6.5.2 Sourcing structures 86
6.5.3 Multi-vendor sourcing 87
6.5.4 Service Provider Interfaces 88
6.5.5 Sourcing governance 88
6.5.6 Critical success factors 89
6.5.7 Sourcing roles and responsibilities 89
7 Strategy, tactics and operations 92
7.1 Implementation through the lifecycle 92
7.1.1 Top-down 92
7.2 Strategy and design 93
7.2.1 Service models 93
7.2.2 Design driven by outcomes 93
7.2.3 Design driven by constraints 95
7.2.4 Pricing as a design constraint 95
7.3 Strategy and transition 96
7.4 Strategy and operation 97
7.4.1 Deployment patterns 97
7.4.2 Hosting the Contract Portfolio 97
7.4.3 Managing demand 97
7.5 Strategy and improvement 98
7.5.1 Quality perspectives 98
7.5.2 Warranty factors 98
7.5.2.1 Intangibility factor 98
7.5.3 Reliability 99
7.5.3.1 Applications and infrastructure 99
7.5.3.2 People and processes 99
7.5.4 Maintainability 100
7.5.5 Redundancy 101
7.5.5.1 Active redundancy 101
7.5.5.2 Passive redundancy 101
7.5.5.3 Diverse redundancy 101
7.5.5.4 Homogeneous redundancy 101
7.5.6 Time between failures and accessibility 101
7.5.7 Interactions between factors of availability 101
8 Technology and strategy 103
8.1 Service automation 104
8.1.1 Preparing for automation 104
8.1.2 Service analytics and instrumentation 104
8.2 Service interfaces 107
8.2.1 Characteristics of good service interfaces 107
8.2.2 Types of service technology encounters 107
8.2.3 Self-service channels 107
8.2.4 Technology-mediated service recovery 108
8.3 Tools for service strategy 108
8.3.1 Simulation 108
8.3.2 Analytical models 108
9 Challenges, critical success factors and risks 110
9.1 Complexity 110
9.1.1 IT organizations are complex systems 110