ITIL Service Strategy

Service Strategy

Strategy Management for IT Services defines service strategy as a standardized process for building strategic assets with vision, strategic goals, innovation, value creation, and resilient attitude for adapting new changes.

Service Strategy Template
Service Strategy Template

ITIL Service Strategy main focus is to define the market, propose the service offerings, develop the service offerings as strategic assets, execute the developed offerings, also measure and evaluate the strategies.
Strategy Generation for IT Services is the most critical process for long term sustainability of the organization’s offerings.

Service Strategy Process Description

Strategy management for IT services subprocesses can be defined as:

Strategic Service Assessment

The Business strategy manager identifies the organization strengths and weakness. This is done by analyzing factors such as – existing services, resources, capabilities, projects, finance, operations etc.
Next step is to identify the growth opportunities and threats. By analyzing external factors such as – customer’s, supplier’s, partner’s, political trend’s, socio economic trend, technology trend etc. organization gets fair idea of its current position in market and can formalize future growth and
expansion plans.
Business strategy manager lists all market spaces where organization currently has hold and also lists any new market space identified after internal and external analysis. To decide on which market space to target it is important to define all critical success factor required for a market. Based on this information a decision can be taken to cater to the market need or not.
High level objectives are set after discussion with steering committee, service management director and service management process owners.

Service Strategy Definition

Business strategy manager defines the perspective to find out how objective can be achieved in best possible way. Vision and mission statements are prepared in alignment with business objective to be achieved.
To determine how the service provider will be differentiated from other service provider in the industry the business strategy manager finalizes a position for organization.
Based on positioning strategy and objectives to be achieved the business strategy manager finalizes on the type of service and the type of customer to be targeted. All services are mapped to business outcomes and aligned with end organization objective.
Determine critical success factor, risk, assumption and dependencies to be considered while
preparing the strategic plan. Prepare the IT strategy and decide on actions to be taken to achieve the objectives.

Service Strategy Execution

Identify budget requirements for developing new services identified as per IT strategy. Perform
service valuation to check for feasibility of developing a service and if post program ROI is required.
Prioritize IT strategy plans in the order of importance and ease of implementation. Communicate the plan to stakeholders.
Business strategy manager lists down all available assets and their utilization pattern. Organization services, process, skills, tools etc. are compared with competitors and the gap is documented.
If an organization lack any of the critical success factor required being successful in identified market space then such critical success factors are to be developed.
Investment options are prioritized and approved by senior management. Service offerings are
developed accordingly. The business strategy manager will work with other service management
process owners to implement strategic plans and achieve desired outcome.

Metrics

  1. Total number of services triggered as a result of IT strategy
  2. Number of new proposals, plans defined
  3. Number of new services proposed
  4. Number of failed services (that have not been approved by strategy manager/IT steering group)
  5. Total time taken for proposing a new service in service portfolio

Download Service Strategy Template 

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About the Author: Santoshi Para