Module 2 - INFO-6084 - Service Strategy Part I - Introduction PDF

Module 2 – Service Strategy Part I - Introduction INFO-6084 – Practical Applications of ITIL Agenda Service Strategy Key Concepts Risks Patterns of Business Activity (PBA) Learning Outcomes Understand the Service Strategy stage of ITIL, basic...

Module 2 – Service Strategy Part I - Introduction INFO-6084 – Practical Applications of ITIL Agenda Service Strategy Key Concepts Risks Patterns of Business Activity (PBA) Learning Outcomes Understand the Service Strategy stage of ITIL, basic concepts, its importance and main aspects covered in its processes Understand the concept of risk and how they can be managed Understand the concept of PBA (Pattern of Business Activity) and its relationship with a service delivery Understand the relationship between Service Strategy and the other stages in the ITIL lifecycle Section 1 Service Strategy Remember where we are in the lifecycle ! Service Strategy This is the initial stage of the ITIL® service lifecycle. This stage helps organizations in identifying their business mission and vision. This also helps in developing strategies to meet customer requirements and priorities by analyzing the current market needs and existing offerings. Service Strategy Purpose The core stage of the service lifecycle. The purpose is to define the strategic approach for service management across the whole lifecycle. Includes understanding the business perspective, position, future plans, and activity patterns that a service provider needs. Service Strategy Objectives Identifying the services and the customers who use them Understanding how to define value creation and delivery Providing the means to identify opportunities to provide services Delivering a comprehensive and clear service provision model Understanding the organizational capability Coordinating and documenting the use of service assets Defining the processes and services that will deliver the strategic plans Understanding the levels of demand and how to establish a relationship between the service provider and the customer Service Strategy Value Service Strategy provides Value to the Business by providing: The ability to link the activities carried out by the service provider to the business-critical outcomes. The ability to understand the type and levels of service that will support the customers. The ability to respond to business change, quickly and efficiently. Guidance for creating and maintaining a service portfolio Support for the transparent communication between the service provider and the customer The ability to understand how to organize The Values of Services The value of a service could be identified as the level to which the service meets the expectation of the customer. The service provider does not determine the value of a service; the person who receives the service determines it. Based on the customer’s perception, what the service allows them to do, and what benefit they receive by using the service. A measure of value can be how much the customer is prepared to pay for the service Characteristics of Value Value Is defined by customers Affordable mix of features Best combination of features, at a price that is reasonable Achievement of objectives Value changes over time and circumstance The Services IT Provided What the services achieved What the services cost Perceptions and Preferences Perceptions are influenced by many different factors such as attributes of a service, the experience of the customer with other similar services or the organization’s culture or image These perceptions will affect the customer preferences Economic Value Service providers need to understand the value components and provide customers with information that helps influence perceptions and respond to preferences. The factors of perception and preference translates to the economic value of a service as determined by the customer. Section 2 Key Concepts Key Concepts Utility Warranty Assets Resources Capabilities Governance Utility and Warranty Two primary elements of a service: Utility (fit for purpose) Warranty (fit for use) Utility is what the service does, and Warranty is how it is delivered These work together to deliver the desired outcomes that allow customers to assess value. Utility and Warranty (Cont.) Utility The functionality offered by a product or a service to meet a specific customer need. What the service does Refers to tasks associated to achieving outcomes. Warranty Provides the assurance that a product or service will meet the agreed requirements. May be a formal agreement or contract May include terms such as reliability, availability, capacity and security. Utility and Warranty (Cont.) Assets All processes need to have the appropriate resources and capabilities in order to be successful. Assets are any resource or capability Customer Asset: Any resource or capability used by a customer to achieve a business outcome. Service Asset: Any resource or capability used by a service provider to deliver services Assets are used to create value in the form of goods and services. Resources The direct inputs for the production of services Money, infrastructure items, applications, people, anything that could be used to assist in the delivery of a service Often considered to be assets of an organization Capabilities Represent the organization’s ability to do something to achieve value The ability to coordinate, control, and deploy resources in the form of a service Knowledge or information based and includes experience Capabilities and Resources - Examples Resources are the organization's assets, knowledge and skills. Capabilities can be defined as the organization's ability to effectively make use of its resources. For example, a book is a resource because you can immediately purchase it. A physical server is a resource because you can buy one and have it shipped to you. Capabilities are things that organizations develop with time. Governance Ensures that policies and strategy are actually implemented, and that the required processes are correctly followed Includes defining roles and responsibilities, measuring and reporting, and taking actions to resolve any issues Governance also provides the controls for the strategy itself, in terms of evaluation, monitoring, and direction for the strategic goal of the organization. Governance is often the driver for improvement activity as well as being important for strategic policy setting Governance provides structure across the whole of the service lifecycle There is an international standard for corporate governance of IT, designated ISO/IEC 38500.  ISO/IEC 38500 ISO/IEC 38500 is the International Standard for the Corporate Governance of Information Technology and is the official IT governance standard. This standard applies to the governance of management processes relating to the information and communication services used by an organization. Source: https://ramirocid.com/isoiec-38500-and-good-it-governance/ Section 3 Risks What is a Risk? Risk can be defined as “the potential for damage, loss or destruction of an asset as a result of a threat exploiting a vulnerability.” In ITIL books, risk is defined as “a possible event that could cause loss/ harm or affect the ability to achieve objectives.” According to the International Organization for Standardization (ISO), the risk would be defined as a "combination of the probability of an event and its consequences". Management of Risks Service Strategy publication does not provide a comprehensive organization- wide approach but considers the basic risk management that is required by a project implementing an IT service management approach. The ITIL approach to risk identification, assessment, management and mitigation must be enhanced by the IT service provider, not be in conflict with it. Identifying Risks Risk is the likelihood or potential for something to happen. Risks are identified and named and documented Capture the impact to the project or strategy and its potential to occur Can create a risk register A centralized record of the risks that need to be managed. Risks will be managed through the continual improvement stage. Analysis of Risks Consider what the impact will be if the risk becomes a reality and the consequence takes place. Assign a numeric and quality calibration Create a description for the risks. The quantitative value is used to calculate a ranking for the risk, while the qualitative statements and descriptions are used for the definition of how to deal with or manage the risk. Managing Risks Each risk should be associated with an individual action plan These individual plans should be collated to form an overall risk management plan Continuously review the risk management plan and also identify any new risks that may arise. Risk management is a repetitive activity, and this should become part of any standard practice Quick exercise: What are some risks you may have to complete your Capstone Project and how can you mitigate them?? Section 4 Patterns of Business Activity (PBA) Patterns of Business Activity (PBA) It is necessary to understand any patterns in the business activity so that you can deliver services that meet the required outcomes From experience, you will recognize that activities tend to form patterns if they are repeated frequently These interactions form something recognizable and therefore potentially predictable. Patterns of Business Activity (Cont.) The more you can predict patterns of business activity, the better you can ensure the levels of capacity and availability meet the requirements of the customer outcome. Business activity covers the use of customer assets such as people, processes, and applications, as well as interactions between customers, suppliers, partners, and other stakeholders. Capturing and analyzing patterns of business activity are key factors in determining strategies Patterns of Business Activity (Cont.) Once a pattern has been identified it should be documented. o Classification: identifies the type of PBA and impact of the outcomes that are supported, and the workload associated. o Attributes: includes frequency, volume, location, and duration. o Requirements: includes performance, security, availability, privacy, and tolerance for delays. o Service Asset Requirements: Used by design teams to capture and understand what is required to support a specific PBA, in terms of resource and capability Next Week Module 3 – Service Strategy Part II - Processes