Neven Zitek
November 11, 2014
In this day and age, I still see many organizations that operate their IT departments as just that: IT departments – a group of employees who have the required know-how for operating a network, servers, client computers, and associated application software. They are mostly unaware that they provide services to their organization, and their main value is contained within their own technical expertise and know-how. Luckily, such organizations have begun to embrace IT service management (ITSM) principles, and to transform the current mode of IT operations into services, effectively becoming service providers.
But, there is one challenge every service provider must face: elaborating on the value that their service brings to the table. Organizations that just started embracing ITSM principles such as ITIL and/or ISO 20000 will have a hard time, but organizations without any ITSM practice will find this task impossible to achieve. Disregarding the obvious calculation in financial terms, how do you express the value that services bring?
When embracing ITSM practices such as ITIL, one of the first things IT organizations implement is Incident Management, which enables them to track, record and prioritize incidents reported by the end-users. In order to effectively manage incidents, those should be reported to a central location (Help Desk or Service Desk), which now can be considered as a service, with clear and measurable business outcomes.
Figure 1 – Service value
There is little bit of misconception regarding customers wanting services; customers don’t want services per se, but rather outcomes that may arise from services provided. IT and associated technology is a fairly complex topic, so the task of IT management is to reduce and transform that complexity into a “black box” that produces the desired outcomes.
In our Help Desk example, the business is not interested in work rotation between Help Desk personnel, or training plans, or what happens when someone is on sick leave. From the business perspective, the Help Desk should be accepting support requests, and resolving issues in a timely manner disregarding the fact that two members are on vacation, and one of them is in training. As long as the “black box” is producing the desired outcomes reliably – it’s creating value.
Value comes mainly from utility (fit for purpose) and warranty (fit for use) elements, and in my next article (part II) I’ll try to explain how utility and warranty impact service value, and how value can be measured and quantified using methods outside of the ITIL framework, so stay tuned!