We look at the Service Strategy phase of the ITIL V3 service lifecycle and the key processes that enable business and IT integration. We will discuss critical processes such as Service Portfolio Management, Business Service Management, Financial Management and Demand Management, along with key roles such as Business Relationship Manager and Product Manager.

1. Welcome
W l
Service Strategy
S i St t
The axis of the service lifecycle
© ITSM Academy, Service Design 1109

2. About ITSM Academy
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d fl
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And More! Welcome!
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3. Agenda
Service Strategy
purpose, goals and
objectives
Where to begin
Roles and
responsibilities
Processes
Key lessons
You are here
© Crown copyright 2007. Reproduced under
license from OGC.
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4. Service Strategy
Purpose, Goals and Objectives
Design, develop and implement
service management
i t
As an organizational capability
As a strategic asset
Define policies, guidelines and
processes across the ITIL® service
p
lifecycle
Provide superior performance to
competing alternatives
Service Strategy is about ensuring that service providers can handle
the costs and risks associated with their portfolios, and are set up not
just for operational effectiveness, but also distinctive performance.
© ITSM Academy, Service Design 4

5. Where to Begin?
Mind the Gap
Begin ith
B i with a marketing
k ti Perceptions
P i Preferences
P f
mindset filter
A marketing mindset asks
k ti i d t k Business
outcomes
What is our business? context
Who
Wh are our customers?
t ?
What do they value?
Attributes
Service providers must see services from the customer’s perspective
and develop distinctive, strategic capabilities.
© ITSM Academy, Service Design 5

6. Service Provider Types
Business Internal
Serves i t
S internal b i
l business units
it
IT
Operates for cost recovery
Shared
Finance IT HR Logistics
Consolidates corporate
functions into a specialized
f ti i t i li d
Shared Services Unit (SSU) SSU
Business
B i External
Specialized knowledge,
experience, scale, scope,
Internal or capabilities and resources
External
Shared
© ITSM Academy, Service Design 6

7. Service Strategy
Roles and Responsibilities
Role Responsibilities
• Define the organization as a service provider
Director of
Service • Develop and view service management as a
Management / strategic asset
Senior IT • View the organization f
from a process perspective
Leadership
• Manage the value network
• Product focused
Product
• Manage services as a product over their lifecycle
Managers
• Provide leadership in building business cases
• Key l i Service Portfolio Management
K role in S i P tf li M t
• Customer focused
Business
p
Relationship • Manage the customer relationship
Manager • Communicate customers’ wants and needs
© ITSM Academy, Service Design 7

8. Service Strategy Processes
Service Strategy Service Design Service Transition Service Operation
Service Strategy
Continu Service
ovement
Service Strategy
Demand Management Service Portfolio
ual
Impro
Service Portfolio Management
Service Catalog
Financial Management
Business/ Service
Suppliers
Customers Provider
© ITSM Academy, Service Design 8

9. Service Strategy
Define the Market
Develop the Offerings
Develop Strategic Assets
Prepare for Execution
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10. Demand Management
Demand Management is the set of activities that understand and
influence customer demand for services and the provision of
capacity to meet those demands.
Why Manage Demand?
Failing to manage demand
is a source of risk
Insufficient
I ffi i capacity i i impacts
the quality of services and
limits growth
Excess capacity generates
cost without value
Business activities drive demand.
© ITSM Academy, Service Design 10

11. Service Portfolio Management
Service Portfolio Management (SPM) is the process responsible for
managing the Service Portfolio.
g g
A Service Portfolio
Helps clarify strategic questions
− Why should a customer buy these services?
− Why should they buy these services from us?
− What are the pricing or chargeback models?
− What are our strengths, weaknesses, priorities, risks?
− How should resources and capabilities be allocated?
Makes it possible to compare services across
alternate providers
Makes it possible to anticipate change
p p g
SPM considers services in terms of their business value.
© ITSM Academy, Service Design 11

12. The portfolio management approach helps managers prioritize
investments and improve the allocation of resources.
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13. Financial Management
Goals and Objectives
Financial Management enables the business and IT to quantify, in
financial terms, the value of services and their underlying
, y g
assets, and to qualify operational forecasting.
Provide operational visibility, insight and
visibility
superior decision making
Enable IT to
Understand and control supply and demand
Provide cost-effective services
Maximize i ibilit into l t d t t t
M i i visibility i t related cost structures
Enable many parts of the organization to collect,
share and maintain the financial data they need
y
© ITSM Academy, Service Design 13

14. Key Lessons
Customers always have alternatives
To compete IT must do its job better
than the alternatives
IT must be distinctive in terms of
The services provided
How the service are provided
Success in Service Strategy requires identifying
what customers perceive as value. Everything a
service provider does should flow from that.
© ITSM Academy, Service Design 14

15. IT Service Management Professional
(ITSMP)℠ Diplomas
ITSM Academy is Licensed by the
Commission for Independent
Education, Florida Department of
Education, offering occupational
ITSMP℠ Diplomas.
On our website, this symbol
indicates courses which accrue
ITSMP students clock hours toward
their Diploma:
• Change Manager
• Support Manager
• Service Level Manager
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16. ITSM Academy Affiliates
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