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Slide 1
Service Offerings & Agreements
Topics Covered
Learning Objectives
Terms-to-Know
Introduction
Principles
Context
Summary
Checkpoint
Cours
e
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Slide 2
Introduction to Service Offerings & Agreements
Topic
Topics Discussed
Introduction
Objectives
Scope
Value
Concepts
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Slide 3
Introduction
Improve
Strategy Design
Operation Transition
• Strategy Management • Service Portfolio Management• Financial Management• Demand Management• Business Relationship Management
• Design Coordination• Service Catalog Management• Service Level Management• Availability Management• Capacity Management• Continuity Management• Security Management• Supplier Management
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Slide 4
Objective
• Formulation & documentation
– Service offerings
• Current
• Future
– Provide business & technical viewpoint of services
• Allocation & management of supporting resources
– Enable appropriate service strategies
– Create service level structure
• Supported by contracts & agreements
– Ensure partners & suppliers are properly managed
– Ensure understanding of service value
– Manage business relationships
– Support operational activities
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Slide 5
Scope
• IT Service Lifecycle
– Service Strategy
– Service Design
– Support of Service Operation
• Other Frameworks
– eSCM practice areas
• Performance management
• Relationship management
– CobiT® (Control Objectives for IT)
• PO – Plan & Organize
• AI – Acquire & Implement
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Slide 6
Value to the Business
• IT Services that support desired business outcomes
• Clear understanding of IT Service investments
• Service Levels supported by
– Cascading set of agreements & contracts
– Supplier & Service Provider management
• Awareness of services offered
– Business
– Technical
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Slide 7
Concepts
• IT Services
– As a business investment
– Consumption patterns
– Creation & capture of value
• Agreements & contracts
– Service levels supported
• Agreements
• Contracts
– Service Providers & suppliers
• Internal
• External
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Slide 8
Service Offerings & Agreements Principles
Topic
Topics Discussed
SOA Context
Service Portfolio
Service Pipeline
Service Catalog
Service Level Management
Supplier Management
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Slide 9
SOA Context
Service Catalog Management
StrategyManagement
Activities
Service Level Management
Demand Management
Service Portfolio
Management
Service Portfolio
CharteredService
Financial Management
Customer
Supplier Management
Service Transition Activities
ServiceDesign
Activities
Service OperationActivities
Support Teams
Suppliers
Support & Delivery
Service Catalog
Contracts&
AgreementsService OfferingsSLA
ContractOLA
Customer & TechnicalView
Governance & Oversight
Framework for Strategic Decisions
Manage Demand Patterns
Enable Value Creation &
Capture
• Define• Analyze• Approve• Charter
Ensure Service Performance is
Measured & Reported
Ensure Management of Suppliers &
Provided Services
Single Source of Service
Information
Copyright © AXELOS Limited 2014All rights reserved. Material is reproduced under license from AXELOS Limited.
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Slide 10
Service Portfolio
Copyright © AXELOS Limited 2014All rights reserved. Material is reproduced under license from AXELOS Limited.
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Slide 11
Service Pipeline
IT ServicesService
StrategyServiceDesign
ServiceTransition
MarketSpaces
CustomersService
Concepts
ServiceImprovements
The Service Pipeline
CharteredService
ServiceDesign
Package
Copyright © AXELOS Limited 2014All rights reserved. Material is reproduced under license from AXELOS Limited.
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Slide 12
Service Catalog
• Service• Status• Requirements• Defined• Analyzed• Approved
• Retired
SKMS
Service Portfolio
Service Pipeline
Service Catalog
Retired Services
Customer/Support Team View
Service Lifecycle
• Chartered• Designed• Developed• Built• Test• Released• Operational
Copyright © AXELOS Limited 2014All rights reserved. Material is reproduced under license from AXELOS Limited.
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Slide 13
SOA & Design Coordination Overview
Information Security
Management
Process
Capacity Management
Process
AvailabilityManagement
Process
ITSCM
Process
SupplierManagement
Process
Service Level Management
Process
Service CatalogManagement
Process
ISMS
Overall Design Coordination Activities
Design Coordination Process **
CMSThe Service Design processes support the design of appropriate and innovative IT Services, including their architectures, processes, policies and documentation to meet the current
and future business requirements.
** The Design Coordination process supports
common bi-directional information flows among Service Design Activities & Processes.
Define Policies &
Methods
Coordinate
Design Activities
Manage Risk &
Issues
Plan Resources
& Capabilities
Improve Service
Design
Copyright © AXELOS Limited 2014All rights reserved. Material is reproduced under license from AXELOS Limited.
