session 501 connecting all your dots: creating your ... · connecting all your dots: creating your...
TRANSCRIPT
Session 501
Connecting All Your Dots: Creating Your
Service Management Operating Model
Agenda
Operating Model Overview
Operating Model Toolkit
Class Exercise
Group Presentations
Closing Thoughts
Q&A
Technology Is Exploding
Management Approaches Are Exploding
What Is An Operating Model?
No official definition
Tool used to tie disparate operating elements together (e.g.
technologies, people, processes, etc.)
Collection of diagrams, charts, tables
Shows the elements used to operate the business (e.g.
suppliers, assets, IT systems, etc.)
Focused on business value and how this is achieved via the
elements used
Aligned with the business strategy
When Should You Use One?
Alignment issues across the business
People and projects are stepping on each others toes
About to implement a major business change
Operating issues are killing the business
Operating with high costs and many redundant activities
Undertaking a new business strategy
Majority of business investment is in overhead versus value
Where Does It Fit In?
Business Strategy Operating Model Transformation
Projects and
Improvements
The Operating Model makes the strategy become real
One Example
Customer Demand
Mgt
Request
Management
Service Support
Service Delivery
Service Desk
Change Management,
Release Management
Problem Management
Configuration
Management
IT Financial
Management
Inventory
Management
Service Level
Management
Availability
Management
Capacity
Management
IT Service
Continuity
Management
Incident and
Enquiry
Management
Manage
Business
Performance
Business
Continuity
Management
Financial
Authority
Protect
Company
Assets
ProcurementBusiness
Strategy
Non IT processes
Design&
Build
Solution Delivery
Customer
Satisfaction
& Complaint
Handling
AnalysisTest &
AcceptDeployment
& Handover
I.T
Architecture
(Technical
Design
Authority)
Risk
Management
Standards &
Compliance
Partner
Relationship
Management
Programme
Management
Quality
Management
I.T
Organisation
and
Relationships
IT Strategy
Cust
omer
sUs
ers
Service
Analysis
Service
Design&
Build
Service
Test &
Accept
Service
Deployment
& Handover
Service Development
Another Example
Tool: Business Model Canvas
Can be used to quickly
describe the business
elements of a service or
product (or your
business)
Originally conceived by
Alexander Osterwalder
(Swiss business
theorist) based on his
earlier work on
Business Model
Ontology in 2008
Other variants exist
throughout the industry
Tool: Business Model Canvas Example
Tool: Operating Model Canvas
Value Chain of Activities
Suppliers Locations
Organization Information
Management System
• Captures model on one
page or 10 pages
• Objective is to capture
thoughts about how to
design operations and
organization that will
deliver a value proposition
Using The Canvas To Tie In Detail
Value Chain of Activities
Suppliers Locations
Organization Information
Management System
Org
Chart
Floor
Plans
Process
Flows
System
Specs
Supplier
Contracts
Location
Maps
Tool: Management Mesh
VeriSM tool for integrating the multitude of
frameworks, standards, methodologies,
management principles and philosophies that
are used to deliver value
Can be used to select core operating
elements that will be used
Integrates elements into an operating model
unique to your organization
Assures a focus on delivering value to the
consumer as well as provider
Tool: Strategy On A Page
Building Your Operating Model
• Break into small groups
• Select an example service or
product e.g.
Must be externally focused
Something you sell to
customers
A service you provide to
customers
• Be ready to present what you
are developing
Class Exercise
Step 1: Value Proposition
Class Exercise
TASK:
List several key value propositions
provided to end customers from your
service or product
HINTS:• What customer problems are solved?• What customer needs are satisfied?• Why would they buy?
EXAMPLES:• Superior product• Deliver anytime/anyplace• Personal customer service touch• Low cost• Easy financing
Step 2: Customer Segments
Class Exercise
TASK:
List several types of customers for the
markets you serve and what they might
see as value
HINTS:• What types of customers do we serve?• Who are our most important customers?• What would each customer type see as
value?• Geographic location impacts
EXAMPLES:• Business Executives• Low Income Individuals• Younger Individuals• Business Owners• Students• Sick People
Step 3: Delivery Channels
Class Exercise
TASK:
List several delivery channels used to
deliver your product or service
HINTS:• How do we reach our customers?• How do our competitors reach our
customers?• Which channels are the most cost
effective?• Which channels work best with how our
customers work?
