Service governance

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Service governance model Service Governance IMG 0846.jpg
Service governance model

Service governance is a means of achieving good corporate governance through managing internal corporate services across and throughout an enterprise. It engages stakeholders and delivery channels for the purpose of effectively managing risk, as well as driving the intended business value [1] with a focus on how decisions are made and enforced in a dynamic business environment.

Contents

Though its initial focus was on IT services, this approach to management can apply to accounting, business administration, and other internal service sectors. Institutionalizing these services enables the monitoring and control of risk, value, and cost. [2] Principal among the issues is the fair funding for each service and the allocation system for scarce services.

Institutionalizing internal corporate services is the corporate management equivalent of a massive general ledger, only with the line items reflecting the services, not simply departments. The service portfolio allows the governance of services as a means to govern the organization by value. [3]

Service portfolio

The portfolio of services is a list of all internal services that are available within the organization. The portfolio describes each service, how it is funded, its associated costs and ownership boundaries, and its current performance and identified conflicts. [4] [ better source needed ] The portfolio will include services which have been outsourced and are supplied to the organization by third parties.

The services portfolio provides a map of the organization, providing directors with a different way of understanding the dynamics of the organization than those received from financial reports. This allows the board to more easily make decisions based on accurate and contemporaneous information.

Value

Service governance uses the methods described in the management of value (MoV) to discover the requirements of the organization and to use those on design services, and their measures to deliver those values. [5] [6] In particular, the service governance organization is chartered to define clear service ownership boundaries and specify a fair funding model. [7]

Measurement and compliance

Well-established practices are used to design measures and metrics for the organization and to meet the requirements of the corporate mission, charter, and policy. This ensures that metrics inform what is required by the organization and supply accurate information: to the board for strategic governance decisions and to management for operational decisions. [8] [9]

Accurate metrics also ensure compliance with the requirements of audit, enable the production of financial and sustainability reports, and reports on corporate citizenship. [10]

Enterprise service management

A component of service governance, enterprise service management (ESM) is a means of extending service management across an entire organization, often from IT service management (ITSM). [11]

ESM provides an integrated view of core service business processes, often in real-time, using common databases. ESM systems track: business resources, including people, parts and assets; and the status of customer commitments, such as service requests, orders, repairs and service-level agreements (SLAs). The applications that comprise the system share data across various departments (customer service, technical support, sales, field service, etc.), which then use the information for their work. ESM facilitates information flow between departments and coordinates activities with external resources involved in the service business process.

Enterprise service management is also a term used to generically describe the use of service processes and technologies across an organization. The term is broad in comparison to ITSM, which only concerns the management of IT services.

History

The term service governance has been used to describe the success that a number of organizations have had in using the 'best practice' advice found in frameworks such as ITIL, The Open Group Architecture Framework (TOGAF), and others, for company-wide service design and operation. [12] [ failed verification ]

Many of the ideas of service governance, including the important one of sustainability, are included in ISO 37000, published in September 2021 ISO 37000 [13]

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Information technology (IT)governance is a subset discipline of corporate governance, focused on information technology (IT) and its performance and risk management. The interest in IT governance is due to the ongoing need within organizations to focus value creation efforts on an organization's strategic objectives and to better manage the performance of those responsible for creating this value in the best interest of all stakeholders. It has evolved from The Principles of Scientific Management, Total Quality Management and ISO 9001 Quality management system.

Information technology management or IT management is the discipline whereby all of the information technology resources of a firm are managed in accordance with its needs and priorities. Managing the responsibility within a company entails many of the basic management functions, like budgeting, staffing, change management, and organizing and controlling, along with other aspects that are unique to technology, like software design, network planning, tech support etc.

Information technology service management (ITSM) is the activities that are performed by an organization to design, build, deliver, operate and control information technology (IT) services offered to customers.

Enterprise architecture (EA) is a business function concerned with the structures and behaviours of a business, especially business roles and processes that create and use business data. The international definition according to the Federation of Enterprise Architecture Professional Organizations is "a well-defined practice for conducting enterprise analysis, design, planning, and implementation, using a comprehensive approach at all times, for the successful development and execution of strategy. Enterprise architecture applies architecture principles and practices to guide organizations through the business, information, process, and technology changes necessary to execute their strategies. These practices utilize the various aspects of an enterprise to identify, motivate, and achieve these changes."

COBIT is a framework created by ISACA for information technology (IT) management and IT governance.

Project portfolio management (PPM) is the centralized management of the processes, methods, and technologies used by project managers and project management offices (PMOs) to analyze and collectively manage current or proposed projects based on numerous key characteristics. The objectives of PPM are to determine the optimal resource mix for delivery and to schedule activities to best achieve an organization’s operational and financial goals, while honouring constraints imposed by customers, strategic objectives, or external real-world factors. Standards for Portfolio Management include Project Management Institute's framework for project portfolio management, Management of Portfolios by Office of Government Commerce and the PfM² Portfolio Management Methodology by the PM² Foundation.

