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prelim handout 02
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The physical world for people and things where business organizations compete, maximized by IT service providers alongside the marketspace, as PLDT does with a physical location for installation requests, bill payments, and plan upgrades.
Marketplace
A virtual world of information where business organizations compete; its significance allows providers to collect useful information that is difficult to get onsite, such as a survey, to improve service delivery processes and create customer value, as PLDT does through its website offering the same services as its physical location.
Marketspace
Includes acquiring raw materials, operations, delivery, sales and marketing, and service.
Physical Value Chain
Comprises the digital and virtual realms of information to create value; it is created by applying the generic value-adding steps of the information world (Gather, Organize, Select, Synthesize, Distribute) to each physical activity.
Virtual Value Chain
The objectives include creating direct, cost-effective interactions between value chain members and users; giving end-users specific value service advantages such as performance looks, aesthetics, security, and reliability; and ensuring that the value is created and delivered continuously.
Objectives of the Virtual Value Chain
The five components that need to be applied to each stage of the virtual value chain to create virtual value.
Gather, Organize, Select, Synthesize, Distribute (virtual value chain components)
Involves envisioning physical operations more effectively with information, such as PLDT employing "paperless billing" to their customers and moving the process from a manual paper-based filing system to a central computerized database; it is an essential step to utilize the benefits of the marketspace fully.
Stage 1: New Processes (virtual value chain)
Digital and virtual alternatives substitute for physical information; PLDT would gather much more information using their website than their physical locations, as they can easily market and link their websites to social media posts, helping IT services gather and organize information at a larger and faster rate.
Stage 2: New Knowledge (virtual value chain)
Analyzes new information to discover new service needs and methods to deliver value; for PLDT, this led to a Home Rewards program wherein customers earn crystal they could exchange for treats, bill rebates, and discounts, as PLDT saw customers would rather pay online than onsite and created a system to keep customers visiting and paying directly on their website.
Stage 3: New Services (virtual value chain)
Explores opportunities for collaboration with customers to create value; PLDT could assign brand ambassadors to promote their new promo and deals or create testimonials about their experience with the organization, opening possibilities for better and prolonged customer loyalty.
Stage 4: New Relationships (virtual value chain)
With technology as an enabler for easier data gathering, information can still be misused by third parties with malicious motives, and massive data storage capabilities in a cloud put users' personal information at risk of being searched and exposed; it is best to use gathered user information based on agreed terms and conditions and not sell it to third parties that could access their financial transactions.
Invasion of Privacy (limit in the use of information)
An organization's responsibility for taking the best care and having the best intention for their user's information; it could prevent possible lawsuits and federal charges that might arise, and organizations should ensure the cloud and data servers are monitored and protected with heightened protocols that only credible personnel can access.
Data Security (limit in the use of information)
Information from users cannot always be fully trusted, as some do surveys and randomly click on any option available without any thought, which could affect the value of the information and alter plans for new services; it is encouraged to have assigned teams ensure that every piece of information acquired is valid and comes from genuine user experience.
Reliability (limit in the use of information)
Users must always know where their information will go after every website cookie they accept or every filled-up form they submit, creating a trusting relationship between service providers and their users; the use of Terms and Conditions, or a separate but properly structured agreement clause on the website's page, is an effective way to educate and warn users about what they are signing up for.
Fairness (limit in the use of information)
Has five stages based on the ITIL framework that ensure incidents, service requests, and IT assets, among other aspects of IT services, are addressed and managed in a streamlined manner.
ITSM Processes (five-stage overview)
The basis and first step in the cooperation between IT and the organization's needs; it defines the services to be offered, the strategic planning process, and the development of the required assets and infrastructure to keep processes moving, allowing organizations to focus on the "whys" instead of the "hows" when planning. It also identifies potential risks and threats to the successful delivery of services, even though IT departments tend to spend too little time on it.
Service Strategy (ITSM process)
Assesses the market and how the organization plans to service it.