EXAMPLES:• Existing Customers• Internet• In-Store Shoppers• Mobile Devices• Newsletter/Email
Step 4: Customer Relationships
Class Exercise
TASK:
List several key activities done to get
grow and keep customers
HINTS:• How do we get and grow our customer
base?• How do we manage relationships within
our business?• How costly is it to maintain our
relationships?
EXAMPLES:• Personalized Service• Strong Online Presence• Marketing via Television/Social Media• Strong Brand Recognition• Incentives and Rewards• Long Term Agreements
Step 5: Revenue Streams
Class Exercise
TASK:
List several means by which revenue is
flowing into your business organization
HINTS:• What value will customers pay for?• What value are customers paying for
today?• How do we receive revenue?• What tactics do we use to recover our
costs and gain revenue?
EXAMPLES:• Direct Sales• Donations• Sales Contracts/Agreements• Licensing• Royalties
Step 6: Key Resources
Class Exercise
TASK:
List the most important assets used to
gain customers, build products, deliver
services in order to gain value
HINTS:• What key resources does our value
proposition require? E.g. people, skills, assets, etc.
• What key resources are critical to keep the business running? E.g. people, skills, assets, etc.
EXAMPLES:• Line Of Credit• Machines• Vehicle Fleet• IT Systems• Patents• Customer Lists• Software Engineers/Scientists• Teachers
Step 7: Key Partners/Suppliers
Class Exercise
TASK:
List key partners and suppliers used to
build and deliver your product or service
HINTS:• Who are our key partners?• Who are our key suppliers?• What resources do we acquire from
partners and suppliers?• What key activities are performed by our
partners and suppliers?
EXAMPLES:• Distributors• IT Outsourcers/Hosting/Cloud Providers• Volunteers• Joint Ventures• Partnerships• Parts/Maintenance Suppliers
Step 8a: Key Activities
Class Exercise
TASK:
List key activities used to build and
deliver your product or service that
provide value to your customers
HINTS:• Which activities are required for us to
deliver value?
EXAMPLES:• Sales• Marketing• Production• Design• Research• Publishing• Billing• Servicing• Manufacturing
Step 8b: Key Activities
Class Exercise
TASK:
List key activities used to manage,
administer, support the business and its
operations
HINTS:• Which activities are required for us to
keep the business running?
EXAMPLES:• Payroll• HR• Accounting• IT Support/Service Desk• Project Management• Supplies/Asset Management• Fleet Management
Step 9: Cost Structure
Class Exercise
TASK:
List key activities used to manage,
administer, support the business and its
operations
HINTS:• What are our most important costs? E.g.
value for money• What types of costs do we incur?• What are our most expensive resources?• What are our most expensive activities?
