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The IT Service Portfolio A common sense approach to IT/Business alignment Copyright 2014 Thavron Solutions, LLC
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Page 1: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

The IT Service Portfolio

A common sense approach to IT/Business alignment

Copyright 2014 Thavron Solutions, LLC

Page 2: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Agenda

• Introductions• Overview– Context– IT Services– Service Portfolio: definitions and best practices

• Service Portfolio Measures and Metrics• ITFM and the Service Portfolio

Copyright 2014 Thavron Solutions, LLC

Page 3: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

INTRODUCTIONS

Copyright 2014 Thavron Solutions, LLC

Page 4: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Introductions

• Me: Nan Braun• CEO Thavron Solutions• [email protected]/ @thavronsol / http://thavron.com/blog• Corporate IT – many roles- “hands” on to BRM to architecture• CTO, ontological modeling • Director, TBM Practice

• You?

Copyright 2014 Thavron Solutions, LLC

Page 5: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

My Biases

• Systems Thinking• Manufacturing– Lean (MESA Lean Manufacturing Strategic Initiative Guidebook author, Toyota Method via GM/Delphi)

– Deming– Go to Gemba

• Modeling/Frameworks• Common Sense

Copyright 2014 Thavron Solutions, LLC

Page 6: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

OVERVIEWIT Services, Service Portfolio: Definitions and Best Practices

Copyright 2014 Thavron Solutions, LLC

Page 7: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

The IT Evolution

• Corporate IT has spent the last 20+ years re-organizing and re-inventing itself in an attempt to align with the business – without good success.

• IT organizations are in varying stages of maturity in their attempts to run, grow and assist with transforming the business at large.

• IT continues to become more and more commoditized and comfortable for our consumers

Copyright 2014 Thavron Solutions, LLC

Page 8: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

IT Lifecycles

• IT organizations typically have several complex processes and lifecycles running ( sometimes at odds with each other).

• All of these are attempts to fulfill perceived business needs, but can drive competing agendas and goals. – Financial/Budgeting Lifecycle– Project Lifecycles– Software Development Lifecycles– Product Lifecycles– ITIL /COBIT/Val-IT– ITSM

Copyright 2014 Thavron Solutions, LLC

Page 9: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

What is a Service?

• Service- delivered and consumed at the same time• Enterprise IT is a service• Types of Enterprise IT Services:– Workplace/End User– Application/Functional Services– Technology Services– Infrastructure Services ( IT 4 IT)

Copyright 2014 Thavron Solutions, LLC

Page 10: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Catalog & Asset

Management

Supplier / Vendor

Management

IT Service Management

Copyright 2014 Thavron Solutions, LLC

IT Component CatalogIncident management

Page 11: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Catalog & Asset

Management

Supplier / Vendor

Management

IT Service Management

Copyright 2014 Thavron Solutions, LLC

IT Component CatalogIncident management

IT Service CatalogIncident Prevention

Page 12: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Catalog & Asset

Management

Supplier / Vendor

Management

IT Service Management

Copyright 2014 Thavron Solutions, LLC

IT Component CatalogIncident management

IT Service CatalogIncident Prevention

Business Service CatalogCustomer Experience Management

Page 13: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

The Service Lifecycle

Copyright 2014 Thavron Solutions, LLC

Design

Deliver

Delete

Page 14: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

The Service Lifecycle

Copyright 2014 Thavron Solutions, LLC

Design

Deliver

DeleteDesign Questions:

• When does a new Service need to be introduced?

• When does a Service need to be update or changed?

• Should we build or buy this Service?

Page 15: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

The Service Lifecycle

Copyright 2014 Thavron Solutions, LLC

Design

Deliver

Delete

Deliver Questions:

• Is this Service meeting the needs of the Consumer? • Did this Service provide the predicted ROI?• Are the Consumers using something in place of this Service?

Page 16: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

The Service Lifecycle

Copyright 2014 Thavron Solutions, LLC

Design

Deliver

Delete Delete Questions:

• Is there a better way to provide this Service?

• Have market trends or business needs deprecated this service?

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Bringing Business to the Center

• To align and enable the business, IT must bring the business back to the center of what they do.

• A Business centric Service portfolio, supported by the other IT lifecycles in an iterative and interactive way will create a natural alignment without artificial processes.

Copyright 2014 Thavron Solutions, LLC

Page 18: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

What is a Service Portfolio?

