The best approaches to digital transformation start with the concept of a service a means of delivering value to consumers A clear set of defined business services marries a system of engagement which is how a customer interacts with the service to a system of action which is how the servi ID: 919486
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Slide1
Define and map out your business services
Slide2The best approaches to digital transformation start with the concept of a
service—a means of delivering value to consumers. A clear set of defined business services marries a system of engagement, which is how a customer interacts with the service, to a system of action, which is how the service is delivered.Each service typically has three aspects: The interaction describes the occurrence of the act, performance, or transaction (the service).The offering is a stratification of the service into capability, availability, and pricing options (customer-facing choices).The service system is a collection of business and technical services that are used to deliver a business capability. The service system can be a combination of business services, technical services, products, applications, processes, workflows, and tasks (e.g., the Now Platform® plus applications).This provides a framework for enterprise IT to manage its own performance in a way that reflects the value IT provides. When IT creates services that correspond to business function capabilities, it can better communicate the value that investments in IT provide to the business.
Insight: Define and map out your business services
There are three things you must get right upfront to define and map out your business services in ServiceNow®: Don’t rush to create a full-blown enterprise service management practice right off the bat. Start with a handful of pilot business services to help refine your processes and approach.Frequently check in with your service customers for input. They will give you the most useful feedback on the effectiveness of the new service.Assign a service owner for each business service you create.
Define and map out your business services
Key implementation stepsStartImproveOptimize
1. Offer digital business services in a system of engagement
2. Build a system of action for delivering digital business services
3. Build insight and integration
4. Create foundations for enterprise service management
Slide3Define pilot use cases for business services
Identify a small set of typical transactions that customers and/or employees engage in frequently like employee office moves or customer order modification. For a list of typical transactions, consult our Success Playbook on
how to launch digital business services
.Don’t take on too many pilot use cases—start with one to three as the basis for your business services. You’ll be able to define and create services more quickly to demonstrate success.Write a statement of business goals and expected benefits that includes how benefits are measured and where accountability is assigned for benefits realization.
Identify the key stakeholders, including sourcing partners involved in fulfilling or managing the use case.
To be effective, digital business services need a common home—in other words, a system of engagement that consolidates and simplifies how customers access services and information.Organizations distinguish between a customer-facing system of engagement—a service catalog accessed through a service portal—and service portfolio management, which oversees the creation, maintenance, and retirement of services grouped by objective, capability, organization, or geography. The service catalog is the consumable view of available services, service commitment options, and offerings.Step 1: Offer digital business services in a system of engagementSteps
1. Offer digital business services in a system of engagement
2. Build a system of action for delivering digital business services
3. Build insight and integration
4. Create foundations for enterprise service management
Map out the digital means for engaging with a service—how the customer learns about and transacts a use case—before you map the workflows for fulfillment.
For identified use cases, define the service in terms the customer would use:
“What will the customer order?” That is, give a general description of the service.
“What type of service is it?” Is it business, technical, application, etc.?
“What information would be most useful to the customer?”
”Where can they get more information?” Who is the service owner?
“How does this service help them?” What value does it provide?
“What are my choices for this service?” What are the offerings?
Slide4Create the business service
Create business-level services, like those for onboarding or an office move using Service Portfolio Management.
Create technical or application services in the CMDB using one of the following methods:
Use ServiceNow Service Mapping.Import the configuration item (CI) from another source using Import Sets.Integrate with an existing CMDB using a MID Server.Manually create a business service CI using the CI Class Manager or directly into the table using CMDB configuration.
Create service offeringsDifferent levels of performance and features for a given service can be made available, but only one offering is required per service.
Service offerings include detailed information about the service interaction, including:VendorsContractsService level agreements (SLAs)/operational level agreements (OLAs) AvailabilityCommitmentsConsumption(Optional) service price or internal cross-charge costStep 1: Offer digital business services in a system of engagement (Continued)
Steps
1. Offer digital business services in a system of engagement
2. Build a system of action for delivering digital business services
3. Build insight and integration
4. Create foundations for enterprise service management
Slide5Create the system of engagement and publish the service
Use an employee portal, customer service portal, or supplier portal, depending on the consumer of the services being created.
