Service Portfolio Management (as in Enterprise Development)
From the business point of view, it is essential that IT services are reliable and fit for their business purpose constantly. Business-driven development initiatives require development of existing and new services. All these needs must be collected, evaluated and prioritized carefully so that limited resources and investments can be allocated optimally. It is also essential to continuously monitor the fit for purpose and the performance of current IT services and retire the services which are no longer valuable.
Service Portfolio Management ensures that:
- Business is provided with the right set of services
- Services are fit for the business purpose and aligned with IT strategy
- Performance of the services is at the right level
- Services are organized effectively with the best fit service providers
- Resources and costs are optimized throughout the life cycle
Service Portfolio Management is tightly tied to Service Lifecycle and can be organized as four management topics. The topics are Demand Management and Innovations, Development Portfolio Management, Service Operations and Retirement Control.
Figure 2.8.1 Service Portfolio alignment with current business.
All four management topics should be governed and coordinated in disciplined manner in order to keep Service Portfolio continuously aligned with current business as well as ensure alignment with future business models and strategy.
Service Portfolio Steering
Service portfolio management should be deployed so that portfolio steering, major decisions on new services, and significant changes to existing services are carried out on the enterprise level by the Service Portfolio Steering Group. However, it is also useful to have a “fast track” for small changes that need to be done rapidly.
There are many ways to organize Service Portfolio Steering Group, depending on the company’s structure and size but there should always be strong business representation. This is because of digitalization, when there is increasing dependency on IT services in business operations.