Service Strategy Processes

Service Portfolio Management
1. Service Portfolio
  1. Set of services managed by a service provider
  2. Represents commitments & investments across all customers
  3. Includes present contractual commitments, new development, ongoing service plans & 3rd party services
  4. Comprised of:
    1. Service Pipeline - services under consideration / development, not yet available
    2. Service Catalog - services currently live or available, visible to customers
    3. Retired Services - services that have been phased out
2. Purpose:
  1. ensures the right mix of services to meet business outcomes to balance investment
  2. ensure clear definition of services
  3. tracks investment in services
  4. ensure services are linked to business outcomes
3. Objectives:
  1. enable decisions on which service to provide
  2. maintain a definitive portfolio of services
  3. assist in evaluating how services help achieve strategy
  4. track investment in services throughout their lifecycle
  5. analyze services for viability and retirement
4. SPM's primary concern is the ability to generate value from the services
6. SPM compares tracked investments to desired business outcomes
Financial Management
1. quantified IT's values, contributions & enabled business opportunities
2. responsible for managing IT Service Provider's budgeting, accounting & charging requirements
3. Purpose:
  1. Ensure adequate funding to build, deliver & operate a service
  2. Ensure no commitments to unsustainable services
  3. Identify the right balance between cost & quality
  4. Maintain balance between supply and demand
4. Objectives:
  1. define and maintain a framework to manage service provision costs
  2. evaluate financial impact of strategic decisions
  3. establish framework to recover service provision costs from customer
  4. ensure expenses and income are balanced
  5. budgeting the financial requirements to meet service committments
  6. accounting for expenses on creation, delivery and support of services
5. Scope:
  1. bridge between corporate financial system & service management
  2. budgeting – predicting & controlling income and expenditure
  3. accounting – account/track expenditure against budget
  4. charging – billing customers for services
Business Relationship Management
1. Enables link building between the service provider and customers on a tactical & strategic level
2. Links assures that the customer's business requirements are understood and achievable
3. primary measure & concern: level of customer satisfaction
4. Purpose:
  1. Establish & maintain a business relationship with the customer
  2. Identify customer needs and ensure that they can be met
  3. Assist business in understanding and articulating the value of a service
5. Objectives:
  1. Understand the customer's perspective of service to prioritize services appropriately
  2. Ensure high levels of customer satisfaction
  3. Establish a constructive relationship with the customer
  4. Identify changes to the customer's environment
  5. Articulate business requirements for new or existing services
  6. Ensure that the customer's business needs are being met
  7. Establish formal complaints and escalation processes for the customer
  8. Mediate in cases of conflicting requirements for services
6. Scope:
  1. BRM focuses on understanding how services meet customer requirements from a strategic & tactical level
  2. Internal service providers focus on aligning business objectives with service activities
  3. External service providers focus on maximising contract value through customer value

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service-portfolio-diagram (image/jpg)

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Service Strategy Processes

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