– ITIL definition:• Allows management to have a view of all services

– Pipeline– Service Catalog– Retired

– Provides Understanding of how delivery of IT Services provides value to the business, as well as the associated risks and vulnerabilities

– The Decision Point in the Service Lifecycle Transitions

Copyright 2014 Thavron Solutions, LLC

Page 19: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Evaluating Services

• Business Value• Cost to develop and operate the service• Capability to deliver the service• Risks to the Enterprise• Fit to overall IT Strategy• Dependencies• Business Case/ROI

Copyright 2014 Thavron Solutions, LLC

Page 20: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

ITIL Service Portfolio meta data

• Name• Description• Status• Classification/criticality• Applications• Data/Schema• Business process supported• Business Owners• Business Users

• IT Owners• SLA references• Supporting Services• Supporting resources• Dependent Services• Contracts/Agreements• Costs • Changes• Metrics

Copyright 2014 Thavron Solutions, LLC

Page 21: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Back to Deming….

Copyright 2014 Thavron Solutions, LLC

Page 22: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Deming Cycle

• PDCA • PDSA• Shewart Cycle• “Structured Problem Solving”• Basis for DMAIC

Copyright 2014 Thavron Solutions, LLC

Page 23: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Portfolio Pitfalls

• Using the existing IT Project Portfolio Management as a model– PPM is about balancing resources and prioritizing– More of a Capacity /Delivery model – Treats Service Portfolios as a finite bucket

• Developing the Service Portfolio and then “presenting” it to the Enterprise

• Metrics that drive wrong/bad behaviors

Copyright 2014 Thavron Solutions, LLC

Page 24: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Service Portfolio as Investment

• Create a Policy Statement -A policy statement is the statement that contains the investor's goals and constraints as it relates to his investments.

• Develop an Investment Strategy - This entails creating a strategy that combines the investor's goals and objectives with current financial market and economic conditions.

• Implement the Plan Created -This entails putting the investment strategy to work, investing in a portfolio that meets the client's goals and constraint requirements.

• Monitor and Update the Plan -Both markets and investors' needs change as time changes. As such, it is important to monitor for these changes as they occur and to update the plan to adjust for the changes that have occurred.

Copyright 2014 Thavron Solutions, LLC

Page 25: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Service Portfolio as an InvestmentDevelop a Strategy

(Plan)

Implement the Plan

(Do)

Monitor the plan (Check)

Update the Plan (Act

Copyright 2014 Thavron Solutions, LLC

Page 26: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

The Service Lifecycle

Copyright 2014 Thavron Solutions, LLC

Design PDCA Cycle

Deliver PDCA Cycle

Delete PDCA Cycle

Page 27: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Triggers for Re-assessment

• Commercial• Social• Economic• Political

Copyright 2014 Thavron Solutions, LLC

Page 28: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Service Portfolio must be Strategic

• Pull out of operational mode – Service Portfolio is NOT• Asset management• Capacity planning analysis• Budgeting guideline• Project Portfolio

• What is the Business Strategy?

Copyright 2014 Thavron Solutions, LLC

Page 29: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Catalog & Asset

Management

Service Costing &

Billing

Product & Project

Management

Supplier / Vendor

Management

Service Portfolio

A Framework for Business Service Success

Copyright 2014 Thavron Solutions, LLC

Financial LifecycleProduct Lifecycle

TM

Page 30: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

SERVICE PORTFOLIO: MEASURES AND METRICS

Copyright 2014 Thavron Solutions, LLC

Page 31: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

IT Value Stream aligned to Business Value Stream

Copyright 2014 Thavron Solutions, LLC

Catalog & Asset

Management

Service Costing & Bill of IT

Product & Project

Management

Supplier / Vendor

Management

Service Portfolio

Driven by Escalations

Page 32: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

IT Value Stream aligned to Business Value Stream

Copyright 2014 Thavron Solutions, LLC

Catalog & Asset

Management

Service Costing & Bill of IT

Product & Project

Management

Supplier / Vendor

Management

Service Portfolio

Driven by Escalations

Service Catalog lifecycle management

Page 33: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

IT Value Stream aligned to Business Value Stream

Copyright 2014 Thavron Solutions, LLC

Catalog & Asset

Management

Service Costing & Bill of IT

Product & Project

Management

Supplier / Vendor

Management

Service Portfolio

Driven by Escalations

Service Catalog lifecycle management

Service Portfolio Management

Page 34: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Value Stream Assessment

• Value Stream – end to end pipelines that cross functions that deliver value– Man, Machine, Material and Information

Copyright 2014 Thavron Solutions, LLC

Page 35: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Value Stream mapping

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Page 36: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Basic Value Stream Symbols

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Page 37: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

IT Services in the value stream

IT Services

Business Functions

Value Stream

Copyright 2014 Thavron Solutions, LLC

Page 38: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

IT Services have a non-linear relationship to VS

Value Stream

Business Function

IT service 1

IT Service 2

Business Function 2 IT Service 2

Copyright 2014 Thavron Solutions, LLC

Page 39: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

IT Services have a non-linear relationship to VS

Issue License

Process payment

Payment transaction

system

Email

Deliver license Email

Copyright 2014 Thavron Solutions, LLC

Page 40: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Portfolio Management Analytics

