Considering the Customer Experience- Providing Enterprise Services

Services from the Consumer Perspective
A common sense approach to
IT/Business alignment
Copyright 2014 Thavron Solutions, LLC

Credentials
• Me: Nan Braun
• CEO Thavron Solutions
• nbraun@thavronsolutions.com/ @thavronsol / http://thavron.com/blog
• Corporate IT – many roles- “hands” on to BRM to architecture
• CTO, ontological modeling
• Director, TBM Practice
• You?

Catalog &
Asset
Management
Service
Costing &
Billing
Product &
Project
Management
Supplier /
Vendor
Management
Service
Portfolio
A Framework for Business Service Success
Financial LifecycleProduct Lifecycle
TM

Catalog &
Asset
Management
Supplier /
Vendor
Management
IT Service Management
IT Component Catalog
Incident management
IT Service Catalog
Incident Prevention
Business Service Catalog
Customer Experience Management

IT as a Service Provider

The Customer Experience : Then

IT ? Here there be Dragons…

The Customer Experience : Now

What does this mean for customer experience?

Service Costing mistakes that break the customer experience:
• Billing Consumers on actual costs when cost drivers are not
scale-able
• Service units that are difficult to manage
• IT Component Services vs. Business Services
• Services with bad proxy allocations to the business
• Pass Thru SLAs

COST MODEL DEPENDENCIES THAT DO NOT SCALE

Here is what the customer is expecting….
$750/month

Here is what the customer is expecting….
$600/month

So when this happens…...
$750/month

And then this happens.….
$650/month

This should not be a surprise.

How can this happen?
$650/month
$600/month
VS.

PC Service Cost Modeling
GL Account
6879099
GL Account
6879123
GL Account
6879224
Service Desk
OnSite
Support
PCs
PCXX23
PCXX34
PCXX45
PCXX56
PCXX67

GL Account
6879099
GL Account
6879123
GL Account
6879224
Service Desk
OnSite
Support
PCs
PCXX23
PCXX34
PCXX45
PCXX56
PCXX67
1: 1 per PC

GL Account
6879099
GL Account
6879123
GL Account
6879224
Service Desk
OnSite
Support
PCs
PCXX23
PCXX34
PCXX45
PCXX56
PCXX67
1: every up to 10 PCs

GL Account
6879099
GL Account
6879123
GL Account
6879224
Service Desk
OnSite
Support
PCs
PCXX23
PCXX34
PCXX45
PCXX56
PCXX67
Tickets of type “PC” spread evenly

Or This Can happen……
Joe’s Windows Server : $400/month
Sue’s Windows Server : $400/month
Pat’s Windows Server : $400/month

Or This Can happen……
Joe’s Windows Server : $600/month
Pat’s Windows Server : $600/month

TCO Service Costing:
GL Account
68790992
GL Account
68791234
GL Account
68792244
DataCenter
Storage
Server
hardware
Software
GL Account
68792254
Physical
Server TCO
Virtual
Server:
AAJoe123
AASue225
AAPat334$1200
$400/each

GL Account
68790992
GL Account
68791234
GL Account
68792244
DataCenter
Storage
Server
hardware
Software
GL Account
68792254
Physical
Server TCO
Virtual
Server:
AAJoe123
AAPat334$1200
$600/each

Exposing Actual Costs to Consumers is Dangerous
• Not all Cost components are on a 1:1 ratio
• Unit rates are the most important number for a consumer
• If you are doing showback or chargeback, calculate the
Consumer cost based on a fixed unit rate- not on actual costs.
• Variance is for INTERNAL IT “run the business” decisions- not
for exposure to the external consumer.

SERVICE UNITS THAT ARE DIFFICULT TO MANAGE

Imagine if this happened……
You can’t beat the
price. It is only $1503 /
Horsepower per
minute

Please stop reporting/charging in units customer
do not control…..
• Gigacycles
• LPARs
• PC CPUs
• Compute cycles
• luns
• Etc…
• Gb transmitted

How to deal with awkward consumption data:
• Unit conversion table in the model
• Ignore the consumption data
• Restructure the Service

IT COMPONENT SERVICES VS BUSINESS SERVICES

Non-TCO Service Costing:
GL Account
68790992
GL Account
68791234
GL Account
68792244
DataCenter
Storage
Servers
Database
GL Account
68792254
DataCenter
Storage
Servers
Database

GL Account
68790992
GL Account
68791234
GL Account
68792244
DataCenter
Storage
Servers
Database
GL Account
68792254
SAP
Email
TimeEntry
Sharepoint
Servers
Applications

SERVICES WITH BAD PROXY ALLOCATIONS

Not what you expect when shopping…
Shoe sale today: $5/Finger

If you have to use a Proxy for consumption:
• Make it related….
• At least make it scale in the same ratio as expected
consumption…

PASS THRU SLAS

Subcontracting
• Not all IT Services are going to be provided by your in-house
team
• There are a lot of times that it makes sense to buy, not build

Typical SLA scenario
Outsourced Service Provider
We can
deploy new
Virtual
Servers in 6
hours
What goes into the Service Catalog?
Virtual Servers: “We can deploy
new Virtual Servers in 6 hours”

What it actually takes to deploy a Virtual Server
Business
Request
Form
Request Received
by BRM, vetted
Request Review by
Architecture
Good
?No
Request put in
Queue in Ops Team
OutSourced Service
Provider Process
Virtual
Server
Deployed
6 hrs later
Yes

Bringing Business to the Center
• To align and enable the business, IT must bring the business
back to the center of what they do.
• Put yourself in your customer’s shoes before releasing Service
Definitions and costing to them
• Business Value = Bottom line
– Business Value= Order to Cash experience + Usage Value

Discussion
Follow up questions?
Nan Braun
nbraun@thavronsolutions.com
765.252.4509 / http://thavron.com /@ThavronSol

Catalog &
Asset
Management
Service
Costing &
Billing
Product &
Project
Management
Supplier /
Vendor
Management
Service
Portfolio
Leverage ITFM info: build your platform for Success
Financial LifecycleProduct Lifecycle
TM

Considering the Customer Experience- Providing Enterprise Services

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