Category Archives: Business

Service Catalog Summit – Review and Key Observations

BrightTALK have organised a series of summits to address topical subjects. The format of these summits is a number of live webcast presentations which are recorded and available to replay.  On Wednesday 16th November the Service Catalog, which is perceived to be a hot topic, was covered.

The purpose of this lengthy post is to provide review comments for each presentation.  The presentations are organised by the webcast vote they received on the day [Lowest to Highest].  Whilst this approach is not comparing like for like (attendee numbers vary) it does provide an indication of how well the key messages were received by their target audience. 

At the end of the post I will share my own Point of View or key observations based on my deep experience of Service Management Practices which are vendor agnostic.

The Map is Not the Territory – Aligning Service Catalog to your Customer

Nathan Allchin (City of London Consultancy)

Webcast Vote = 2.7 / 5

There is a fundamental difference between a thing and its representation.

Customers like the idea of a Service Catalog because it reduces interaction costs, timescales and is useful for transaction purchases.

Service Providers like the idea of a Service Catalog because it reduces interaction costs, timescales and provides an opportunity for up sell.

Most of them don’t work as the Service Provider is not customer focussed, the Catalog has been built for ITILv2 which is out dated and it is hard to do, let alone well.

The ITILv2 and ITIL v3 definitions were examined in detail.

Outcomes – derived from performance of assets and are limited by pressure of certain constraints.

Services have value when they enhance the performance of these assets and reduce the grip of constraints.

Service Assets are a specific configuration of assets = a service.  Service Assets support external outcomes.

ITILv3 – Business Units & Service Assets.  Service Portfolio.  Value of Service Management.

This presentation set out a number of key concepts of the ITILv3 Service Strategy core volume, for example Service Assets and associated constraints.  In my experience a large number of practitioners are not comfortable with the need to describe the Capabilities and Resources required to create a Service Asset.  This is further evidenced by the fact that the ITIL 2011 Edition Service Strategy and Service Design core volumes have less focus on Service Assets which are the key building blocks for defining services. Service Providers (Internal & External) shy away from drilling down into the detail.

Catalog your SLAs

Kulvinder Bhupal – Principal Consultant CA

Webcast Vote = 3.1 / 5

How does IT simplify accessibility?

Challenges – become agile, control / reduce costs, consider cloud edge, disconnect between what IT provides and the perception of delivery.

Where do we start – define & measure, control IT spending, increase operational efficiency. Automate Service Delivery – e.g. enable self service, dynamic infrastructure, automate process improvement.

Define Business and IT service offerings in an easy to manage web based Service Catalog.

Translate what you do in Business terms. 

Improve Customer Satisfaction.

Align services and costs to the organisation (clear visibility, transparency).

Provide an effective service contract management process.

Model service specifications using included best practice.

3 key attributes – description of business value or value to the Business, some notion of services cost / price, measurable Service Level Objectives.

Offer SLAs through a Service Catalog (SLM confusion)

Transform from the what to the what if (Business Driven)

Tooling pitch – SLM dashboard etc.

Practical advice with clear examples on where to start, however this was offset by the need to automate service delivery and the tools pitch.  The guidance to model and specify the service is an approach that outsourcing companies have been taking for the last 15 years.  You specify the service to the Business Buyer of the service and the end users.  Start by identifying the various customer groups, their critical business processes, key business events (intra day, weekly, monthly, quarterly). Then move onto classifying their data / information needs and how they will be delivered.

Service Portfolio versus Service Catalog : Are We Clear Yet

Charles Betz, Chris Dancy, Charles Araujo, James Finister

Webcast Vote = 3.5 / 5

What is the benefit of following the ITIL model?  Consistent interpretation and communication.

Self awareness – IT understands itself and how to deliver services to customers.

What level of service should we start at? Typically organisations go straight to the How and get tied up in knots.

Long debate which concluded that “ITIL is textually accurate”.

72% of attendees voted that a wire transfer application and the ordering of new workstations both belong in a Service Catalog.

The customer is a consumer of IT services.  Who is the Customer?

Define services abstractly – look at customer perspective first, from their viewpoint.  Can they interact, buy it.

How do I distinguish between Service Catalog and Request Catalogue?

Service Catalog can provide different views to discrete users.

Understand relationships – Service Catalog should b integrated with Service Level Management (alerts and events)

60% believe that Project Management is a service.

This session did not clarify Service Portfolio vs Service Catalog.  Key questions have been left hanging – Who is The Customer? Where do I start to avoid getting tied up in knots?.  Whilst I appreciate how difficult it must be to have four strong characters in the same session, I can’t help feeling that they should have left their egos at the door.

Important Considerations When Selecting Your Service Catalog Tool

Andreas Antoniou – CTO Biomini

Webcast Vote = 3.7 / 5

Pressing IT Challenges – Unknown Demand, Consumerisation of IT where customers make their own choices, Uncertain Expectations, Unstructured Requests, Inefficient Delivery.

Evolving User Focussed Management by 2014

Revolution in ITSM which will become Device / User Centric.  Consumerisation, Self Service, Mobility and Cloud Services.

Gaining control via the Service Catalog – users want the same speed, flexibility and power to decide in the workplace ( personal vs corporate)

Service Catalog automation reduces wait times.