EXAMPLES:• Fixed Costs• Variable Costs• Cost Per Product or Customer• Overhead Costs• IT Costs• Capital/Non-Capital Costs
Step 10: Value Chain Map
Class Exercise
TASK:
Develop a Value Chain Map for your
service or product
HINTS:• Steal from Step 1• Steal from Step 8a (Not 8b)• Stay high level• Focus on customer value
EXAMPLES:• See left
Research Design Make Sell Support
• Customers
• Market
• Needs
• Blueprints
• Patents
• Legal Search
• Manufacture
• Parts
• Supplies
• Factories
• Customer Lists
• Advertising
• Sales Force
• Customer Service
• Repair Facilities
Step 11: Value Chain Map (Suppliers)
Class Exercise
TASK:
Develop supplier view for
your value chain
HINTS:• Steal from Step 7• Indicate with chevron which
process they support• Color code chevrons in RED
if there are issues/concerns
EXAMPLES:• See left
Research Design Make Sell Support
• Customers
• Market
• Needs
• Blueprints
• Patents
• Legal Search
• Manufacture
• Parts
• Supplies
• Factories
• Customer Lists
• Advertising
• Sales Force
• Customer Service
• Repair Facilities
Supplier View
Supplier 1
Supplier 2
Supplier 3
Etc…
= Okay
= Issues/Concerns Exist
Step 12: Value Chain Map (Locations)
Class Exercise
TASK:
Develop location view for
your value chain
HINTS:• List locations in which you
operate• Indicate with chevron which
process they support• Color code chevrons in RED
if there are issues/concerns
EXAMPLES:• See left
Research Design Make Sell Support
• Customers
• Market
• Needs
• Blueprints
• Patents
• Legal Search
• Manufacture
• Parts
• Supplies
• Factories
• Customer Lists
• Advertising
• Sales Force
• Customer Service
• Repair Facilities
Location View
Location 1
Location 2
Location 3
Etc…
= Okay
= Issues/Concerns Exist
Step 13: Value Chain Map (Organization)
Class Exercise
TASK:
Develop organization view
for your value chain
HINTS:• List organizations you
operate with• Indicate with chevron which
process they support• Color code chevrons in RED
if there are issues/concerns
EXAMPLES:• See left
Research Design Make Sell Support
• Customers
• Market
• Needs
• Blueprints
• Patents
• Legal Search
• Manufacture
• Parts
• Supplies
• Factories
• Customer Lists
• Advertising
• Sales Force
• Customer Service
• Repair Facilities
Organization View
Department 1
Department 2
Department 3
Etc…
= Okay
= Issues/Concerns Exist
Step 14: Value Chain Map (Information)
Class Exercise
TASK:
Develop information and
information systems view for
your value chain
HINTS:• List the key information
systems you operate with• DR plans may help identify
which are critical• Indicate with chevron which
process they support• Color code chevrons in RED
if there are issues/concerns
EXAMPLES:• See left
Research Design Make Sell Support
• Customers
• Market
• Needs
• Blueprints
• Patents
• Legal Search
• Manufacture
• Parts
• Supplies
• Factories
• Customer Lists
• Advertising
• Sales Force
• Customer Service
• Repair Facilities
Information View
System 1
System 2
System 3
Etc…
= Okay
= Issues/Concerns Exist
Step 15: Value Chain Map (Management Sys.)
Class Exercise
TASK:
Develop management
systems view for your value
chain
HINTS:• List the key management
systems you operate with• Steal from Step 8b• Indicate with chevron which
process they support• Color code chevrons in RED
if there are issues/concerns
EXAMPLES:• See left
Research Design Make Sell Support
• Customers
• Market
• Needs
• Blueprints
• Patents
• Legal Search
• Manufacture
• Parts
• Supplies
• Factories
• Customer Lists
• Advertising
• Sales Force
• Customer Service
• Repair Facilities
Management View
System 1
System 2
System 3
Etc…
= Okay
= Issues/Concerns Exist
Step 16: Fill Out Your Operating Model Canvas
Class Exercise
TASK:
Construct the operating
model from all work done to
this point as shown on the
left
Value Chain of Activities
Suppliers Locations
Organization Information
Management System
From
Step 10
From Step 11
(list on left
hand side)
From Step 12
(list on left
hand side)
From Step 13
(list on left
hand side)
From Step 14
(list on left
hand side)
From Step 15
(list on left
hand side)
What If You Work In A Really Large Company?
Can operate with multiple
models which can also be
hierarchical
WHQ
Region 1 Region 2 Region 3
Manufacturing Field Support
What Comes Next?
Conduct Gap Analysis
Identify Improvement
Actions
Prioritize Actions
Develop Roadmap
Execute, Monitor and
Evaluate
For each chevron that
was marked as RED,
summarize the issues
and problems that exist
Select technologies and
actions that will mitigate
the gaps found
Prioritize actions to be
taken based on benefit,
risks mitigated, ROI and
estimated effort
Assemble prioritized
actions into a roadmap
Execute the roadmap,
monitor activities and
outcomes and readjust
the operating model as
business needs change