Management paradigms change in IT. Most often this occurs on the "supply" side. But demand-based management is what reflects the business and why it cares about ITSM.

1. Demand-based ITSM as
Business Resource Management
An Archestra Notebook
© 2014 Malcolm Ryder / archestra research

2. Preface
In this notebook:
• The discussion is intended to describe, not to prescribe; any prescriptive use can be based only on
making comparisons of the description to current observations about particular real
circumstances or locations
• The discussion is about ITSM; however, it is neither about ITIL nor based at all on ITIL terminology
• Terminology in this discussion is defined in the first section of the content
• “IT” or “I.T.” means “information technology”, used in the same way that we would use the terms
“personnel” or “funding”
• “IT” or “I.T.” is not used as the name of an organization or department; a provider of IT is a role
that can be played, however this entire discussion is based on the point of view of the
customer/client/recipient regardless of provider.
All text and images in this discussion © 2014 Malcolm Ryder / archestra research

3. Content
• Discussion terminology
• Discussion Overview
• Business Overview of Enablement
• Management Planning
• Business Performance Management
• Business Value of IT
• Business Resource Management and IT

4. Discussion Terminology

5. Acronyms and Ideas
• Dependency Hierarchy
Business decisions are independent variables that have after-effects which are dependent variables.
The dependent variable is the [state] expected to change whenever the independent variable is
altered.
In a test, the "independent variables" represent the inputs or causes... the "dependent variable"
represents the output or effect.
Higher-level decisions are inputs that require consideration of necessary changes to lower-level
conditions
Lower-level decisions are inputs that require consideration of probable impacts on higher-level
conditions
• Management Processes
BPM – Business Process Management
CRM – Customer Relationship Management
ERP – Enterprise Resource Planning
ITSM – Information Technology Service Management
BRM – Business Resource Management

6. Enterprise, Defined
A collection of
multiple instances of Operations,
with Agreements that both
manage their co-operation
and
co-manage their property

7. Business, Defined
A set of co-ordinated and underwritten
operations to convert
acquired property of one party into
delivered benefits for another party
Property may be tangible or intangible

8. Service, Defined
On-demand delivery
of designated outputs of an operation,
within terms of agreement between
provider and user
A “service” is a status of an operation; an
operation may or may not be a service

9. Operation, Defined
A continual, managed process for
organizing a pre-designated
affect on an opportunity
Operations are “business abilities”

10. Resource, Defined
An item, influence or party
subscribed to an operation
for a prescribed purpose

11. Capability, Defined
A functional competency
already held in the form of
an executable-on-demand action
Technology-dependent execution
is of special interest to the business

12. Business Needs, Defined
VALUE: a critically beneficial distinction in the market, created and sustained by how the business operates
WORKFLOW: prescribed behaviors and interactions, organized to intentionally execute requirements
CAPACITY: level of resource supply maintained for commitment to expected (or desired) demand
PLATFORM: integrated utilities and facilities used to host and enable workflow at needed capacity (types,
scale and volume/strength)
Business value; Business workflow; Business capacity; Business platform.

13. Value Propositions
Capability Resource Operation
A functional competency
already held in the form of
an executable-on-demand action
An item, influence or party
subscribed to an operation
for a prescribed purpose
A continual, managed
process for organizing a
pre-designated affect
on an opportunity
Business Ability Solution Relevance
Service Delivery Impact Availability
IT Function Effect Alignment
a critical distinction,
created and sustained for an objective
E.G. – for a Service, the value is in the delivery of the capability; as a resource the value of the delivery is
its expected impact; and the value of the impact to an operation is in the planned availability of that
impact . Otherwise, the business would choose to use something different.
©2014MalcolmRyder/archestraresearch

14. Discussion Overview
Approaching business opportunity with Capability

15. 








OPERATIONS
BUSINESS
NON-
BUSINESS
MANAGEMENT
SERVICES

 General retail
 Community services
 Municipal administration
 Communications & travel
 Corporate and market operations
 Education
 Business products
 Executive administration
 Legal
 Medical, Security
All of the managed coverage of “business
concerns” (examples here) assumes that
events, intentions and support can be
sufficiently coordinated to allow success.
This picture represents only that there are multiple
kinds of operations and services that the company ‘s
business management expects and can intentionally
leverage or influence.
© 2014 Malcolm Ryder / archestra research
Management Landscape

16. Business Needs
Business chooses what help it wants to
use, and the help must co-ordinate itself
to the business needs
Now and going forward, the default assumption is that
help is equally likely to be available and obtained
externally of the company as internally.
Coordination will include ongoing circumstances of
new or additional help being brought in to
replace, integrate, or collaborate.

