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SupportWorld, Jan/Feb 2013

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information generated during IT's day-to-day operations, such as consumers' activity patterns and details of the interactions between consumers and the service ecosystem. This phenomenon, which has become the norm in today's cloud-based outsourcing environment, often results in the loss of business intelligence. The effect of these losses can far outweigh the money an organization might save by outsourcing. But are there ways to reverse this trend? Absolutely. Lockheed Martin is a global security, aerospace, and information technology company that does the majority of its business with the US Department of Defense and other federal government agencies.2 In addition to an "outside-in," consumer-focused service methodology that helps it manage services demand, Lockheed Martin's service practice leverages advanced "Big Data" analytical capabilities that turn information from day-to-day operations into business intelligence, which enables its clients' to make informed decisions. In short, the outsourcing services Lockheed Martin provides focus both on affordability and the use of business intelligence to empower decision making. Business Intelligence Service providers continually seek the ways and means to meet their consumers' needs and strive for business success. The most successful service providers understand that although consumer interaction is the reason work is performed, managing the consumer experience is what service management is really all about. Service operations, such as the service desk and the consumer service center, are at the forefront of interactions that generate valuable real-time insights into consumers' experiences and desired services. When handled appropriately, this information can be turned into valuable business intelligence, providing leading indicators on patterns of business activities and user behavior. If information is power, then business intelligence gives organizations the wisdom to exercise that power. Taking advantage of the business intelligence derived from service operations can add tremendous value. Adopting a consumerfocused service methodology like Ian Clayton's "outside-in" approach helps to further enhance business intelligence by incorporating rich consumer content.3 Within Lockheed Martin, the Services Engineering practice models the "outside-in" approach and takes advantage of operational business intelligence, turning them into an automated consumer-demand query engine (i.e., "Big Data" analytics). This near-real-time, continual stream of business intelligence provides timely augmentation of its services design and delivery approach, enabling it to provide the just-in-time outcomes consumers desire and eliminate the costly trial and error involved in meeting consumers' needs. ____________________ In fact, for the eighteenth year in a row, Washington Technology has ranked Lockheed Martin as the number-one federal IT service provider. See Stephanie Kanowitz, "Top 100: Lockheed turns 100; sees growth ahead," Washington Technology (11 June 2012), www.washingtontechnology.com/articles/2012/06/11/top-100-lockheed-martin.aspx. 2 Common Practices For most service and support organizations, there's a natural tendency to look inward at what they do and how the work is designed and accomplished, and to measure performance using internal goals that rarely align with their consumers' needs and wants. This is the so-called "inside-out" approach, and organizations with a heavy emphasis on engineering are especially prone to this type of internally focused thinking. It's also characteristic of organizations that fail to connect their services to their consumers' needs. Many service management frameworks, such as ITIL, provide non-intrusive methods for improving an organization's service offerings and gaining greater effectiveness and efficiency. However, ITIL, even though it's been widely adopted and is an outcomeoriented framework, lacks an "outside-in," consumer-oriented service approach and doesn't provide a mechanism for reinforcing the alignment of services with consumers' desired outcomes. And while ITIL laudably promotes knowledge-based operations, it doesn't include any processes for optimizing the business intelligence derived from the service operation stage in the lifecycle, nor does it promote using the "outside-in" methodology to use consumer demands to drive the service portfolio. Service design driven by "outside-in"-validated demands and the successful use of business intelligence enables a set of services that are better aligned with consumers' experiences and desired outcomes. This is especially important when it comes to providing outsourced or offshored services and planning the service pipeline. The Essence of Demand Management According to Brandon Buteau and Sandy Shrum, "services make up 80 percent of the world economy and comprise more than half of the US Department of Defense's acquisition."4 With services accounting for such a large portion of the global economy, service providers are striving to increase their market shares by raising their value propositions and improving the ways they meet their consumers' demands and expectations. Many of these providers have found they are most successful at predicting service demand when they take full advantage of business intelligence. The essence of demand management is twofold. Fundamentally, it means having the ability to evaluate current service assets to ensure that your organization is delivering the right services at the right time and in the right way (i.e., the way consumers desire to consume them). In addition, it requires an understanding of current and future demands. Information gleaned from day-to-day service operations is an organization's best asset for understanding business activity patterns and the consumer experience, and for empowering consumers to make informed, strategic decisions. ____________________ For more on "outside-in" thinking, see Ian Clayton's Guide to the Universal Service Management Body of Knowledge (Service Management 101, 2008). 4 Eileen Forrester, Brandon Buteau, and Sandy Shrum, CMMI for Services: Guidelines for Superior Service, 2nd edition (Addison-Wesley Professional, 2011), preface. 3 | www.ThinkHDI.com A Professional Journal for the Technical Service and Support Community 21

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