Service Strategy Processes

Service Strategy Processes

1. Service Portfolio Management

   • Service Portfolio
     • Set of services managed by a service provider
     • Represents commitments & investments across all customers
     • Includes present contractual commitments, new development, ongoing service plans & 3rd party services
     • Comprised of:
       • Service Pipeline - services under consideration / development, not yet available
       • Service Catalog - services currently live or available, visible to customers
       • Retired Services - services that have been phased out
   • Purpose:
     • ensures the right mix of services to meet business outcomes to balance investment
     • ensure clear definition of services
     • tracks investment in services
     • ensure services are linked to business outcomes
   • Objectives:
     • enable decisions on which service to provide
     • maintain a definitive portfolio of services
     • assist in evaluating how services help achieve strategy
     • track investment in services throughout their lifecycle
     • analyze services for viability and retirement
   • SPM's primary concern is the ability to generate value from the services
   • SPM compares tracked investments to desired business outcomes

2. Financial Management

   • quantified IT's values, contributions & enabled business opportunities
   • responsible for managing IT Service Provider's budgeting, accounting & charging requirements
   • Purpose:
     • Ensure adequate funding to build, deliver & operate a service
     • Ensure no commitments to unsustainable services
     • Identify the right balance between cost & quality
     • Maintain balance between supply and demand
   • Objectives:
     • define and maintain a framework to manage service provision costs
     • evaluate financial impact of strategic decisions
     • establish framework to recover service provision costs from customer
     • ensure expenses and income are balanced
     • budgeting the financial requirements to meet service committments
     • accounting for expenses on creation, delivery and support of services
   • Scope:
     • bridge between corporate financial system & service management
     • budgeting – predicting & controlling income and expenditure
     • accounting – account/track expenditure against budget
     • charging – billing customers for services

3. Business Relationship Management

   • Enables link building between the service provider and customers on a tactical & strategic level
   • Links assures that the customer's business requirements are understood and achievable
   • primary measure & concern: level of customer satisfaction
   • Purpose:
     • Establish & maintain a business relationship with the customer
     • Identify customer needs and ensure that they can be met
     • Assist business in understanding and articulating the value of a service
   • Objectives:
     • Understand the customer's perspective of service to prioritize services appropriately
     • Ensure high levels of customer satisfaction
     • Establish a constructive relationship with the customer
     • Identify changes to the customer's environment
     • Articulate business requirements for new or existing services
     • Ensure that the customer's business needs are being met
     • Establish formal complaints and escalation processes for the customer
     • Mediate in cases of conflicting requirements for services
   • Scope:
     • BRM focuses on understanding how services meet customer requirements from a strategic & tactical level
     • Internal service providers focus on aligning business objectives with service activities
     • External service providers focus on maximising contract value through customer value

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