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Business Relationship Management
ITIL V3 Business Relationship Management 1
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Business Relationship Management (BRM)
Customers own and operate configurations of assets to create value for their own customers. The assets are a means of achieving outcomes that enable or enhance value creation. BRM
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Business Relationship Management (BRM)
It is important for managers to gain a deep insight into the business they serve or target. This includes identifying all the outcomes for every customer and market space that falls within the scope of the particular strategy. See example Service Requirements, found in this toolkit. BRM
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Business Relationship Management (BRM)
For the sake of clarity, outcomes are classified and codified with reference tags that can be used in various contexts across the Service Lifecycle. BRM
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Business Relationship Management (BRM)
Business Relationship Managers are responsible for gaining insight into the customer’s business and having good knowledge of customer outcomes, this is essential to developing a strong business relationship with customers. See example BRM job description & BRM Responsibilities and Skills, found in this toolkit. BRM
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Business Relationship Management (BRM)
BRM’s are ‘customer focused’ and manage opportunities through a Customer Portfolio. In many organizations BRM’s are known as Account Managers, Business Representatives and Sales Managers. BRM
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Business Relationship Management (BRM)
Internal IT Service Providers need this role to develop and be responsive to their internal market. They work closely with Product Mangers who take responsibility for developing and managing services across the lifecycle. They are ‘product focused’ and perceive the environment through a Service Portfolio See example Use of the Service Portfolio, found in this toolkit. BRM
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Business Relationship Management (BRM)
Customer outcomes that are not well supported represent opportunities for services to be offered as solutions. Some outcomes are supported by services existing in a catalogue. Other outcomes could be supported by services in the pipeline but currently in the design and development phase. See example Service Catalogues & 8 Steps to Developing a Service Catalogue, found in this toolkit. BRM
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Business Relationship Management (BRM)
Outcomes that are presently well supported are periodically reviewed. New opportunities emerge when changes in the business environment cause a well-supported outcome to become poorly supported. See example BRM Metrics and Reports, found in this toolkit. BRM
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Business Relationship Management (BRM)
An outcome-based definition of services ensures that managers plan and execute all aspects of service management entirely from the perspective of what is valuable to the customer. Such an approach ensures that services not only create value for customers but also capture value for the service provider. BRM
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BRM - Segmentation Service Level Packages are effective in developing service packages for providing value to a segment of users with utility and warranty appropriate to their needs and in cost-effective way. See example Service Options, found in this toolkit. BRM
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BRM - Segmentation SLP’s are combined with Core Service Packages to build a Service Catalogue with segmentation. This avoids underserved and over served customers and increases the economic efficiency of service agreements and contracts. BRM
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BRM - Segmentation © Crown Copyright 2007 Reproduced under license from OGC
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BRM - Segmentation CSP’s and SLP’s are each made up of reusable components many of which themselves are services. Other components include software applications, hardware licenses, 3rd party services and public infrastructure services. Some components are assets owned by customers. BRM
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BRM - Segmentation Making component services visible to customers on the Service Catalogue is a matter of policy with respect to pricing and bundling of services. Risks have to be considered for decisions on expanding the Service Catalogue. BRM
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BRM - Segmentation Outcome-based segmentation improves the focus and
specialization for service providers in truly meeting customer needs. Each Line of Service (LOS), within the Service Catalogue, has one or more service offerings and each service offering is made up of CSP’s and SLP’s. BRM
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BRM - Segmentation This modular approach provides multiple control perspectives within the Service Lifecycle. It is the responsibility of the Business Relationship Manager (BRM) to identify the most suitable combination of LOS and SLP for every customer outcome they are concerned with. See example Mapping Responsibilities & Requirements, found in this toolkit. BRM
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BRM - Segmentation This component based approach greatly reduces the cost of providing services while maintaining high levels of customer satisfaction. BRM’s represent customers and work closely with Product Managers to ensure that the Service Catalogue has the right mix of LOS and SLP to fulfill the needs of the Customer Portfolio. BRM
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Business Relationship Management
ISO/IEC 20000 Business Relationship Management is also a process found within the ISO standard. Whether you choose to work towards attaining this standard or not, the ‘shall’ and ‘should’ criteria provide an excellent quality framework. Business Relationship Management 19
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Relationship Processes
Chapter 7: 7.1 General 7.2 Business Relationship Management 20 20
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Business Relationship Management
7.1: General Business Relationship Management Supplier Management Supplier Service Provider (The IT Organization going for ISO certification) Business Note: Both the supplier and the customer may be internal OR external to the service Provider’s organization 21 21
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Business Relationship Management
Objective: To establish and maintain a good relationship between the service provider and the customer based on understanding the customer and their business drivers 22 22
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Business Relationship Management – Shall’s
Part 1: Identify and document the stakeholders and customers Service provider AND customer shall attend a service review ANNUALLY Changes to contracts and SLA’s shall be subject to Change Management There shall be a named individual responsible for managing customer satisfaction and the whole business relationship process Feedback is gathered and customer satisfaction is measured results are input in to service improvement plan. There shall be a complaints process… There shall be a service review, at least annually… 23 23
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Business Relationship – Should’s
Part 2: Service reviews should consider past and current performance and future needs Agree on interim review procedures What is a complaint? How do we formally handle complaints? Complaint analysis is input into service improvement plan Results of customer satisfaction surveys are discussed with the customer COMPLIMENTS should be measured and reported 24 24
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