Demand-Based ITSM as Business Resource Management

Demand-based ITSM asBusiness Resource Management

An Archestra Notebook

© 2014 Malcolm Ryder / archestra research

Preface

In this notebook:

• The discussion is intended to describe, not to prescribe; any prescriptive use can be based only on making comparisons of the description to current observations about particular real circumstances or locations

• The discussion is about ITSM; however, it is neither about ITIL nor based at all on ITIL terminology

• Terminology in this discussion is defined in the first section of the content

• “IT” or “I.T.” means “information technology”, used in the same way that we would use the terms “personnel” or “funding”

• “IT” or “I.T.” is not used as the name of an organization or department; a provider of IT is a role that can be played, however this entire discussion is based on the point of view of the customer/client/recipient regardless of provider.

All text and images in this discussion © 2014 Malcolm Ryder / archestra research

Content

• Discussion terminology

• Discussion Overview

• Business Overview of Enablement

• Management Planning

• Business Performance Management

• Business Value of IT

• Business Resource Management and IT

Discussion Terminology

Acronyms and Ideas

• Dependency HierarchyBusiness decisions are independent variables that have after-effects which are dependent variables.The dependent variable is the [state] expected to change whenever the independent variable is altered.In a test, the "independent variables" represent the inputs or causes... the "dependent variable" represents the output or effect.Higher-level decisions are inputs that require consideration of necessary changes to lower-level conditionsLower-level decisions are inputs that require consideration of probable impacts on higher-level conditions

• Management ProcessesBPM – Business Process ManagementCRM – Customer Relationship ManagementERP – Enterprise Resource PlanningITSM – Information Technology Service ManagementBRM – Business Resource Management

Enterprise, Defined

A collection of multiple instances of Operations,

with Agreements that bothmanage their co-operation

andco-manage their property

Business, Defined

A set of co-ordinated and underwritten operations to convert

acquired property of one party into delivered benefits for another party

Property may be tangible or intangible

Service, Defined

On-demand delivery of designated outputs of an operation,

within terms of agreement between provider and user

A “service” is a status of an operation; an operation may or may not be a service

Operation, Defined

A continual, managed process for organizing a pre-designated

affect on an opportunity

Operations are “business abilities”

Resource, Defined

An item, influence or party subscribed to an operation

for a prescribed purpose

Capability, Defined

A functional competency already held in the form of

an executable-on-demand action

Technology-dependent execution is of special interest to the business

Business Needs, Defined

VALUE: a critically beneficial distinction in the market, created and sustained by how the business operates

WORKFLOW: prescribed behaviors and interactions, organized to intentionally execute requirements

CAPACITY: level of resource supply maintained for commitment to expected (or desired) demand

PLATFORM: integrated utilities and facilities used to host and enable workflow at needed capacity (types, scale and volume/strength)

Business value; Business workflow; Business capacity; Business platform.

Value Propositions

Capability Resource Operation



An item, influence or party subscribed to an operation

for a prescribed purpose

A continual, managed process for organizing a pre-designated affect

on an opportunity

Business Ability Solution Relevance

Service Delivery Impact Availability

IT Function Effect Alignment

a critical distinction, created and sustained for an objective

E.G. – for a Service, the value is in the delivery of the capability; as a resource the value of the delivery is its expected impact; and the value of the impact to an operation is in the planned availability of that

impact . Otherwise, the business would choose to use something different.

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Discussion OverviewApproaching business opportunity with Capability

OPERATIONS

BUSINESS

NON-BUSINESS

MANAGEMENT

SERVICES

General retail

Community services

Municipal administration

Communications & travel

Corporate and market operations

Education

Business products

Executive administration

Legal

Medical, Security

All of the managed coverage of “business concerns” (examples here) assumes that events, intentions and support can be sufficiently coordinated to allow success.

This picture represents only that there are multiple kinds of operations and services that the company ‘s business management expects and can intentionally leverage or influence.


