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EC4
Industry best practices are available through application updates
EC5
Supply chain is extended
EC6
Availability of specialized knowledge and expertise
Increased performance (IP)
IP1
Increase in throughput of business processes
IP2
Decrease in average collection period (accounts receivables)
IP3
Increase in return on assets
IP4
Increase in customer satisfaction
Enhanced resources (ER)
ER1
Resources are freed up for new opportunities
ER2
Increase in productivity of staff
ER3
Increased flexibility in operations
ER4
Increase in available resources
Reduced costs (RC)
RC1
Decrease in fixed costs of business process
RC2
Decrease in unit costs of employee benefits administration
RT3
Lower start-up time for new or expanded operations
Reduced risks (RR)
RR1
Decrease in operational risks from variation in performance of assets
RR2
Decrease in operational risks from shortage in capacity of assets
RR3
Business continuity is assured. Passed audit.
RR4
Business processes are compliant with regulations
Table 4.1 Example of a scheme to tag customer outcomes
Customer outcomes that are not well supported represent opportunities for services to be offered as solutions. Some outcomes are supported by services existing in a catalogue. Other outcomes can possibly be supported by services in the pipeline but presently in the design and development phases. Outcomes that are presently well supported are periodically reviewed. New opportunities emerge when changes in the businessenvironment cause a hitherto well-supported outcome to be poorly supported (Figure 4.3).
Services and service assets are tagged with the customer outcomes they facilitate. This is a principle similar to the idea of tagging materials, components and sub-assemblies to the final products they are embedded in. The valuation of services and service asset becomes easier when it is possible to visualize the customer outcomes they facilitate. Mapping of customer outcomes to services and service assets can be accomplished as part of a Configuration Management System (CMS).
Figure 4.3 Customer outcomes are used to tag services and service assets
Gaining insight into the customer’s business and having good knowledge of customer outcomes is essential to developing a strong business relationship with customers. Business Relationship Managers (BRMs) are responsible for this. They are ‘customer focused’ and manage opportunities through a Customer Portfolio.
In many organizations BRMs are known as Account Managers, Business Representatives, and Sales Managers. Internal IT Service Providers need this role to develop and be responsive to their internal market. They work closely with Product Managers who take responsibility for developing and managing services across the lifecycle. They are ‘product-focused’ and perceive the environment through a Service Portfolio.
An outcome-based definition of services ensures that managers plan and execute all aspects of service management entirely from the perspective of what is valuable to the customer. Such an approach ensures that services not only create value for customers but also capture value for the service provider.
4.1.4 Classify and visualize
Services differ primarily by how they create value and in what context. Service archetypes are like business models for services. They define how service providers act on behalf of customers to create value (Figure 4.4). Customer assets are the context in which value is created because they are linked to business outcomes that customers want. Customers own and operate different types of assets (Ay) depending on several factors such as strategic industry factors, customers, competitors, business models, and strategy.