Strategy Management and Financial Management in IT services| Business and Relationship Management in ITIL
I. Strategy Management in IT Service:
Strategy Management for IT service is an approach of specifying and maintaining the 4 p’s viz: perspective, position, plans, and patterns of an organization concerning services offered and management of services by an organization. The primary purpose of strategic management in IT is to ensure that a strategy is established, preserved, and controlled appropriately to achieve its goal.
Fundamental goals of Strategy Management in IT Service are:
1.Perspective: A statement that conveys the vision and mission of the service vendor, which is examined and monitored regularly, represents perspective.
2.Position: The offerings, market spaces, and the strategies through which the service provider maintains competitive advantage are thus constituting the position of the service provider.
3.Plans: Manufacturing, communication, and sustenance strategic planning documentation of the service provider. This constitutes plans.
4.Patterns: the methodologies and procedures utilized to achieve business objectives thus constitute a pattern. A pattern is a set of actions used by an organization to serve its business aims and goals.
The significance that Strategy Management holds for IT Services:
1.The responsibility of strategy management is in the management's hands that permits control to set vision, mission, and objectives. The government has to clearly define how to meet its objectives and prioritize the finance required to meet these goals.
2.The strategy is not restricted to a single department. As the organization is broken down into various departments, the strategies are served to each organization's department to achieve its business objectives.
3.It is the executives' responsibility to ensure separate business strategies are designed for business units that are strong and linked to one another.
4.Strategy management needs to ensure that its administration and its methodologies have to uphold overall strategy support.
5.IT Strategy can identify the technical possibility of an objective and the level of investment required to meet the purpose.
6.Based on these analyses, the organization can decide whether to include the objective or it should be prioritized.
Basic concepts that constitute Strategy Management for IT Services:
To clearly understand the difference between ITSM and Strategy Management, we need to define these both concepts, which are explained below:
1.Service Strategy: The service vendor offers this approach to determine and execute services that help meet the customer's business objectives and demands. A service strategy is a sub-component IT Strategy.
2.Service Management - (ITSM) Strategy: This is an approach of establishing and carrying out various methods utilized to manage services in a service strategy. This is one of the components of Service Strategy.
II. Synopsis of Financial Management for IT Services:
Financial Administration for IT Services includes financial standards and practices that allow us to estimate the services' worth. It comprises essential concepts like finance, accounting, and budget estimates. Finance applies to the source and allocation of funds for IT purposes, such as design, transition, and enhancement of IT services.
Goals of financial management for IT Services:
1.To offer an operational view, perspectives, and better decision-making abilities to the organization.
2.To get the adequate and suitable stage of finances for the IT offerings, which are required for IT engineering and shipping of IT offerings required to maintain the service strategy.
3.To decide the ultimate accord amid service cost and quality, supply, and demand.
4.Determining and maintaining a process to achieve secure funding to manage the services and recover the costs incurred for providing services.
5.To assess the financial effect caused by newly executed strategies.
Principles of monetary administration for IT Services are:
Monetary management policies and measures of an organization are utilized in a tightly and set manner across an organization's departments. ITIL operates 3 terminologies to identify multiple degrees of financial processes. They are:
- Financial Management.
- Enterprise Financial Management.
- Financial Management for IT Services.
Bullying of fiscal administration for IT Services:
1.The threat of making uninformed decisions due to the absence of loyal financial management for IT resources.
2.Absence of skilled and qualified people to understand IT Service and the cost of accounting.
3.Disclosure to penalties of not compliant with the rules and regulations.
III. Synopsis of Business and Relationship Management in ITIL:
Business Relationship Management in ITIL: In the year 2011, ITIL launched the BRM approach. This approach intends to preserve good rapport with customers. This concept in ITIL recognizes and anticipates the needs and demands of present and potential customers and ensures that appropriate services are established to meet these needs.
A fresh project requires enough justification and grounds to validate and approve of fund distribution in all organizations. Initiation of a new IT service in an organization needs funds and person-hours to implement the project.
What is in a business case?
In a business case, the following phases are involved. They are:
- Financial Investment.
Business Relationship Management Fundamentals:
1.To understand the customer's needs and demands to make sure that each customer to their specific business needs is both recognized and understood by the hat service provider.
2.To build a good relationship between the customers and the service vendor.
3.Offer priority to service and service assets to fulfill service requirements for the customer.
4.In operations such as marketing, selling, and shipping, BRM supports clients.
5.Ensure that the service provider's feedback meets the demands and requirements of the customers, which is achieved through service portfolio management and design coordination.
Risks and Threats of BRM are:
The below-mentioned threats emerge during the BRM process. They are:
1.There are possibilities for some activities being ignored, and some exercises are copied during business management and other service management.
2.If there is a difference between the client and the technology-focused processes, the service provider can prove to be ineffective.