Enamul Haque's Blog - Posts Tagged "iso-20000"
ITIL 4 Value Creation and Service Integration And Management (SIAM)
Many things changed since 2007 when ITIL v3 was released. Today, as the role of IT in business changes, technologies such as cloud, mobile, IoT, AI, and blockchain are new opportunities to create value and build a competitive advantage. New practices such as DevOps, Agile, and Lean have also emerged to meet these opportunities. Due to these changes in the business environment, balanced management is required to connect “business” seamlessly and “IT”, stabilise quality, make it predictable, and realise prompt service value provision.
With ITIL 4, the concept of IT service management has expanded significantly and has evolved into a comprehensive enterprise-level framework. Although not explicitly stated in ITIL 4, the important concepts of ITIL 4 are “Service Value System (SVS)”, “Service Value Chain (SVC)”, “Four Dimensions of Service Management”, “Practice”, and “Value Stream”. So the idea of “Creating Value” is the heart of it.
Value creation from SIAM perspective could be compared to the manufacturing of a car. Different parts and components of a vehicle will not make any sense to anyone; they don’t hold much value until all these resources are combined with the skills and the work of employees at an automobile manufacturing plant, they become a drivable vehicle. This is how a car or a truck provides value to the business. SIAM helps business to extract value from its partners, suppliers and vendors by integrating them into a single entity with effective governance, measurement and continuous optimisation by removing supply chain complexity to service consumers as well as by uncovering hidden costs with single sourcing and move to value-worthy investments. This value creation contributes to the reduction of the risk of failure.
Value creation is also requiring acceptance of SIAM adoption. Service integrators are responsible for ensuring end-to-end services that were previously ambiguous, and service providers need to embrace new ways of working to fit these SIAM models, thus creating value. For example, before SAIM adoption, service providers are responsible for the delivery of each service, but they must accept that the service integrator is independent in directing, deciding, and governing, and the customer organisation must accept the service when contracting with each service provider. It must be made clear that the integrator is the customer’s agent. Also, value creation is a joint process for both the supplier and the consumer. It must be remembered that value cannot be provided if the consumer of value is not involved. And the supplier needs to understand what exactly is valuable to the consumer.
There are different aspects of customer value: desired value and perceived value. Desired value refers to what consumers want from consuming a product or service. Perceived value is the benefits that consumers believe they will receive from a product or service after the purchase. Customer value can be examined at different levels. At a low level, customer value can be viewed as attributes embedded in the product or service itself. At a higher level, customer value can be seen as the emotional satisfaction of achieving outcomes or customer desires when using a product or service. The supplier must provide value in terms of the parameters that are most important to its customer.
The appointment of a service integrator by the customer organisation is not limited to “internal procurement” that gathers members inside the customer organisation but may also take the method of “external procurement” that has the expertise of the service integrator. Furthermore, there may be a “hybrid” method that combines both, or a “lead supplier” in which some service providers are the service integrators. Each has its advantages and disadvantages, in the “end to end” value creation process. ITIL 4 value streams and value chains could considerably be mapped to SAIM activities. For example, the SIAM supplier onboarding/offboarding could be mapped to strategy management value chain, and supplier management value chain component, obtain/build value chain considers supplier data configuration to the service management tool.
One important thing to remember here that ITIL 4's Service Value System now includes 34 practices. If an organisation is planning to implement one or more of these practices, then it is by no means sufficient to conduct a SIAM process workshops and document the process. Rather, such skills must be approached as an organisational change project. By the way, organisational change management is also one of the new practices that was explicitly included in ITIL 4.
SIAM is approaching not only existing ITIL and service management such as ISO 20000, but also system development methods such as Lean, Agile, and DevOps, and COBIT, and how to coexist and expand the value of IT services.
With ITIL 4, the concept of IT service management has expanded significantly and has evolved into a comprehensive enterprise-level framework. Although not explicitly stated in ITIL 4, the important concepts of ITIL 4 are “Service Value System (SVS)”, “Service Value Chain (SVC)”, “Four Dimensions of Service Management”, “Practice”, and “Value Stream”. So the idea of “Creating Value” is the heart of it.
Value creation from SIAM perspective could be compared to the manufacturing of a car. Different parts and components of a vehicle will not make any sense to anyone; they don’t hold much value until all these resources are combined with the skills and the work of employees at an automobile manufacturing plant, they become a drivable vehicle. This is how a car or a truck provides value to the business. SIAM helps business to extract value from its partners, suppliers and vendors by integrating them into a single entity with effective governance, measurement and continuous optimisation by removing supply chain complexity to service consumers as well as by uncovering hidden costs with single sourcing and move to value-worthy investments. This value creation contributes to the reduction of the risk of failure.
Value creation is also requiring acceptance of SIAM adoption. Service integrators are responsible for ensuring end-to-end services that were previously ambiguous, and service providers need to embrace new ways of working to fit these SIAM models, thus creating value. For example, before SAIM adoption, service providers are responsible for the delivery of each service, but they must accept that the service integrator is independent in directing, deciding, and governing, and the customer organisation must accept the service when contracting with each service provider. It must be made clear that the integrator is the customer’s agent. Also, value creation is a joint process for both the supplier and the consumer. It must be remembered that value cannot be provided if the consumer of value is not involved. And the supplier needs to understand what exactly is valuable to the consumer.
There are different aspects of customer value: desired value and perceived value. Desired value refers to what consumers want from consuming a product or service. Perceived value is the benefits that consumers believe they will receive from a product or service after the purchase. Customer value can be examined at different levels. At a low level, customer value can be viewed as attributes embedded in the product or service itself. At a higher level, customer value can be seen as the emotional satisfaction of achieving outcomes or customer desires when using a product or service. The supplier must provide value in terms of the parameters that are most important to its customer.
The appointment of a service integrator by the customer organisation is not limited to “internal procurement” that gathers members inside the customer organisation but may also take the method of “external procurement” that has the expertise of the service integrator. Furthermore, there may be a “hybrid” method that combines both, or a “lead supplier” in which some service providers are the service integrators. Each has its advantages and disadvantages, in the “end to end” value creation process. ITIL 4 value streams and value chains could considerably be mapped to SAIM activities. For example, the SIAM supplier onboarding/offboarding could be mapped to strategy management value chain, and supplier management value chain component, obtain/build value chain considers supplier data configuration to the service management tool.
One important thing to remember here that ITIL 4's Service Value System now includes 34 practices. If an organisation is planning to implement one or more of these practices, then it is by no means sufficient to conduct a SIAM process workshops and document the process. Rather, such skills must be approached as an organisational change project. By the way, organisational change management is also one of the new practices that was explicitly included in ITIL 4.
SIAM is approaching not only existing ITIL and service management such as ISO 20000, but also system development methods such as Lean, Agile, and DevOps, and COBIT, and how to coexist and expand the value of IT services.