Managing Demand – reduce inventory, right size capacity, single portal for customers.

Considerations – Static brochure or Actionable (by workflow), Usability, Role Based Access, Configuration not Customisation, Service Lifecycle Management, Approval Routing, Request Fulfilment Automation, Integration, Service Levels, Reporting, Service Components / Items, Content and Internationalisation (language / time zones / currencies…)

Summary – Service Catalog is a highly visible solution.  Put user experience at the centre of your requests.  Prepare Service Catalog content collaboratively with all stakeholders.  Look for flexible content management.

How to build a Service Catalogue in 4 simple steps – Consider, Download, Advice, Get Started.

A key point in the revolution in ITSM was the ITIL Refresh.  There was a push to shift the focus away from ITIL (IT Infrastructure Library) to Service Management Practices.  This will become more apparent with the increase in mobility – anywhere, anytime and cloud service brokerage.  For me the above considerations suggest that there will be a one size fits all tool that is a repository for defined services to the Business Buyer and a service request fulfilment solution for end users.  It could be perceived that this is another example of framing the problem so as to fit with the features of the solution (tool).  Also known as Solution Probleming.

Understanding the Business Case and Investment Return from a Service Catalog

Business Value and Benefits from a Service Catalog Solution

Jeff Moloughney – Front Range

Webcast Vote = 3.9 / 5

Front Range – Advanced Service Management = IT and Non IT Services Portfolio of Out of Box templates. 

Enterprise Workflow Platform of Service Management Suite and Asset Management Suite.

Definition of a Service Catalog – ITIL Service Design, List of IT service offerings, service or product requests, manages workflow, approval land communications.

80% of Service Catalog adopters view Request Fulfilment as important or very important.

Analysis Opinions – IT organisations include Non IT Services – HR, Facilities, Legal in their Service Catalogs.

Business organisations impacted – HR, (Business) Operations, Facilities, Procurement, Provisioning, Workplace Management, Application Services, Finance – Insurance.

List of Service Catalog vendors which includes the usual suspects plus PMG SCS – Service Catalog Suite and Service Ramp (not sure if this bay area company is still around)  

Business Alignment, Strategic Impact and Business Value, Service Delivery Issues

Benefits – User Friendly, single place to go to, sets clear expectations, reduce costs and resources, quicker time to market.

Steps to add value – find areas of the Business affected by requests – e.g. delivery and fulfilment for customers.

Build the business case – interactions, approvals, elapsed time.

Examples – ROI, Calls, Automated Approvals, Workflow Automation.

The principle that Service Providers deliver IT and Non IT services is flawed.  The Non IT services listed are the back office (HR, Finance, Procurement) capabilities consumed by all business units which are better understood than the front office industry specific capabilities.  For example the Patient Administration Service is the horizontal and Choose and Book is the industry vertical that is visible to the customer   The whole request fulfilment debate is that it is a given requirement.  So why do organisations buy Ariba type solutions or build web / intranet functionality to provide P2P procure to pay offerings. In terms of expected benefits a Service Catalog of itself does not result in reduced costs.

Service Catalog – A Practical Approach to Design and Implementation

Mike Kyffin – Technical Business Consultant, Cherwell

Webcast Vote = 4.0 / 5

Need to align across Business View, Customer View and IT View.

What is a Service Catalog? – Designed from the customer perspective.

Why create a Service Catalog? – Transform IT from a technical to a service led organisation.

Service Types – Technical (Email) and Business (AD, Enhancements, Support)

Service Classification – Core IT, Subscription based, On Demand

Service (permissions and user accounts) – category, sub-category, request type

User account management, telephony, network, desktop, email, server administration

e.g. delivery and management of electronic messaging services to and from the company

Service Catalog – urgency / impact / priority / resolution

What can this look like in your Service delivery and Management software?

Tip – implement and maintain a service mindset.   

The guidance in the good book (ITIL 2011 Edition) states that the Service Catalog should contain Business and Technical views.  The above examples are locked in the bowels of Service Operations (e.g. server administration) and the electronic messaging service example is sub optimal.  To make it more relevant it could be restated as – provide details of transaction activity across bank accounts during the working day and report in real-time to customers through their own electronic banking systems and the SWIFT delivery channel. (Business Unit – Treasury Operations)

The need to Transform IT from a technical to a service led organisation and embed a service mindset is key to success. Technical staff (e.g. DBAs) should be taught about their customers and the critical business processes they manage for the particular customer facing service they are supporting. In my experience it is easier to teach an individual with service skills (inter personal) technical know how than it is to teach a technical bod service skills. Being an expert in a technology skill (SFIA) is not sufficient anymore.

Strictly Service Catalog

Barclay Rae – BR Consulting

Webcast Vote = 4.1 / 5

Key Question – does the IT organisation deliver what customers need and can we demonstrate the value delivered?

Does the customer appreciate the value delivered?  Business value innovation

Airline example used – analogy.

What do we mean by services?  Bundle of activities (People, Process, Technology) combined to provide a business outcome.

SLAs – the small print details what it means.

Avoiding Issues – get everyone from IT and the Business together to agree objectives and approach.  Important to get the right people involved.

