How ITIL Value Streams help SIAM White Paper
- White Paper
- IT Services
- Service management
- Methods & frameworks
July 30, 2020 |
11 min read
- White Paper
- IT Services
- Service management
- Methods & frameworks
Service integration and management (SIAM) is a management methodology applicable in multi-service-provider environments. It provides governance, management, integration, assurance, and coordination to ensure that customers get maximum value from service providers. SIAM has leveraged ITIL® for years to ensure that its IT service management processes are defined, deployed, and improved throughout organizations.
The concept of SIAM originated in 2005 and was formalized in 2010, when the UK Government published its ICT strategy. In 2012, the UK government published the ‘Cross Government Strategic SIAM Reference Set’ based on the experiences of the Department of Work and Pensions. This publication aimed to motivate the UK public sector to move to the multi-supplier environment. In 2016, Scopism created the SIAM Foundation Group to formalize and consolidate the concepts of SIAM.
SIAM provides customers with a single view of how well services are delivered and enables the management and governance of integrated IT services from a single point of responsibility. SIAM manages the complexities of dealing with multiple IT suppliers, allowing customers to focus on the end-result: value creation. Although it is primarily used for IT services, SIAM can also be adopted for non-IT services. SIAM has been widely used in IT services such as cloud services, digital transformation, managed services, and end-user computing.
According to various surveys1 done for SIAM, the most important skills for a SIAM manager are ‘proficiency in ITSM’ and ‘supplier management’. Approximately 62% of respondents agreed that the primary drivers for implementing the SIAM methodology are related to suppliers; they include better performance, control, and visibility.
ITIL 4 provides the guidance that organizations need to address service management challenges and utilize the potential of modern technology. It is designed to ensure a flexible, coordinated, and integrated system for the effective governance and management of IT-enabled services. The focus is on the co-creation of value and the creation of value streams that provide an end-to-end view of how services/products are created and delivered to consumers.
The challenge for SIAM professionals is to understand how to use ITIL 4 to generate value in a multi-supplier environment and deliver it to consumers. This paper explores how value streams can help SIAM professionals to govern and manage services and products.
1 www.scopism.com/wp-content/uploads/2020/02/Scopism-Kinetic-IT-Global-SIAM-Survey-2019. pdf [Accessed 15/06/2020]
Three important concepts related to value in ITIL 4
According to ITIL 4, the purpose of an organization is to create value for its stakeholders; the focus is on value. Value should be co-created through active collaboration between organizations, service providers, and consumers.
ITIL 4 incorporates the following models and concepts that revolve around value:
- the service value system (SVS)
- the service value chain
- value streams.
2.1 THE SERVICE VALUE SYSTEM
The SVS, shown in Figure 2.1, is a high-level model that represents how different organizational components combine to create value. It illustrates each crucial component, including governance and practices, that organizations need to develop to create value.
Figure 2.1 The service value system
2.2 THE SERVICE VALUE CHAIN
The service value chain is central to the SVS. It provides an operating model for the creation, delivery, and continual improvement of services.
The service value chain defines six key activities, which can be combined in many ways. Depending on the organizational context, some value chains will repeat activities, others will not. The service value chain is flexible enough to be adapted to multiple approaches, including DevOps and centralized IT.
Figure 2.2 The service value chain
2.3 VALUE STREAMS
Value streams provide the actionable steps that one or multiple service providers undertake to create and deliver value in the form of products or services. They can be mapped to the service value chain, as shown in Figure 2.3.
Value streams also show how departments, teams, or individuals in an organization collaborate in an integrated and coordinated way to drive value co-creation. They allow organizations to examine how they perform work and to identify opportunities for improvement.
Suppliers can be an important part of many value streams within organizations, such as by providing the service desk function.
Figure 2.3 Example of a simple value stream visualization
Value streams and SIAM
Value streams can help SIAM practitioners map the end-to-end view of the steps or actions performed by different suppliers to generate value.
In a SIAM model, value streams can be defined for different perspectives. For example, a value stream for:
- a digital payment facility could focus on increasing the amount of time that the facility saves for users
- a payment application supplier could focus on adding new features to the application
- an IT infrastructure supplier could focus on increasing the availability of servers and improving the IT connectivity
- a service desk supplier could focus on how many complaints are handled and resolved
- a SIAM supplier would incorporate the value streams of all the individual suppliers and provide an end-to-end view.
