Basically Jamie Titchener the author of this post is right, the excessive focus on technology is the problem with today's approach for increasing the business value of IT. Yet, does it justify that IT is set aside any service management effort? Not so sure.
THE RUNNING JOKE THAT IT CONTRIBUTES LITTLE TO VALUE
THE TECHNOLOGY-CENTRIC PERSPECTIVE OF IT CONTRIBUTION SUSTAINS THE ERRONEOUS IDEA THAT TECHNOLOGY BY ITSELF BRINGS IN VALUE
THE MYTH THAT TECHNOLOGY BY ITSELF BRINGS IN VALUE HAS TURNED IT INTO A COMMODITY
For about two decades, value has been seen from the sole perspecitve of customers' benefits and cost of production; the mantra is to deliver more with little IT costs. The increasing success of IT outsourcing initiatives and more importantly the increasing demand for cloud-based solutions subtantiate that fact.
No one would dispute the fact that delivering more with less is definitely a substantial competitive advantage. However, this perspective stresses the sole cost-effectiveness dimension of value. Other key dimensions, examples, accelerated time-to-market, first-to-market advantages and superior customer experience are unfortunately considered minor factors. The fact of the matter is, these dimensions are value propositions and competitive advantages that help businesses increase their customers' value and differentiate themselves from their competitors.
VALUE RESULTS PRIMARILY FROM CHANGE MANAGEMENT AND IT TRANSCENDS THE CONCERNS ABOUT REDUCING IT COSTS AND DEPLOYING INFRASTRUCTURES
Generating business value transcends the concerns about reducing IT costs through outsourcing and streamlining business operations through deploying software, application systems and infrastructures.
As a matter of fact, extracting value from IT capabilities builds upon the belief that organizational, managerial and human factors are the key determinants to unlocking the potential value of technology and processes.
The impacts of organizational, managerial and human factors on processes and technology are obvious; the confusion that results from organizational misconceptions disrupts processes execution and prevents from taking advantage of technology. Similarly, the confusion that results from deficient management practices e.g., lack of executive commitment and absence of effective governance mechanisms affect processes execution and prevents from taking advantage of the benefits of technology.
The impacts of the organizational, managerial and human factors demonstrate that in reality extracting value from IT services is primarily a complex change management process that involves the people, process, management, collaboration and technology factors of organizations.
ITSM THROUGH THE 4Ps FOR SERVICE DESIGN PROVIDES THE FOUNDATION FOR A SERVICE-BASED IT PARADIGM
Service-Based Approach to IT Value is Changing the Relationship between the Business and IT and in General the Way IT is Managed
The introduction of the notion of service in business practices, as defined by the IT Service Management Forum, is definitely changing tge relationship between the business and IT and in general the way IT is managed. Indeed, from the ITSM Forum perspective, a service is set of business assets i.e., people, process, partnerships, suppliers and technologies aggregated into a capability supporting the achievement of specific business objectives.
A service is something intangible that includes four specific elements, not one, nor two and three but four including People, Process, Partners / Suppliers and Product.
People relates to the human factors and refers to all human elements e.g., work force and skills needed to design, transition, operate and improve services.
Process relates to the ITSM operations and refers to all elements e.g., activities, methodology, deliverables and performance metrics required to effectively and efficiently design, transition, operate and improve services.
Partnerships / Suppliers relate to the organizational, managerial practices an capabilities required to ensure a high level of collaboration within the organization and with vendors throughout the service lifecycle.
Product relates to the underlying technology required to design, transition, operate and improve services.
Among many others, three areas are fundamentally affected by the service-based approach to value; they include (1) the perspective of IT contribution, (2) the focus of both the business and IT on the value drivers, and (3) the evaluation of IT contribution to value.
The Perspective of IT Contribution Shared by the Business and IT
An example of value proposition turned into positive customer experience is Amazon's promise to simplify online orders turned into the 1-click ordering process while example of competitive advantage is the implementation of Agile Scrum mechanisms for improving collaboration and accelerating services delivery.
THE 4Ps FOR SERVICE DESIGN PROVIDES SOLID FOUNDATIONS FOR IT SERVICE DESIGN, IMPLEMENTATION AND DEPLOYMENT - THE IT SERVICE DESIGN MATRIX
This section is set of questions specifically designed to capture business needs, requirements and expectations as to desires business services (core services) and supporting services (IT services).