The importance of Services for All Organizations
According to the World Trade Organization, Services is the largest and most dynamic component of economies.
The primary way companies create value for themselves and their customers. Why services, well… think about it!! Factories, Construction companies, logistics companies, Supermarkets, Governments, shipping companies, and more.
All of them provide services and still need services. We will take a factory as an example and look at the services it provides and what other services they need from others. Let say our factory is producing empty cartoons. This factory sells those cartoons to other factories, who are using the cartoons to package their products.
What type of services should this factory consider?
- Firstly, the target of this factory is to sell products and win money.
- Their value is achieved when they sell more cartoons, win more money and have good ROI.
- To do this, they should consider managing many services, internally, externally, contracts, SLA, OLA…etc.
- They Receive Services and provide Services; let us take some examples and talk about them a little bit.
- Electricity from the electricity company
- Telephone and Internet from the telecommunication company
- Cleaning: from cleaning service companies
- Maintenance: for their machines.
- Employees workers
- Bus Services and Bank accounts for the employees
- Financial System from IT companies or departments.
- Website for the factory.
- They may provide online services like: online purchase
- Internally they provide Insurance to their employees and workers.
- They provide Food services, rest rooms…etc.
- They provide Internet to their employees.
- Cleaning services for the offices and the factory it-self.
- IT Department can provide Different IT Services to the other departments.
As we can see, some of those services are received from external companies and provided internally or externally, means that some form of services is a little bit complicated, like:
- Providing Insurance to employees, the factory will sign a contract with an external company that will provide the services to the employees and workers in different forms, maybe like: silver package, golden package…etc.
- Also, the Internet is received from outside and provided internally in different forms.
- All those services are being enabled through , or going to be enabled through IT.
- Most of the companies are enabling IT services and trying to enhance their way of managing it.
- Organizations are creating, expanding, and improving their IT service management capability.
- Cloud computing, infrastructure as a service (IaaS), machine learning, and blockchain have opened fresh opportunities for value creation and led to IT becoming an important business driver and competitive advantage source.
- Many organizations are embarking on major transformational programs to exploit these opportunities.
- While these transformations are often referred to as ‘digital’, they are about more than technology.
- They are an evolution in the way organizations work so that they can flourish in the face of significant and ongoing change.
- Information and technology are more and more thoroughly integrated with other organizational skills, silos are degraded, and cross-functional teams are used to a greater extent.
- Service management will change to address and support organizational change and secure possibilities of new technologies and new ways of working are maximized.
- Service management is evolving, and so is ITIL, the most widely adopted guidance on IT service management (ITSM) in the world.
- Someone may ask a question, what is the relationship between the services we talked about and the production of cartoons.
- To produce those cartoons, you will need those services… although they are not related directly to the cartoons.
- Example: Insurance for employees is not related to production, but employees and workers are directly related to production.
- You provide Insurance to keep them healthy and safe; this will keep your business safe.
- But also we can have services related directly to the production of cartoons.
- Like Maintenance of the machines producing those cartoons, the transportation services for the cartoons are considered directly related to them.
Link: ITSM INTRODUCTION