Managing a successful IT service delivery function (or business) during these times is an increasingly complex situation.
Today, a service owner needs to be knowledgeable about a lot of different process standards, best practices and service management developments.
As the delivery of IT products and services evolves constantly, a proper and accurate view of the company's service realted assets and underpinning financial capability is necessary.
With the dynamic breakthroughs in technology, interested internal clients are now demanding more from their IT service providers; including quality perfomance and a clearer view of the operational functions and controls that maintain the IT service operation.
Employing proper financial management within the service lifecycle can only give both the client and the service provider a sense of security and transparency during their business relationship.
After applying ITIL based financial management, both the client and the service provider aims to have the following capabilities:
* Enhanced decision making
* Speed of change
* Service portfolio management
* Financial compliance and control
* Operational control
* Value capture and creation
Though IT has been looked down in the past as a menial sector of the business organizations, the dynamic quality of the business has put IT industry, as one of the more important industries in this century.
It seems that the IT industry has a similar structure like a market-facing company, that they also regularly evaluate their business stance and aims to have an accurate view of how their services are responding to their client's needs.
This increasing similarity is a great shift for the IT business, as this would mean lowered costs while still producing quality services.
Here's a quick look at the commonality of interests between the business and IT: -
1. Visible, consistent run cost structures
For an IT firm to function flawlessly, it will be easier to know where the money is spent within the service operation.
2. Service consumption, modelling, valuation and planning confidence
They share the same need to have a client that they can serve their products, model and plan a working and efficient service strategy with.
3. Service investment analysis
It is necessary to make sure that the planned service will be valuable and worth the investment for the clients.
4. Financial process supporting rapid change in: budget, business need and value networks. There should be a strict monitoring of budget spending within the service operation.
5. Service portfolio management and optimization
The IT is advised to have an accurate description of their services and assets by providing their clients with their service portfolio. It should aim to optimize and improve the quality of their client's services and operation.
6. Known variable cost and dynamics
Knowing how to control the essential variables within the service operation is necessary and helpful for the service provider.
7. Service provisioning optimization
Once the service is functioning, the IT firm should be able to monitor and help in enhancing their client's services.
8. Financial compliance
The services organisation must work within the budget restrictions agreed and orientate around the plans of their clients.
Developing Strategic Assets - ITIL Service Strategy
In order to get a head start in life, one has to know the talent that they can peddle for success. A person might be a gifted writer, or a young woman might shine the most in dancing, whatever gift that they might possess, it is but a natural inclination to develop it as part of a person's drive towards maturity and growth.
This comparison can also be applied in the world of the ITIL Service Strategy. As part of the ITIL framework, Service Strategy is a key aspect of developing and keeping the processes and service applications in top shape.
Developing these physical assets and services provided by the service provider is one way of ensuring a successful service delivery.
What is a strategic Asset?
A strategic asset in a Service Strategy can be identified as the physical assets, products and services contained in a service lifecycle. Developing these strategic assets to their maximum capacities can only spell success for the company and the service provider.
It only seems rational for service providers to prioritize the managing and development of services and physical assets of their services, as their progress and development is connected with the progress of the client's company.
When a client is notified that a service provider delivers trusted products, and manages to be a reliable partner, this would only boost the interest of a prospective investor. That is why it is necessary to maintain a level of quality and commitment towards joint projects, as this can lead to a more clients in the future.
Developing strategic assets
Some stakeholders might go into a service agreement with a service provider that has low value contracts, but as time passes and both parties have gotten a better handle on their service needs, the service rendered will only continue to improve.
This progress would only encourage a client to renew their partnership and at this stage, it would only be logical for the service provider to invest and develop their prized services and products by employing more specialized workforce and instill applications that can enhance their services.
Deliver value capture
As much as possible, stakeholders invest in a service provider that has a transparent and trusted service history. A great service provider is measured by the efficiency of its value creation versus its value capture. It would be an ideal scenario if the services created, taking into account the cost and efforts it took to produce, can be equal, if not essentially beneficial to the company for its users and overall business organization.
Service management as a strategic asset
In order to handle and develop service management as a strategic asset, it is necessary to view and identify the value network of the service provider in conjunction with their service operation with their customers.
By having an idea of what these key assets are in their relationship, it would be easier to classify which are more significant than the other. Identifying the intricate service assets would help the service provider in monitoring them more closely and effectively.
Although the conditions around the business may not always be perfect, and change is almost inevitable, service assets are expected to be constant and stable.
It is important for service management to have great control over the relationship between customer assets and service assets.
This comparison can also be applied in the world of the ITIL Service Strategy. As part of the ITIL framework, Service Strategy is a key aspect of developing and keeping the processes and service applications in top shape.
Developing these physical assets and services provided by the service provider is one way of ensuring a successful service delivery.
What is a strategic Asset?
A strategic asset in a Service Strategy can be identified as the physical assets, products and services contained in a service lifecycle. Developing these strategic assets to their maximum capacities can only spell success for the company and the service provider.
It only seems rational for service providers to prioritize the managing and development of services and physical assets of their services, as their progress and development is connected with the progress of the client's company.
When a client is notified that a service provider delivers trusted products, and manages to be a reliable partner, this would only boost the interest of a prospective investor. That is why it is necessary to maintain a level of quality and commitment towards joint projects, as this can lead to a more clients in the future.
Developing strategic assets
Some stakeholders might go into a service agreement with a service provider that has low value contracts, but as time passes and both parties have gotten a better handle on their service needs, the service rendered will only continue to improve.
This progress would only encourage a client to renew their partnership and at this stage, it would only be logical for the service provider to invest and develop their prized services and products by employing more specialized workforce and instill applications that can enhance their services.
Deliver value capture
As much as possible, stakeholders invest in a service provider that has a transparent and trusted service history. A great service provider is measured by the efficiency of its value creation versus its value capture. It would be an ideal scenario if the services created, taking into account the cost and efforts it took to produce, can be equal, if not essentially beneficial to the company for its users and overall business organization.
Service management as a strategic asset
In order to handle and develop service management as a strategic asset, it is necessary to view and identify the value network of the service provider in conjunction with their service operation with their customers.
By having an idea of what these key assets are in their relationship, it would be easier to classify which are more significant than the other. Identifying the intricate service assets would help the service provider in monitoring them more closely and effectively.
Although the conditions around the business may not always be perfect, and change is almost inevitable, service assets are expected to be constant and stable.
It is important for service management to have great control over the relationship between customer assets and service assets.
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