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Service Lifecycle Management (Subject) / ITSM Foundations (Organization) / ITSM Service Strategy (Lesson)
- Name the three types of cost classification and briefly describe them Capital vs. Operational cost - Capital cost: Cost related to financial assets; accounted for in multiple financial years - Operational cost: Running costs; accounted for in total in current financial year Direct vs. indirect cost: - Direct: Allocated to a single cost center - Indirect: Shared across several cost centers Fixed vs. variable cost: - Fixed: Do not vary with consumption - Variable: Vary with consumption" What is the purpose of Demand Management and what are its objectives? "To understand, anticipate and influence customer demand for services and to work with capacity management to ensure the service provider has capacity to meet this demand. The objectives are: - Identifying and analyzing patterns of business activitx - Defining and analyzing user profiles - Ensuring that services are designed to meet the patterns of business activity - Working with capacity management"
- Name different parts of the SWOT analysis and why it's done? The SWOT analysis is a method to develop strategic objectives. It’s a possible method for strategic Assessment in the Strategy Management for IT Services. SWOT stand for … - Strength - Weaknesses - Opportunities - Threats. The strength and weaknesses are a internal look at the company’s ability to be successful in the future. Were as opportunities and threats (risks) are a way to assess external factors. They analyse the outside influences confronting the company in the market such as the Environmental, Economical, Social, Technological, Legal and Political influences. By analysing the opportunities, profit and growth prospects can be identified and the analysis of the risks can be used to analyse the competitive situation and future cost factors. The internal factors strength and weaknesses are focusing on the analysis of available resources. By analysing the strengths a marketing concept can be defined or a clear insights of the financial situation can be stated. Weaknesses evaluate the difficulties, which can be raised by introducing new products or services. This includes statements referring to market share as well as the cost situation and productivity indicators. In summary, a SWOT analysis evaluates the opportunities and risks of an entire company or a future product line, so decisions can be taken on the basis of the analytical results. It is also possible to resolve weaknesses identified by means of appropriate measures in order to improve the stability of the company. How to find the important information? A Industry-based view of strategy (the five forces model) (page 26) can be a source for identifying threats and opportunities. A Resource-based view on strategy could be a source for strength and weaknesses.
- What is a Service? Also differentiate it roughly from a Product. A service is an approach to provide value to its user in a way that is customized to the demands of the user. It is done by delivering a performance that matches the user's purpose and fulfills additional criteria which reduces service risks and influences the user's perception of the performance. Compared to a product the service can't be stored or pre-produced. It often has no physical result. At least it doesn't fully consist of a physical object. And the user is strongly involved in the process of the value creation as the production and consumption of a service can't be separated. Nonetheless the customer shift some risks of ownership to the service provider. For a product the only interaction happens at the point of sales and the outcome is known beforehand.
- What is the purpose of Service Portfolio Management and what are the key questions for the provider? Service Portfolio Management ensures that the service provider has the right mix of services to balance the investment in IT with the ability to meet business outcomes. For a provider, these are the key questions: - What are the strengths and weaknesses of the service portfolio? - How should we invest our limited resources into the portfolio? - What are the risks involved in the service portfolio? - How should assets be allocated to meet priorities and risks
- What is the purpose of Demand Management and what are its objectives? "To understand, anticipate and influence customer demand for services and to work with capacity management to ensure the service provider has capacity to meet this demand. The objectives are: - Identifying and analyzing patterns of business activity- Defining and analyzing user profiles- Ensuring that services are designed to meet the patterns of business activity- Working with capacity management"
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