4.2.3 Service Portfolio, Pipeline and Catalogue 40
4.2.3.1 Service Catalogue 40
4.2.3.2 Service Pipeline 41
4.2.3.3 Retired services 41
4.2.3.4 The role of Service Transition 41
4.3 Develop strategic assets 42
4.3.1 Service management as a closed-loop control system 42
4.3.2 Service management as a strategic asset 43
4.3.2.1 Increasing the service potential 43
4.3.2.2 Increasing performance potential 44
4.3.2.3 Demand, capacity and cost 44
4.4 Prepare for execution 44
4.4.1 Strategic assessment 45
4.4.2 Setting objectives 45
4.4.3 Aligning service assets with customer outcomes 46
4.4.4 Defining critical success factors 46
4.4.5 Critical success factors and competitive analysis 47
4.4.6 Prioritizing investments 47
4.4.7 Exploring business potential 47
4.4.8 Alignment with customer needs 48
4.4.9 Expansion and growth 48
4.4.10 Differentiation in market spaces 49
5 Service economics 50
5.1 Financial Management 50
5.1.1 Enterprise value and benefits of Financial Management 50
5.1.2 Concepts, inputs and outputs 50
5.1.2.1 Service Valuation 50
5.1.2.2 Demand modelling 51
5.1.2.3 Service Portfolio Management 51
5.1.2.4 Service provisioning optimization 51
5.1.2.5 Planning confidence 51
5.1.2.6 Service investment analysis 52
5.1.2.7 Accounting 52
5.1.2.8 Compliance 52
5.1.2.9 Variable Cost Dynamics 52
5.1.3 Methods, models, activities and techniques 53
5.1.3.1 Service valuation 53
5.1.3.2 Service provisioning models and analysis 53
5.1.3.3 Funding model alternatives 54
5.1.3.4 Business Impact Analysis (BIA) 54
5.1.4 Key decisions for Financial Management 55
5.1.4.1 Cost recovery, value centre or accounting centre? 55
5.1.4.2 Chargeback: to charge or not to charge 55
5.1.4.3 Financial Management implementation checklist 55
Track 1 – Plan 55
Track 2 – Analyse 56
Track 3 – Design 56
Track 4 – Implement 56
Track 5 – Measure 56