Customer <-> SLM <-> IT Service Provider

Business Value Reporting – Business Change, Service Design, Service Transition, CSI – CMDB – Incident, Problem, Change – Value Based Delivery

Service Catalog Hierarchy (AXIOS Template) and Service Attributes

Service Catalog Elements – End User Requirements, Business / Customer Service Catalog View, Technical (IT Service Provider) View

Moments of Truth – penny dropped for DBA when it was realised that they supported a service.

7 Step Route Map – Feasibility, Workshop, Customer Liaison, IT Liaison, Service Design, Documentation, Implement (with right skills)

FAST ITSM – we need ITSM to be faster and more agile.

The bundle of activities (People, Process, Technology) is a good place to start but too vague.  The definition of Service Assets (Capabilities and Resources) underpin a service.  The level of warranty (performance) and utility (functionality) determine the Service Level Objective or Target.  As a minimum get the budget holder of a Business Unit, Business Process Owners and the Business Relationship Manager plus the right people together to discuss desired outcomes rather than focus on inputs. The 7 Step Route Map is a proven approach.  More detail is required about FAST ITSM than what is available on the BR website.

How Napster Killed ITIL

Craig McDonagh – Service Now

Webcast Vote = 4.2 / 5

What was so appealing about Napster?

Get just what you needed, create your own albums, access what you needed from home, find what you wanted easily.

Cloud changes everything that was old is new again – Mainframe / Virtualization / Web

Service Management evolves for the cloud.

Service Catalog automation with SLM is absolutely essential.

Cloud management with Service Now

Service Catalog – Service Request – Request Approval – Workflow – Provisioning – Workflow – CMDB Update – IT Governance.

Service Catalog is a resource for the business and a resource for IT

If you don’t have a catalog, Business users will just use a different Service Catalog.

Service Catalog must be as easy to use as iTunes.  totally integrated with Service Management processes, available to everyone, extensible and service centric.

The Business are deciding which Service Catalog to use – Make it Yours

The above example of the 7 steps to get from the Service Request to IT Governance is where internal Service Providers fail.  If request fulfilment is so important is it possible to request a new service?  Typically users can self provision, for example if more compute units for a performance stress test are required these can be delivered by adding virtual machines.  As stated previously Service Requests can be fulfilled by Ariba or a custom solution.  Unfortunately most vendors do not address the Service Specification. In addition it is important to Model and target Service level objectives for Customer Facing services.

Service Catalog : Transforming IT into an App Store

Jason Rosenfield (Cask) & Jason Hopwood (AXIOS)

Webcast Vote = 4.2 / 5

Define Business Services Used.

Create a Service Design package.

Understand the customer experience.

What would your customers expect?

Shift incidents and requests upstream to Tier 0 – self service (upstreaming)

Establish Service Catalog vision – Customer perspective, Business perspective, Technical perspective

(different organisations require different views of a service)

Develop Business Case – identify stakeholders from each “Line of Service”

Evaluate existing services.  Existing list of customer facing services, supporting services are different.

Define service attributes.

Do not try and tackle all services in initial version of the Service Catalog.

Control the Catalog – approve and manage change.

Deploy the Service Catalog – Assess, Design, Pilot, Implement (deploy in consumable phases)

What can AXIUOS and CASK do to help?  CASK has a Cheat SheetTM and SC BuilderTM  (Kick Start)

It is important that Business Units are treated differently so that their needs are understood.  A Service Specification should include the service offerings (customer facing) for each Business Unit e.g. a global Investment Bank will have Wealth, Asset and IB business units each with specific requirements.

The Line of Service approach is very effective.  By taking a Service Line view it is possible to articulate to a Business Owner exactly what and who delivers their service.  The Service Manager or Service Owner is able to provide visibility into who is providing their service from an end to end / front to back perspective.

Service Catalog – It can deliver more value than you think

Matthew Burrows – BSM Impact

Webcast Vote = 4.2 / 5

ISO/IEC 20000-1 is a service management system standard.

Documented catalogue of services (4.3.1 d)

Service provider shall agree a “catalogue of services” with the customer.

Contract Portfolio.  Product and Service Portfolio delivered in line with contract commitments.

Business value demonstrated to end user and the product / service of the organisation as awhole – not just IT.

Service Portfolio – possible inclusions are layers of a service model, BPM, Enterprise Tool and capabilities, Enterprise Data Model, ICT, Suppliers / Partners.

Define services in business terms.

Service Request Catalog

Let’s get a consultant in and leave them to do it.  Important to transfer knowledge to client.

Promise, Measure, Manage

Service Contracts, Service Account Plans (future demand/initiatives and what we plan to deliver), Self Service

Service Catalog, Service Contract, Service Model, SLA, OLA, underpinning contract

Business Services – two types – business process (Payroll, Billing) and business product / services (Voice, SMS)

Service Contract – what we deliver.  Service Catalog – what can be delivered.

Service Model should be developed for each business service.

Service Cost Management – cost allocation, TCO, Benchmarking.

Pointers – model how services support the business.