Strategy Management for IT Services
The structured analysis of different services an organization wants to offer, based on how much they cost to deploy and the value they can bring back to the organization.
Service Portfolio Management
Scales resources to demand; it requires a specified definition of the organization's service and the costs when failing to meet anticipated demands.
Demand Management
Focuses on identifying customers and understanding their expectations, detailing the creation and operation of customer feedback registries, surveys, and complaint logs.
Business Relationship Management
When the ideas during Service Strategy begin to take form; its result is a proposed IT solution that fits the determined objectives, and if neglected, the organization risks wasting money and manpower developing a subpart IT solution that cannot directly address the organization's needs. An effective version is much less expensive to spend extra time planning for than to fix a botched rollout later, and its solutions must always be financially feasible and meet the organization's service needs.
Service Design (ITSM process)
Ensures that the organization remains aware of all commitments, contracts, and other obligations.
Service Level Management
The process of plotting risk against reward.
Risk Management (ITSM sub-unit)
Allows IT departments and managers to analyze capacity requirements that the organization needs, such as speed, bandwidth, and service space, based on the service delivered.
Capacity Management
Focuses on the qualitative capacity, such as whether an IT department has the requisite personnel, tools, and infrastructure to complete a project.
Availability Management
The legal side of this process that reviews all relevant internal and external regulations, from company policy to federal law.
Compliance Management
Ensures that the organization's external suppliers of IT resources are equipped to meet the demands of the Service Design.
Supplier Management
Wherein real action is taken to implement the proposed service; this process is the point where organization systems and their people face adapting to and learning how to use a new service delivery system that opens up risks such as service interruptions, data security breaches, and human error. It should be as seamless as possible for service recipients and always result in superior value and quality service to the organization.
Service Transition (ITSM process)
Implements new IT services while lessening the disruptions to existing services.
Change Management (ITSM sub-unit)
Handles the schedule for a release to lessen disruptions to existing services while setting up the new service effectively and promptly; it relies on limited testing to determine the best rollout method.
Release & Deployment Management
Assures that enough IT resources are on hand to provide high-quality service continually.
Service & Validation Testing
Ensures necessary IT assets to deliver the service are accessible, effectively deployed, and sustainable.
Service Assets & Configuration Management
Collects, organizes, and stores data in the Service Transition and other processes to avoid wasting time and resources on recovering knowledge after it has already been obtained.
Knowledge Management
The recurring and day-to-day delivery of organization services and all that it entails to pattern a reliable and repeatable delivery of expected services to the users; it includes substantial contingency plans to address and solve anomalies, errors, and disruptions to service norms.
Service Operation (ITSM process)
Monitors and sets standards for "events," or changes in the system that affect the system's configuration that might prompt action from IT personnel.
Event Management
Undergoes appropriate analysis of incident and escalation steps, and also restores services in case an interruption happens.
Incident Management
Responds to much lesser user concerns, such as password resets and basic support.
Request Fulfillment
Verifies user identity and credentials to ensure they hold proper authorization to use the service.
Access Management
Minimizes the damage of an incident and facilitates resolutions.
Problem Management
Monitors IT infrastructures and supports basic day-to-day tasks to ensure service remains deliverable.
IT Operations Control
Evaluates and improves all the other ITSM processes by providing a feedback loop that continually sharpens the quality of the services being delivered, gathering information, extracting value and lessons from it, and incorporating them back into the system as efficiently as possible.
Continual Service Improvement (CSI)
Gives out survey requests to users for purchased products and services.
Service Review (CSI aspect)
Includes benchmarking and continuity, which is the maintenance of an ongoing stream of data about the effectiveness of ongoing service processes.
Process Evaluation (CSI aspect)
Collects data from service review and process evaluation to define initiatives to improve the service; these can be internal, involving only the IT team, or external, involving the users doing a new feedback set.
Definition of CSI Initiative