ITIL 4 Managing Professional Certification Course: Drive Stakeholder Value (DSV) - Shape Demand and Define Service Offerings

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1. Designing digital service experiences

1.1 Lean

Process improvement philosophy

Prioritizes flow efficiency over resource efficiency

Terms:

  • Flow
  • Work unit
  • Good flow
  • Bad flow

Principle Explanation
Identify customer value From the perspective of the customer, what are the needs/value/desired outcome ?
Map the value stream Define the work unit and how it progresses through the value chain
Create flow Eliminate waste
Establish pull Optimize the value stream
Seek perfection Continual improvement
 

1.2 Agile

Manifesto for Agile Software Development: value in the items on the right but emphasizes the value of the items on the left more

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Concept:

  • Uses ideas from Lean
  • Work unit is a feature, or an enabler
  • Development is iterative, often using SCRUM:
    • Requirements backlog continually prioritized by product manager
    • Dev team create as much as they can in a time-boxed sprint
    • Demo at the end of each sprint to catch user feedback
    • Retrospective captures feedback on method and teamwork
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Minimum viable product (MVP):

  • Start with MVP: just enough features to satisfy early customers, and to provide feedback for future product development
  • Use continuous delivery to enable release as early as possible:
    • Feature flags: enable feature to be turned on and off
    • Dark launch: new functionality is launched but not made visible yet
    • Canary-release: dark launch with a few test users
    • A/B release: two production environments to enable switch to new version
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1.3 Service design thinking

Iterative design process: continuously gathering feedback on what works and what doesn’t

Primary focus is on user experience (UX):

  • User-centric design method
  • Value-driven, data‐driven

How designers should think to make innovative solutions that fit the needs of the users:

  • Explore
  • Prototype
  • Gather feedback
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1.4 Service blueprinting

Key message: a service blueprint is a diagram visualizing the service usage, with the aim of optimizing the user experience. Key elements of the blueprint are:

  • Line of interaction
  • Line of visibility
  • Line of internal interaction

One service can have multiple blueprints if there are different scenarios that it can support. Example service blueprint:

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1.5 Design for onboarding

Include scope, actions, stakeholders, timelines, and other aspects of onboarding

Information may vary depending on the structure of service offerings, consumer resources, scale, legal and regulatory requirements, risks…

Use Four Dimension elements to guide scope and activities

Document the approach for onboarding with the Continual Improvement Model

Elements to include:

  • Identify provider resources that will interact with consumer resources
  • Identify consumer resources that will interact with provider resources
  • Identify the need for introducing each pair of resources
  • Explore opportunities to optimize and automate introductions
  • Create procedures where manual or human‐controlled introduction is required
  • Test the procedures and update based on test results (repeat as needed)
  • Document and communicate to involved parties

2. Selling and procuring service offerings

Once products, services, service offerings have been designed, they need to be sold. Consider:

  • Pricing
  • Internal service relationships
  • External service relationships

Don’t forget preferences, experiences, and outcomes influence the creation of value

2.1 Pricing

The service portfolio must generate enough income to cover investments, and costs (and generate profit, if appropriate)

Pricing and charging are different:

  • Pricing: actual cost
  • Charging: based on perceived value of service and costs of similar service from competitors

Options:

  • Cost: break even or actual cost
  • Cost plus: cost plus a set percentage
  • Market price/going rate: comparable to similar service offerings
  • Fixed price: fixed based on negotiation with customer (consumption)
  • Differential charging: setting different charges based on time of usage

2.2 Internal sales

Raise awareness necessary to promote internal sales

Benefits of selling to internal customers:

  • Better utilization of services
  • Influence demand for services
  • Improve communication with customers and users
  • Achieve feedback on how well services meet needs

Supporting tools: Service catalogue, service desk, self‐help tools (can also use techniques used for external sales)

2.3 External sales

Use the traditional sales techniques: advertising and sales campaigns (good engagement, marketing, etc.)

Need good communication, trust, sense of fairness from both parties

Find a balance where both parties can win:

  • Service provider (seek first to understand, then to be understood)
  • Customer (describe requirements as needs, not detailed specifications)

Go back to ITIL 4 Managing Professional Certification Course: Drive Stakeholder Value (DSV) to finish this chapter or to the main page ITIL 4 Managing Professional Certification Course.

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