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Understanding International Standards in Relation to a Company's Digital Transformation 2/2

Part 2 - Description of the ISO 20000-1 Standard

In this section, we will explore the ISO 20000-1 standard in detail.
The ISO 20000-1 standard is divided into two sections as shown below. ISO 20000-1 standard is divided into two sections

Setting up a Service Management System

The first section is dedicated to setting up a Service Management System. This enables management to define and commit to goals in terms of the company’s digital and service strategy. It will also be the time to define general administrative rules to run the system (Who does what? What resources are needed? What kind of records have to be kept?).

Creating and transforming new or modified services

The second section of the standard relates to defining the creation and transformation processes for new or modified services. In this section, you will by the description of 13 operational processes that are classified according to four typologies. All 13 processes must be mastered to guarantee an industrialize service offer. Below you will find a quick summary for each of these processes and how they are divided into four categories. We will look at these processes in greater detail in chapter five.

1) Control processes: The following three processes are the foundation of the service system.

Change management

This process is implemented to ensure that changes to the service offer are recorded, evaluated, prioritized, authorized, planned, tested, documented and reviewed before delivery to the client.

Configuration management

This process allows you to identify and update key elements required for a service to operate properly (e.g. digital elements and other technical aspects). Once identified, these elements are recorded in the configuration management database.

Service launch management

This process allows you to test one or more new or modified configuration items for a service.

2) Service delivery processes: There are six of these processes.

Service availability and continuity management

This process helps define your ability to produce services (continuity) and how available these services are (availability). These two factors help determine quality levels as they must align with promises made to the client.

Service capacity management

This process is responsible for following and anticipating the needs of a service depending on a company’s activity. It has to provide guiding forces that allow the company to adapt financial, human, infrastructure and technical resources.

Service level management

This process is a transversal process because it interacts with most of the other processes. It is crucial to create a service catalog that references all services as well as their conditions and characteristics. If nothing else, this catalog will inform clients and involved employees about these services. You should also publish the service level agreements (SLA) that cover the agreements between the client and service provider in terms of service levels. Each service is subject to an SLA.

Information security management

This process ensures the security, integrity and availability of data used for and by services. In addition, this process helps identify data loss or leakage, protect the company’s assets and facilitate exchanges thanks to a secure environment. The activities ties to this process can be drawn from the ISO 27001 standard, which is an international standard that has demonstrated its value in terms of information security management.

This process is particularly important for company’s undergoing a digital transformation where cloud computing, big data, social networks and connected objects present major challenges in terms of security.

Service reports management

This process enables the creation of service reports in a timely fashion to review the performance of a service and inform the client.

Accounting and budget management

This process helps define and manage the costs of a service. For each service in the service catalog, you have to establish an estimated budget and accounting measures to check the differences between the estimated budget and real production costs.

3) Incident and client relationship processes:

There are two of these processes.

Incident and client service request management

This process covers two types of requests made by clients. First, an incident which is reported by a client. An incident is defined in this case as the unexpected interruption or deterioration of a service or an event that has yet to impact service. Second, a request for information about access to or training for a new or existing service.

Problem management

This process helps reduce service interruptions by identifying and analyzing regularly occurring and similar incidents that cause a problem. The goal of this process is to decrease the recurrence of incidents.

4) Relationship management processes:

There are two of these processes.

Sales relationship management

This process helps create and maintain good relationships between service providers and clients by understanding a client’s needs and expectations as well as highlighting how promises are being kept.

Supplier relationship management

This process helps manage relationships with suppliers so to respect established service contracts. The review process in this situation can help company’s decide whether or not to continue working with a supplier. Conclusion: creating a reliable service offer

By reviewing and implementing these 13 operational processes for the entire service catalog, companies will be able to industrialize their services. This will not only increase a service’s reliability but also ensure its proper management from beginning to end of its life cycle.

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This article is from the free online course:

Digital Transformation of Businesses and Services

Grenoble Ecole de Management