Cor Winkler Prins is CEO and co-founder of 4me and one of the global thought leaders when it comes to Service Integration and Management (SIAM). Cor is one of the international guests at the Confare #CIOSUMMIT 2020 and is available as a supplier of ideas to the participating CIOs in a private expert discussion. The number of participants is limited, therefore please send an email to firstname.lastname@example.org.
Beforehand, Cor summarized the most important approaches behind SIAM for the Confare Blog and describes how to use SIAM to handle the cloud and provide diversity in the Digital Age and react faster and more innovatively to market requirements.
Confare CIO Summit 2020
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Their CIOs are under pressure to deliver more quickly on key innovation initiatives. Their viability is no longer determined by innovation, rather by the speed at which they are able to innovate. Digital transformation is happening everywhere and requires knowledge of new technologies. The core business is looking to IT for leadership. Unfortunately, most IT departments do not have the required experience in-house with new technologies to realize the innovation goal. It does not make practical or financial sense for a CIO to hire and retain experts on all the new technologies that are needed for the organization’s digital transformation.
Instead, savvy CIOs are adopting a dynamic sourcing model. The goal is to be able to obtain expertise when it is needed from providers that have the skills available, and to let go of these providers when the technologies they support are no longer needed, when the level of service they provide is deemed insufficient, or when there is a provider that can provide the right level of service at a better price.
Getting a new provider up-to-speed quickly is key. This requires the elimination of long-term commitments, which reduces the risk for the customer, allowing them to sign up for services without having to take providers through a long procurement process. Providers that are confident in their ability to keep their customers happy will be willing to accept a short-term commitment from a customer, if it means they can bypass the traditional sales cycle.
With the order placed, another obstacle to overcome arises. The customer needs to be able to collaborate efficiently with the provider. Most organizations today still struggle with building complex integrations between their service management application and that of the provider. These integrations can take months to design, build and test. This presents not only a significant delay, it is a sunk cost locking the customer into that provider! Fortunately, the cloud removes this hinderance to speed. Organizations can now establish a seamless collaboration path between service management solutions with a new provider in minutes.
With the collaboration established, the task is not yet complete. A business must stay in control of its providers. SIAM is the key which opens the door to this control. SIAM stands for Service Integration and Management. It is a relatively new management approach that fits snugly on top of ITIL. SIAM structures how organizations make sure that their internal and external providers work well together to deliver value to the business. For SIAM to work, the organization needs to track the performance of all the providers upon which they depend. To be effective in a dynamic operational environment, this needs to happen in realtime while tracking the performance of individual providers over time.
That information is needed during periodic performance reviews and to be in a strong position during contract renewals or renegotiations.
Interesting to note here is that modern CIOs no longer just look at whether providers are meeting their SLA targets. They also want to keep an eye on improvements that each provider has been able to deliver and the satisfaction level of the users who rely on their services.
It is becoming clear to management that they must have more flexibility when it comes to sourcing. This is why SIAM is gaining traction across enterprises. In turn, this means that they need to put a structure in place to make sure that they stay in control. That structure is provided by SIAM.