Which dimension of service management is concerned about the relationship with other Organisations that are involved in managing services?
The four P’s of service management in the last version has been replaced with the ITIL four dimensions of service management. They are; Show
Each dimension focuses on a different perspective that’s important to delivering value to customers and other stakeholders. When designing a service, we can ensure that nothing has been overlooked by considering all four dimensions.
To put it another way, the four dimensions support a holistic approach to service management. For example, the implementation of a new COTS application requires a holistic approach. It could be a bleeding-edge business solution; however, the failure to consider the necessary technology infrastructure and in-house technical expertise to integrate it with existing software applications could lead to disastrous results. Introducing an application to fix a significant business problem without considering its impact on the people, partners, and technology is doomed to fail. Let’s take a closer look at these dimensions and how they contribute to creating value for customers and the organization through products and services. Organizations and peopleFirst, you’ve got the whole service organization and the people. Organizations come in various structures and sizes. As organizations get bigger, it’s important to set up a formal structure, responsibilities, and roles to support the overall strategy and operations. In order for a business to grow, there needs to be a formal structure in place. Setting up roles helps each person understand their responsibility, which leads them to achieve what’s expected from them daily. People include anyone involved in creating and consuming services, such as employees, managers, executives, customers, employees of the service provider, people involved in the creation and consumption of services are quite varied, including employees, managers, executives, customers and other stakeholders. The organization and people dimension covers much familiar ground, and the most noteworthy components are;
Organization CultureThe way people do things inside an organization Organizations are often thought of as machines, with every cog in the system contributing to some final result. But what about culture? Strong organizational culture is the hallmark of successful companies; it sets the tone for everything an organization does. A great corporate culture is a positive reflection of the company’s values. It leads to employee engagement and improved business results. So, what is organizational culture? Organizational culture is the set of values, expectations, and practices shared by everyone in the organization. It lays out how people within the organization should behave. Building and sustaining the culture requires both strategy and structure while, most importantly, staying consistent and authentic. ITIL suggests you can start by adopting the Seven Guiding Principles for a healthy culture. Organizational culture is the set of values, expectations, and practices that everyone in an organization shares. It defines how people should behave within your company. It is something you can work on continuously to make the lives of employees better! ITIL suggests adopting Seven Guiding Principles is the key to building and sustaining healthy organizational cultures. Zappos, for example, is known for its unique organizational culture. They only hire people who are committed to the company’s vision. New employees are trained on the company’s ten core values from the outset. Zappos’ employees learn how to respond to customer needs by handling phones in the call center for their first few weeks on the job. You have to undergo four weeks of call center training regardless of whether you’re in senior management or on the front line. It is said that by the end of the first week, you will be paid and let go if you’re not at ease with their corporate culture. What factors shape an organization’s culture? High trustLeaders are responsible for shaping an organization’s culture. The culture of the company can be seen by how the CEO handles crises. So it makes sense that companies with a high-trust culture do better than low-trust ones. TransparencyTrust and openness motivate people to come up with creative solutions. Innovation is hard without strong leadership. It’s easier for people to come up with creative solutions when an organization is open and transparent. Collaboration and shared valuesEmployee experience and engagement are shaped by these values. We’re more committed to a common goal when we work together. Employees who feel part of a positive culture are more likely to enjoy their jobs and provide an excellent customer experience. Collaboration is key to getting the best results. When collaboration is part of an organization’s culture, everyone’s always willing to work together for the greater good. Tear down silosEmployees who break out of their silos learn more and contribute more to the company. A great way to break down silos is to build relationships across multiple teams, departments, or sections. Leaders should also let their employees learn about different parts of the business. Help employees understand their role in creating valueMost employees don’t see the connection between their work and the company’s bottom line. Lack of big-picture understanding can hurt employee engagement. Organizations can foster collaboration and cross-silo communication by showing each role a direct connection between their contributions and value creation. Organizational StructureAn organization’s structure is how jobs and tasks are assigned, coordinated, and managed. It tells employees what to do, who relies on it, and how to report progress. Every organization’s business and strategy is built on its structure.
