Fos

1. “ Driving innovation”
INNOVATION
in IT Service Management
Ersen Celebi

2. Contents
1 Introduction to ITSM
2 Innovation
3 Driving Innovation
4 Innovation Management
5 German Study Case
6 Case Study: Samsung
7 Case Study: DHL First Choice
8 Conclusion
9 Back-Up: ITIL
10 Q/A
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3. Introduction to ITSM
 Providers of IT services can no longer afford to focus
on technology and their internal organization[;] they
now have to consider the quality of the services they
provide and focus on the relationship with customers
 No one author, organization, or vendor owns the term
"IT service management" and the origins of the phrase
are unclear.
http://en.wikipedia.org/wiki/ITSM
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4. Introduction to ITSM
 IT service management (ITSM or IT services) is a
discipline for managing information technology (IT)
systems, philosophically centered on the customer's
perspective of IT's contribution to the business.
 ITSM stands in deliberate contrast to technology-
centered approaches to IT management and business
interaction.
 The ITSM framework can be defined as “a set of
processes that co-operate to ensure the quality of live
IT services, according to the levels of service agreed to
by the customer”.
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5. Introduction to ITSM
 It can also be seen as a philosophy for orientation
toward market, service, life-cycle and process in
general.
 The main focus of the framework is not the
development of IT applications, but rather the
management of services.
 The most frequently adopted ITSM resource is the IT
Infrastructure Library (ITIL), the de facto standard for IT
Service. Other ITSM frameworks include HP ITSM,
CobiT and ISO 20000..
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6. Innovation
Innovation can be defined as:
 “the application of new ideas to the products, processes
or any other aspect of a firm’s activities.”
 Innovations can also be understood as: “improvement,
and when implemented in the market, they expand the
competitiveness of the innovator for at least a limited
amount of time”
 “innovation as an idea that is new to the people involved,
even though it may appear to others as an imitation.”
 “Innovation is the adoption of an idea or behavior that is
new to the organization adopting it”
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7. Driving innovation
CEOs view innovation as the lifeblood of thriving
organizations. They see the integration of business and
technology as essential to the success of innovative
efforts designed to enable organizations to reach their
highest potential.
IT’s ability to control service quality and costs, and
to enable increased innovation, is now a business
imperative.
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8. Driving innovation
As a result, IT can be better positioned to:
 Create value by driving or responding to new project
and service requests through timely, high-quality and on-
budget delivery.
 Manage value in real time with an agile, integrated
infrastructure that runs efficiently and cost-effectively.
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9. Driving innovation
1 2
So many By distributing
business decision rights
processes and accountability,
depend on IT effective
these days that governance can
help to ensure 3 4
when a service
problem arises, service-oriented
it’s often decision making IT must get out
headline news. across silos. Breaking down of firefighting
silos to improve mode before it
service can focus on
excellence customer
requirements.
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10. Driving innovation
5 6 7
UK banking Group
Managing a was to create a Service excellence
service desk is centralized identity means more than
more than call management model. continual process
tracking—it The group improved improvement— it
should provide a its ability to rapidly means continually
reliable, single respond to improving and
point of contact opportunities and adding value to
for all service saved $11 m. the customer
requests. annually trough
process efficiencies
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11. Innovation Management
 “Innovation Management is about learning to find the
most appropriate solution to the problem of consistently
managing this process”
 It can also be defined as: “planning, organizing, executing
and controlling all activities related to the development
and implementation of innovations”
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12. Innovation Management
 To stay competitive and to promote innovation,
companies cannot rely on chance alone.
 It is crucial to manage the innovation process
systematically, providing both structure and goals
 This necessity is based on limited financial,material and
human resources
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13. Innovation Management
Innovation Management as consisting of five activities:
 technological integration
 the process of innovation
 strategic technology planning
 organizational change
 business development
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14. Innovation Management
The Need for Innovation:
Innovation is composed of four components-creativity,
strategy, implementation, and profitability.
 Three Types of Innovation:
 Efficiency Innovation
 Evolutionary Innovation
 Revolutionary Innovation
 The Seeds of Innovation:
 Creative Thinking
 Strategic Thinking
 Transformational Thinking
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15. Efficiency Innovation
 Efficiency Innovation focuses on identifying new ideas for
improving what already exists. This approach requires
minimal investment since the team is building on the past
and only looking for small changes in what’s already being
done.