We must understand our Business (not just IT)

ISO/IEC 20000 is all about “should” and “shall” and the statements should not be seen as discrete requirements.  The standard together with ITIL describes what to do but not how to do it. Consultants will increasingly be engaged directly by the (frustrated) Business because they have relevant industry knowledge and can model how business processes are enabled by Information Services. Not sure why an Internal Service Provider should need a Contract Portfolio.  External Service Providers have a contract with a defined “schedule of services”.

Service Catalog – 4 Decisions for Execution Success

Ivanka Menken – The Art of Service

Webcast Vote = 4.5 / 5

IT staff confuse a “service” as perceived by the customer with an IT system.

Business Catalog is a pre sales document. The Technical Catalog underpins the Business Catalog.

4 Decisions

  1. Who are you serving? – Business or external Customers
  2. People – Hire Attitude, Train Skills, Appoint a Service Catalog Manager
  3. Cash – budget for service not just products
  4. Execution

Where to start?  Create a draft catalog.  Discuss with stakeholders, Update catalog, Use catalog for SLA negotiations.

Business getting IT’ed

Presenter is the author of a book about Business Relationship Management.  So there is a service culture and mindset engrained in the above approach.  The Business Catalog is not a pre-sales document it is a living repository describing a set of customer facing services.  If the Technical catalog and the Configuration management system are so important, what will happen when services are provided from in the cloud and appear as a black box.

Service Catalog  Challenges in a Multi Vendor Environment

Managing a Catalog of IT Enabled Services in a Multi Vendor Environment

Bill Powell – Zenetex

Webcast Vote = 4.5 / 5

Services are intangible and non storable.  They cannot be managed until they are defined.

What is a Service Catalog? One or more repositories of available IT enabled services.

Realization -= SPM – Service Product Manager / Order to Activation – Request

Basic Service Provider Requirements

  • Establish a catalogue of service descriptions with the customer.
  • Maintain an up to date catalog.
  • Update Service Catalog when new or changed services are introduced.
  • Review with the Customer at planned intervals.

RACI matrix with Service Product Manager – Accountable and the CIO – Responsible

In a Multi Vendor environment who is responsible for integrating the enterprise Service Catalog?

Do Service Providers have agreements with each other?

Internal Service Provider, Service Integrator as a separate provider, External Service Provider.

No one supplier is responsible for end-to-end services.

New Catalog Requirements

  • Integrated trusted source of available services
  • Cross supplier standards to enable integrated view
  • Cross supplier dependencies included in Service Descriptions

Critical Success Factors – Catalog Information Integration, Tools Integration, Catalog Support.

As to be expected from the mentor of the ITILv3 Service Strategy core volume, sound advice which reflects where most organisations are today and will be moving to in the future.  Internal Service Providers are dinosaurs because they do not have the breadth of capabilities required to provide value to the Business at the right price point.  Given this it is important that a “Retained Organisation” of, senior and few in number, personnel is established who have experience of managing in Multi Vendor environments and are able to stitch together the components (Service Assets) of the end to end service.  The members of the “Retained Organisation” should be hybrids in that they understand both the Business and IS.

Service Catalog and Cloud Computing : No Catalog No Cloud

Rodrigo Flores – Cisco

Webcast Vote = 4.6 / 5

Explosion in the amount of Information

Growth of connected devices

Explosion of Apps and Social Media (AppXchange, Google Apps, iPhone, Amazon Web Services)

Very beginning of a major shift – “Big Switch”, Nicholas Carr. The significance of a shift to Cloud Computing.

Rich Service Models Evolve – BYOPC (Build Your Own PC), Oauth (ID Access Management), IAAS (Infrastructure as a Service – Data centre)

The power of Cloud – pooled resources, delivered as service.

Cloud based IT Delivery Model.  Corporate, Marketing, Finance, Engineering, HR

Step One – Service Catalog is standard, componentized, technical service offerings, ready for automation. Self-service.  What’s new is the focus on automation processes.

Step Two – make it actionable

Overview of CITEIS (Gen2) orchestration, provisioning, availability, support and maintenance windows, order fulfilment.

CISCO IT benefits – Agility and TCO reduction

Recommendation – Crawl, Walk, Run

Step Three – implement a roadmap for standard offerings in your catalog  

All things “Cloud” are very topical and cannot be ignored because they will have a major impact as organisations look for agility and value for money.  The explosion of big data and information along with increasing use of mobility options means that IT is no longer in control.  Customers and corporate users have a bigger say / voice in how they consume services.

For me the presentation went off message with the overview of CITEIS.  CISCO purchased newScale and have force fitted / diluted the functionality to focus on CISCO products and services rather than what the customer wants.

Key Observations

 (reply to whatdoesgoodlooklike@gmail.com or @WDGLL)

IT only exists to serve the Business.  The Business increasingly treat IT as a commodity and if the Internal Service Provider is not demonstrating value against higher expectations then the Business will bypass IS and commission services from alternate providers.

It is disappointing that the (IT) Service Management industry has not addressed a key dependency required to create a meaningful Service Catalog.  IT is still detached from the Business.  BITA – Business IT Alignment, Business Service Management, Business Technology Management were meant to bridge the service expectation gap.  IT still expect to talk about technical widgets whilst the Business has much more understanding of how to communicate what outcomes they expect and have little interest in the how it is delivered. 

