Masterclass: Multi-Provider Management Journey

Masterclass: Multi-Provider Management Journey

Blueponte hosts the Masterclass: Multi-Provider Management Journey and will be exhibiting together with partner Lomnido at the Service Space on November 3, 2020 in Vienna.

Service Space is the conference for service management in Austria and will take place on November 3, 2020 in Vienna. Top speakers, including our co-founder Markus Müller, report on the latest trends – on ITSM and ITIL, SIAM, DevOps, agile management, leadership and organization and the challenges of digital transformation. Benefit from the practical knowledge of other service management organizations: through experience reports, workshops and personal discussions.

As part of the Service Space Conference, Blueponte hosts twice the

Masterclass: Multi-Provider Management Journey

Date: November 3, 2020

Time: 10.30am-11.30pm and 1.30pm-2.30pm

Location: Schönbrunn pharmacy wing / Rudolf room

Registration: here

A deep dive tailored to your company and your challenges with our SIAM experts awaits you. SIAM is the only management model that takes the complexity and diversity of IT sourcing into account. The masterclass shows you what your company can look like after a multi-provider management transformation: Reduced complexity, less costs and effort, more transparency, clear responsibilities and your customers are the focus again. What has to be done to achieve this? Get involved in the masterclass, you are guaranteed to leave the room with new knowledge and zest for action.

The number of participants per masterclass is limited to 10 people in order to be able to meet the challenges of each participant. Register here right now.

In addition, we can be found together with our partner Lomnido at the stand at the entrance to the exhibition room in the pharmacy wing and look forward to getting to know each other personally. You can get a Service Space Ticket with the Blueponte code “blue2020” at an early bird ticket price up to the day of the event here .

Serving the customer!

Serving the customer!

Corporate purpose?

The Vienna-born pioneer of modern management theory, Peter F. Drucker, used to say: “The purpose of a company is to win customers and serve them.”

Many managers understand this. Few act on it. When under observation, they behave more as if their real purpose is to maximize returns. The resulting pressure leads to a reactive ‘being driven’. That means wanting to make a profit quickly. And this often happens at the expense of product quality, leads to a reduction in services, price increases or other strategies to put customers under pressure. Short-term business activity thus undermines long-term trust in a product and the brand behind it or reduces the value that an organization creates for its customers.

The connection with SIAM

So far, so well known. The challenge related to SIAM becomes more visible when we bring the concept of trust into play. Trust is the foundation of any relationship and the resulting customer loyalty is in everyone’s interest.

Nevertheless, we often see decision-makers, especially in the outsourcing of IT services, who continue to give priority to the dictate of reducing costs in favor of short-term operating results over building and maintaining long-term customer relationships.

In our experience there are several reasons for this:

  1. The common power structure between IT management and those who decide on budgets in the organization.
  2. Insufficient skills in IT with regard to obtaining information about the added value actually delivered. This concerns the retrospective evaluation of business cases of projects and of service management with regard to qualitative customer surveys and customer loyalty (Net Promoter Score).
  3. Most IT organizations lack the means and resources necessary to actively market their own value proposition.
  4. The traditional structure of many IT departments still prioritizes technical-functional priorities over customer needs

The challenge for the entire organizational environment

This is not only a challenge for IT departments, but is determined by the entire organizational environment. In essence, it was said at the time that companies exist to maximize profits for their shareholders.

Friedman’s assertion in principle is difficult to question. But we should also see that the pure application of this economic school leads to a blind pursuit of profit maximization. Especially if the management level of an organization does not focus on the management of the investors’ earnings expectations as well as on the company’s value proposition for its customers.

Even if executives agree with the focus on customers out of personal conviction, according to our observation they still fear that the prioritization of customer needs and the necessary investments could jeopardize the efficiency of IT and upset those responsible for the budget.

Strategies for the implementation of customer-oriented service management

When it comes to technology, the technologies, operational capabilities, and performance measurement systems needed to implement customer-centric IT management are at best emerging. Therefore, the implementation of a consistently customer-oriented organization of an organization is still generally associated with risks.