17. Demand-based Business Management of Services
“Service Management” necessarily refers to both (a.) the management that forms a
service and (b.) the management that chooses to use a service.
The existence of a service for a business inherently requires “management”. In
effect, without management, there is no service. The business conducts
“management operations” to assure a supply of viable services.
Business also presumes that the value of a service is cultivated by management.
The main purpose of a service is to fulfill demands of “business operations”.

18. Organize specifically for diversity and change
Continually meeting business
demand requires awareness of
the hierarchy of variable key
dependencies where changes
may occur to decisions that
the business had already made.
The business decisions are
based on whether the right
outcomes are being obtained
from the right utilizations of
feasible and reliable forms of
enablement.
Business management of IT is
not Technology Management;
instead, it is management of
the business utilization of
technology, facing constant
change.
Support
Provision
Selection
Source
Validation
Operate
Production
Planning
Direction
APPROPRIATE
(WHY)
FEASIBLE
(HOW)
RELIABLE
(WHAT)
Configure, deploy, implement
Design, evaluate, approve
Test, secure, offer
Find, procure, build
Scope, allocate, assign
Supervise, control, modify
Demand
Criteria
Business
Decisions
Critical
Variables
Business
Requirements
© 2014 Malcolm Ryder / archestra research

19. Management of IT-based Services
ITSM, or IT Service Management, is one form of management, of one kind of service
among many kinds of services used by the business.
The role of “IT” in the enterprise is to provide capabilities for business operations,
by enabling capabilities that are delivered as supportable resources.
A service makes an IT-based capability deliverable on demand. This means that the
purpose of a service is to be a supported business resource.
The business requirement for ITSM is to mature as Business Resource Management.

20. Business Overview
of Enablement

21. Business Needs
Business chooses what help it wants to
use, and the help must co-ordinate itself
to the business needs
CAPACITY WORKFLOW
PLATFORM
VALUE

22. Overview of Business Enablement
Business “Intents”
held
Business “Operations”
managed
Business “Objectives”
managed
Emphasize preferences Strategy Demand
Discover opportunity Environment Engagement
Organize co-operation Architecture Development
Obtain resources Infrastructure Provision
Select and Synchronize
these “abilities” with
each other
Define and Direct
these “priorities”
towards each other
Direct and Task
“management” per
these requirements
Approaching Opportunity with Capability
©2014MalcolmRyder/archestraresearch

23. Organization of Enablement
CRM
BPM
ITSM
ERP
CRM
BPM
ITSM
ERP
Business “Operations” with management solutions Business “Objectives” with management solutions
©2014MalcolmRyder/archestraresearch
Details within
operations and within
objectives face
constant change

24. Co-Operation for Value:
CRM
BPM
ITSM
ERP
Business Operations
CRM
BPM
ITSM
ERP
Business Objectives
Operations
for
Objectives

25. Co-Operation for Workflow:
CRM
BPM
ITSM
ERP
CRM
BPM
ITSM
ERP
Business Operations Business Objectives
Operations
for
Objectives

26. Co-Operation for Capacity:
CRM
BPM
ITSM
ERP
CRM
BPM
ITSM
ERP
Business Operations Business Objectives
Operations
for
Objectives

27. Co-Operation for Platform:
CRM
BPM
ITSM
ERP
CRM
BPM
ITSM
ERP
Business Operations Business Objectives
Operations
for
Objectives

28. Strategy: bridging Capacity and Value
CRM
BPM
ITSM
ERP
Capacity
CRM
BPM
ITSM
ERP
Value

29. Architecture: bridging Platform and Workflow
CRM
BPM
ITSM
ERP
Workflow
CRM
BPM
ITSM
ERP
Platform

30. Management Planning
Business Responsibilities of Management Solutions

31. VALUE: a critically beneficial
distinction in the market, created
and sustained by how the business
operates
WORKFLOW: prescribed behaviors
and interactions, organized to
intentionally execute requirements
CAPACITY: level of resource supply
maintained for commitment to
expected (or desired) demand
PLATFORM: integrated utilities and
facilities used to host and enable
workflow at needed capacity (types,
scale and volume/strength)
BUSINESS NEEDS
Primary
responsibilities
©2014MalcolmRyder/archestraresearch

32. from Area To CRM To BPM To ERP To ITSM
Value / CRM n/a Request capability for:
- engagement
- environment
Request resources for:
- demand
- strategy
Set constraints on:
platform
VALUE: a critically beneficial distinction in the market, created
and sustained by how the business operates