 The strategy for efficiency innovations is usually to cut
costs, reduce cycle time,improve quality, offset a
competitor’s move or attract new customers. Typically, only
small gains are realized
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16. Efficiency Innovation
ITSM as a Methodology to empower Innovation
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17. Efficiency Innovation
1. Phase 1 illustrates the situation before introducing
ITSM. Expressed as a ratio, 100% of the time is used
for original tasks.
2. The efficiency of IT increases by using best practices.
The workload from the original IT activities is reduced
over the medium term. Sustained optimization and
expansion of the use of ITSM can attain a further
reduction of the load and open up corresponding
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18. Efficiency Innovation
3. In the third step, the innovation potential is set free.
Other changes must be made to the way of
thinking and acting. Using technology stabilizes the
use of innovation potential
4. In the final state (for the time being), the workload
is reduced and the resources thus freed up are
used to create innovation on infrastructure,
business process and product and service level.
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19. Evolutionary Innovation
Evolutionary Innovation focuses on identifying
ideas that represent something distinctly new and better.
An example was the introduction of automated
banking machines, which changed the way banks
viewed their staffing needs and shifted banking habits
from set hours to banking at any hour.
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20. Evolutionary Innovation
Evolutionary innovation requires looking more
broadly than Total Quality Management
improvements and cost savings to see the bigger
picture of what’s really needed in the organization
and marketplace.
Instead of duplicating what already exists, the team
must look for new ways to bring value to the
organization and the customer.
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21. Revolutionary Innovation
Revolutionary Innovation focuses on radically new
and better ideas that don’t operate within the existing
structure of the organization and marketplace but may
in fact dismantle that structure. For example,
Dell Computer’s direct-to-consumer sales
strategy in the computer industry.
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22. German Case Study
This study is about the comparing the results of the
ITSM and Innovation process implementation in
different companies. Six different companies have been
investigated in the scope of this study:
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23. German Case Study
The results based on:
 considering separately ITSM adoption and Innovation
Management implementation
 ‘the interviewees’ perception of the impact of ITSM on
their Innovation Management.
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24. German Case Study
In case A:
 No direct impact of ITSM on Innovation Management.
 The two need to be considered as separate processes.
 Only when all ITSM processes have been installed
properly and reached a certain maturity level can
Innovation Management follow as a next step, to optimize
and develop processes.
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25. German Case Study
Case B:
 Describes ITSM and Innovation Management as “natural
enemies.”
 the adoption of an innovative process distracts from the
main objective of ITSM frameworks
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26. German Case Study
Case C:
 They could identify impact of ITSM on Innovation
Management. “Plan-Do-
Check-Act” cycle Plan
Do
Innovation Management within
their ITSM framework shows
three basic types of impact:
Check
Act
 significant increase of customer satisfaction
 image improvement
 product and service quality improvement
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27. German Case Study
Case D:
 it is not a question for them whether there is an impact,
but rather how great this impact is.
 Specifically, they have noticed that, due to the faster
adoption of innovations via the ITSM, customers’ needs
can be handled more efficiently
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28. German Case Study
Case F:
 For them ITSM as the superior model. After first
implementing ITSM, they later introduced Innovation
Management into the framework as an independent
process.
 Innovation Management as a new strategic process was
possible since case F’s ITSM consists of not only
operational processes (e.g. Incident Management) but
also strategic processes
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29. Transformational Thinking
 Organizational Innovation
The Innovation Systems Architecture Model
 Shared Innovation Vision and Strategy
 Innovation Environment Supports
 Innovation Resource Allocation
 Innovation Process Networks
 Innovation Programs
 Innovation Skills Development
 Innovation Rewards and Recognition
 External Stakeholder Innovation (Customers and
Partners)
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30. Transformational Thinking
 The Innovative Organization Assessment:
A Holistic Approach Two ways to measure these
efforts:
 Innovation output
 Innovation throughput
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31. Case Study :SAMSUNG-TRIZ
 Shared Innovation Vision and Strategy
 At SAMSUNG VIP center the goal is to train every
engineer and researcher in TRIZ think.
 “We put ideas on the table they put ideas on the table
and we go from there” says TRIZ specialist Lee.
 SAMSUNG Six Sigma Method (SS DFSS) Drives
Innovation leading with TRIZ and other tools.
 TRIZ is a family of tools providing potential solution
paths to technical problems.
