Service Portfolio Management
Service Portfolio Management
The Great IT Dilemma
The Quest for Alignment
2
Demonstrating more business value
The IT Black Box Cost Center
NOC
“Last month’s network availability exceeded
99.25%”
Systems /Storage
“This quarter you consumed X MIPS
and the charge is..”
Security, Risk& Compliance
“We manage overX identities and Y
access rights”
Service Desk
“Our help desk staff answered Y issues within 30 minutes”
Limited business context
PMO
“Our projectcompletion rate
runs at ….”
“Increase StaffProductivity”
“Improve CustomerService”
Business Objectives & Outcomes
“Shorten SalesCycles”
Building a Service Lens
3
Business Objectives & Outcome
“ShortenSales Cycles”
“Increase staffproductivity?”
“Improve customerservice”
PDA leadnotification
service
Employeeon-boarding
Customerstatements
IT Resources & Capabilities
Service Portfolio Management
4
Execution
App and infrastructureperformance targets
Service PrioritiesDevelopment Staff PrioritiesAsset Allocations
Demonstrating more business value
Decision Making
Business Objectives & Outcomes
Service Function Service CostService Quality
ContinuouslyAlign
Business Demand
IT Supply
A Complete Service Portfolio Management Solution
Demonstrating more business value
5
OptimizeInvestments
DefineService
StreamlineDelivery
PrioritizeDemand
Function
Qua
lityCost
Ben
efit
ContinuouslyAlign
Service Portfolio Management
6
PDA sales leadnotification
service
Employeeon-boarding
service
Customerstatement
service
Value
> Customer Engagement
> Simplified ordering & Rapid fulfilment
> Unify operational silos (e.g. operations, security)
Addresses tough business problems for IT:
• How IT resources map to and support business needs
• How to present IT in simple, clear way that customers relate to and understand
• How to shield customers from increasing IT complexity
Presents Services in a Customer Facing Catalog
Function: IT will providea PDA based applicationenabling sales execs to be immediately notified of new sales leads.
Quality: Upon request, the application will be delivered, installed and fully operational within 24 hours.
Cost: Standard cost for the Service is $150 per device,per year.
PDA sales leadnotification
service
Service Portfolio Management
7
Employeeon-boarding
service
Customerstatement
service
Addresses tough business problems for IT:
• How to contractualize IT service and support in customer/business language
• Explaining what the business gets for its money from the technology provided
• How well IT services are is performing against business objectives
Tracks Service in Business Terms
PDA sales leadnotification
service
Value
> Engagement & alignment
> Better forecasting and budgeting
> Shapes current demand
Service Portfolio Management
8
• Determines which services are meeting expectations for cost, quality, function
Measures Ongoing Service Consumption
Addresses tough business problems for IT:
• Compares service to alternative offerings; answers where we should invest and divest
• Helps the business better forecast IT demand
PDA sales leadnotification
service
Employeeon-boarding
service
Customerstatement
service
Customerstatement
service
Customerstatement
service
Value
> Determines the true cost of providing services
> Helps set pricing to influence future demand
Service Portfolio Management
9
PDA sales leadnotification
service
Employeeon-boarding
service
CustomerStatement service
ConsolidatedCustomer statement
service
Online customerquoting service
Addresses tough business problems for IT:
• How to better allocate every dollar invested in IT to the initiatives most valued by the business
• How to build the confidence to say no to misaligned projects and low value services
Reple
nis
h &
Repla
ce
Manages Strategic Demand to Build the Pipeline
Value
> Prioritize business demand
> Fact-based decision making
> Improves resource utilization
Service Portfolio Management – Validation
10
“Implementing service portfolio management helps CIOs transform IT assets and their associated costs into business services that they can price and link to business value. IT’s position within the firm morphs from a cost center to a value-added service provider with transparency into its operations and spending”.
Service Portfolio Management Links IT Capabilities To Business ValueCraig Symons – Nov, 2008 – Forrester
Industry Analysts
ITIL Best Practice
“The service portfolio is the most critical management system for supporting all the processes. It describes the service delivery in terms of value for the customer and must include all of the service information and its status
Service Design based on ITIL V3 – Van Haren Publishing
ITIL V3- Service Lifecycle Support and the Service Portfolio
11
CA Clarity PPM
CA Service Catalog
Customers/Users
Executives/LOB
Service Portfolio
Service Knowledge ManagementSystem
Service Pipeline
Service Catalogue
Service Lifecycle
Serv
ice S
trate
gy &
Desig
n
Requirements
Defined
Analysed
Approved
Chartered
Designed
Developed
Built
Test
Release
Operational
Retired
12
Service Portfolio Management – On-Ramps
OptimizeInvestments
DefineServices
StreamlineDelivery
PrioritizeDemand
CatalogAccounting
Service LevelMgmt
Project andPortfolio
Mgmt
IT AssetMgmt
ServiceDesk
Function
Qua
lityCost
Ben
efit
Service Portfolio Management - Recap
> Service Portfolio Management addresses this by dynamically aligning IT resources to business value
Prioritizes both strategic and operational demand Measures performance against business objectives Demonstrates the value of IT in clear business
language Comprehensive service costing (IT assets, people,
projects)
> Industry leading and award winning solutions > Best practice support to drive continuous
improvement> Address immediate pain, integrate to build maturity> Let's you make the 'Right' decisions and 'Execute'
Inward focus on technology and IT management silos fail to address key service challenges
13
Decision Making
Execution
ContinuouslyAlign
Thank You!
Footnotes
15
* The Magic Quadrant is copyrighted 2006 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
** The Forrester Waves are copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester’s call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
1. Gartner, Inc., “Magic Quadrant for IT Project and Portfolio Management,” Matt Light, Daniel B. Stang; June 13, 2008.
2. The Forrester Wave™: Service Desk Management Tools, Q2 2008,” Forrester Research, Inc.; April 2008.
3. “The Forrester Wave™: Project Portfolio Management Tools, Q4 2007,” Forrester Research, Inc.; December 18, 2007.
4. “The Forrester Wave™: IT Asset Lifecycle Management, Q2 2009,” Forrester Research Inc.; April 10, 2009.