How can you meet these challenges? Which strategies for implementing customer-oriented service management are successful?

The answers to these questions in accordance with our many years of work with organizations in a wide variety of industries will be in one of our next blogs. If you don’t want to wait until there, just visit us. We’re glad!

The top 5: Starting points for an optimal SIAM operating model

The top 5: Starting points for an optimal SIAM operating model

What does SIAM bring?

We are often asked this question, and rightly so. It is also the question that IT managers are asked by your management. What does it save us? What goes better after that?

We will present extracts of the areas where the course can be set and screws turned and which are tackled by service integration and management. Play this mind game through with your company, and if you have one or more areas where you say “yes” out loud, then let us know.

1. Expectations: Expectations of the stakeholders for IT services

Do you know your customers, their expectations of IT services and the value you provide for your, mostly internal, customers? The question may sound banal, but the tasks and requirements for IT organizations have increased rapidly in recent years. From sourcing and cloud computing to IoT to IT security and digitization, the tasks have become more and more complex. And everything has to happen quickly. Everything is ok as long as it works, but if an expectation is not met, this can usually be felt at all levels in the organization. SIAM is a model that focuses on the customer, the environment and the interaction of all parties involved in service provision. Are the expectations and requirements of the customers for a service that is provided by several service providers fulfilled? How and where do I get the feedback from? How do I deal with it then?

2. Management: corporate strategy, vision & goals in harmony

The next logical step is to align customer expectations with corporate strategy. Are these in line with our corporate strategy? Should we perhaps re-prioritize some things and drop others for the time being and rather change something about expectations?

3. Sourcing strategy: Too many or too few partners or contracts?

4. Processes: lengthy or nonexistent?

Whichever side you end up on, it is usually never the middle. Processes are either too lengthy, with many coordination stages and hurdles, or they are informal or nonexistent. It is important to look at the processes in their current status, to consider how they should be, to align them with the goals and to introduce measurability. In an environment with several service providers, there is an additional dimension – the end-to-end view of service provision. Is the process set up consistently across all participants in the supply chain? Do the process indicators reflect the expected benefits for the customer, such as the defined availability of a service?

5. Tools: What do I need to keep track of things?

The tools used are a central component in every SIAM sourcing model. Starting with the ITSM tool, discovery, monitoring, etc. The decisive question is which one should work with, whether in a service provider or in one’s own. Who has sovereignty and control over the data? How do the tools used interact? Do you enable a smooth process flow? The right strategy and the appropriate tools are more important than ever today. You don’t necessarily have to participate in the support processes that are mapped in the tool. The added value is, however, that real-time process integration gives you access to all data, so you can maintain an overview and control.

 

 

SIAM offers answers to the most important questions in each of these areas and shows how things can be set up and optimized in a multiprovider environment.

Can someone please explain to me what a service integrator is?

Was ist ein Service Integrator

Can someone please explain to me what a service integrator is?

Buzzwords about buzzwords, a new "IT word" every week.

Again and again the buzzwords. From the cloud to digital transformation, Scrum, DevOps to SIAM and the service integrator. Not a week goes by without a new IT word. So today we are devoting ourselves to the latter, the service integrator. What does the service integrator have in common with the building supervision? But a lot! This is the easiest way to explain it.

The building supervisor and the service integrator

Cost pressure, quality and the often missing overall responsibility play an essential role in IT. In construction, as we Austrians like to say, it has long been recognized that an additional authority is required to coordinate the suppliers and customers involved in the sense of end-to-end responsibility – a construction supervision.

The “building supervision” controls and controls the construction work on behalf of the client, as the client usually does not have the necessary experience and competence. Basically, the interaction, the orchestration and the suppliers involved are monitored and controlled.