I have coined a term for the fact that IS is tightly integrated with the Business – “bISness”   

It is important to promote and engender a service culture and mindset by arranging for IS personnel to walk in the shoes of the customer.  This can be easily achieved through being aware of the day in the life of their business counterpart.  Alternatively encourage staff to co-locate with the Business areas they provide day to day support in order to improve understanding of how their actions enable business operation.

Here is a 3 step approach to obtain the information that is required in order to create a Service Catalog.

Step 1 – Create a Service Specification

This Service Specification defines the scope of Service(s) offered to the Business by Service Provider, how the Service(s) will be managed and how performance of these Service(s) will be measured.

The Service Specification is intended to create a common understanding of service priorities, agree responsibilities and articulate the expectations and obligations of both parties.  To work effectively, it must be viewed as a two-way living document with both the Business and the Retained Organisation having shared expectations and mutual obligations.

Step 2 – Define Customer Groups

It is important to appropriately define Customer Groups within your organisation.  Understanding the specific requirements of each Customer Group will enable the Service Provider to better manage expectations and achieve improved levels of customer satisfaction.  Customer Groups are logical groupings within the Business to which services are provided.  Each Customer Group may have different service level needs.

Customer Groups can also be further divided into Customer Types.  Customer Types are users in Customer Groups with similar service requirements.

Step 3 – Define the Service Model

Describe the critical interactions between the Business / end user  and the Service Provider setting out the end to end view – Tier 1 (Service Desk), Tier 2 (Support), Tier 3 (3rd Party S/W vendor)

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That Used to be Us and the Rise of the Rest

Thomas L Friedman and Michael Mandelbaum have co-authored

“That Used to Be Us : What Went Wrong with America?  And How it Can Come Back”The words are a lift from a Barack Obama quote about Asia’s advancing techno-industrial might –

“We just learned that China now has the fastest supercomputer on Earth; that used to be us.

Whatever happened to the American dream?  Well America the superpower isn’t super anymore.  China has seized the mantle of hypercompetitive hypercompetence that was once ours.

Such information technology advances as social media and cloud computing have only further levelled the playing field.  The Developing Economies are equipped with the tools to vie for the jobs and riches that Americans considered theirs

Thomas Friedman interview – The world is hyperconnected

The book describes a catalogue of dismay that must be tackled under four headings:

  1. First, a profound, discombobulating lack of focus – purpose lost since the cold war was won. No threat, no concentration.
  2. Second, a chronic failure to address obvious problems – education, energy shortages, climate change.
  3. Third, the abandonment of the formula, built on investment, industry and innovation, that made America strong.
  4. And, last, a bitter, intransigent hostility that has soured any attempt at consensus building.

Make progress under all those headings and perhaps the dream can live again.

Globalisation means that there aren’t any no-brainer white-collar or blue-collar jobs around any longer. Millions of jobs have vanished through this downturn and they’re not coming back. You can, and in fact do have, many in manufacturing doing well, cranking out profits again. What you don’t have is the employment that used to go with recovery.

New jobs can only come from new enterprises, new ideas, new creativity. The old routines have lost relevance.

This means not just transforming school education but finding ways of rescuing the millions of adults washed up on the cape of no hope by digital change.

As Friedman and Mandelbaum fundamentally argue, we haven’t begun to wake up yet.

“Learning, working, producing, relearning and innovating

 twice as hard, twice as fast, twice as often and twice as much”

The time is ripe for big, concrete ideas to renew America

Post American World and the Rise of the Rest – Fareed Zakaria

Zakaria argues that we are now living a power shift, which he calls “the rise of the rest“, as countries all over the world have adopted originally Western modern thinking with the result that they are experiencing unprecedented economic growth.

The real problem, Zakaria argues, is the rise of China, trailed by India. China’s is indeed the most incredible success story in history — a tale of almost 30 years of growth in the 7-to-10-percent range that seems to defy the laws of economic gravity.

Zakaria also makes the point that tying healthcare to employment tends to tie US people to their jobs and lessen their ability to leave lest they lose their health insurance.  It also tends to make them fear free trade and globalization. The result is that the American economy is less dynamic and productive than it would have been under a more fluid labor market.

When the US was the overwhelming power, everyone else had to learn American culture.  Asian countries have assimilated a great deal of Western culture  (casinos, infotainment, fashion etc.)

The big change in the 21st century is now the US yields power and influence to others and has to learn everyone else’s culture. It needs to share power, build coalitions, create legitimacy, in order to lead and prosper. It has to stop being the Voice of Authority and learn to Curate a Global Conversation-or many of them.

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Why Weibo Works Better than Twitter

Weibo (waybore) is Chinese for microblogging.

The popularity of social media – services like Sina Weibo, the Chinese Twitter – is growing at a “staggering” rate in China which has the world’s most internet savvy users.

Sina’s Weibo microblogging platform has c.250 million registered users who are typically white collar workers and serious bloggers.  Sina Corp will launch an English-language microblog aimed at users abroad, entering a market dominated by U.S.-based Twitter.

