughout their lifecycle from the IT director’s resource pool
Services will usually use more resource
in Operations than in earlier stages
Demand Management Process
The purpose of the process is to identify the demand for a particular service to prevent capacity limitations
Key Activities
Identify and analyze patterns of
business activity (PBA)
Analyze usage of services by different types of users and identify/document user profiles
Important Considerations
Business have busy and slow periods
Retailers are busier during the holiday season
Many companies don’t account for large demand
This process is not covered by the ITIL Foundation exam, but is important to fully understand the lifecycle
Creating Value
Value is created from the balance between utility and warranty
Utility
Functionality of a service
Fit for purpose
Enabling a job to be done or to be done
better
Warranty
Fit for use
Mix of availability, capacity, continuity,
and security
Value in Service Strategy
Always try to understand the utility and warranty of any new or changed service
Utility ”sells” services
Warranty requires resources and
therefore represents additional costs
Strategy Management Process
This process is to ensure a service strategy is defined, maintained, and managed
Note: Strategy Management process is not covered by the ITIL Foundation exam
Key Activities
Examining current internal and external
environments
Identifying strengths, weaknesses, opportunities, and threats (called a SWOT analysis)
Identify future developments
Developing and maintaining the
marketing perspective
Defining market spaces
Identifying opportunities for new
services for development
Defining differentiation of service
provider from others
Developing and maintaining a strategic
plan
Managing the Service Strategy stage of
the lifecycle
Cyclic Nature of Value
Value is revisited in each stage of the lifecycle through utility and warranty
Stay on track to deliver the expected
value to the operational environment
Tools in Service Strategy
Tools don’t only have to be used in the
Service Desk
Service Automation/Analytics and Simulation are useful in the Service Strategy stage
Enables consistency and higher
efficiency
Captures accurate data for management and to make informed strategic decisions
Maximum automation = ++efficiency
Provides a method to model a potential
service solution and analyze the results
Results can be used in a business
case
Assets in Service Strategy
Types of Assets
Resources
Tangible, can be purchase
Financial capital, Infrastructure, Applications, Information, and People
Capabilities
Must be grown or developed
Management, Organization, Processes, Knowledge, and People
Roles in Service Strategy
ITIL doesn’t dictate how an
organization should be organized ITIL does recommends roles
Service Owner
Process Owner
Process Manag