The departmentalized organization is broken down into functional teams (like marketing, procurement, manufacturing, etc.) or departments (like services, products, customers, etc.). An organization’s type depends on its operations and human capital management philosophy. But, of course, there’s no perfect organizational structure, only ones that align with the organization’s goals. Here are some examples of these types of structures. Functional OrganizationA functional organization lets functional experts take charge. It can boost operational efficiency because the decision-makers have specialized skills and experience. There might be groups like purchasing, inventory control, production planning, warehouses, customer service, etc., all headed by experts in that area. Divisional OrganizationA divisional structure organizes each organizational function by product or region. Each division has everything it needs to support its geography or product line. For instance, each division has its own purchasing, inventory control, IT, and marketing teams. Project OrganizationProject organizations are only formed for the duration of the project. Every project has its own team of experts and workers. Usually, they report to a project manager. Matrix OrganizationMatrix structures combine functional and project structures. It’s not like a traditional hierarchical structure. This structure can handle both functional and product-based reporting. Line OrganizationThere are multiple levels of management, then there are operational levels, so authority goes down the whole hierarchy. Flat OrganizationIn flat organizations, the structure is lean, with no middle managers or very few. Small companies and startups usually have flatter structures since there’s no need for hierarchy. How do different structures impact you? Bringing new ideas to fruition is hard with a formal, centralised management structure since they have to go up the corporate ladder and get watered down or rejected. IT Service Management roles and responsibilitiesWhat is a role? A role is a set of responsibilities and activities. A person or group can have multiple roles. Roles don’t necessarily correspond to job titles. Multiple roles are carried out by one person in a smaller company. In larger companies, roles are more segregated and specialized. The RACI model is often used to define roles and responsibilities.
Talents and skills of the workforceA business’s success depends on having the right people with the right skills and knowledge. Talent can be defined in different ways, but it generally refers to employees with special skills and abilities. Workforce management is about hiring the right people for each position and ensuring there are enough resources to meet the organization’s current and future needs. Talent management is about harnessing people’s skills and expertise to grow the company while helping them learn and grow. Information and TechnologyInformation is one of the biggest assets of the digital age. The term “digital transformation” is thrown around a lot to describe how IT has influenced businesses. In general, technology has made every organization more efficient and effective. There are a couple of ways information and technology are used in service management.
IT helps people deliver services more effectively than ever. It’s not just a way to better support customers; it’s what drives the services. IT Services are created, delivered, consumed, and managed using technology. It includes the infrastructure for running the business software. It also involves things like hardware, software, systems, networks, databases, storage, desktops, applications, services, applications, virtual servers, storage, data centers, disaster recovery, etc. For example, an organization that runs an online business requires IT resources such as,
Technology that supports ITSM includes:
Considerations for InformationFocus on providing valueInformation management is necessary for a company to create value for customers. So, it’s important to make sure that the information is available and can be retrieved and used effectively and efficiently. Information management is necessary for a company to create value for customers. So, it’s important to make sure that the information is available and can be retrieved and used effectively and efficiently. Identify how information is exchangedAside from availability, it is crucial that the processes are reliable, and the data is accurate and relevant. Each intermediate process and application should have access to the same data. Identify types of information needed for servicesService providers should identify what kind of information they need to provide services. Also, why do they need the information? Service providers should only receive information from service management that they actually need. Service management information can be wide ranging. You should avoid collecting a lot of information even if it seems tempting. Too much information can be challenging to manage. Comply with information security and regulatory requirementsYou must adhere to information security requirements and secure your customers’ data. Regulation compliance, such as the new GDPR (General Data Protection Regulation) passed in the EU, is another aspect of managing information. Users can choose where their personal information is used. How information should be handled also varies depending on the geography and industry. Therefore, all those regulations must be taken into account during the design and development stages, as one has to make sure they don’t lose sight of what they set out to do. Technology considerationsCompatibility of new technology with the existing infrastructureNowadays, it’s almost impossible to run a business without using technology in some form. When it comes to implementing new technology, businesses often have to consider if it is compatible with the current technology that is in place. When you are implementing new technology, make sure it is compatible with your existing technology. It should be easy enough to integrate without disruptions to the business. An excellent example of this would be a new software application that is not compatible with existing hardware. This can disrupt your business if not addressed at the design stage. Impact of technology disruptionOrganizations are leveraging technological advances to grow globally. However, technology disruption has forced many organizations to develop new business models. It is a common phenomenon nowadays. There are many technologies that can disrupt the status quo, including artificial intelligence, machine learning, Internet of Things (IoT), augmented reality, virtual reality, blockchain, big data, etc. Are there security constraints or regulatory issues with existing technology?Servers and storage providers must both be reliable and secure. Therefore, security is among the most critical aspects of selecting a technology. The security of your IT services is directly connected to the security and privacy of the information and data it handles. Customers’ data can be stolen and compromised if the information is not secure and protected. Therefore, it is crucial to design and develop technology that is equipped with the most current security features and protocols. Does