• Value• Performance• Market Position• Utilization

Copyright 2014 Thavron Solutions, LLC

Page 41: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Metrics for Portfolio Management Governance

• % of Services with service valuation performed• % of Services with documented customers• % of Services with active business cases• % of Services linked to business outcomes• % of Services with documented risks

Copyright 2014 Thavron Solutions, LLC

Page 42: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Financial Metrics

• Services ranked according to Business Value• % of Services with ROI achieved /% progress for ROI• Budget Control measures for services– Variance– Control chart– Demand impact analysis

Copyright 2014 Thavron Solutions, LLC

Page 43: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Performance/Utilization Metrics

These should have ties to the Pattern of Business Activities ( PBAs)• Utilization/Uptake trends• Overall ratio customer facing services/IT Services• % support service ( cost and/or utilization) per service• Service demand trends• Complaints

Copyright 2014 Thavron Solutions, LLC

Page 44: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Market/Lifecycle Analytics

• Benchmarking• Market Trends versus PBAs

Copyright 2014 Thavron Solutions, LLC

Page 45: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

THE IT FINANCIAL MANAGER & THE SERVICE PORTFOLIO

Copyright 2014 Thavron Solutions, LLC

Page 46: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

What does this mean for ITFM?

• Analytics and Data for decision making• Partners in the process

Copyright 2014 Thavron Solutions, LLC

Page 47: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Catalog & Asset

Management

Service Costing & Bill of IT

Supplier / Vendor

Management

Service Portfolio

IT Financial Management

Copyright 2014 Thavron Solutions, LLC

Annual/Quarterly ActualsAllocated Costs /low transparencyManual Budgeting process

High Forecast variance

Page 48: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Catalog & Asset

Management

Service Costing & Bill of IT

Supplier / Vendor

Management

Service Portfolio

IT Financial Management

Copyright 2014 Thavron Solutions, LLC

Annual/Quarterly ActualsManual Budgeting process

High Forecast variance

Monthly ActualsSemi- Automated Budgeting process

Forecast variance

Page 49: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Catalog & Asset

Management

Service Costing & Bill of IT

Supplier / Vendor

Management

Service Portfolio

IT Financial Management

Copyright 2014 Thavron Solutions, LLC

Annual/Quarterly ActualsAllocated Costs/low transparencyManual Budgeting process

High Forecast varianceMonthly ActualsInfrastructure/TCO costs/transparencySemi- Automated Budgeting process

Forecast variance Rolling /monthly actualsBusiness Service PricesRolling Budget/Forecast

Page 50: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Financial Metrics

• Services ranked according to Business Value• % of Services with ROI achieved /% progress for ROI• Budget Control measures for services– Variance– Control chart– Demand impact analysis

Copyright 2014 Thavron Solutions, LLC

Page 51: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Performance/Utilization Metrics

These should have ties to the Pattern of Business Activities ( PBAs)• Utilization/Uptake trends• Overall ratio customer facing services/IT Services• % support service ( cost and/or utilization) per service• Service demand trends• Complaints

Copyright 2014 Thavron Solutions, LLC

Page 52: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Data Inputs for Service Portfolio Management

• Service Definition/Decomposition ( Service Owners)• Service Costs• Service Consumption• Service Pricing• Service Budgets• Complaints/Instance/Ticket ( Service Desk)• Demand Forecasts ( BRM)

Copyright 2014 Thavron Solutions, LLC

Page 53: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Catalog & Asset

Management

Service Costing &

Billing

Product & Project

Management

Supplier / Vendor

Management

Service Portfolio

Leverage ITFM info: build your platform for Success

Copyright 2014 Thavron Solutions, LLC

Financial LifecycleProduct Lifecycle

TM

Page 54: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Discussion

Copyright 2014 Thavron Solutions, LLC

Follow up questions? Nan Braun

[email protected] 765.252.4509 / http://thavron.com /@ThavronSol

Page 55: Thavron service portfolioforitfm-an_itfma_workshop_norfolk_2014_04

Recommended Further Reading

• Architecture & Patterns for IT: Service Management, Resource Planning and Governance by Charles T Betz

• Service Management for Dummies by Judith Hurwitz, Robin Bloor, Marcia Kaufman, Fern Halper

• Technology Scorecards Aligning IT Investments with Business performance by Sam Bansal

• The Remedy: Bringing Lean Thinking out of the Factory to Transform the Entire Organization

• Implementing Information Technology Governance: Models, Practices and Cases by Steven De Haes

• Thavron Blog: http://thavron.com/blog/Copyright 2014 Thavron Solutions, LLC