Management Landscape

Business Needs

Business chooses what help it wants to use, and the help must co-ordinate itself

to the business needs

Now and going forward, the default assumption is that help is equally likely to be available and obtained

externally of the company as internally. Coordination will include ongoing circumstances of

new or additional help being brought in to replace, integrate, or collaborate.

Demand-based Business Management of Services

“Service Management” necessarily refers to both (a.) the management that forms a service and (b.) the management that chooses to use a service.

The existence of a service for a business inherently requires “management”. In effect, without management, there is no service. The business conducts “management operations” to assure a supply of viable services.

Business also presumes that the value of a service is cultivated by management. The main purpose of a service is to fulfill demands of “business operations”.

Organize specifically for diversity and changeContinually meeting business demand requires awareness of the hierarchy of variable key dependencies where changes may occur to decisions that the business had already made. The business decisions are based on whether the right outcomes are being obtained from the right utilizations of feasible and reliable forms of enablement.

Business management of IT is not Technology Management; instead, it is management of the business utilization of technology, facing constant change.

Support

Provision

Selection

Source

Validation

Operate

Production

Planning

Direction

APPROPRIATE(WHY)

FEASIBLE(HOW)

RELIABLE(WHAT)

Configure, deploy, implement

Design, evaluate, approve

Test, secure, offer

Find, procure, build

Scope, allocate, assign

Supervise, control, modify

Demand Criteria

Business Decisions

Critical Variables

Business Requirements


Management of IT-based Services

ITSM, or IT Service Management, is one form of management, of one kind of service among many kinds of services used by the business.

The role of “IT” in the enterprise is to provide capabilities for business operations, by enabling capabilities that are delivered as supportable resources.

A service makes an IT-based capability deliverable on demand. This means that the purpose of a service is to be a supported business resource.

The business requirement for ITSM is to mature as Business Resource Management.

Business Overview of Enablement

Business Needs

Business chooses what help it wants to use, and the help must co-ordinate itself

to the business needs

CAPACITY WORKFLOW

PLATFORM

VALUE

Overview of Business Enablement

Business “Intents” held

Business “Operations” managed

Business “Objectives” managed

Emphasize preferences Strategy Demand

Discover opportunity Environment Engagement

Organize co-operation Architecture Development

Obtain resources Infrastructure Provision

Select and Synchronize these “abilities” with

each other

Define and Direct these “priorities”

towards each other

Direct and Task “management” per these requirements

Approaching Opportunity with Capability

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Organization of Enablement

CRM

BPM

ITSM

ERP

CRM

BPM

ITSM

ERP

Business “Operations” with management solutions Business “Objectives” with management solutions

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Details within operations and within

objectives face constant change

Co-Operation for Value:

CRM

BPM

ITSM

ERP

Business Operations

CRM

BPM

ITSM

ERP

Business Objectives

Operations for

Objectives

Co-Operation for Workflow:

CRM

BPM

ITSM

ERP

CRM

BPM

ITSM

ERP

Business Operations Business Objectives

Operations for

Objectives

Co-Operation for Capacity:

CRM

BPM

ITSM

ERP

CRM

BPM

ITSM

ERP


Operations for

Objectives

Co-Operation for Platform:

CRM

BPM

ITSM

ERP

CRM

BPM

ITSM

ERP


Operations for

Objectives

Strategy: bridging Capacity and Value

CRM

BPM

ITSM

ERP

Capacity

CRM

BPM

ITSM

ERP

Value

Architecture: bridging Platform and Workflow

CRM

BPM

ITSM

ERP

Workflow

CRM

BPM

ITSM

ERP

Platform

Management Planning Business Responsibilities of Management Solutions





BUSINESS NEEDS

Primaryresponsibilities

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Value / CRM n/a Request capability for:

- engagement- environment

Request resources for:

- demand- strategy

Set constraints on:

platform



Workflow / BPM Give resource for:


n/a Set constraints on:

CapacityRequest capability as:

- development- architecture



Capacity / ERP Give resource for:

- demand- strategy

Set constraints on:

workflown/a Request capability as:

- provision- infrastructure



Platform / ITSM Set constraints on:

valueGive resource for:


Give resource for:


n/a



Value / CRM n/a

Request capability for:


Request resources for:

- demand- strategy

Set constraints on:

platform

Workflow / BPMGive resource for:


n/a

Set constraints on:

capacityRequest capability as:


Capacity / ERPGive resource for:

- demand- strategy

Set constraints on:

workflow n/a

Request capability as:

- provision- Infrastructure

Platform / ITSMSet constraints on:

valueGive resource for:


Give resource for:


n/a

A “Co-Operations” agenda, including I.T.

The business management of IT: what to source and support

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Business Performance ManagementThe Benefit of the Resource

The effectiveness of a capability is provided as a resource; the impact of a resource is provided as a benefit

For a Resource: the performance of a resource is evaluated in terms of the benefit that the effort of the resource creates. It reflects “doing the right thing”.

The benefit is understood as a level of actual impact achieved versus the planned level for that resource effort. Lesser effort reduces the probability of higher impact.

A resource performance must be relevant to the business needs.

For a Capability: the performance of a capability is evaluated in terms of the alignment with expected effects that the capability availability creates. It reflects “doing things right”.

The alignment is understood as an actual degree of effects versus the expected degree supported by the quality of the provided supply. Lower quality reduces the probability of strongly meeting expectations.

A capability performance may be technology-dependent.

The on-demand availability of relevant capability

is a key to the resource’s level of applied effort

The deliverability of technology-dependent capability

is a key to the recognized quality of the capability

Performance = “strong or weak”

Performance = “high or low”

Managing Performance (Benefit) of Resources

Managing Performance (Alignment) of Capabilities

There is no presumption of business performance without “planning”; the plan prescribes the relevance of the resource.

There is no presumption of business performance without “support”; support prescribes the availability of the capability.

The performance of a resource is “the degree of planned impacts made @ the confirmed level of the applied effort” by the resource.

The performance of a capability is “the degree of supported effects met @ the confirmed level of the advertised quality“ of the capability.

I.T. note: The on-demand availability of relevant capability is the key to the level of applied effort by a resource

I.T. note: The deliverability of technology-dependentcapability is key to its perceived quality

Resources are committed to business opportunities. Business opportunities are defined through managed decisions, as a form of demand.

Capabilities are acquired from business sources. Business sources are defined through managed production, as a form of supply.

Measurement: the performance of a capability is different from the performance of a resource bringing the capability

IMPACT from provided RESOURCE

Planned

Actual

hig

hlo

w

None

Example of relatively low performance. Note that greater effort from resource can heighten plans.

EFFECT from provided CAPABILITY

Expected

Actual

stro

ng

wea

k

None

Example of relatively strong performance. Note that higher-quality capability can raise expectations.


Managing Performance (Benefit) of Resources vs. Demand

Allowed the least flexibility

Allowed the most flexibility

DECIDE PortfolioOpportunity

PLAN ModelImpact

PERFORM TargetEvent

BUSINESS INSTANCE BUSINESS REFERENCE

Resource management can focus on the types of opportunity and the modelling of impacts representing business intentions.


Managing Performance (Alignment) of Capability from Supply

SOURCE LifecycleProduction

SUPPORT ModelDelivery

PERFORM FrameworkOperation

INSTANCE REFERENCE

Capability management can focus on the lifecycle of production and the modelling of delivery, representing resource requirements.