 3.000.000 patents have been investigated making the
TRIZ methodology statistically significant
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32. TRIZ
 Innovation Resource Allocation
 SAMSUNG have 50 Full Time TRIZ Experts in
SAIT(SAMSUNG Advanced Institute of Technology)
 Innovation Environment Supports
 SAMSUNG invested TRIZ by building expertise
Training & Infrastructure to Deploy TRIZ
 Innovation Skills Development
 Now TRIZ part of basic technology training.
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33. TRIZ
 Innovation output: DVD Player
This project resulted in
 ~$100M in cost reduction
 9 Patents
 Reduction in components from 8 to 4
 Increased reliabilty.
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34. ITIL approach
ITIL can provide a mechanism for fostering
innovation.
The value network must be addressed in order to seamlessly
bring suppliers together
Stakeholders demands value from IT.
A common dictionary is needed.
There is no value without fit for purpose and fit for use.
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35. ITIL approach
Lower cost of ownership can enable IT to address the low
margin markets.
Customers will ultimately base their service selection on price.
Resources can be diverted to new capabilities needed to
service low margin markets.
Provide distinct and measurable competitive differentiation.
Recovered resources can be allocated to the creation of
disruptive services.
Identify potential disruptive technologies.
Build the markets and the supporting services.
The exploitation of disruptive technologies create results.
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36. ITIL approach
IT Leaders must demonstrate capability for optimal IT
Service delivery
 Reportable metrics drive action.
 Customers recognize tangible value.
 Performance information is motivation for moving the
needle.
 Control objectives enable on-demand capability
audits.
 Point in time readings validate improvements.
 Regulatory compliance no longer becomes an issue.
 Identifies acceptable levels of risk.
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37. ITIL approach
 Continuous improvement is the key to success.
 Deming’s PDCA
 Continuous value delivery keeps customers engaged.
 Creates consistent and cost-effective services.
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38. Conclusion
Regarding to all of the content above:
In a ITSM environment, innovation is supported by the
Improvement Process in most of the cases.
Innovative ideas can be transformed to the real life in
case there is an effective Improvement process in place.
There are some standards such as ITIL, which helps to
increase the quality of the ITSM environment and also
brings solutions to stumbling blocks for innovation.
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39. Q&A

41. BACKUP
In the following slides you can find
ITIL approach to Innovation & Innovation Management in
a ITSM environment:
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42. ITIL
The Information Technology
Infrastructure Library® (ITIL®)
helps companies and
government agencies improve
the quality and reduce the costs
of IT services that support their
business objectives.
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43. ITIL
The Federal government recognized that by leveraging
ITIL’s recommendations and best practices agency IT
departments could decrease overall IT spending and
continually improve IT service management.
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44. ITIL History
 ITIL originated in the 1980s when the British government
determined that it was not receiving a sufficient level of IT
service quality.
 First released as the Government Information Technology
Infrastructure Management (GITIM) framework by the
United Kingdom’s Office of Government Commerce, this
series of 31 books provided best practices and guidelines
for managing and maintaining IT infrastructures.
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45. ITIL History
 In the 1990s, the second version of ITIL was released
and rapidly accepted by companies and government
agencies in Europe and throughout the world. With ITIL
V2, the number of books was reduced from the original
31 to 10.
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46. ITIL History
 In 2007, ITIL V3 was introduced. With ITIL V3, V2’s ten
books were consolidated into five books, each
approximately 300 pages in length and dedicated to a
major activities such as:
 Service Strategy
 Service Design
 Service Transition,
 Service Operation
 Continual Service Improvement (Innovation Management)
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47. ITIL - Continual Service Improvement
Continual Service Improvement describes proven
practices for continual improvement in the quality of the
services that the IT organization delivers to the
business.
Key areas of this volume are :
Service Reporting
Service Measurement Business
Service Level Management.
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48. ITIL - Improvement Process
Standardize
Standardize Standardize
Standardize Automate
Automate Optimize
Optimize
Infrastructure
Infrastructure Process
Process
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49. References
 Influence of IT Service Management on Innovation Management: First
Insights from Exploratory Studies
M. Kießling*, M. Marrone† and L. M. Kolbe‡
Service Innovation Studie '04 Arthur D. Little
INNOTRAIN Project
The Seeds of Innovation (ISBN 0814471463)
SAMSUNG TRIZ
DHL FIRST CHOICE
Wikipedia
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