In many ways, the Service Portfolio Management is similar to Financial Portfolio Management performed within most business environments.
A Financial Manager’s primary responsibility is to maintain an optimum portfolio of investments that maximizes the client’s return at an acceptable risk level. Copyright The Art of Service I Brisbane, Australia I Email: email@example.com Web: http://store.theartofservice.com I eLearning: http://theartofservice.org I Phone: +61 (0) 7 3252 2055 68 ITIL® SERVICE OFFERINGS AND AGREEMENTS CERTIFICATION KIT—THIRD EDITION 6.1.1 Purpose and Objectives The purpose of Service Portfolio Management as defined by ITIL is “to ensure that the service provider has the right mix of services to balance the investment in IT with the ability to meet business outcomes.
It tracks the investment in services throughout their lifecycle and works with other service management processes to ensure that the appropriate returns are being achieved.
In addition, it ensures that services are clearly defined and linked to the achievement of business outcomes, thus ensuring that all design, transition, and operation activities are aligned to the value of the services” (ITIL Service Strategy, page 170). A medium sized company, ABC Associates, has recently started the adoption of IT Service Management to the business.
They have identified the critical and non-critical objectives and outcomes of the business and approved the funding of several services.
What is required is a formal approach for managing the development and operation of these services to ensure that the business objectives and outcomes are achieved.
This approach is provided by the service portfolio management process and provides the following benefits: • • • • Tracks the services through the entire service lifecycle Ensures each service is well defined and associated to the business outcomes they support Ensures all service management processes are working together to provide business value Tracks the investment required to ensure each service reaches a level of value desired by the customer Service portfolio management does not manage any services, service management processes, or service assets.
Rather, service portfolio management provides a structure for collecting data and making decisions related to services, service management processes, and service assets.
The focus of the service portfolio is to describe IT services in terms of business value to the customer.
Fulfilling this focus requires the service portfolio to articulate the business needs and describe how the services will be used to respond to those needs. Copyright The Art of Service I Brisbane, Australia I Email: firstname.lastname@example.org Web: http://store.theartofservice.com I eLearning: http://theartofservice.org I Phone: +61 (0) 7 3252 2055 69 If a service provider supports multiple customer groups, they may create several service portfolios.
Each service portfolio is used to contain all service considerations related to the given customer groups.
This is especially important when distinguishing services between regulated industries, such as financial companies, pharmaceutical companies, and governments to name a few.
In these situations, the services must support the business outcomes as well as the regulated outcomes of the industry with investments being made in both. 6.1.2 Scope The service portfolio contains information about all the services being considered for delivery by the service provider, those services already being delivered to the customer, and those services no longer available to the customer for the purpose of continually generating value from the services. The restaurant menu is a perfect example of a service portfolio, using menu items as services.
The core menu comprises the food and drink items currently available to the customer.
These typically represent the most popular items ordered by the customer and make the core business for the restaurant.
To continually refresh the menu, certain menu items may be considered for possible inclusion in the menu.
These menu items may be introduced as daily specials or “limited time offers.” These specials are made to determine the actual value for the customer and, if found popular, may find themselves included in the core menu.
Seasonal menus are another form of “special” where the ingredients are restricted to a certain time of year because of growth or cost.
Some menu items may lose their popularity over time or become too expensive to continue offering.
They are taken off the menu, but the recipe may still exist in the kitchen.
At times, these retired menu items may return as “specials” because they have some level of value.
Read more about ITIL Is : 1 Purpose and Objectives The purpose of Service Portfolio Management….: