Solving Modern & Future ITSM ChallengesIT Manager of Tomorrow

Copenhagen, Denmark

November 2019

Philip HearsumITSM Portfolio Manager

ITIL4 lead architect

ITIL4 MP

AXELOS

Looking to the past to descr ibe the present

Seldon CrisisSimultaneous internal and external existential

threats that can be solved by a single course of

action

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Are IT Organisat ions having a mini -Seldon Cris is?

Internal demand to:

• Increase pace of innovation

• Streamline processes

• Reduce bureaucracy

• Improve ROI

• Improve CSAT

• Reduce downtime

• Improve employee productivity

• Adopt new ways of working

• Adopt new technology

• Be an employer of choice

• …

External pressure to:

• Be more responsive to customers

• Be more innovative

• Quicker time to market

• Create value earlier

• Create “wow factor”

• Provide quality services

• Be more ethical/ socially

acceptable

• Compliant with laws &

regulations

• …

How are IT organisat ions responding?

Increased attention on product

development, new tech, & new

ways of working

Digitalisation & digitisation of

internal systems, enhancing

existing automation

The whole organisat ion can’ t work the same way

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Why are we f ight ing about “one f ramework (or tech) to rule them al l”?

I t ’s l ike the story of the e lephant and the bl ind men

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New ways of working & tech impact our teams

Moving to the

Cloud

Right tech to use

cloud platforms

Different

engineering skills

Rebalancing Opex

vs. Capex

“Right-sizing” IT

Service Management

“Right-sizing”

Project Management

Customer

Product Management

The solut ion is to increase the scope of our understanding

IT Operations Customer Support

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The solut ion is to increase the scope of our understanding

Image found via Google Images

The solut ion is to increase the scope of our understanding

Image found via Google Images

The solut ion is to increase the scope of our understanding

Image found via Google Images

But how do we orient

ourselves in this VUCA

(volatile, uncertain, complex and ambiguous)

world?

The case for “Service Dominant Logic”

Service is the fundamental basis of exchange

The customer is always a co-creator of value

A service-centred view is inherently customer

oriented and relational

An enterprise cannot deliver value, but can only offer

value propositions

Value is uniquely and phenomenologically

determined by the beneficiary

From “Service-dominant logic: continuing the evolution” by Vargo & Lusch, 2007

Concepts expla ined Outcomes vs Value Example.

Someone wants to have a haircut

Their outcome may be

• Just want their hair to look tidier

• Wants to be fashionable

• Wants to be attractive

Organisation outcome• wants to have people come to their salon to have their hair cut, and to return again and again.

• The organisation needs to set up the outputs to provide the ability for Both sets of outcomes to

be realised

• They decide their business model and who their target consumer is.

• An enterprise cannot deliver value, but can only offer value propositions• At this point they have only offered a value proposition, We can offer you this, for this so that…

• No value has been realised by either side

• Then the consumer enters, engages in the consuming the haircut “service”.

• If their outcomes are met they will pay and will come back again.

• Both sets of Outcomes have been realised

• Value is created.

Concepts expla ined Outcomes vs Value Example.

• Think about what your desired outcomes are for this conference.

• Think about what the organisers outcomes are

• Look at the Value proposition that was offered

• Come to our conference

• Find out about……….

• Learn about……

• Engauge with…..

• ……………..

Question

• Have you outcomes been realised?

• Do you think that the organisers outcomes have been realised?

• Has value been co-created

• If no one had attended what value would have been realised?

Let ’s use an example of a banking app

Organizational Resources

Product portfolio

Let ’s use an example of a banking app

Organizational Resources

Product portfolio

Service portfolio

Consumer

Consumer demand

Let ’s use an example of a banking app

Organizational Resources

Product portfolio

Service portfolio

Consumer

Consumer demand

Service Relationship

Co-created

Value

Usage

Value is not

“delivered” here

ITIL 4 ref lects these concepts & hol ist ic v is ion

• IT should talk about co-creation of value, not

delivery of value

• Customers and service providers are interested in

value ...

• But so are regulators, auditors, suppliers,

employees, and others!

• Organisation’s resources are constrained or

encouraged by external agents

• Organisations are both consumers and providers

of services

My hypothesis: The Future of ( IT) Serv ice Management

Successful (IT) Service Management needs to:

• Mediate of conversations between ALL stakeholders

• Broker agreements across the service ecosystem

• Enable (or facilitate) required outcomes

What does a serv ice system look l ike?

What do we do convert

opportunity/ demand into

value?

How do we approach work

and making decisions?

How do we direct, monitor

& evaluate performance?

How do we convert

opportunity/ demand into

value?

How can we do better?

The Service Value Chain

Value Streams in ITIL 4

Scalable Operating Model

Individual

Team

Enterprise

Using Guiding Principles to integ rate di f ferent ways of working

Value is important

for customers … but

what about other

stakeholders?

Work in a similar cadence

as other teams; Let

solutions emerge in

complex environmentsNot just peer-to-

peer collaboration

& visibility!

Don’t over-

engineer solutions

up-front

Key Takeaways to the IT Managers of Tomorrow

• Don’t be dogmatic about using only one framework

• Recognise that different parts of your organisation work in different ways

• IT Service Management is not just about:

• Managing infrastructure

• Developing technology or software products

• Service Desks and customer support

• IT Service Management is also about

• Recognising the elements of complexity in service systems

• Managing the conversion of demand into value (not outputs or even outcomes)

• Mediating and creating agreeable consensus amongst multiple stakeholders

• Emotions, empathy and complexity

Key Takeaways to the IT Managers of TomorrowI s p o ke e a r l i e r a b o u t t h e e x t e r n a l v s i n t e r n a l d e m a n d , s o w h a t d o e s I T I L 4 t r y t o d o t o r e s o l ve s o m e o f t h e s e i s s u e s ?

• Be more responsive to customers • Trust and be trusted

• Commit to higher performance

• Increase pace of innovation• How to prioritise work and manage queues

• Commit to higher performance

• Improve employee productivity• Measurement

• Communication

• Organizational Change Management

• Streamline processes• How to create value streams

• How to prioritise work and manage queues

• Be more ethical/ socially acceptable• The 4 dimensions and the factors that affect them

• Understanding key stakeholders

• Create value earlier• Fast development

• Resilient operations

• One “method to rule them all”• Show how methods fit together

Thank you for your time!