IT Service Management ITIL v3 Service Strategy
Introduction to Service Strategy First Part of the Service Lifecycle
Feb 2, 2009
IT Service Management ITIL v3 Service strategy is about understanding the customer needs and recognising that they wish to buy solutions that solve business problems and not simply products. Therefore it is critical to understand what the customer needs are and when and why they occur. The service strategy must be created with the customer in mind and be integrated into the overall business strategy.
Service Strategy and Strategic Planning
The service provider may be in-house or external but in both cases the service strategy must be based on the clear recognition of competition, that choices are available. In this context, the service provider must understand that service strategy is the means to differentiate the service and to provide a competitive edge. Strategic planning then must encompass:
- What services will be offered and to whom?
- How the services should be developed and what are the key differentiators that provide customer value?
- How customers and stakeholders will perceive and measure value and performance?
- What is the compelling business case that will drive investment?
Developing Service Strategy and the Four Ps
- Perspective - vision, strategy and direction
- Position - competitive basis of service and providing a valued service
- Plan - how to execute strategy and achieve the vision
- Pattern - working practices and pattern of decision-making
Service Value is based viewing services as assets and on two components:
- Service Utility - positive customer outcomes or customer constraints removed
- Service Warranty - fit for purpose in terms of the service, its availability, capacity, continuity and security
Service Provider Types
- Type I - exists within an organisation serving one specific business unit
- Type II - exists within an organisation and serves multiple business units
- Type III - external service provider, serving multiple external customers
Service Assets
To treat the IT services as a strategic asset requires a number of key changes to IT service management:
- Capabilities - core competence and durable advantage based on management, organisation, processes, knowledge and people
- Resources - direct inputs for services such as financial, infrastructure, applications, people...
Critical to considering services as assets is the method used to measure value and finding key performance indicators for service provision and service usage:
- Managed Service - business unit funds service for itself
- Shared Service - shared service of infrastructure and resources between multiple business units
- Utility Service - services provided on an as needed basis
Organisation Design
To support the service will require:
- Organisation structured to deliver required services
- Sourcing strategy for services
- Service analytics to measure performance
- Service interfaces or how people and processes interact with the service
- Risk and financial management
- Service portfolio management, managing the investment across the service lifecycle of the inventory of service assets
- Demand management
Service Strategy
Transitioning IT Service Management from a process centric view to a service lifecycle and service assets view is a significant change that will drive behaviour towards seeking a return on asset. Seeking this return requires the service strategy to be integrated within the overall business strategy and another component of strategic management. For more information about ITIL v3 go to ITIL official-site and best management practice.
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