Tencent Weibo has c.233 miliion registered users who are younger and more interested in keeping in touch with their friends and what is going on via their smartphones.  Tencent has already launched China’s first English microblog service to target the international market.   For the first time, non-Chinese speaking users can sample a little taste of Weibo, the Chinese social networking phenomenon.  Here is a link to their products and services page.

Microblogging has led to a revolution in the way people communicate with each other in China, according to internet guru Dr Kai-Fu Lee who has 7m+ followers in China.  Dr Lee previously worked for Apple, Google and Microsoft.  He is one of the founders of Innovation Works.

“Microblogging leverages the wisdom of the crowds.

The good things get forwarded, or re-tweeted, and bubble up to the top,”

The reason why “Weibo Works Better than Twitter” is becuase 140 characters in Chinese can contain as much as 5 times more information so this means that the Weibos are more content full.  Weibo is a mash up of Twitter and Facebook which means  that users are also able to access a suite of multi media options.

The target audience for the English version of the Sina and Tencent Weibo offerings is mostly Asia Pacific users from countries like Singapore, Malaysia and Philippines.  However don’t be surprised if the user base is increasingly from farther afield.

This Digimund Infographic has out of date user numbers because of the staggering growth rate of both providers.

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Globalisation 2.0 – Why IT matters

In a week when European Union disunity has overtaken events at the G20 conference, China backs away from plans to save the eurozone via a bail-out fund for the PIIGS (Portugal, Italy, Ireland, Greece, Spain).  The proposed eurozone rescue deal depends heavily on the response of especially China but also Russia, Brazil, India, and South Africa — the so-called “BRICS” — for contributions to a EU rescue mechanism.  The Chinese say they will not give any money until this latest spasm in the eurozone debt crisis clears and some kind of stability is restored.  This shift in economic power to the emerging markets is referred to as “Globalisation 2.0”.

 Stephane Garelli describes a New Paradigm – Globalisation 2.0 which is service led and consumption based.

Garelli – If you draw a line from Mexico to Moscow future growth in consumption of products and services will take place below the line.

  

Globalisation 2.0 raises the prominence of the emerging markets.  The following 21 countries are classified as emerging markets which includes the more well known BRICs.

“Economic activity increasingly gravitates to the powerhouse economies of Asia and Latin America.  Africa’s untapped growth potential is also becoming more prominent.  Spurred by a burgeoning middle class and rapid urbanization, emerging market demand is opening up opportunities in exports of goods and services.

Emerging market consumers with limited financial means are driving demand for low-cost, mass market solutions that can provide no-frills products.  Volume, simplicity and function along with longevity or durability take centre stage in offering design.

There is a “southern surge” in financial services offerings (mobile banking, micro finance and insurance) to the middle class in South and South East Asia.

The emerging market middle class is expected to increase by 1.4 billion people within the next decade creating a critical mass of demand for cars, luxury goods and services.

It is important that companies in the West build new bridges to trade with the emerging world by harnessing the potential of mobile and social networking media to reach customers and employees in new and imaginative ways.

Structured channels need to be put in place to allow rapid diffusion of ideas and know-how across regions.”

To achieve this aim the major Multi National Consultancies are encouraging staff to “Look East” whilst the Indian Pure Plays are accelerating recruitment of on-shore client facing people in the West.

The Economist comments

To make the leap into the top league of global IT services, India’s three giants (TCS, InfoSys and WIPRO) may have to hire many more people in rich countries. That is partly because the required skills are scarce in India, and partly because a physical presence is needed for some tasks, especially in consulting. Japan’s carmakers were pilloried in America until they shifted some production there, hiring locals and thus creating local loyalty. India’s IT firms are now following their footsteps.

So as the slump in rich countries continues it will impact the revenue growth projections of  the established IPPs (TCS, InfoSys and WIPRO).  Given this, outsourcing should expand further from its core geography of rich English speaking countries to places like southern Europe, Japan and the emerging markets.

Source – New Waves of Growth.  Unlocking opportunity in a multi -polar world.  Accenture Institute of High Performance and Oxford Economics

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Outsourcing Service Provider of the year

The National Outsourcing Awards for 2011 will be presented on the 10th November.  The shortlisted entries for the Outsourcing Service Provider of the Year are as follows:

arvato is a trusted global business outsourcing partner to the private and public sectors in the UK.  CEO Matthias Mierisch (Media Planet Outsourcing Supplement) – Ask the Experts:

How has the global economic downturn changed the way organisations view outsourcing as an option for their business?

Guaranteed cost savings remain a key driver for outsourcing in challenging economic times. But outsourcing can also add value as organisations take a more strategic view on how business processes can be transformed to support overall management objectives. Companies demand innovative solutions and approaches and want partners not vendors, which mean outsourcers must be more flexible.

What impact is new technology having on business process outsourcing?

Successfulccessful BPO contracts rely on effective technology solutions. We are seeing more demand for integrated and complex service offerings as organisations look to stitch together their business processes across territories and services. New technologies, such as cloud-based solutions, collaboration tools and social media platforms, play an important role in delivering the benefits of outsourcing.

What does the future hold for outsourcing in the short and long term?

Outsourcing is shifting towards a more transformational, innovation-led approach which will accelerate as global growth remains sluggish. While innovation isn’t a magic bullet, the behaviour and endeavour it represents can be the missing piece in successful outsourcing relationships. A partnership model based on trust, commitment and shared reward will form the framework for the next generation of deals.