In the SIAM (Service Integration And Management) context, this means that the Service Integrator assumes this function and performs it on behalf of the customer organization (IT). Regardless of whether the external, internal, hybrid integrator model or the lead supplier model is used – what the differences are can be read on SIAM Insights. It must be clearly regulated which powers and responsibilities, i.e. rights and obligations, should and can be assumed by the client, i.e. the builder. It must also be clearly regulated which competence the integrator is awarded for managing possible internal service providers. The danger lurks here that the service integrator will be rendered “toothless” due to a lack of authority and support, and thus not taken seriously by the client’s organizational units and the service providers (internal as well as external) to be controlled.
 

In the course of the execution, the building supervision ensures that all providers / suppliers provide the services specified in the contract and regulates possible deviations from them. She is also responsible for the following activities:

  • Representation of the client’s interests
  • Coordingation & control of the executing companies
  • Financial Management & Controlling
  • Defects are identified and rectified – Continual Service Improvement.
These activities are basically the same as those of a service integrator in a SIAM model.

The construction supervision is also not to be equated with the construction management. This is another important role in a construction project. The “construction management” is usually carried out by an executing company. In our case, that would be the role of the service delivery manager of the respective service provider. This serves as a mouthpiece for the organization of the respective provider and as a contact person for the service integrator.
 

SIAM: a management model for controlling several service providers

Service Integration And Management (SIAM) is a management model for controlling multiple service providers in IT outsourcing. All right? Do you now dare to use the Service Integrator in your IT conversations? If you have any further questions about SIAM and multi-provider management, the experts at Blueponte will be happy to help. Otherwise just take part in our next SIAM webinar or listen to the recording afterwards.

Get to know us!

Would you like to find out more about our Blueponte SIAM approach? Or get to know us? Write us.

Attribute-based IT Service Management

Attributbasiertes IT Management

Attribute-based IT Service Management

Follow-up report on Service North 2019, Manchester by Markus Müller

Service North Conference as the world's only SIAM conference

The Service North Conference is the only conference in the world that is exclusively about SIAM. It took place for the third time in Manchester this year. Last year I gave a practical lecture and this year I was there as a delegate. I have summarized the most important things on this blog.

Keynote by Cheryl Stevens MBE

The keynote this time came from Cheryl Stevens MBE, Vice Director of the Department for Work and Pensions (DWP), who heads IT for the pension insurance company in the UK. Your topic fit like a fist to our Blueponte motto “Bringing Back Trust To IT”:

Cheryl emphasizes the different needs of users in her talk and asks how we can bring IT solutions in line with users’ needs and at the same time be courageous and innovative. In her organization, the motivation is that other people’s money is spent there, in her case taxpayers’ money.

She emphasizes that there is no one-size-fits-all solution. Different customers have different needs, which leads to different IT services: “We don’t want just one supplier and we don’t want a solution that is suitable for everyone. And today’s solution is not necessarily what we need tomorrow.

No uniform service standard in the UK

I find it interesting that there is also no uniform service standard in the UK, the home country of ITIL, which all departments in the government have to follow. What I also found very interesting was a very practical case in which Cheryl spoke about the high hurdles that have to do with the organization’s special clientele. Building trust is essential here, because the business model of this authority means that the organization has to gain trust from your customers every day.

The case

“If you cannot successfully complete an identity check online, your online journey is already over and you have to come to the magistrate,” she explains.

Cheryl goes on to explain how the UK Pension Insurance Company has orchestrated its IT services for pension applications from start to finish. Above all, this includes security attributes in order to strengthen the retirees’ trust in the use of IT services. What does attribute-based IT service management mean? In order to confirm the identity of the applicant and to build trust, the organization differentiates between three classes of attributes:

  1. Confidence in the meeting
  2. Confidence in the act
  3. Trust in the person

SIAM enables IT departments to take back more responsibility from service providers and thus resolve the risk of being dependent on them. In this way, knowledge about business processes is increased again, which is essential for digitization. The focus is placed on the control of IT services and enables the further outsourcing of IT commodity services at market prices.