33. from Area To CRM To BPM To ERP To ITSM
Workflow / BPM Give resource for:
- engagement
- environment
n/a Set constraints on:
Capacity
Request capability as:
- development
- architecture
WORKFLOW: prescribed behaviors and interactions, organized
to intentionally execute requirements

34. from Area To CRM To BPM To ERP To ITSM
Capacity / ERP Give resource for:
- demand
- strategy
Set constraints on:
workflow
n/a Request capability as:
- provision
- infrastructure
CAPACITY: level of resource supply maintained for commitment
to expected (or desired) demand

35. from Area To CRM To BPM To ERP To ITSM
Platform / ITSM Set constraints on:
value
Give resource for:
- development
- architecture
Give resource for:
- provision
- infrastructure
n/a
PLATFORM: integrated utilities and facilities used to host and enable
workflow at needed capacity (types, scale and volume/strength)

36. from Area To CRM To BPM To ERP To ITSM
Value / CRM n/a
Request capability for:
- engagement
- environment
Request resources for:
- demand
- strategy
Set constraints on:
platform
Workflow / BPM
Give resource for:
- engagement
- environment
n/a
Set constraints on:
capacity
Request capability as:
- development
- architecture
Capacity / ERP
Give resource for:
- demand
- strategy
Set constraints on:
workflow n/a
Request capability as:
- provision
- Infrastructure
Platform / ITSM
Set constraints on:
value
Give resource for:
- development
- architecture
Give resource for:
- provision
- infrastructure
n/a
A “Co-Operations” agenda, including I.T.
The business management of IT: what to source and support
©2014MalcolmRyder/archestraresearch

37. Business Performance Management
The Benefit of the Resource

38. The effectiveness of a capability is provided as a resource;
the impact of a resource is provided as a benefit
For a Resource: the performance of a resource is evaluated in terms
of the benefit that the effort of the resource creates. It reflects
“doing the right thing”.
The benefit is understood as a level of actual impact achieved versus
the planned level for that resource effort. Lesser effort reduces the
probability of higher impact.
A resource performance must be relevant to the business needs.
For a Capability: the performance of a capability is evaluated in
terms of the alignment with expected effects that the capability
availability creates. It reflects “doing things right”.
The alignment is understood as an actual degree of effects versus
the expected degree supported by the quality of the provided
supply. Lower quality reduces the probability of strongly meeting
expectations.
A capability performance may be technology-dependent.
The on-demand availability of
relevant capability
is a key to the resource’s
level of applied effort
The deliverability of
technology-dependent capability
is a key to the recognized quality of
the capability
Performance = “strong or weak”
Performance = “high or low”

39. Managing Performance
(Benefit) of Resources
Managing Performance
(Alignment) of Capabilities
There is no presumption of business
performance without “planning”; the plan
prescribes the relevance of the resource.
There is no presumption of business
performance without “support”; support
prescribes the availability of the capability.
The performance of a resource is
“the degree of planned impacts made
@ the confirmed level of the applied effort”
by the resource.
The performance of a capability is
“the degree of supported effects met
@ the confirmed level of the advertised
quality“ of the capability.
I.T. note: The on-demand availability of relevant capability
is the key to the level of applied effort by a resource
I.T. note: The deliverability of technology-dependent
capability is key to its perceived quality
Resources are committed to business
opportunities. Business opportunities are
defined through managed decisions, as a form of
demand.
Capabilities are acquired from business
sources. Business sources are defined
through managed production, as a form of
supply.

40. Measurement: the performance of a capability is different from
the performance of a resource bringing the capability
IMPACT from provided RESOURCE
Planned
Actual
highlow
None
Example of relatively low performance. Note that
greater effort from resource can heighten plans.
EFFECT from provided CAPABILITY
Expected
Actual
strongweak
None
Example of relatively strong performance. Note
that higher-quality capability can raise expectations.
© 2014 Malcolm Ryder / archestra research

41. Managing Performance (Benefit) of Resources vs. Demand
Allowed the least flexibility
Allowed the most flexibility
DECIDE PortfolioOpportunity
PLAN ModelImpact
PERFORM TargetEvent
BUSINESS INSTANCE BUSINESS REFERENCE
Resource management can focus on the types of opportunity
and the modelling of impacts representing business intentions.
© 2014 Malcolm Ryder / archestra research

42. Managing Performance (Alignment) of Capability from Supply
SOURCE LifecycleProduction
SUPPORT ModelDelivery
PERFORM FrameworkOperation
INSTANCE REFERENCE
Capability management can focus on the lifecycle of production
and the modelling of delivery, representing resource requirements.
© 2014 Malcolm Ryder / archestra research