technology have longevity?Has the technology matured enough to be implemented? Is it a bleeding edge? What resources are available for its support? The technology landscape is constantly changing. New innovations pop up all the time. There are many cases where new technology is released and then replaced within a short period. Often, technology is replaced before it reaches its full potential. Many times, technology is replaced for reasons other than cost. Technology maturity and the impact it has on the business are also deciding factors. Will the new technology add more constraints?Technology can be a double-edged sword. It can significantly increase productivity and efficiency, but it also introduces a new set of constraints. Every day, we hear about new technology. Disruptive technologies on the horizon include augmented reality, driverless cars, and intelligent chatbots. Partners and SuppliersSuppliers and partners come in all shapes and sizes. Only a few organizations can function without external suppliers. Relationships between companies are crucial to success. Many organizations rely on third parties to manage certain aspects of their business. The scope of the partners and suppliers dimension includes:
There are different levels of formality in relationships between organizations. It can range from writing a contract outlining responsibilities to agreeing to work towards common goals in a less formal setting. Supplier strategy considerationsStrategic focusSome companies may prefer to focus on their core competencies and outsource non-core functions. Others may prefer to keep everything under one roof, retaining complete control over all important functions. Corporate cultureTraditionally, large organizations have had a very inward-looking corporate culture. The focus was primarily on internal operations, and partners were treated as extensions of the internal organization. Despite expanding their business and diversifying their operations, many organizations retained this approach. This approach has become a liability in today’s growing globalized marketplace. Now more than ever, organizations need to think outside the box and be more collaborative. Resource scarcityIt can be challenging for a service provider to find the needed staff if a skillset is in short supply. However, it’s important to have employees with the right skills to handle the needs of the business. Businesses can acquire the human capital they need to stay competitive through outsourcing. As a result, outsourcing has grown in popularity over the years. It can increase the flexibility of a company to handle fluctuating demands and complex tasks. Cost concernsIn some cases, sourcing a particular requirement from a supplier is more economical than sourcing internally. Most organizations choose to outsource because of the labour cost. Basically, you can outsource the organization’s functions to some other country where the labour is cheap. In addition, there are other costs, such as maintenance and utilities. Some countries have low labour costs, but these other costs can be very high. Subject matter expertiseIt’s sometimes safer to use a supplier who has expertise in a particular area. Developing and maintaining subject matter expertise in-house can be expensive. In such situations, they typically outsource the work to a specialized supplier. Sometimes, a company may outsource a particular job to a specialist supplier. In other cases, a company may outsource a particular function, such as payroll processing, to a specialist service provider. External constraintsMost often, external constraints shape the supplier strategy. Some of these external forces are;
New tariffs or import restrictions, for instance, may influence supplier strategy. Outsourcing depends heavily on the company’s overall risk profile. A PESTLE analysis is a valuable tool for identifying external constraints in supplier management. PESTEL Analysis model used to analyze the external forcesDemand patternsMany organizations experience high levels of variation in demand for their services. Although this variation can be seasonally based on the time of year, demand patterns may also vary due to the day of the week or even the time of day. Organizations may use external service providers to deal with variable demand depending on these patterns. It provides the benefit of being flexible and agile in the face of changing demand. Value streams and processesYou can think of a value stream as a series of steps your organization takes to create and deliver products and services. These are basically process flow charts, with waiting times between steps. With value streams, an organization is able to see clearly what it delivers and continuously improve what it does. So, the key to improving performance is identifying and understanding its various value streams. Organizations should look at how they do their work and map all the value streams they can find. This way, they can analyze their current state and identify any barriers to workflow and non-value-adding activities. Eliminate wasteful activities to boost productivity. Add more value-added activities to the service value chain. This can be new activities or changes to existing ones that will make the organization more productive. For example, value stream optimization can involve automation or adopting new technologies to gain efficiencies or improve user experience. Value streams should be defined for each product and service. Value streams can be reshaped depending on the business strategy. Sometimes these can stay stable for a long time. However, value streams need to be constantly improved to make sure they are optimal. What is a process? An interconnected or interacting set of activities. A process takes inputs and turns them into outputs. What is value stream mapping? A value stream map helps identify where the actual value is added. This allows you to improve the overall efficiency of a service or product. What are the 4 dimensions of the service management?Four Dimensions of Service Management in ITIL 4. Organizations and People.. Information and Technology.. Partners and Suppliers.. Value Streams and Processes.. Which dimensions of service management considers an organization?The organizations and people dimension sets out the people aspects of service management to be considered when designing, operating and changing service offerings. People include employees, managers, executives, customers, supplier employees, or anybody else who is involved in the creation or consumption of services.
In which dimension is organizational communication and systems of authority are well defined and supported in its overall strategy and operating model?Organization and People
This dimension ensures the way an organization is structured and managed, as well as its roles, responsibilities, and systems of authority and communication, is well defined and supports its overall strategy and operating model.
What is the relationship between service management and company service?Service relationship management, which are the joint activities performed by a service provider and a service consumer to ensure continual value co-creation based on agreed and available service offerings.
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