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Slide 14
SD & SLM
SLM Implementation
SLM Planning
Process
ReviewContracts
Negotiation
Draft SLA
Service Catalog
SLA
Review
Agreement
Report
Monitor
Getting Started
Improving
Copyright © AXELOS Limited 2014All rights reserved. Material is reproduced under license from AXELOS Limited.
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Slide 15
SOA & Value
• Value
• Creating Value
• Perceiving Value
• Framing Service Value
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Slide 16
Value of a Service
• Defined by the customer
• Represents an affordable mix of features
• Achieves business objectives
• Changes over time
• Requires three pieces of information
– What service was provided?
– What did the service achieve?
– What was the price of the service?
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Slide 17
Value
Perceptions
Preferences
Outcomes
Creating Service Value
• Business outcomes achieved
• Preferences actualized
• Perceptions met
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Slide 18
Perception of Value
Negativedifference
Positivedifference
_
+Gains from
utilizing theservice
Referencevalue
Economic valueof service
Based on DIY strategy orexisting arrangements
Netdifference
Losses fromutilizing theservice
A Service Provider cannot decide the value of a service. However, the Service Provider is able to directly influence how the value of a service is perceived by the customer.
Copyright © AXELOS Limited 2014All rights reserved. Material is reproduced under license from AXELOS Limited.
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Slide 19
Framing Service Value
• Utility
– Fit for Purpose
– Increase Performance Average
• Warranty
– Fit for Use
– Reduce Performance Variation
• Utility & Warranty = Service ValueCopyright © AXELOS Limited 2014
All rights reserved. Material is reproduced under license from AXELOS Limited.
Copyright © AXELOS Limited 2014All rights reserved. Material is reproduced under license from AXELOS Limited.
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Slide 20
Supplier Management
• Evaluate new suppliers & contracts
• Categorize suppliers & maintain SCMIS
• Establish new suppliers & contracts
• Manage supplier & contract performance
• Renew/terminate contracts
SCMIS
Categorize & Maintain SCD
Renew or Terminate
ManageSupplier
EstablishSupplier
EvaluateSupplier
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Slide 21
Service Offerings & Agreements Context
Topic
Topics Discussed
Relationships
Information
Metrics & Measures
Challenges
SOA Processes
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Slide 22
Relationships
• Service Strategy
– Service Portfolio Management
– Demand Management
– Financial Management
– Business Relationship Management
• Service Design
– Service Level Management
– Service Catalog Management
– Supplier Management
• Service Operation
– Incident Management
– Problem Management
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Slide 23
Information
• Service Knowledge Management System
– Configuration Management System
– Service Portfolio
– Service Catalog
• Business intelligence
– Market surveys
– Focus groups
– Analysis
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Slide 24
Metrics & Measures
• Documented services
• Services cataloged
• Services under agreement
• Service Provider performance
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Slide 25
Challenges
• Service “mentality”
• Complexity of services
– Infrastructure
– Value network
• Business information
– Accurate
– Timely
– Complete
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Slide 26
SOA Processes
• Service Portfolio Management
• Service Catalog Management
• Service Level Management
• Demand Management
• Supplier Management
• Financial Management
• Business Relationship Management
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Slide 27
Service Offerings & Agreements Summary
Topic
Topics Discussed
Summary
Checkpoint
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Slide 28
SOA Summary
•
• IT Services• Business Investment• Consumption Patterns• Create & Capture Value
• Agreements & Contracts• Service Levels Supported• Internal & External Providers
•
• IT Service Lifecycle• Strategy• Design• Operation
• Other Frameworks• eSCM• CobiT
• Service Portfolio Management• Demand Management• Service Catalog Management• Service Level Management• Supplier Management• Financial Management• Business Relationship Management
Purpose – Provide the framework to align IT Services to business outcomes at the required service levels.Goal – Match IT Service to the business processes supportedObjective – Manage the business relationship to ensure the appropriate IT Service strategy to deliver desired business outcomes.
Service Offerings & Agreements provides support for the identification, tracking, creation and evaluation of IT Services necessary to support the achievement of desired
business outcomes. It does that through ensuring a clear understanding of IT investments and their required service levels.
Concepts Scope Processes
Value
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Slide 29
Checkpoint
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Review Questions:
1. Which of the following statements best describes the concept of service value?
A. Service value is framed in the context of utility and warranty
B. Service value is achieved only when the projected ROI has been
exceeded
C. Service value is created when business outcomes are achieved, customer
preferences are actualized and the customer perceives the service as
valuable
D. Service value is achieved when the customer perceives the service is
valuable, irrespective of business outcomes achieved
2. Which of the following statements best describes the Service Portfolio and
Service Catalog?