Ceridian [Our Know How. Your Success] is a leading provider of HR Outsourcing and Payroll Services, working with over 5,000 businesses around the UK, large and small, providing quality, accurate payroll services and value-added HR services.

Voice of the Customer

HCL focuses on ‘transformational outsourcing’, underlined by innovation and value creation, and offers integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO.

e 1 st – c 2nd

Employees First, Customers Second: Turning Conventional Management Upside Down – Author Vineet Nayer (HBR press)

Luxoft is part of the IBS Group which is a leading software development and IT services provider in Eastern Europe. Luxoft and IBS IT Services offer a wide variety of information technology services, such as software development, IT outsourcing, business and IT consulting, business applications implementation.  Luxoft is particularly strong in FS and Banking Technology especially.

You Steer, We Accelerate

SQS – Excellence through independence.  Founded in Germany the SQS Group (SQS) is the largest independent provider of software testing and quality management services.  SQS also helps its customers make further cost savings through the use of managed testing services which feature performance-based payment under defined service level agreements.  Gartner Symposium ITxpo

Bonne Chance

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Are UK Retail Banks Anti-Social?

Twitter storm erupts as HSBC, RBS and Natwest systems fail affecting millions of customers.

Friday 04th – HSBC cash machines, branches, debit cards, and internet banking services all stopped working at 2.45pm after a computer glitch.  The outage lasted more than two hours, with frantic HSBC staff finally finding a fix at 4.50pm.

Worried customers vented their frustration saying they could not withdraw money from HSBC cash machines (ATMs) and their cards had been declined in shops (POS).  In addition, four million internet banking customers of HSBC and First Direct were unable to view their money online or via their smartphones.

Related Twitter Accounts – @hsbc_uk_press and  @HSBC_UK_Online

Saturday 05th – RBS and NatWest customers have been unable to check accounts online all day because of problems caused by overnight maintenance work between 01:00 and 03:00 am.  Problems arose after the maintenance work went wrong and meant account balances have not been credited overnight.  There have also been problems for some customers making withdrawals from cash machines.

#Natwest. Now would be a really good time to get on Twitter and reassure and interact with your customers.

In these two major incidents both HSBC and RBS (Natwest) failed to recognise the extent of customer impact.  By using TweetDeck to monitor social media mentions or by setting up searches related to keywords the Banks should have been instantly aware that there was a major incident.

Moreover it could be perceived that they are anti-social in that they did not provide regular updates to their customers via their twitter accounts or corporate websites.  Maintaining radio silence is not an option any more and social media must be adopted to interact effectively with customers by responding immediately.

What happens when word of mouth goes Digital?

To what extent will customers lose trust in their bank and decide to switch their accounts?

In a world moving rapidly towards mobile payments via near field communications and readers, it is ironic that in the event of any more Bank failures that “Cash is King”.

Finally, it is important to note that the Oracle European Confidence Report last year highlighted that fragmented systems and processes hinder financial institutions and that the bottom line is affected by inflexible systems.

Both Banks provided the same old same old platitudes – Mainframe / Server outage and Maintenance Work.  Yawn.

This is how convergence will look like in 2015

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Service Assets – Basic Building Blocks of a Service

The Service Triangle has been adapted from Fig 3.4 [Service Strategy 2011 Edition].  The purpose of the Service Triangle is to illustrate how each service is based on a balance between Price, Functionality (what the service does) and Performance.

Service Strategy Page 50, Figure 3.4

A reduced Price point will result in lower performance and/or functionality.  Conversely if increased functionality or  improved performance is required the Customer will typically have to pay more.

The ability of a service to create value from the customer’s perspective is a function of both utility and warranty

Services come in many flavours, but all have in common the creation of value for the customer by facilitating desired outcomes without requiring customer ownership of specific costs and risks.

Service Assets are the Basic Building Blocks

Service Providers must configure their service assets (in the form of capabilities and resources) to deliver services that create value and satisfy the needs of their customers.As you can see from the diagram above People are intrinsic to both Capabilities and Resources.  Service focussed personnel aligned with distinctive capabilities will be difficult to replicate; so this configuration should act as a defender to outsourcing. 

For now and into the future Infrastructure resouces will be seen as a commodity and will be virtualised first and then moved into the cloud (remote service provision).  The only resources that will be retained relate to client sensitive data (Information) and strategic applications.

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Portfolio of Services

So having established what the building blocks for a service are we will now seek to demystify the subject of the Service Portfolio.

The Service Portfolio has three components – the Pipeline of chartered services, the operational Catalogue and the Retired services (withdrawn / mothballed / decommissioned).  

Page 24 of the Service Strategy book describes the need to define customer facing services and supporting services.  Customer facing is the only part of the Service Portfolio published to customers. The Service Catalogue sets out the discrete service assets and respective link to business activities and outcomes.  Therefore it is important to establish a catalogue of services that contribute to strategic business objectives. 