43. Use a Lifecycle Use a Model Use a Framework
Perform Required quality
Support Required access
Source Required supply
ORGANIZING
CAPABILITY
Definition IT Assurance Delivery Relevance
Perform Effectiveness @
level of offered quality
Quality Process Usage / Use Case
Support Sustained availability Usability Provision Function
Source Production of supply Type Deployment Needs
CAPABILITY
ALIGNMENT
(WHY)
Definition IT Assurance Delivery Relevance
Quality
Framework
Matrix of contiguous and
concurrent operational factors
Platform Policy Portfolio
Access
Model
A configuration of essentials,
defining a type
System Service Offering
Supply
Lifecycle
Birth-to-death stages of
continued presence
Sourcing Fulfillment Program
CAPABILITY
STANDARDS
(WHAT)
©2014MalcolmRyder/archestraresearch
Managing the Business Performance of IT

44. Business Value of IT
IT as a Resource

45. Business Reality: high level
Business chooses why it wants to
do something, and it chooses
what help it wants to use
Needs turn into
requirements and vetted providers,
while
strategy and architecture assign
the business resources to the business needs

46. Make technology deliverable
in order to maximize
the availability of capability
Manage capability to maximize
resource achievement of
business objectives
Business Management of I.T. going forward:
sourcing Capabilities, and supporting Resources

47. Demand-based Overview of IT’s Value
Delivery Relevance
Framework Value Portfolio
Model Service Offering
Lifecycle Fulfillment Program
IT CAPABILITY STANDARDS
Value Capability
A functional competency
already held in the form of
an executable-on-demand action
Business Ability
Service Delivery
IT Function
What Demand wants from Business
What Business wants from IT
©2014MalcolmRyder/archestraresearch

48. “Capability” deliverable as a Service
Capability packaged as a service
produces a resource for operations
On-demand access
Availability
Supportability
Quality
Configuration
Demand-based
Support Model
of Delivery
Technology
(sourced re: a capability)
Resource
(provided to an operation)

49. OVERVIEW: Capabilities for business “resources”
Is a business Operator
The Customer, on behalf of business,
using a Resource that may be under:
• Ownership
• Sharing
• Change
The business Operator
needs a Capability
made Available as an:
• Interface
• Facility
• Orchestration
The Capability
has a target Effectiveness
that can be Dependent on:
• Data-driven events
• Automated mechanics
• Stabilized systems
Issue: RELEVANCE
Addresses resourcefulness
Issue: DELIVERY
Addresses availability
Issue: IT ASSURANCE
Addresses dependency
© 2014 Malcolm Ryder / archestra research

50. User Capability via IT Provision
The business Operator
needs a Capability
made Available as an:
• Interface
• Facility
• Orchestration
The Capability
has a target Effectiveness
that can be Dependent on:
• Data-driven events
• Automated mechanics
• Stabilized systems
Managed IT-based Services:
Effective capabilities are Sourced and
Supported for the Demand presented by
the Operator
Sourcing includes assurance
Assurance includes
- Requirements definition
- Development
- Contracting
Support includes delivery
Delivery includes
- Service definition
- Demand Agreements
- Capability validation
Business has management operations that cover the business
operator’s need for IT. The need is for effective capability.
ITServices

51. Capability Types in Defined Service Types
User Needed Service Capability Types
Technical type Systematical type Functional type
Interface service Voice, bluetooth Diverse clients/channels Cross-device
Facility service Virtual machines Ubiquitous access points Collaboration workspaces
Orchestration service Account linking Networked procedures Compound apps, mashups
Examples:
Technology Enablement
• Legacy
• Enhancements
• Innovations

52. Business Resource Management and IT

53. ITSM as Resource Management
• “Enterprise” agreements govern the property that occurs in business operations
• Business resource management controls the alignment of resources to business
operations
• A service can provide IT as a resource to operations
• Continual management of IT-based Resources can itself be conducted as a service
to the business
• The effective role of ITSM has been to conduct management of IT-based
resources for the business
• In effect, ITSM is a subset of business resource management, by functioning as a
component service of business resource management

54. An IT-based capability can be a service provided as a resource
to operations of the business.
In effect, ITSM is a subset of business resource management.
IT property/non-IT property …
IT capability/non-IT capability …
IT business service/non-IT business service…
Property
I.T.
Capability
With agreements
With requirements
BUSINESS
OPERATION
Service
With assignments
RESOURCE

ITSM as Resource Management, Demystified
© 2014 Malcolm Ryder / archestra research

55. © 2014 Malcolm Ryder / archestra research
mryder@malcolmryder.com