To provide an end-to-end, integrated view of how services are created and delivered by different suppliers, it is essential for the SIAM function to create value streams that include all of the aspects of the work, including the customers, suppliers, tools, and so on.
Value streams are an excellent source of information for stakeholders. They include:
- a visual representation of how work is done
- the roles and responsibilities of the suppliers
- the stakeholders involved
- the major and minor contributors to the value stream
- the risks associated with value streams in terms of unaligned contracts, service levels, or practices for each supplier
- how and where data is transformed and stored throughout the value stream
- the tools/technologies that are used in value streams and whether they should be upgraded or retired
- the skills that the supplier’s employees should have and whether they should be upgraded or retrained
- opportunities for improvement.
3.1 EXAMPLE VALUE STREAM FOR SIAM
In a fictional organization, a hybrid SIAM function is responsible for onboarding new suppliers into the organization’s existing SIAM model. The vendor management office creates a demand for a new supplier in the form of a statement of work, and several teams and individuals complete various activities to onboard the new supplier.
Table 3.1 lists the suppliers and their responsibilities.
Vendor management office: managed by the customer organization
SIAM governance board: managed by the customer organization
|Governing the SIAM framework in the organization|
Acting as the final decision-making body
SIAM team: outsourced to a third-party supplier providing SIAM services
Responsible for designing, implementing, and executing the service integration processes and governance
New supplier: outsourced to a third-party supplier
Providing IT services (for example, application services, network services, and so on)
Tools team: outsourced to a third-party supplier
Providing service management tools and management services
Training team: managed by the customer organization
Responsible for creating and publishing training content
Table 3.1 Suppliers and their responsibilities
Table 3.2 outlines the value stream for supplier onboarding.
|Step||Activity||Value Chain Activity / Component||Relevant Practice||Roles|
The vendor management office generates demand to onboard a new supplier on the SIAM model
|Demand||Supplier management||Vendor Management|
The SIAM governance board approves the demand for new supplier onboarding
The SIAM team updates the supplier about the SIAM scope and responsibilities
|4||The SIAM team and supplier agree on the|
applicable supplier tier, scope of the services to be provided, and exceptions
The SIAM team provides a checklist of the data/details needed from the new supplier
The supplier provides the data requested in the checklist
The supplier details are configured in the service management tool
Process and tools training are provided to the new supplier
|9||The new supplier is onboarded on the SIAM|
model and exceptions are documented
The SIAM governance board views and
|Improve||Continual improvement||SIAM Board|
Value streams provide organizations with insights and answers. The example outlined in Table 3.2 provides the following insights:
- There are 10 steps involving eight ITIL practices that have to be completed by six groups.
- All practices should be standardized and operational for a successful onboarding process.
- The plan and design and transition value chain activities are frequently used in the supplier onboarding process.
- The SIAM board is the overall decision-maker and governing body.
- The SIAM team is responsible for completing the process, supported by five other groups.
- The SIAM team should understand the supplier management, relationship management, service catalogue, and service level management practices.
- The training team is a minor stakeholder and should understand the knowledge management practice.
- The SIAM team manages and documents exceptions. Some of these could be risks.
- Data is stored in the system by the vendor manager in step 1, tools team in step 7, and SIAM team in step 9.
- Improvements in the supplier onboarding process should be approved by the SIAM board.
ITIL has been and continues to be an integral part of SIAM implementation. It has provided the foundational structures and processes upon which SIAM can implement governance and management structures for enabling the integration of multiple suppliers in an organization.
The centricity of value in ITIL 4 helps organizations to implement SIAM more efficiently. Value streams provide a mechanism for viewing and mapping the end-to-end services provided by multiple service providers, enabling organizations to pinpoint bottlenecks and waste, then holistically improve their services.
About the author
Yogesh Sharma is an experienced ITIL Expert with over 15 years of industry experience. He has held diverse roles across the spectrum of the ITIL field, including ITIL implementation, ITIL-based delivery, and ITIL solution design across multiple ITIL tools available in the market, including ServiceNow, HP Service Manager, and BMC Remedy.
Axelos (2018). ITIL® Foundation: ITIL 4 Edition. TSO. London.
Axelos (2015). An introduction to Service Integration and Management. Web. Available at: www.axelos.com/case-studies-and-white-papers/introduction-to-service-integration-management [Accessed 08/07/2020]
itSMF UK (2018). Service Integration and Management (SIAM) - How Does It All Work? Web. Available at: www.itsmf.co.uk/service-integration-and-management-siam-how-does-it-all-work/ [Accessed 08/07/2020]