Optimized Provider Decisions via Business Capability Mapping. How is the Approach. Dr. Helmut Steigele

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1 Optimized Provider Decisions via Business Capability Mapping How is the Approach Dr. Helmut Steigele

2 Agenda The Issues Business Capability Mapping From Capability Map towards Service Map From Service Map to Service Portfolio and Provider Decisions Which issues are covered too Q & A

3 Issue 1 Unbalanced Sourcing Decisions Sourcing Decisions are based on Short term cost aspects Risk aspects Non considered aspects in process and environmental impacts Missing Homework

4 Issue 2 Unbalanced Service-Chains PLM CRM FI/CO Business Services bear Sharepoint SAP Workplace Infrastructure Operations Managed Application Servicedesk Basic Services bear User Management Application Maintainance Procurement and Disposal Database Operations Project-Support Archive Web-Hosting and Design Mail and Internet Access Backup & Storage Server Operations Network Operations Printing & Fulfillment Softwarepackaging Service and Systems Monitoring Security and Virus Protection and Deployment Infrastructure Services

5 Issue 3 Non Achieved Sourcing Targets Sourcing Targets (especially quality and cost targets) are often not achieved because of Missing Service-Baselines from Clients Non Existing Service Catalogues on both sides Non communicated or non recognized operational risks Frictions in cooperation Immature SLM- and Relationship-Processes between the partners Unrealistic Expectations

6 Issue 4 Non Achieved Sourcing Targets Lock-In-Effects PLM CRM FI/CO Business Services bear Sharepoint SAP Workplace Infrastructure Operations Managed Application Servicedesk Basic Services bear User Management Application Maintainance Procurement and Disposal Database Operations Project-Support Archive Web-Hosting and Design Mail and Internet Access Backup & Storage Server Operations Network Operations Printing & Fulfillment Softwarepackaging Service and Systems Monitoring Security and Virus Protection and Deployment Infrastructure Services

7 The hidden Issue: Historical architecture approaches BUSINESS Focus on document exchange Business processes blocked by ICT Business model Technology model Inward technology driven view DB ESB App HW Provided Solutions lack in resources

8 The Should be for Enterprise Architectures BUSINESS Focus on service Processes Requirements and solutions closely aligned Business Model Soft boundaries (process & services) Service Model Technology Model Outward business-driven view Services Focus on contract Provider

9 Agenda The Issues Business Capability Mapping From Capability Map towards Service Portfolio From Service Map to Service Portfolio and Provider Decisions Which issues are covered too Q & A

10 What is Capability Mapping Capability mapping is a modelling method for determining the strategic positioning of an organisation. It is based on the theory of Michael J. Porter Capability Mapping is used to understand the implications of a strategy by viewing it in terms of capability systems. By the way: Forrester Research has recognized this approach for it s consulting activities The mindset exists since

11 4 Whatitis Capability Mapping uses activity-system maps for the visual representation of a Sourcing Model and Sourcing Map Business Architecture Map Service Architecture Model Capabilities should be described by a name and quality characteristics like necessary people, technology, process, management and information

12 Service assets used to deliver services Management Prospects Competitors Regulators Suppliers Create value Business unit Organization Processes Influence Capabilities Demand Customers Supply Goods/ Services Consume assets Generate returns (or recover costs) Coordinate, control, and deploy Resources Knowledge People Information Asset types Applications Infrastructure Crown Copyright 2007 Reproduced under licence from OGC Financial capital 12

13 Capability Mapping for Service and Sourcing Architectures Business Processes SUPPORT IT-Services FORM CREATE Business Capabilities UNDERPIN Service- Oriented Architecture According the Strategic Alignment Model, Henderson Venkataraman, 1999

14 The Goal Aligning the Business and Technology Perspectives Business Model Service Model Technology Model

15 Warranty and Utility Performance supported? OR UTILITY Fit for purpose? Constraints removed? Available enough? AND Value created Capacity enough? Continuous enough? AND WARRANTY Fit for use? Secure enough? Warranty providing assurance in terms of availability, capacity, security and continuity Utility supporting business outcomes in terms of enhancing or enabling the performance of customer assets Crown Copyright 2007 Reproduced under licence from OGC 15

16 Agenda The Issues Business Capability Mapping From Capability Map towards Service Map From Service Map to Serviceportfolio and Provider Decisions Which issues are covered too Q & A

17 10 steps to service map Gather Processes Gather Process Interactions Identify Interface Constraints Business Model 1 Gather Business Activities 3 Identify Required Services Assess impact on Business Define Service Contracts Develop/ Enhance Service Map Service Map ICT Operational model & policies 6 Define Solution Architecture 7 Identify Providing Options 9 Identify Existing Service Reuse Opportunities

18 Agenda The Issues Business Capability Mapping From Capability Map towards Service Portfolio From Service Map to Service Portfolio and Provider Decisions Which issues are covered too Q & A

19 12 steps to service portfolio and catalogue Gather Demand Profiles Gather Process Interactions Identify Interface Constraints Service Map 1 Gather Patterns of Business Activity 3 Identify Required Service Features 6 Define Service Targets 9 Establish Service Definition 10 Establish Service portfolio Edit Service Catalogue ICT Operational model & policies 7 Service Description Structure 8 Identify Existing Feature Reuse Opportunities 9 Define Utility and Warranty by Service 11 Establish Make or Buy Case 12 Decide on Sourcing Options

20 The Service-Portfolio Structure Service Portfolio Presentation (via SKMS) Service Portfolio All Definitions for planned, actual and retired services, distinguished Inhouse and sourced services Service Pipeline All definitions for services in transition Service Catalogue Actual Services Inhouse and sourced services Retired Services 20

21 From Catalogue to SLA Business takes it s choice Cooperation ruled via SLA Service-Catalogue Master-SLA

22 Agenda The Issues Business Capability Mapping From Capability Map towards Service Map From Service Map to Serviceportfolio and Provider Decisions Which issues are covered too Q & A

23 Reference Points to Business Issues Sourcing Strategy and Policies Contract Management Service Map Risk Management

24 Reference Points to Business Architecture TOGAF Business Architecture TOGAF Service Architecture Service Model TOGAF IS Architecture

25 Reference Points to IT-Servicemanagement Servicedesign Service Transition Service Portfolio Service- Operation Service- Improvement

26 Relationship to ITIL Service Management

27 Q&A

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