A. The Service Portfolio represents IT Services planned, those that are in
operation and those that have been retired, and the Service Catalog is the
technology used to expose the contents to the business user
B. The Service Portfolio represents IT Service investments and
commitments, while the Service Catalog represents the internal and
external services that are in operation now
C. The Service Portfolio represents the future (or planned) investments in IT
Services, while the Service Catalog represents the internal and external
services that are in operation now
D. The Service Portfolio represents the internal and external services that are
in operation now, and the Service Catalog represents the future (or
planned) investments in IT Services that are on order by the business
3. Which of the following is the best description of the Service Pipeline?
A. A database or structured document listing all formal requests from users
or business customer for a service to be provided
B. A database or structured document listing all IT Service management by a
Service Provider or have been retired
C. A database or structured document listing all chartered services under
development, but are not yet available to customers
D. A database or structured document listing all IT Services that are under
consideration or development, but are not yet available to customers
4. Service Offerings & Agreements (SOA) processes provide value to the business
by:
A. The business and the Service Provider achieve a better understanding of
the investment in IT Services and put support structures in place to
document, monitor, measure and report on the performance of IT Services
B. Enabling the Service Provider to ensure the lowest possible cost of
services of any viable alternative Service Provider
C. Ensures the chartered service’s support plan is enabled through
invocation of multiple Service Improvement Plans (SIP)
D. Ensuring the pooled resources of retired services are also removed as
service assets, thus reducing the total cost of ownership
5. Which of the following represent metrics and measures for OSA?
A. Service Provider performance
B. Service cataloged
C. Services documented
D. Service under agreement
E. All of the above
6. Service Offerings and Agreements (SOA) deals with two fundamental concepts.
A. Creation and design of service and supporting documentation
B. The formulation and documentation of the service
C. Selection of the service provider’s delivery architecture
D. The allocation and management of its supporting resources
E. A & C
F. B & D
G. A & D
7. The SOA process relies on information in the Service Knowledge Management
System (SKMS); specifically, the CMS and the Service Portfolio and its
components. Which of the following provides business intelligence to the
processes?
A. Initial Service Change Evaluation report
B. Authorized change proposal
C. Focus groups
D. Business case
8. The OSA process shares relationships with other lifecycle processes and among
themselves. Which Service Operation processes share a close relationship with
the OSA processes?
A. Event Management
B. Incident Management
C. Problem Management
D. Service Catalog Management
E. A & B
F. A & C
G. B & C
9. In the context of SOA which of the following statements is true?
1. Demand and Financial Management provide input to the activities of Strategy
Management, which result in the definition, analysis, approval and chartering
of IT Services via Service Portfolio Management.
2. The Service Level Management process establishes agreements with the
customer, and documents the scope and quality of the IT Service's performance.
A. Only 1 is true
B. Both 1 and 2 are true
C. Neither 1 nor 2 are true
D. Only 2 is true
10. The scope of the Service Offerings and Agreements (SOA) directly involves the
Service Strategy and Design phases. Which of the following does not describe
the scope of SOA and the other stages of the lifecycle?
A. Service Operation (managing services in supported environments)
B. Service Transition (developing and improving the introduction of new and
changed services into support environments)
C. Continual Service Improvement (maintaining business/customer value)
D. None of the above since SOA’s scope is limited to Service Strategy &
Design
Answer Key:
1. C
Service value is created when business outcomes are achieved, customer
preferences are actualized and the customer perceives the service as valuable.
2. B
The Service Portfolio represents the investments (total) and commitment (future
services), and the Service Catalog is a subset of the Service Portfolio and
contains Services that exist and are in operation. (Service Strategy: Service
Portfolio)
3. D
A database or structured document listing all IT Services that are under
consideration or development, but are not yet available to customers.
4. A
The business and the Service Provider achieve a better understanding of the
investment in IT Services and put support structures in place to document,
monitor, measure and report on the performance of IT Services.
5. E
All options represent metrics and measures for OSA.
6. F
The formulation and documentation of the service concept and the allocation and
management of its supporting resources are correct answers.
7. C
Focus groups
8. G
Incident Management and Problem Management share a close relationship with
the OSA processes.
9. B
Both 1 and 2 are true.
10. D
None of the above since SOA’s scope is limited to Service Strategy & Design.