Service Delivery Optimization Drives Competitive Advantage

 
 
By Diana Mirakaj  |  Posted 2010-10-15
 
 
 

Compliance, complexity, speed of change and cost are driving the need to evolve IT from a technology to a business focus. Three key ingredients at the heart of service delivery optimization are governance, funding and the operating model. A deficiency in any of these areas can significantly alter the outcome.

The strength of the relationship between customers (the business side of the house) and service providers (the IT organization) determines the ultimate success of service management. It’s necessary for the technology department to be the lowest-cost provider, but that’s often not sufficient to support business strategies. Technology needs to develop other strengths over and above efficiency in costs, such as helping business customers enter new markets and quickly scale up operations.

Outperformance is also a function of advancing the maturity of the service management capabilities, which drive the operating model of the technology organization. As a result, IT service management (ITSM) has evolved as the standard for managing service delivery.

Technology organizations face the daunting challenge of increasing the quality of services provided to the business, while addressing faster rates of change, rising technical complexity, cost pressures and compliance issues. However, with traditional resource and system management approaches, it’s becoming virtually impossible to provide effective support for the business and efficient use of technology resources.

ITSM provides for the effective and efficient delivery of technology services in support of changing business needs.

Effective service delivery optimization requires:

1. developing a better understanding of the complexity, uncertainty and trade-offs the customer is facing;

2. deciding on an objective or end-state that differentiates the value of what you offer, on what terms and in what form, so that it outperforms what customers consider as alternatives;

3. capturing a comprehensive set of capabilities to support the complete service life cycle—from service design to service optimization;

4. identifying, articulating and gaining executive management support;

5. reaching consensus across all stakeholders to help prioritize and sequence opportunities to improve the financial performance of the organization; and

6. defining the right solution to meet the needs of both business and technology stakeholders—the key to the overall success of service delivery optimization.

Diana Mirakaj is the chief marketing officer of BTM Corporation, which innovates new business models and enhances financial performance by converging business and technology with its products and intellectual property. © 2010 BTM Corporation | info@btmcorporation.com