Dynamic Trust Hub

What I also found very interesting in this example of applying for a pension is not only that every transaction is different, but that it also comes through different channels. DWP deals with it in such a way that a so-called “comprehensive real-time trust rating” is calculated in real time, based on the attributes already mentioned, what constitutes trust for this service. Here is an excerpt:

  • Trust in the exchange of information
  • Trust in guidelines
  • Consent Management
  • Service Orchestration
  • Behavior analysis
  • risk management
  • Transaction risk

The entire management of such trust attributes has a name at DWP: It is called the ‘Dynamic Trust Hub’. Can someone from the Austrian Pension Insurance Institution tell us how the service for applying for our pensions is being digitized there?

Orchestration of service attributes

For me, what I take away from this lecture is: The end-to-end orchestration of service attributes is crucial for the perception of service quality. A nice article on how service delivery did not go optimally if services are not planned from start to finish can be found here.

The 10 reasons for SIAM

Do the self-check

Does your company need a realignment according to the service integration and management model? 

Here we have compiled the top 10 reasons for SIAM in a very compact way.

1. Increasing number of IT service providers

Single sourcing was yesterday. Due to cloud computing, digitization and the increasing specialization in smaller scopes of services through to micro-services, the number of service providers is constantly increasing, resulting in so-called multi-sourcing. This leads to a significant increase in communication links and mutual dependencies.

2. Make increasing complexity manageable

The increasing complexity can be felt in all areas of life. The increase in technical details of IT solutions, coupled with the large number of IT service providers, creates a level of complexity that can hardly be managed, which must be made manageable with the right methods and tools. Nevertheless, fast and flexible provision of services are in the foreground in order to meet the requirements of the business.

3. Cost optimization

SIAM offers many potentials to optimize overall IT costs. Some directly, others indirectly. Direct optimizations are achieved through the use of several providers, each specialized in specialist areas, through improved control of these in order to avoid duplication, redundancies and miscommunication. Demanding performance commitments and recognizing contract overlaps are just as important as the speed in handling new business requirements. In any case, a medium-term development is assumed, which can be achieved if SIAM is implemented correctly and consistently

4. Strive for independence and more control

SIAM enables IT departments to take back more responsibility from service providers and thus to dissolve the risk of being dependent on them. In this way, knowledge about business processes is increased again, which is essential for digitization. The focus is placed on the control of IT services and enables the further outsourcing of IT commodity services at market prices.

5. Coordinated contract goals for each service tower

SIAM supports multi sourcing through a holistic view of the contractual basis, which ensures uniformity and cooperation across all service towers. This ensures clarity, prevents friction losses and anchors the cooperation of the service providers as an integral success factor.

6. Central responsibility - end-2-end

Who does not know it. The service for the customer is impaired, but the traffic lights at the individual service providers are green. The fault clearance process then turns out to be very difficult and the representation of the service level compliance will not correspond to the expectations of the users. The SIAM service integrator concept enables a single point of ownership that, as the responsible body, coordinates the rectification of the fault and is also responsible for its solution.

7. Clear demarcation of the competences and responsibilities of the service providers

Despite the most careful selection of the service provider, there are very often friction losses in the cooperation during the operating phase, and the expectations placed on the provider or providers are not met. The concepts and methods contained in SIAM enable better cooperation through a clear delimitation of competencies and responsibilities.

8. Increase in efficiency

Coordinated contract goals, a single point of ownership, a clear distribution of competencies and responsibilities as well as consistent processes make a significant contribution to efficient service provision in a multi-provider environment using SIAM. In daily operations, lean and effective orchestration becomes a crucial question . Another essential component for this is the tool support, which makes a significant contribution to value.

9. End-to-end view of the service provider’s performance

One of the most important drivers of customer satisfaction with the service provided is service performance. SIAM focuses on the end-to-end view of performance for service provision across all providers. This allows weak points in the individual providers to be better identified and improved in a more targeted manner.

10. SIAM as a foundation for digitization

By building a solid foundation for the integration of new service providers, the SIAM approach unfolds its full potential to facilitate digitization projects.

Share your motivations with us

How many of these motivations apply to your company? And which? Share your motivation with us, because we are interested in aligning our documents and coaching sessions accordingly. write us