.ITSM is one of the key functionalities for organizations and allows organizations to achieve higher customer satisfaction, reduce delivery time, and provide service support as per customer requirement. In this assignment, students need to explore various aspects of ITSM in an organisation or a company that provides IT services and explain how ITSM can enhance business proposition.MY topic is HP
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Topic 8 - Processes and Functions 1 ITECH 7400 IT Service Management and Professional Culture 1 Topic 8 Process and Functions 1 ITECH 7400 IT SERVICE MANAGEMENT AND PROFESSIONAL CULTURE CRICOS Provider No. 00103D CRICOS Provider No. 00103D 2 ITECH 7400 IT Service Management and Professional Culture Topic 8 - Processes and Functions 1 Content of Course ... 3 SectionTopics Ethics and professionalismUtilitarianism and deontology Contract-based and character based Professional ethics IT careersSocial impact of technology IT Service managementIT Service management Service lifecycle Processes and functions Measurement, metrics and the Deming cycle Content of Course This topic deals with the second section of the course IT service management. In this topic we will look the service lifecycle. ITECH 7400 IT Service Management and Professional Culture 3 Topic 8 - Processes and Functions 1 Contents Business relationship management Financial management for IT services Demand management 4 Topic 8 - Processes and Functions 1 ITECH 7400 IT Service Management and Professional Culture 4 Course Objectives This topic relates to the following course objectives: K4. Appraise IT service management practices and how they assist organisations.. S1. Evaluate cognitive and practical approaches required to manage IT professionals in collaborative global work context. S2. Apply the IT service lifecycle, processes and functions in an organisational setting. S3. Demonstrate and coordinate best practice IT service management in an organisational setting. 5 Topic 8 - Processes and Functions 1 ITECH 7400 IT Service Management and Professional Culture 5 Course Objectives continued… S4. Utilise professional presentation and communication approaches in a range of IT workplace and service settings. A1. Construct written and verbal arguments in a variety of formats on the evolving nature of ethical norms relating to service and implementation of new technologies. A2. Implement and use service management processes and practices in a business organisational context. 6 Topic 8 - Processes and Functions 1 ITECH 7400 IT Service Management and Professional Culture 6 Your Reading and Research Recommended reading: Brewster, Griffiths, Lawes & Sansbury, 2016, Chapters 7, 8 and 9. 7 Topic 8 - Processes and Functions 1 ITECH 7400 IT Service Management and Professional Culture 7 Business Relationship Management Business relationship management (BRM) is the process that enables business relationship managers to provide links between the service provider and customers at the strategic and tactical levels. BRM aims to maintain a positive relationship with customers. The ITIL BRM process identifies the needs of existing and potential customers and ensures that appropriate services are developed to meet those needs. BRM is a part of Service Strategy. 8 BRM − Purpose The purpose of BRM is to build and maintain an effective, productive relationship between customer and service provider, founded on an understanding of the customer and its business needs. Customer and provider will have a common interest in ensuring that the customer understands the value of service offerings and has realistic expectations of them. 9 BRM − Objectives To sufficiently understand the customer’s changing needs and priorities, so that the service provider can develop its capabilities and resources in order to respond in an acceptable timeframe. To help the customer develop new requirements in response. The service provider will be able to anticipate, to an extent at least, how the customer’s needs may change with circumstances, identifying how new or changed services or new technology offerings might help the customer respond effectively to change. 10 BRM − Objectives (Cont.) Close alignment between customer and service provider, to enable the service provider to identify real or potential conflicts between different parts of the customer’s own organization and help resolve or mitigate them. To ensure that the service provider meets its obligations for service performance and quality. To achieve high levels of customer satisfaction in the process by providing an effective response to compliments and complaints. 11 The Basis for BRM The deployment of BRM is predicated on the argument that both service provider and customer will derive benefit from a relationship that seeks to align the activities of the service provider with the customer’s developing business needs and improve the customer’s understanding of the service provider’s offerings and their value to the customer’s business. This runs counter to the view that the supplier–customer relationship is fundamentally adversarial in nature. 12 The Basis for BRM (Cont.) BRM requires commitment, so both sides should assess the value of BRM before deploying resources to it. A key issue for customers will be whether the business relationship is sufficiently important to make it worthwhile. Service providers will similarly want to focus on major customers or customers that have strategic importance for them. 13 Customer Satisfaction Customer satisfaction is a key concern for BRM. Customer satisfaction for BRM is more about ensuring that the customer receives services that support its business objectives and is less about delivering services to agreed targets for warranty and utility. 14 Service Level Management (SLM) SLM is a part of Service Design. SLM aims to negotiate Service Level Agreements (SLAs) with the customers and to design services in accordance with the agreed service level targets. This ITIL process is also responsible for ensuring that all Operational Level Agreements and Underpinning Contracts are appropriate, and to monitor and report on service levels. 15 BRM and SLM Both BRM and SLM are concerned with long-term relationships with the customer and with ensuring that the customer is happy with what is delivered. BRM builds relationships with the customer, seeking to provide services that are aligned to the business needs of the customer and are within the capability of the service provider to deliver. Customer satisfaction is a primary measure of the success of BRM. Measurement of goal achievement from SLM’s point of view is “did we achieve agreed targets or not?” 16 The Customer Portfolio BRM maintains up-to-date information on its customers. BRM needs to understand who the customer really is. Knowledge of the customer’s strategy and business plans enables BRM to position itself, in terms of resources and capabilities, to deal with changing customer demand. 17 Key Activities of BRM Understanding the customer and its business objectives and how these translate into service requirements; Helping the customer formulate the requirements for new services; Identifying changes that may affect the customers use of or requirements for services; Identifying developments in technology that may provide opportunities for better services or lower costs for customer; 18 Key Activities of BRM (Cont.) Ensuring that the delivery and operation of services, continues to recognize and satisfy the customer’s needs; Measuring the level of customer satisfaction with the BRM process and the performance of the service provider as a whole; Dealing with service reports, complaints, comments and other feedback to ensure the effective provision and continual improvement of delivered services. 19 BRM − Metrics Documented customer business objectives and desired business outcomes agreed with the customer and suitable for input into the service portfolio. Completed and signed-off requirements for new services and the customer’s business case for their usage. Documented evidence of the identification of changes that may impact on delivered services and the service providers response to them. 20 BRM − Metrics (Cont.) Opportunities to exploit new technology developments are identified in collaboration with the customer, documented and recorded in the services portfolio. Documented evidence that delivered services effectively and efficiently meet the needs of the customer. Regular assessment of customer satisfaction. Documented evidence that continual service improvement is achieved in response to analysis of service reports, complaints, comments and other feedback. 21 BRM − Roles The key roles in BRM are: business relationship process owner and business relationship process manager. Business relationship process owner is accountable for the proper performance of the BRM process in relation to its aims and the agreed policies and standards for its operation. Business relationship process manager is concerned with the operational management of the BRM process. These two roles may be combined in a single person depending on the scale of the organization and its structure in relation to other SM processes. 22 No business can survive for long, let alone flourish, if it fails to manage its money effectively. Most of the people working in IT care about services they provide, Service Level Agreements (SLAs), vendors, suppliers, technology… but, there are always a lot of questions concerning financial issues of the IT services. How much does our service cost? Why exactly that much? How much are we spending? How much are we allowed to spend? Financial Management for IT Services 23 Financial management for IT services is a process inside the Service Strategy phase of an ITIL IT Service Lifecycle. It consists of three main processes: Budgeting Accounting Charging Financial Management for IT Services 24 Money is managed and spent wisely; The financial resources available align fully with the organization's plans and requirements for IT service delivery; Investment decisions are sound and relevant to the organization's objectives; Financial risks are identified and managed effectively; Governance arrangements are in place to ensure the effective stewardship of financial resources; The organization complies with all relevant financial regulatory obligations. Purpose 25 There is an effective system for financial planning and budgeting; Financial plans and budget allocations are aligned with the service portfolio; All proposed investments have a business case that meets the standards of the organization; All significant financial risks are identified and fully managed; Objectives 26 There is an appropriate governance framework in place with clear accountabilities and all those who need to be are properly trained in relation to it; All financial expenditure is properly accounted for and there is an audit process to ensure proper stewardship of financial resources; The costs and value of all IT services, processes and activities are monitored, measured and understood and appropriate actions are taken on the basis of their financial performance. Objectives (Cont.) 27 Process of predicting and controlling the income and expenditure of money within the organization. Consists of a periodic negotiation cycle to set (usually annual) budgets, monthly monitoring of current budgets. Budgeting 28 Process that enables the IT organization to account fully for how its money is spent (by customer, service, and activity). Involves accounting systems, ledgers, charts of accounts, journals; must be overseen by someone accountancy trained. Accounting 29 Process required to bill customers for services they consume. Requires sound IT accounting practices and systems. Without charging, many customers and users will see IT services as free and will make demands on these services with little interest in the financial or operational implications. Charging 30 A business case is a decision support and planning tool that projects the likely consequences of a business action. The core of the business case is usually a financial analysis, but the justification of investments frequently depends on more than financial