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Tuesday, December 20, 2011

Introduction to Service Strategy


The objective of Service Strategy is to offer better services than the competition. You need to beat the opposition to survive. Of course, to be successful in the longer term, as the industrial landscape adjusts to the inevitable economic, social, technological and political changes, organizations have to think long term. So Service Strategy is not just about the strategy for individual services today, but also about positioning the IT service provider for the long run. It also includes the design, development and implementation of Service Management as a foundation for sound governance and as part of the organization’s strategic asset base.

Governance

The concept of governance is central to the sound operation and management of all healthy organizations. It covers the various policies, processes and structures established by senior management to ensure the smooth running and effective control of the organization. The guidance provided through the ITIL disciplines offers a sound foundation for the development of effective governance, which is as important to the IT provider as to any other organization.

Effective IT procedures and controls are a vital component of good governance. The ITIL framework can be a key part of the foundations for excellent IT governance.

IT is a service business, and the adoption of ITIL Service Management practices is an effective way to address IT governance. Every part of the Service Lifecycle has a role to play. For example, Service Strategy ensures that IT investments not only address issues that are important to the business, but also that they are sound investments that take proper account of costs, benefits and risks. Continual Service Improvement helps the business achieve greater value and higher levels of efficiency while conforming to standards.

Risk

The effective management of risk, an important issue for all successful organizations, is a key component of governance.

Note:
Risk is defined as uncertainty of outcome, whether positive opportunity or negative threat

Effective risk management requires a consistent framework in which risks are identified and analyzed and appropriate measures put in place to deal with them.

Key Processes

The key processes in Service Strategy are:
• Service Strategy Development
• Demand Management
• Service Portfolio Management
• Financial Management

These processes will be covered in detail in Section 3 where they will have a chapter dedicated to themselves. So, for now, just know that these 4 processes are part of Service Strategy

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Next: Service Strategy Development

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