Technology strategy is the overall plan which consists of objectives, principles and tactics relating to use of technologies within a particular organization. Such strategies primarily focus on the technologies themselves and in some cases the people who directly manage those technologies. The strategy can be implied from the organization's behaviors towards technology decisions, and may be written down in a document. The strategy includes the formal vision that guide the acquisition, allocation, and management of IT resources so it can help fulfill the organizational objectives.

ITIL security management describes the structured fitting of security into an organization. ITIL security management is based on the ISO 27001 standard. "ISO/IEC 27001:2005 covers all types of organizations. ISO/IEC 27001:2005 specifies the requirements for establishing, implementing, operating, monitoring, reviewing, maintaining and improving a documented Information Security Management System within the context of the organization's overall business risks. It specifies requirements for the implementation of security controls customized to the needs of individual organizations or parts thereof. ISO/IEC 27001:2005 is designed to ensure the selection of adequate and proportionate security controls that protect information assets and give confidence to interested parties."

IT portfolio management is the application of systematic management to the investments, projects and activities of enterprise Information Technology (IT) departments. Examples of IT portfolios would be planned initiatives, projects, and ongoing IT services. The promise of IT portfolio management is the quantification of previously informal IT efforts, enabling measurement and objective evaluation of investment scenarios.

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An operating model is both an abstract and visual representation (model) of how an organization delivers value to its customers or beneficiaries as well as how an organization actually runs itself.

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Micro Focus Service Manager is one of the applications acquired by Micro Focus when it purchased part of Hewlett-Packard Enterprise Software (HPES) in 2017. Before 2017, it was owned by HP when it purchased Peregrine Systems in 2005. The application was originally known as PNMS. After releasing the first version of PNMS, Peregrine Systems eventually added functionality such as Request Management, Call Management, and Change Management and rebranded the application as Peregrine ServiceCenter.

Service Integration and Management (SIAM) is an approach to managing multiple suppliers of services and integrating them to provide a single business-facing IT organization. It aims at seamlessly integrating interdependent services from various internal and external service providers into end-to-end services in order to meet business requirements.

Omnitracker is a proprietary business process platform developed by Omninet GmbH in Germany. Omnitracker is developed as modular software for medium and large companies. It is used to track, control and evaluate relevant business processes. The main area of application is the support of ITIL compliant processes, which manages requests, incidents/ errors, customer inquiries from the moment of creation to completion. Omnitracker received certifications of the Federal Association of IT-Mittelstand and Pink Elephant that covers nine processes.

The Information Technology Infrastructure Library (ITIL) is a set of detailed practices for IT activities such as IT service management (ITSM) and IT asset management (ITAM) that focus on aligning IT services with the needs of the business.

References

  1. ↑ Lepeak, Stan (2016). "Enterprise service governance defined" (PDF). KPMG. KPMG. Retrieved 1 September 2016.
  2. ↑ Brooks, Peter; AXELOS (11 August 2015). Adopting Service Governance: Governing Portfolio Value for Sound Corporate Citizenship. The Stationery Office. p. 6. ISBN   9780113314652.
  3. ↑ Betz, Charles T. (2007). Architecture and patterns for IT service management, resource planning, and governance : making shoes for the cobbler's children. Elsevier/Morgan Kaufmann. ISBN   9780123705938.
  4. ↑ "Service Portfolio". Archived from the original on 22 December 2015.
  5. ↑ Vásquez, W. (2013). An economic valuation of water connections under different approaches of service governance. Water Resources and Economics, 2-3, 17-29.
  6. ↑ Handbook of research on service-oriented systems and non-functional properties : future directions. IGI Global (701 E. Chocolate Avenue, Hershey, Pennsylvania, 17033, USA). 2012. ISBN   978-1-61350-432-1.
  7. ↑ Jean-Jacques Dubray OCT 12, 2007 InfoQ https://www.infoq.com/articles/soa-governance-organization
  8. ↑ Cai, Hongming; Xu, Lida; Xu, Boyi; Zhang, Pengzhu; Guo, Jingzhi; Zhang, Yuran (22 February 2018). "A service governance mechanism based on process mining for cloud-based applications". Enterprise Information Systems. 12 (10): 1239–1256. Bibcode:2018EntIS..12.1239C. doi:10.1080/17517575.2018.1442933. S2CID   54458805.
  9. ↑ Gómez-Baggethun, Erik; Kelemen, Eszter; Martín-López, Berta; Palomo, Ignacio; Montes, Carlos (October 2013). "Scale Misfit in Ecosystem Service Governance as a Source of Environmental Conflict". Society & Natural Resources. 26 (10): 1202–1216. doi:10.1080/08941920.2013.820817. S2CID   153430766.
  10. ↑ Bakarich, Kathleen M.; Castonguay, John “Jack”; O'Brien, Patrick E. (16 November 2020). "The Use of Blockchains to Enhance Sustainability Reporting and Assurance*". Accounting Perspectives. 19 (4): 389–412. doi:10.1111/1911-3838.12241. ISSN   1911-382X. S2CID   228835696.
  11. ↑ Enterprise Service Management
  12. ↑ "CERN uses ITIL to rethink facilities management". Computerweekly.com. Retrieved 17 October 2018.
  13. ↑ "Guidance for the Governance of Organizations".
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