Service Strategy Processes

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Time
3 hours 16 minutes
Difficulty
Beginner
CEU/CPE
3
Video Transcription
00:00
All right, my learners. So we are on lesson 2.4, which is service strategy processes.
00:08
All right, ask you Ready?
00:10
Are are learning objectives. So we will cover the purpose of service portfolio and financial management. Basic need to know concepts and components of service portfolio management as well as important terms and concepts of building a business case structure
00:26
are so first thing First service portfolio management, which is SPM. Its purpose is to ensure that the services air defined clearly and that they are linked to the business outcomes and objectives that enable and so that they enable and support. So information contained in the S P
00:45
allows the service provider to manage the I T investments like an investment portfolio, so ensuring that the right mix of services is provided
00:53
and if the services are generating the desire, are I of that business.
00:59
So the objectives of the port of SPM is more when you provided for the process and mechanisms to enable the organization to decide on which services to provide based on analysis of a potential are I or a sensible level risk that they want to take?
01:17
So you maintain it means meaning that you're you know you're providing or articulating the business needs
01:23
for each service meant that it meets as well as the business outcomes it supports. So providing that mechanism of organizations evaluate how services enable it to
01:34
achieve this strategy and respond to the changes in an internal or external environment. So when you do, controlling the controlling is more of the services that that our offer underneath whatever conditions that's set in place at that level of investment
01:49
and when you track the investment, it's more like the life cycle. It's like enabling the organization to evaluate its strategy and its ability to execute against that strategy. And then, of course, when you analyze it, you analyze the services that are no longer valuable and should be considered for a retirement.
02:07
Those are the objectives of the SPM
02:13
in the scope. So when you look into the scope so the scope is primary concern is realizing the R O I of the I T services. So the scope of the process consists of the services that are being considered for delivery, the services that are currently being offered, as well as the services that
02:29
have been withdrawn from the production environment because they are no longer necessary or
02:35
they don't they don't deliver the necessary returns or the value that's needed for a particular business. So the internal service providers will work with the stakeholders from the business units so through their BRM as appropriate, so to ensure that they understand the outcomes supported in the rial in potential value as that service,
02:53
so that they provide that contributes directly to their revenue on a probability.
02:58
So that is the scope of the service, um, portfolio management.
03:05
So when we go into the basic concepts of service portfolio management and as you can see, that it contains information outlining the objectives and the values off propositions of all services, including being invested in so as well as supporting information from those services that still have still I'm gonna conceptual stage,
03:24
including the services that within the improvements that currently under consideration
03:30
So the SP she also contained supporting information related to those services provided by third party service providers as well as they are integrated into the part overall of the service offered to those customers. So when you look into service pipeline, it is more likely the
03:46
that service provided will identify more potential services to offer.
03:51
Then it will be for to have resource is that actually deliver. So not every service and in the service pipeline will ultimately be offered as one of the services. With most, It's more of choosing which direct links to the objectives and outcomes of that business that could overall, give them the best investment that's chosen
04:10
in the service catalog. As you can see, it just contains
04:13
the information, the information on the services that currently offered or available for deployment and when you look into the retired services is more so no longer necessary or it's not generating any type of value to the resource is are committed to those
04:27
to these services are freed up and return as cost savings or reinvested into other opportunities.
04:32
So the SPM processes. It helps support sound governance practices as well as you know, within the approving the funding plans and the financial plans for recovering causes of realizing like the are I will be added to a catalog.
04:47
Okay,
04:50
so then we go into the financial management of the I T services. Now that purpose is to secure the necessary funding required to design, build or, well actually in deploy the services that facilitate the business outcomes and achieve their goals of the organization.
05:06
So this process it ensures that appropriate analysis is performed to prevent the service provider from committing
05:13
to delivering a service that's not able to be funded. So is that that Lippo in between there so this require a persistent approach to evaluating cost and value of that service provided, um helps to maintain that balance in between the demand and supply?
05:30
That is the purpose of the financial management for I t services.
05:34
So then we go into define it continuous eso it looks more of the objective, so it's more of defining and the maintaining the framework and securing the funding. So when you're looking into the financial management as we mentioned in the previous slide, so this just gives you
05:51
some of the objectives of it. So you execute and you're here to the organizational management policies
05:57
and you develop around those particular policies. When you're planning and designing this particular
06:03
this'll particular business outcome, the call and you weigh the cost versus the benefits,
06:11
all right,
06:13
and then we sit there and we look at the financial management of I t services. The scope right. So the financial management is well established discipline within most organizations. So it's complete with professional accountants finance departments. So within the service provider, most of most of them bridge two disciplines.
06:31
Where is direct or indirect relationships to both the Finance Department as well as the service providers? So it's a specialized topic requires understanding of both financial management
06:41
in the world into the information technology and services. So you have three main processes, which is the accounting and the budgeting, as well as the charging in this particular realm.
06:54
So when you look into the accounting, the budgeting and the charging, so the counting is the process that enables the i t organization track ways for the money to be spent. So particularly the ability to identify the cost by the customer. The service and activity
07:10
so is usually involves acting systems or including ledgers and charts of accounts in journals.
07:16
And then the budgeting is more of a periodical negotiation cycle. So to set budget, usually annually or monthly monitoring thio current budgets and then you have your charging where it's it's more optional process is used to recover calls from customers from the services supply to them.
07:34
Okay, so you have accounting, budgeting and charging.
07:39
All right, so some important terms when we go into the rim of the business case. So you have the decision decision making to that helps an organization decide how to deploy their resources and capabilities, as well as the justification for a specific item of expenditure, which includes the cost, benefits and risks.
07:59
So this is building into the business case structure.
08:03
So when you look into the business case, the basic concepts off the business case, when you look into the structure here, it presents the business objectives. So you have the introduction thing. You have your methods and assumptions as well as your business impacts. You're risking your contingencies as well as your recommendation. So
08:22
business cases, a decision, support and planning to based on the financial case. So once you start getting and you have your financial case and you go into your business case structure as see fit
08:35
are in summary through lesson 2.4, our introduction of concepts we did the pipeline catalog, Retired Services financial management in business case. Okay, so we will see you in the next lesson already
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