Service Strategy Service Portfolio Management in ITIL – ITIL Course

Service Strategy

Service Portfolio Management           

Service  Portfolio  Management   (SPM)  prioritizes  investments   and  improves  the allocation of resources.
The purpose of service portfolio management  is to ensure that the service provider has the right mix of services to balance the investmentin IT with the ability to meet business outcomes.
The  Service  Portfolio  represents  the  commitments  and  investments  made  by  a
Service Provider across all customers and marketplaces.
The Service Portfolio aims to answer the following questions:
•   Why should a customer buy these services?
•   Why should they buy these services from our IT organization?
•   What is the pricing and chargeback model?
•   How should the IT organization’s resources and capabilities be allocated?
The objectives of service portfolio management are to:
 To investigate and decide on which services to provide, based on an analysis of the potentialreturn and acceptable level of risk.
 To maintainthe definitive portfolioof services provided.
 To evaluate how services achieve their strategy, and to respond to changes.
 To controlwhich services are offered,under what conditions and at what level of investment.
 To track the investment in services throughout their lifecycle.
 To analyze which services are no longer viable and when they should be retired.

The scope of service portfolio management is all services a service provider plans to deliver, those currentlydelivered and those that have been withdrawnfrom service.
The primary concern of service portfolio management is whether the service provider is able to generate value from the services.
Service  portfolio  management   evaluates  the  value  of  services  throughout  their lifecycles, and must be able to compare what newer services have offered over the retired services they have replaced.
External  service  providers  tend  to  evaluate  value  more  directly,  as  each  service needs  to  be  able  to  generate  revenue  directly,  or  support  revenue-generating services.
Internal service providers will need to work with the businessunits in the organization to link each serviceto the business outcomes before they can compare investment with returns.
Service Portfolio
The  Service   Portfolio   Management   approach   helps  prioritize   investment and improve the allocation of resources.
Service Portfolio is divided into 3 sections:
•              Service pipeline is a part of Service Portfolio that consists of the services under development or under consideration for development.
•              Service catalog is a part of ServicePortfolio that consists of services active in the  Service   Operation   phase  and  is  visible  to  the  customers It  mainly represents the present capabilities of the IT organization.
•              Retired services are a part of ServicePortfolio that consist of services that are no longer in use.
The portfolio  should  have a proper  mix of services  in the pipeline  and catalog  to secure the financial viability of the Service Provider.
Outcomes in the present can be supportedby services in the Service Catalog or may be supported by services in the Service Pipeline in the future.

The activities in the Service Portfolio Management processare:
•              Define is a phase that deals with collecting information from all existing service as well as proposed services. Service Str
ategyapplies in this activity because it underlines the framework, as a whole.
•              Analyze  is a phase  that  revises  the  information  collected  during  the  Define phase, to maximize the portfolio value, align, prioritize and balance supply and demand.
•              Approve is a phase that authorizes or rejects proposals/plans of future state or development  path  of services  proposed.  For  existing  services,  the  following steps apply:
o      Retain Services that are largelyself-contained, with well-defined asset, process, and system boundaries.
o      Replac  Service that   hav unclear   an overlapping   business functionality.
o      Rationalize   Services  thatare composed  of multiple  releases  of the same operating system, multiple versions of the same software and or multiple versions of system platforms providing similarfunctions.
o      Refactor Services that meet the technical and functional criteria of the organization but have fuzzy processes or system boundaries.
o      Renew Services that meet functional fitnesscriteria but fail technical fitness.
o      Retire   Services  that  do not  meet  minimum  levels  of technical  and functional fitness.
              Charter is a phase that begins with a list of decisions and actions. This list is then  correlated   to  the  financial  plan  and  budget.  The  outcome  of  the mentioned process will build into financial forecasts and resource plans.

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