Join Mark Thomas for an in-depth discussion in this video Service portfolio management, part of Cert Prep: ITIL Foundations.
- Okay, Service Portfolio Management, the first process we're going to talk about here, in a line-up of service strategy processes we have, this Service Portfolio Management really is one of the most critical management system components I believe, of the entire framework. There's a lot of things that we do, really lead back to that whole portfolio that we have. So, the portfolio is that complete set of services, and that complete set of services, that are managed by the service provider, us, is a portfolio of services that we provide. So if you look at that portfolio, it describes the services in terms of business value.
Now remember business value means a lot of different things to a lot of different people, and so in that business value, we are actually looking at things like the resources that are engaged or being released throughout the service life cycle. So remember, the portfolio, you know, there's costs, and there's different horizons we're looking at in the future. And so we're applying resources, people, time, effort, money, facilities, and so on, towards the development of new services, as well as the upkeep and maintenance of services. So, we look at this throughout the entire life cycle, so it links these business needs, through, I'm talking about the linking of our IT services to the business, links them to the real value which is part of that whole portfolio we have, and it helps us answer some very strategic questions, about the fit of that service, what do we want to do, and who we want to do it for, types of things out there.
So in the portfolio, the portfolio management makes sure we have the right mix of services, just like when you think about your investment portfolio, you have a different mix, you may have aggressive, you may have different types of investments, we kinda use the same idea, the way I've used it in the past, what I'm looking at that services and the mix of high value, commodity, maintenance type services, you know, some different things like that, which pieces are we delivering internally, how do we link suppliers with some of those things? And so it helps us really put that right mix to make sure the investment in IT, it is in line with what the customers are expecting, and meets the objectives that customers are looking at.
So, in the service portfolio, couple things I wanna throw out to you, so there's some strategic questions, that it helps us answer. Number one is why should a customer even buy these services? There's a certain component of sales and marketing we may have to do. We've very attractive services at a good value, that we may look at, so why would customers do that, what are the attractive options of having this service? Why do they buy them from us? What differentiates us as a service provider from other potential providers out there? How do we charge, and what are the charge-back types of models? You know that services are not free.
It takes us, it costs money to actually create services to manage those services, how are these going to be paid for? What are the strengths and weaknesses, priorities and risks? How should our resources and capabilities be allocated that allows us now to have a look at the prioritization, or the business need of certain services that we can now do that focus, and we can help prioritize those resources along there. So, the objectives of Service Portfolio Management, now up on the slide, but I want to read through some of the objectives here that I think are important to really understand.
Number one, enabling an organization to assess which services to provide based on potential return and acceptable risk. Maintain basically the record of services provided, correlated to the business need and the business outcome. Enable the evaluation of services and how they help achieve define strategies and how they respond to change, in the internal, external environment, control what is basically, control what is offered, how it's offered, and at what cost. Assess and remove services that are no longer needed, the retirement portion of that, track the investment of a service, correlate that to our strategy.
So those are some key objectives, that are part of this whole thing that we call Service Portfolio Management. Now, one of the things that we've talked about previously is there is a definite link we have to something called our service catalog, which is a process we'll talk about later, I'm talking about the specific object of the service catalog itself, so. Three basic views, or you might even, even wanna call those phases of the portfolio. What we have is what we call the service pipeline, now remember the service pipeline are those list of services that are currently under consideration.
They're in development, but they are not yet available. Why is that part of my portfolio? Because we are putting time, resources, money and effort against this. So, again, it's part of the portfolio, it's looking at the horizon, in the future, maybe it's a year, maybe it's three years, maybe it's in months. So that pipeline is definitely a part of that collection of those services not yet live, okay? The second view, or the second piece of this, is what we call the service catalog. You might remember this from other sessions that we talked about the service catalog is that, it's either a database or a structured document that outlines and identifies details, the live services, even though services that are available for deployment and operation, so, it's the stuff, it's the services that are, customers are consuming today.
We actively support those, in service operation, okay? And then we have retired services. Services that are no longer being used, or no longer being offered. So, if you look across those three pieces, that's where the service catalog, has that link with that thing called the service portfolio, okay? So, on the other part of this, we see there's a link now with the configuration management system, one of the things that we've talked about in another one of our sessions, as we talked about that SKMS, we talked about within that we have a configuration management system, so, if we have service assets, we call them CIs, those certainly might be a link now to our, you know, configuration management system, so we can synchronize our portfolio across what is part of our CMS, and that's the service portfolio, very high level understanding of that, one of the key things for you to remember on the service portfolio, from the purpose and objectives, it really, it displays, and it's a complete set of the services that we are providing from a pipeline, a catalog, and a retired services perspective.
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