Strategic Management

Challenges to providing high quality services in evolving times
The theme of the module this year has focused on IT Strategic Management Principles, IT and Business Governance and IT Service Management Practices (principally the IT Infrastructure Library; ITIL)
The general principles of this exam relate to:
• Understanding the core concepts of each scenario, the role of the IT department and their approach to strategic planning in any given situational context
• The maintenance of a stable IT environment in rapidly evolving business circumstances
• The maintenance of effective and efficient IT services which have to respond to government or regulatory constraints
• Creating opportunities for the better use of choices and options open to IT in a particular environment
• The blended use of IT Standards and toolkits such as ITIL in a situational context
Answer each question below in 200 words each.
QUESTION 1
In the article “Understanding Shadow IT”, the authors Patrick Bolger and Vawns Guest discuss in the Autumn 2012 edition of Service Talk – The Journal of the IT Service Management Forum (Bolger, Guest 2012) the effects of Shadow IT 2.0. This is whereby technology-savvy users increasingly use non-organizational sourced technology to do their jobs. This creates challenges to the business as very often this is not done with the knowledge and/or approval of the IT department.
Given the implications identified in the article, discuss the positive effects of IT Service Management Practices (ITSM) and complementary IT standards to provide a more strategic focus for IT developments. You should provide examples of how they might be used in this context. Your answer should focus on a multitude of aspects regarding strategic management of IT with specific reference to ITSM practices and principles.

This question is primarily about diversity within technology and its impact on the business. You should investigate and report on how this is likely to impact on provision of services including resources and assets. You should also consider how this will affect the capabilities of those resources (positive or negative).
The best way to score high marks is to consider at least 6 of the following elements.
• How can service offerings be developed in the context of the theme of the article
• How can assets be “prepared” to accommodate the diversity presented
• Can you identify which parts of service may be “un-served” or even “over-served”?
• What is the risk involved
• Describe other ITSM strategies and approaches to complement the ITIL strategic approach
• The role of Continual Improvement and a description of the key points
• Just how can so-called Shadow IT be embraced through better use of ITIL Strategic principles
• The role of underpinning ITSM standards

Area to research/investigate:

Research in ITIL V3 (2007 or 2010) are MAINLY in the sections
• Service Management as a practice
• Service Strategy Principles, value, provider types, service structures, fundamentals, aspects which are used to be cognisant of changing conditions

QUESTION 2
Very often IT is “system-focused” rather than “service-focused”. Primarily this is because IT developments in an organization have grown organically from legacy technology systems bolted together in an ad-hoc fashion as demand for those systems has grown. This is particularly relevant for government organizations such as a local authority in the UK. During cutbacks to budgets expenditure on all underlying operational services are likely to be under scrutiny. Waste, duplication and inefficiencies cannot be tolerated.
In this question you are to consider the effect of organic growth of IT systems without due regard to providing an end-to-end business driven and cost effective IT service.
Discuss how a blended use of IT Service Management practices for example ITIL version 3, and an Enterprise Architecture approach would enable the organization to create a stable and responsive IT environment which would be resilient to decreasing budgets.
This question challenges the concept of going beyond “systems development” based predominantly on technological aspects only. You should describe the benefits of a service culture to drive forward and support strategic elements. It is recognized that many organizations are very well embedded into ITIL V2 but have not developed many of the new ITIL V3 techniques including strategy. You could bring this into your answers
In answering this question you should consider 5 from the following list:
• Cultural elements
• The policies around strategy generation
• The role of a guiding coalition and how to develop it
• Potential overlap and even gaps in service if a strategic approach is not done
• Recognition of key roles in strategy to help develop this approach. You should evaluate and describe some of the key roles from ITIL strategy
• Financial Management techniques
• Demand Management techniques
• Service Portfolio Management techniques
• “Horizon scanning” regarding technology and business development and how the organization needs to be strategically aware of their impact. How does this map into strategic approaches
Area to research/investigate:
This is mainly from the chapters on
• Service Economics
• Strategy and Organization

QUESTION 3
IT Service Management Practices (ITSM) highlights the need for the maintenance of Utility and Warranty of Services (Service Strategy; TSO 2011). This concept in theory helps to distinguish between the service offerings of one provider or another. Consider the food retail industry which is highly competitive where cut-price deals on a range of products and services often distinguishes one company from another. They offer customers a wide range of products and purchase options including “click and collect” which is highly dependent on technology. Typically these companies also diversify their offerings to include a range of services such as banking and insurance. The design of underpinning IT has to be responsive, efficient (to provide 24/7 support) and agile. In order to design responsive IT services consideration has to be given as to the balance between Utility and Warranty to create a meaningful Value Proposition.
Discuss in detail how the other components within ITIL version 3 working alongside Service Strategy provide a rigorous lifecycle approach to ensure proper Utility and Warranty of service in this scenario.
This question is asking you to understand the workings of:
Utility and Warranty of service from the strategic vantage point. Utility is fit for purpose and Warranty is fit for use.
In this example, a highly competitive organization, you are to consider how the company can distinguish itself from competitors. Very often this is by its underpinning business service(s) and the value customers get from them. Regarding IT, the service culture working alongside technology developments can add value to the overall perception by the customer.
In answering this question you are to consider the effect of U&W through the lifecycle eg Service Design, Service Transition, Service Operation and Continual Improvement. You should also consider where risk fits into this. You will pick up marks if you identify at least 4 of the lifecycle elements described above and the impact of U&W from strategy on them.
Area to research/investigate:
Mainly, but not only, you will find the key theoretical elements in the section:
• Strategy, Tactics and Operations

QUESTION 4
In his article in the Autumn 2012 edition of Service Talk –The Journal of the IT Service Management Forum “Delivering Innovative Business; The Next Challenge for Service Managers”, Robert Stroud (2012) discusses “the need to choose the right technologies to support changing business outcome.” He goes on to say “Organizations complain that their IT infrastructures are too expensive to sustain and maintain and we all know that, while complexity increases, productivity decreases. The rule of thumb is that somewhere between 70% and 80% of IT budgets go towards on-going maintenance rather than driving innovation and changing the business to take advantage of new opportunities”.
Suggest ways in which IT Service Management Practices (ITSM) can be utilized from a strategic perspective in order for the business to be more responsive and agile in its IT developments. In your arguments you should highlight the balance between ITSM, Governance and a range of strategic tools and methods which will influence and ultimately affect the design of IT services.
This question is asking you to consider the effect of agility, associated risk and proactive management approaches within strategy generation
In answering this question you should consider at least 4 of the following:
• How easy or hard it is to bring in governance
• The effect on (and of) the 4 Ps of Strategy
• How to build in accountability through agility & value versus return on investment
• The effects (maybe) of cost modeling and budgetary techniques in moving away from a maintenance culture
• Customer assets
o Served and un-served spaces
o BYOD and customer assets
o Service provision for a range of customer expectations in this context
• The effect of a shared services approach; cost versus value
• The role and effect of governance and how easy or hard would it be in this context

Area to research/investigate:
Mainly but not exclusively from the chapters:
• Principles, economics, strategy and organization
• Challenges, CSI and risks

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