The Business Relationship Manager will work with the business customers to define the description of the new or changed service that is captured in the Service Catalogue.  In my experience there is no need for a customer agreement portfolio because it sounds transactional to me and not particularly partnerial.  The BRM should map business demand patterns (that require an increase in compute)  to appropriate services and provide advance notice of these changing requirements to the Service Owner in the Service Provider organisation.  Additionally the BRM should periodically check with the Business stakeholders whether the desired outcomes are still valid.

The Service Portfolio is viewed as the steward of the Service Assets that are key to delivering business objectives.  Service Portfolio Management is about making sure that the Service Portfolio has a comprehensive view of all the discrete services that are provided. The “good book” [Service Strategy] fails to distinguish between Internal and External Service Providers.  So in the diagram above the Service Portfolio should be owned by the Retained Organisation but the CMS and downstream information stores may be owned externally and will appear as a black box especially if they are Cloud Based Services.

The difference between the Service Pipeline and the Project Portfolio is not clear to me.  Most clients have a single integrated Investment Portfolio tool [e.g Clarity] from which they make informed decisions about how they will approve budget expenditure.  When a development project moves through the V Model [waterfall] or Agile development lifecycle the Service Provider should be engaged to conduct Operational Acceptance and Service Readiness. Given this, why do we need a Project Portfolio in the Service Management Knowledge System?

The Service Catalogue is the single source of consistent information on all the operational (live and testing?) services and those being prepared to be run operationally [Service Transition]. It identifies business units and customer groups. There is limited value in defining the supporting services {Technical View] because these are likely to be outsourced to a lower cost provider.  In this example the CMS has a core set of Configuration Items that relate to Information and Applications rather than physical technical components.  Where open source code is in use then distributed version control systems which are available in the cloud [gitHUB] should be considered.

There is no single correct way to structure and deploy the Service Catalogue.  Each Service Provider organisation should consider their current and evolving needs. Service Design Page 58 states that the Service Architecture provides the independent business integrated approach to delivering services and the management of those services.  

If you are keen to understand how best to structure your Service Catalogue you could identify your Service Assets in the form of Capabilities and Resources which could be very helpful because the guidance provided in the Service Design core volume is not consistent. 

On page 55 there is a list of typical items that should be included in the Service Catalogue:  Service Name,  Service Version,  Service Description,  Service Status,  Service Classification and Criticality, Applications Used, Data and/or data schema used, Business process supported, Business Owners, Business Users, IT Owners, Warranty level, SLA and  SLR references, Supporting services, Supporting resources, Dependent services, Supporting OLAs, contracts and agreements, Service costs, Service charges, Service revenue, Service metrics. 

The same core volume in Appendix G page 335 Table G.1 provides the following Service catalogue example:  Service description, Service type, Supporting services, Business owners, Business units, Service owners, Business impact, Business priority, SLA, Service hours, Business contacts, Escalation contacts, Service reports, Service reviews, Security rating.

A good place to start is to request to view the Business Continuity Plan [Red Book or online version] which describes the critical Business Processes and their key outputs.  This document also sets out the regulatory, reputational and financial risk to the business in the event of loss of business capability.  In addition the impact on the customer experience is also listed [e.g number of customers impacted if the ATM service is down for an hour on the last Friday in the month].  When these requirements are captured it is then possible to create a meaningful and relevant service catalogue incorporating some of the parameters listed above.

With respect to Retired services this should be classified as a status flag in the Service Catalogue. 

Providing Information Services to the Business

  

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Service Catalogue – some practical advice

Service Catalog – Are you the Master or Slave?

Challenges of setting up a Service Catalog

For many IT organizations, setting up a Service Catalog requires them to think in a different way. Services become more about the business need than about the underpinning technology components. IT must talk to customers, and see services from a non-technical standpoint. This can be a challenge but one that must be overcome to get a meaningful Service Catalog in place. The first way this manifests is in defining services themselves. This must be understood, agreed and represent a business-defined view.

5 Tips for implementing a Service Catalog

1. Carry out a Service Catalog workshop.

a. Ask the right questions.
b. Involve your business customers.
c. Agree on the definition of a service.
d. Organize the information you already have.

2. List the dependencies each service has.
3. Decide usage parameters.
4. Start with a reasonable number of services first.
5. Make sure you know your requirements before investing in automation tools.

Sharon Taylor Webcast

Service Catalog the Business Case & ROI

Once business needs are clear and documented, begin defining the service value chain. This helps uncover the resource and capabilities [Service Assets] you have and those you may need to acquire. It is usually at this point that hidden benefits for shared services and service packages begin to emerge. Before engaging the business, spend some time visualizing the service value chain to build a basis to instill a communal perception.

Sharon Taylor White Paper

Brian Kerr talks about the Service Catalog as the shop window to the Businesslink

Barclay RaeWhy bother with a Service Catalog? – link 

Rod Bridgman gave a thought provoking presentation on Plan, Change & Run your Portfolio of Services from the Cloud.  Skip to 24 minutes in – Link 

There is an “interactive”  session on the itSMF conference agenda, Tuesday 08th November entitled – All we need now is a Service Catalogue presented by Karen Brusch who  is the chair of itSMF Service Level Management Special Interest Group.  Can someone who is attending please ask Karen what the Service Catalogue and Portal component of the Cloud Architecture will look like. (Service Strategy Appendix C.4 Page 389) 

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