Tuesday, 11 October 2011

Servicialisation – thought leading concept for providing services

    
Paul G. Huppertz, servicEvolution
Introduction to Servicialisation

Servicialisation – reliable, efficient and paying service provision

The IT department must evolve into the Service Provider of the enterprise who is accountable for rendering each and every triggered ICT-based Business Support Service (ICTBSS) explicitly to the triggering Service Consumer, i.e. to the employee in the business unit, so that the latter can execute his upcoming business activity and create business value for his business unit. A Service Customer from the same business unit will commission the accountable Service Provider with rendering any triggered ICTBSS explicitly to any authorized Service Consumer in his business unit whenever he triggers one. The accountable Service Provider on his part will commission distinct internal and external Service Suppliers with rendering the required service contributions for the offered and/or committed ICTBSS.
In this context it is paramount to comprehensively understand and consider that service provision is a real time transaction which is initiated by the triggering Service Consumer and which is performed by the service automats in form of the service-relevant ICT systems in the servuction environment. This real time transaction must be painstakingly prepared by the accountable Service Provider for ensuring that each and every triggered ICTBSS is instantaneously and reliably rendered to the triggering Service Consumer in the service quality which has been committed to the commissioning Service Customer in the respective SLA.
As illustrated in picture 1, there are four main roles in four main spheres of the servicescape or in the servuction environment, respectively:
      1.      Service Consumers who trigger an ICTBSS whenever they need the service-specific benefits  for executing their upcoming business activity,
2.       Service Customers who commission the accountable Service Provider of the enterprise with rendering the triggered ICTBSS to their authorized Service Consumers,
3.       The accountable Service Provider who is commissioned by the Service Customers by means of SLAs, and who, on his part, commissions internal and external Service Suppliers with rendering the ICT-based service contributions required for aggregating the committed ICTBSS,
4.       Internal and external Service Suppliers who are commissioned by the accountable Service Provider and who plan, build and run the service-relevant ICT systems which effectuate the triggered service contributions.

Regarding the co-action and cooperation of these main roles in the servicescape, there are 3 separate and self-contained management areas which are interrelated as illustrated in picture 2.

Business Process Management, e.g. customer relationship management, order processing management, production planning and management, is prepared from the management teams of the primary business units in the enterprise and it is performed from other employees in the same business unit. The Business Process Management must be tightly aligned with the Service Delivery Management in the course of Business-to-Service-Alignment. 

For appropriately supporting the employees in the business units in their roles as Service Consumers, Service Delivery Management must span from service identifying based on the demands and needs of the authorized Service Consumers to billing the commissioning Service Customer for the number of services his authorized Service Consumers have consumed in the respective refernce period. In the course of the Business-to-Service-Alignment the required ICT-basesd Business Support Services (ICTBSS) are identified in joint cooperation of the accountable Service Provider with the Service Consumers and the Service Customer from the business unit. The Service Provider must internally Compose, Commit and Conduct the provision for all the ICTBSS bindingly commissioned to him by means of SLAs. The Service Provider, on his part,  will commission internal and external Service Suppliers with rendering the required service contributions for aggregating the triggered ICTBSS. The commissioned Service Suppliers will perform the necessary Service-to-System-Alignment and Plan, Build and Run the service-relevant ICT-systems, i.e. the System
Operations Management.

Regarding the service provision, the accountable Service Provider must master the service trilemma between service quality, service price and service cost as illustrated in picture 2.

In the service trilemma

·         the Service Consumer wants to have reliably rendered to him each and every triggered service in the same quality which fulfils his demands and needs,
·         the Service Customer wants to pay a price for the required service in the respective quality which is affordable and paying from his perspective ,
the Service Provider must balance service quality, service price and service cost in such a manner that the service provision is efficient from his perspective.
In order to accomplish the latter, the accountable Service Provider must understand and consider that the Service Consumer is the success critical role in two concerns

1.       He triggers, consumes and utilizes a separate and singular service whenever he needs one.
         2.   He creates the business value in the business process by utilizing the service-specific benefits.
The accountable Service Provider must prepare and perform the reliable, efficient and paying service provision by applying the methods and means comprised in the concept of servicialisation which is illustrated in picture 6.

1.       Service Identifying: In the initial phase, the ICT-based Business Support Services (ICTBSS) which are relevant for the Service Consumers in the business units must be clearly and concisely identified by means of the respective service consumer, service object and service-specific benefits.
2.       Service Specifying: In the second phase, the identified ICTBSS must be clearly, completely and consistently specified based on the 12 standard service attributes, and that in the terms and wording of the authorized Service Consumers.
3.       Service Composing: The Service Provider must compose the provision of the specified ICTBSS by elaborating the service map with the standard service contributions required for aggregating the ICTBSS and the service screenplay with the course of transactions for aggregating a triggered ICTBSS. The service specification, the service map and the service screenplay form the service concept for the respective ICTBSS.
4.       Service Orchestrating: The Service Provider uses the service concept for orchestrating the service provision by commissioning the required service contributions from internal and external Service Suppliers, e.g. internal groups, outsourcer, cloud providers, and the like. The accountable Service Provider orchestrates and conducts all his Service Suppliers in the context of a real time service supply chain.
5.       Service Cataloguing: The approved service specifications are compiled in the service catalogue for presenting the entire service offering. The catalogue entries are used for generating the SLAs.
6.       Service Committing: For committing the provision of a selected ICTBSS, the service level specification of this ICTBSS with its 12 practical attribute values is copied from the service catalogue to the service template. The number of authorized Service Consumers must be entered in service attribute 04 ‘Service Consumer Count’. The identifying data for the authorized Service Consumers must be listed in the appendix of the SLA.
7.       Service Concerting: In this phase, the accountable Service Provider must establish and keep up service delivery readiness for the committed ICTBSS as well as keep up and adapt the service delivering capacity to the service triggering emergence of all authorized Service Consumers and, finally, render each and every triggered ICTBSS explicitly to the triggering Service Consumer.
8.       Service Billing: The accountable Service Provider bills the number of ICTBSS the authorized Service Consumers have consumed in the reference period to the commissioning Service Customer. The price for billing the consumed ICTBSS is taken from attribute 12 ‘Service Delivering Price’ in the service specification in the SLA.
Further details about the methods listed above will be explained in further articles.
 

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