5.2.1 Business case 59
5.2.1.1 Business objectives 59
5.2.1.2 Business impact 60
5.2.2 Pre-programme ROI 60
5.2.2.1 Screening decisions (NPV) 60
5.2.2.2 Preference decisions (IRR) 62
5.2.3 Post-programme ROI 63
5.2.3.1 Programme objectives 63
5.2.3.2 Data collection 63
5.2.3.3 Isolate the effects of the programme 63
5.2.3.4 Data to monetary conversion 63
5.2.3.5 Determine programme costs 63
5.2.3.6 Calculate ROI 64
5.2.3.7 Identify qualitative benefits 64
5.3 Service Portfolio Management 65
5.3.1 Business service and IT Service 65
5.3.1.1 IT Service Management 65
5.3.1.2 Business Service Management 65
5.4 Service Portfolio Management methods 67
5.4.1 Define 67
5.4.1.1 The Option Space Tool 67
5.4.2 Analyse 67
5.4.2.1 Selecting options 68
5.4.3 Approve 69
5.4.4 Charter 69
5.4.4.1 Refreshing the portfolio 69
5.5 Demand Management 70
5.5.1 Challenges in managing demand for services 70
5.5.2 Activity-based Demand Management 70
5.5.3 Business activity patterns and user profiles 70
5.5.4 Service packages 76
5.5.4.1 Core services and supporting services 76
5.5.4.2 Developing differentiated offerings 76
5.5.4.3 Service level packages 76
5.5.4.4 Advantage of core service packages 76
5.5.4.5 Segmentation 77
6 Strategy and organization 79
6.1 Organizational development 79
6.1.1 Stage-1: Network 80
6.1.2 Stage-2: Directive 80
6.1.3 Stage-3: Delegation 80
6.1.4 Stage-4: Coordination 80
6.1.5 Stage-5: Collaboration 81
6.1.6 Deciding on a structure 81
6.1.7 Organizational change 81
6.2 Organizational departmentalization 83
6.3 Organizational design 83
6.4 Organizational culture 85
6.5 Sourcing strategy 86