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Project SIT: Service-Centric IT
How to Advance from Process to Service Orientation
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Until IT marries the techniques of process performance and service value, it remains a difficult task to optimize the expenditure and maximize the business value of the work IT does. But with a service-centric operating model, IT can create efficient services that deliver more readily understood business value. In turn, the customers of IT can better manage their demand for services and their expenses. The foundation for service orientation includes new techniques for business and IT people to work together in determining - from an outside-in perspective - the services needed to create and sustain business value. Some key practices include:
- Understand business strategy and the organizational architecture. IT can only be service-centric if it understands the business drivers, direction and organizational logic.
- Begin with desired outcomes - both business and IT. How will IT services capabilities support the company's specific and measurable business outcomes?
- Concentrate hard (and early) on governance, rather than on organizational structure. The right governance model ensures that operating outcomes align with business goals, that enterprise-wide demand and supply issues are balanced against the needs of individual businesses and groups, and that conflicts and competing demands are resolved.
- Create the right project/service portfolio. Define with your customers the mix of projects and services to fit them and the business. Avoid one-size-fits-all as the end goal. Segment service offerings to meet varying business needs for each particular type of service.
- Understand your process model and the capabilities you need to deliver business value. Identify and differentiate those processes and roles that are most critical to achieving your goals. Align the organization structure around these processes to ensure recognizable accountability and responsibility both inside and outside of IT.
- Regularly identify and explore operating model options. Defining the operating model is not a one-time exercise. Knowing your options is critical to evolving your operating model as the business and IT matures.
- Fit your sourcing approach to key IT outcomes and goals. Don't make knee-jerk decisions to outsource. Be sure you fully understand what you are outsourcing well before you contract it out.
This Re.sults® report lays out a detailed process for operating model design and implementation. It provides frameworks and tools to engage key stakeholders in meaningful dialogue about every critical aspect of IT operating model design. Rather than enforce one standard model, it provides a method for configuring the type of model that best fits a company's business strategy, organization and culture.
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