a business logic of services
DESCRIPTION
Producers and Users of services can easily get out of synch by relying together on something for the wrong reason. Why does a Service make sense -- if and when it does?TRANSCRIPT
A Business Logic of Services
Why Services Make Sense, If And When They Do
© 2014 Malcolm Ryder / archestra research
How to use this notebook
The following series of notes is not a fast read, not a slide show, and not an ebook.
The sequence of notes goes overa line of thought compiling
a range of empirical observations distinguishing services from
other business production resources.
No external citations are included or necessary in this notebook.
All text and images in the notebook are copyrighted.
©2014 Malcolm Ryder / archestra research
Who Cares?
Service Producers
• Services are the “product” offered by the service producer. The product acceptance and utilization must grow from successful relevance to the customer’s intent and from the customer’s product-enabled capability. The highest product value derives from it being used where it is needed, not merely where it is available.
Service Users• Industrial development, funding,
and competition all independently change and can separately or together modify the probability that existing operations can reliably create and defend the opportunities necessary for the business. The business must anticipate and coordinate those independent factors to exploit change and manage risk.
Why Services? Remove barriers to agility
Complexity Impermanence
Economy of Scope
Maintenance, Knowledge, Quality Expense, Conservation, Need
OpportunityCapacity
vs. vs.
vs. vs.
vs.
Service design Service availability
©2014 Malcolm Ryder / archestra research
What is a service?Regardless of type, means or implementation, all services have the same distinguishing definition:
• A “service” is a set of outputs from an ongoing operation, that are available to a requester, on demand by the requester, under terms of agreement.
Operational outputs can occur continuously without ever acquiring accessibility, utility and manageability as a service.
Some outputs of an operation can be offered as a service while other outputs of the same operation may not be offered. A requester can be a person or a device.
A service offers a design, a vehicle, and a method of obtaining the operational outputs. But regardless of the form of the service – for example, being a technology, an activity, or a blend of the two – the qualifying definition of a “service” never changes.
Taxonomy and Semantics
DELIVER
PROVIDEFULFILL
SUPPLY
OUTCOMEOUTPUT
ENABLE
SUPPORT
REACTIVE
PROACTIVE
TACTICAL STRATEGIC
As shown in the matrix, the business logic of the varieties of service corrects a very common misperception.
The correction is that the four central activities are not “attributes” or “phases” of a service. Nor are they synonyms.
Instead, they are four different classes of services that can be offered, which immediately affects the services catalog.
SERVICE CLASS VARIATIONS
©2014 Malcolm Ryder / archestra research
CONTRACTED
JOINEDSUBSCRIBED
ACQUIRED
OUTCOMEOUTPUT
ENABLE
SUPPORT
REACTIVE
PROACTIVE
TACTICAL STRATEGIC
Obtaining service implicitly includes a level of recipient underwriting that is distinguishable by levels of commitment.
The commitment is an investment in a blend of purpose and risk.
For the service client, the level of commitment usually corresponds to how much an opportunity cost is considered to be an investment.
SERVICE PROCUREMENT
©2014 Malcolm Ryder / archestra research
PROTECT
PRODUCEMANAGE
COMPLY
OUTCOMEOUTPUT
ENABLE
SUPPORT
REACTIVE
PROACTIVE
TACTICAL STRATEGIC
Intended impacts correspond to designated responsibilities, which mainly identify roles in a relationship between the service vendor and the service client.
“Performance” criteria apply through the context of the responsibility.
SERVICE IMPACT
©2014 Malcolm Ryder / archestra research
PREFERRED
ESSENTIALCRITICAL
ACCEPTED
OUTCOMEOUTPUT
ENABLE
SUPPORT
REACTIVE
PROACTIVE
TACTICAL STRATEGIC
The type and level of attraction of the service reflects a type of need behind a demand.
Proactive value has more required significance.
Reactive value has more discretionary significance.
Integration strengthens towards the proactive.
Adoption strengthens towards the strategic.
SERVICE VALUE
©2014 Malcolm Ryder / archestra research
Parsing the Perspectives
Business Difference
Service is obtained to “make a difference” , with a calculated persistence, in an effectively managed way.
This requires the service introduction to cause a “change” to occur.
The executive concern:
Using the correct approach for solving the right problem
The four classes of services take on significance according to a variety of businessperspectives that test the propriety of the available service.
The perspectives examine the idea of what business change is most important, and what mode of change is most effective for that purpose.
Why change? Decision Factors
Perspective Options Adoption Importance Assurance
Subject choosing the offer
definingthe scope of change
incorporating the effort
targeting the effects
Variable service class results drivers roles
Issue selection risk investment stakes priority authorization solution management
Discussion points
commitment, responsibility, dependency
intention, development, goal
initiatives, demand, impact
intention, optimization, result
Available? Relevant? Compatible? Effective?
Client perspectives vet the service against the current state:
©2014 Malcolm Ryder / archestra research
Objective Purpose Status Effect Requirement
Enable Outcomes Provide Joined Produce Essential
Support Outcomes Deliver Contracted Protect Critical
Enable Outputs Fulfill Subscribed Manage Preferred
Support Outputs Supply Acquired Comply Acceptable
Service Class Commitment Responsibility Dependency
Increasing fusion of
vendor-client business model
Service Selection (Business Options)
©2014 Malcolm Ryder / archestra research
Objective Future State Business Effect Business Change Returns
Enable Outcomes Model Joint Production Innovation Advantage
Support Outcomes Performance Assured Reliability Progress Competency
Enable Outputs Position Secured Capacity Productivity ContinuityCompatibility
Support Outputs Resource Certified Quality Activity ComplianceReliability
Result Intended Developed Goal
Service Investment (Business Adoption)
Stakes are taken in accordance with the priority (importance @ urgency) of “intent”
Increasing fusion of
vendor-client business model
©2014 Malcolm Ryder / archestra research
Objective Goal Objective Action Change
Enable Outcomes Reduce competition for opportunities
Advantage Provide Innovation
Support Outcomes Maximize assets Competency Deliver Progress
Enable Outputs Minimize risk of status quo
Compatibility &Continuity
Fulfill Productivity
Support Outputs Raise baseline of acceptability
Compliance &Reliability
Supply Activity
Drivers Initiatives Demand Impact
Service Priority (Business Importance)
Clients will authorize internal and external organizations to prioritize objectives per the chosen goal
Increasing fusion of
vendor-client business model
©2014 Malcolm Ryder / archestra research
Objective Service Function Business Effect Business Scope Future State
Enable Outcomes Essential Provision Joint Production Structural Model
Support Outcomes Critical Delivery Assured Reliability Transactional Performance
Enable Outputs Preferred Fulfillment Secured Capacity Environmental Position
Support Outputs Acceptable Supply Certified Quality Procedural Resource
Role Intended Optimal Result
Service Management (Business Assurance)
Service results are planned “solutions” for leveraging opportunity
Increasing fusion of
vendor-client business model
©2014 Malcolm Ryder / archestra research
Consolidated View
Objective Business Scope + Future State
Change Scenario Improvement
Enable Outcomes Structural Model Innovation Market strategy Leverage
Support Outcomes Transactional Performance Progress Businessdevelopment
Brand
Enable Outputs Environmental Position Productivity Operations Scale
Support Outputs Procedural Resource Activity Procurement Quality
Opportunity + Result Impact Context Benefit
Value Hierarchy
Increasing fusion of
vendor-client business model
Business is focused on recovery, maintenance, or upgrades of benefits
©2014 Malcolm Ryder / archestra research
© 2014 Malcolm Ryder / archestra research