Use a Lifecycle Use a Model Use a Framework

Perform Required quality

Support Required access

Source Required supply

ORGANIZING CAPABILITY

Definition IT Assurance Delivery Relevance

Perform Effectiveness @ level of offered quality

Quality Process Usage / Use Case

Support Sustained availability Usability Provision Function

Source Production of supply Type Deployment Needs

CAPABILITYALIGNMENT (WHY)

Definition IT Assurance Delivery Relevance

Quality Framework

Matrix of contiguous and concurrent operational factors

Platform Policy Portfolio

Access Model

A configuration of essentials, defining a type

System Service Offering

Supply Lifecycle

Birth-to-death stages of continued presence

Sourcing Fulfillment Program

CAPABILITYSTANDARDS(WHAT)

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archManaging the Business Performance of IT

Business Value of ITIT as a Resource

Business Reality: high level

Business chooses why it wants to do something, and it chooses

what help it wants to use

Needs turn into requirements and vetted providers,

whilestrategy and architecture assign

the business resources to the business needs

Make technology deliverable in order to maximize

the availability of capability

Manage capability to maximize resource achievement of

business objectives

Business Management of I.T. going forward: sourcing Capabilities, and supporting Resources

Demand-based Overview of IT’s Value

Delivery Relevance

Framework Value Portfolio

Model Service Offering

Lifecycle Fulfillment Program

IT CAPABILITY STANDARDS

Value Capability



Business Ability

Service Delivery

IT Function

What Demand wants from Business

What Business wants from IT

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“Capability” deliverable as a Service

Capability packaged as a service produces a resource for operations

On-demand accessAvailability

Supportability

Quality

Configuration

Demand-basedSupport Model of Delivery

Technology(sourced re: a capability)

Resource(provided to an operation)

OVERVIEW: Capabilities for business “resources”

Is a business Operator

The Customer, on behalf of business,

using a Resource that may be under:• Ownership• Sharing• Change

The business Operator

needs a Capability

made Available as an:• Interface• Facility• Orchestration

The Capability

has a target Effectiveness

that can be Dependent on:• Data-driven events• Automated mechanics• Stabilized systems

Issue: RELEVANCEAddresses resourcefulness

Issue: DELIVERYAddresses availability

Issue: IT ASSURANCEAddresses dependency


User Capability via IT Provision

The business Operator

needs a Capability

made Available as an:• Interface• Facility• Orchestration

The Capability

has a target Effectiveness

that can be Dependent on:• Data-driven events• Automated mechanics• Stabilized systems

Managed IT-based Services: Effective capabilities are Sourced and Supported for the Demand presented by the Operator

Sourcing includes assuranceAssurance includes- Requirements definition- Development- Contracting

Support includes deliveryDelivery includes - Service definition- Demand Agreements- Capability validation

Business has management operations that cover the business operator’s need for IT. The need is for effective capability.

ITServices

Capability Types in Defined Service Types

User Needed Service Capability Types

Technical type Systematical type Functional type

Interface service Voice, bluetooth Diverse clients/channels Cross-device

Facility service Virtual machines Ubiquitous access points Collaboration workspaces

Orchestration service Account linking Networked procedures Compound apps, mashups

Examples:

Technology Enablement• Legacy• Enhancements• Innovations

Business Resource Management and IT

ITSM as Resource Management

• “Enterprise” agreements govern the property that occurs in business operations

• Business resource management controls the alignment of resources to business operations

• A service can provide IT as a resource to operations

• Continual management of IT-based Resources can itself be conducted as a service to the business

• The effective role of ITSM has been to conduct management of IT-based resources for the business

• In effect, ITSM is a subset of business resource management, by functioning as a component service of business resource management

An IT-based capability can be a service provided as a resource to operations of the business.

In effect, ITSM is a subset of business resource management.

IT property/non-IT property … IT capability/non-IT capability … IT business service/non-IT business service…

Property

I.T.

Capability

With agreements

With requirements

BUSINESS

OPERATION

Service

With assignments

RESOURCE

ITSM as Resource Management, Demystified



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Demand-Based ITSM as Business Resource Management

Business

business needs business

business opportunity

business abilities

company s business management

defined value

entire discussion

opportunity operations

level of resource supply