State of Service Management TODAY
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1 1 Process vs. Capability Enterprise Service Management Agenda 2 State of Service Management TODAY Process & Strategy What s Missing? Conclusions 2014 SED IT unless otherwise stated 1
2 Today 3 - ITIL - AXELOS & OGC - July, Transition pains - Direction - Educational schema - Exam pricing - COBIT 5 - ISO/IEC Shifting Technology 4 UX GUI IT Delivery Info & Comms Data DB & BI Touch UI; NextGen Mobile Data Center; PC Cloud; Browser E mail; CMS/DMS Social Media Big data 2014 SED IT unless otherwise stated 2
3 Traditional IT Structure 5 Centralized Controlled Top down Slow Unpredictable Traditional Project Management practices Customization IT backlogs Security concerns Hindered by technology world is largely no longer driven by the enterprise world big five it trends of the next half decade mobile social cloud consumerization and big data/ Where do we go from here? 2014 SED IT unless otherwise stated 3
4 Industry Shift 7 Technology Management Information Technology Business Technology Forrester Research, Technology Management in the Age of the Customer. Focus of IT & BT - IT Agenda - Accounting/financial applications - HR software - General help desk - Desktop HW and OS - Server/storage HW and OS - Networks within firewall - Manufacturing supply chain - ITIL - General purpose development frameworks and platforms - ; office productivity - BT Agenda - Customer experience software - Mobile devices; OS for field operations - Fulfillment supply chain - Customer analytics, metrics, marketing management software - Mobile, social, ecommerce, web - Customer content management and delivery - Security for sharing - Customer relationship management (CRM) 8 Forrester Research, Technology Management in the Age of the Customer SED IT unless otherwise stated 4
5 IT & BT Budgets 9 IT budgets (process) decrease: Application modernization Moving resources into cloud Increased standardization BT BT budgets (strategy) increase: Mobility Maintenance of customer big data Customer experience demands IT Forrester Research, Technology Management in the Age of the Customer. Both MUST be FOREFRONT 10 Process - ITIL is NOT a business strategy - Service Management is more than process management - Capabilities must be grouped - Must manage the back office with the user in mind - Sourcing is paramount Strategy - Develop an enterprise that accommodates innovation - Business Technology is using technology in front lines but innovating how business uses technology - Business doing things with technology that were never done (capable) before - Innovating how business uses technology 2014 SED IT unless otherwise stated 5
6 11 Current frameworks, methodologies and tools fail to create the mechanisms where organizations achieve repeated and sustained value from IT. Peppard & Ward (2004) 12 People are the ultimate barrier (or success factor) to effective ITIL adoption or to other aspects of an IT infrastructure and operations organization successfully meeting business demands for IT services SED IT unless otherwise stated 6
7 13 Looking for Sustainable Value 15 Only IT management skills are likely to be a source of sustainable competitive advantage. Mata, et al., (1995) What distinguishes companies deriving significant value from IT is not technical wizardry but the way they handle their IT activities. Dvorak, et al., (1997) 2014 SED IT unless otherwise stated 7
8 16 IS CAPABILITY Competency RESOURCES IS Capabilities 17 - Organizations must understand, develop and nurture IS capabilities to deliver ongoing value from IT investments - IS capabilities are tacit and difficult to identify - The presence and effectiveness of a capability is reflected in business performance Bharadwaj, A. (2000). A resource based perspective on information technology and firm performance: an empirical investigation. MIS Quarterly, 24(1), SED IT unless otherwise stated 8
9 18 Bersin by Deloitte Where to Start 20 Solid Service Management System Know the business that IT Supports What s important? What s changing? Match to CAPABILITIES SED IT unless otherwise stated 9
10 HELP is available - IT Capability Maturity Framework (IT CMF) Skills for the Information Age (SFIA) - online.org The enterprise of tomorrow is neither a new technology nor a business model, but rather a network of capabilities. Don t ask how many smart people you have how smart are working for you, ask the connections linking them? Mike Walsh 2014 SED IT unless otherwise stated 10
11 Final Thoughts 23 Process is paramount but NOT to the detriment of service delivery Processes require the RIGHT people with the RIGHT skills completing the RIGHT activity at the RIGHT time KNOWING what s needed resources, skills, capabilities defines an effective and efficient service delivery DEFINE and NUTURE the necessary capabilities for value References - Peppard, J., & Ward, J. (2004). Beyond strategic information systems: towards an IS capability. Journal of Strategic Information Systems, 13(2), Bharadwaj, A. (2000). A resource based perspective on information technology and firm performance: an empirical investigation. MIS Quarterly, 24(1), Dehning, B., & Stratopoulos, T. (2003). Determinants of a sustainable competitive advantage due to an IT enabled strategy. Journal of Strategic Information Systems, 12(1), Dvorak, R. E., Holen, E., Mark, D., & Meehan, W. F. (1997). Six principles of high performance IT. The McKinsey Quarterly, 3, Mata, F. J., Fuerst, W. L., & Barney, J. (1995). Information technology and sustained competitive advantage: A resource based analysis. MIS Quarterly, 19(4), SED IT unless otherwise stated 11
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