WGroup, is pleased to announce the release of our new, far-reaching strategy paper entitled “ReThink IT.” (thinkwgroup.com/rethinkit/). Working with the industry’s most progressive CIO’s, WGroup has developed an approach to transform IT into an effective, value creating service equipped to manage the five most disruptive IT trends which include;
the shift in responsibility for IT to the business,
the convergence of ITO and BPO,
the growth in social, big data, mobility and analytics,
the commoditization of IT and global delivery
and the consumerization of IT.
The time has now come for businesses to rethink IT. CIOs must evolve; a CIO can no longer simply manage and plan service delivery capabilities of internal IT groups, hardware, software, and network infrastructures. They must become a choreographer who integrates the services delivered by a diverse group of providers, manages the shift of responsibility for IT to the business, champions effective governance framework and vendor management capabilities and becomes a master of business model invention and re-engineering.
Those who do not will be marginalized. In fact, many CIOS are at a crossroads so today, we are pleased to release ReThink IT (thinkwgroup.com/rethinkit/), a far-reaching global strategy paper that captures and analyzes the five most disruptive IT trends that are singlehandedly changing the role of CIOs and the IT function. ReThink IT also addresses the most relevant issues faced by today’s CIOs and actionable strategies to drive business value from IT. These strategies include:
A new approach to the IT supply and integration into one comprehensive model that addresses: how IT services are procured (in-sourced, outsourced), managed (shared services, multi-sourcing), and delivered (Cloud, Xaas – Offshore, Onshore, Captives)
A new enterprise-wide governance discipline that provides greater accountability for decision-making around the use of IT and a vendor management office to manage not only outsourced vendors, but also, all the sources of services across the IT supply chain
New roles, responsibilities, and skills for the CIO and all IT managers and staff. Above all the CIO must be an advisor to the business.
A new way to manage IT services and the project portfolio, one that will bring high levels of service satisfaction and better allocate limited resources to support a company’s strategic needs
A new way to think about how the IT function can provide value to the business—a broader role that calls for IT to help the company exploit critical new technologies and drive technology-enabled innovation
Redefining the role of a CIO is essential, and above all, today’s CIO must be an advisor to the business. Innovation needs to come from those CIOs who have a real understanding of the services and products available in the market and how to integrate them based on their specific needs. They must capture these opportunities to not only lower costs and increase revenue, but also, to transform their IT organization from pure cost reduction to a top line growth orientation.
The ReThink IT paper is available for free and includes insights on these issues and more. To download ReThink IT and register for our upcoming webinar discussing the paper’s findings and strategies, please visit thinkwgroup.com/rethinkit/.
A trend and direction for IT organizations over the past 5 years or more has been structuring and managing IT organizations to run like a business. This implies that IT has the capability to provide value based services that in turn support business growth and employ a service based delivery model. The concepts of providing IT services are the same as any other consumable service we know of today. The basic tenants of service are; it needs to be simple to order, it needs to be priced in alignment with value, it needs to provide a benefit and the consumption of services needs to be reported in a way that the customer could manage their demand. What defines IT’s customer relationships is service value and performance. Service performance is measured and service value is managed through the Service Level Management process.
Service Level Management (SLM) is a process in the ITIL Service Delivery model that is considered to be one of the most critical service management processes. The objective of SLM is to design and manage meaningful, and measurable, metrics around service performance that is in direct alignment between the IT service and the business processes of their customers. The commitments to service are outlined in service level agreements (SLA’s) and managed through the SLM process.
Developing meaningful SLA’s to support the customers’ business processes and managing them through a consistent SLM process could provide measurable benefits in a number of areas:
Service Quality – the old adage “you can’t manage what you can’t measure” applies. Service performance measured by the agreed upon SLA provides insight to service improvement opportunities on a routine basis. The cycle of service level management and service improvements directly influences service maturity and quality.
Service Cost – as part of the service level management process, service events that impact service performance are identified through incident, event, capacity and problem management. Quantifying and qualifying service constraints provides insight to root cause data that could be used to improve and evolve the efficiency of delivering the service. There is a direct relationship between service efficiencies and the reduction of workload. Together these represent drivers to operational cost reductions.
Service Capability – delivering services is not a static event in fact it is the opposite. Service delivery is very dynamic and needs to adapt and evolve as outside influences come into play like change in business, technology or completive threats. Through SLM the need to evolve the service will become evident. This will drive the need for IT to improve its capabilities and evolve to support the changing business landscape.
Service Value – as mentioned previously, service value is determined by providing a portfolio of well-defined and aligned services to the needs of the business and performing to SLA expectations. Engaging in a best practice service strategy and design process supported by a SLM process provides the framework to ensure IT is delivering service value. Driving IT up the maturity curve to the point of adding value is the point in the journey where IT is considered a valued partner to the business. Service Level Management is highlighted as an opportunity to drive value and influence positive change across the organization. It represents only one process within an integrated service delivery model. It is a piece of the overall IT Service Management process model and cannot provide the expected benefits without the integration and support of the other process areas.
SLM within the context of industry best practice service management will provide overall benefits of improved service value; cost efficiencies improvements and better process controls.