Refer to the following Success Playbooks on the Customer Success Center for more information:
Design a world-class service catalogImprove self-service with ServiceNow
Create a mechanism to order the service.Customers must be able to transact with the business service in a simple and automated way.
Provide useful information and news about the services.Make policies, guides, and other information available to guide the transaction decision.Create communication channels to let the customer connect with the enterprise about products and services.Make communication channels available to help answer questions about the transaction decision.Step 1: Offer digital business services in a system of engagement (Continued)Steps
1. Offer digital business services in a system of engagement
2. Build a system of action for delivering digital business services
3. Build insight and integration
4. Create foundations for enterprise service management
Practitioner insight:
Test engagement with your intended audience. Don’t rely on business capability or process owners to identify use cases. The service consumer will give you the best input into strong use case candidates.
Slide6Define and implement baseline processes for effective service delivery
Service catalog management –
Define and document the organization’s process for how it will catalog digital business services and communicate about them with customers, typically about provisioning policies, service level options, cost, and ordering steps.
Service level management – Ensure that service delivery meets customers’ functional and technical requirements. This means that a digital business service must be mapped to its underlying dependencies (both technical and organizational) so the organization can validate if customers’ required service levels are technically and economically feasible.Data, services, and taxonomy management – Create a process for managing a portfolio of digital business services, including:
Prioritizing investments in data and service development to meet customer use case needsModifying and/or retiring existing services and data assets as required
Incident and request management – Create case- and task-based processes for both managing incidents associated with the performance of the service as well as with fulfilling service transactions.Knowledge management – Create a defined and documented process for how it reliably collects, maintains, and dispenses information about the digital business service throughout its lifecycle. This includes how to identify relevant knowledge for target audiences and ensuring methods are in place to publish, store, and refresh this knowledge.Continuous service improvement management – Create a process for measuring service effectiveness and efficiency and for defining and implementing service improvement plans in response to the trends you’ve identified through measurement.Your system of action for the delivery of your digital business services needs a common framework of processes and roles to ensure consistency and efficiency in delivery. Service organizations can extend existing process frameworks such as ITIL, IT4IT, ISO, COBIT, or TOGAF. The framework you choose matters less than your need to institute a baseline of processes for effective service delivery.
Step 2: Build a system of action for delivering digital business services
Steps
1. Offer digital business services in a system of engagement
2. Build a system of action for delivering digital business services
3. Build insight and integration
4. Create foundations for enterprise service management
Slide7Define process management and service-related roles
Assign a service owner for each service.
Initially, create a part-time service owner role. As the number of services grows, the service owner role will become full time (see Step 4).
During the pilot phase, assign a single service owner to all the use cases.The service owner is accountable for the full lifecycle of their assigned service(s) to ensure they’re providing value to the organization.Assign a process owner for each of the processes outlined above.
Initially, the process owner is a part-time role. As the number of services grows, the role may become full-time.Responsibilities include defining and evolving these things for the organization over time: the services, taxonomy, policies, procedures, governance, roles, responsibilities, etc.
Depending on the size and complexity of the organization, process owners may be supported by regional or business unit process managers.Process owners may support multiple services.Embrace the opportunity for improvement when designing service deliveryIdentify unnecessary handoffs, approvals with a near 100% approval rate, and process steps in place only due to a lack of automation.Review processes to identify where the process should be amended to support service delivery. Refer to our resources on process redesign and optimization.Step 2: Build a system of action for delivering digital business services (Continued)
Steps
1. Offer digital business services in a system of engagement
2. Build a system of action for delivering digital business services
3. Build insight and integration
4. Create foundations for enterprise service management
Slide8Map applications and assets to the business service
Use ServiceNow Discovery or another integrated discovery tool (see the Success Playbook on
populating and maintaining your CMDB with ServiceNow Discovery
) to create CIs that will support the business service.Map application services to underlying dependencies.Use ServiceNow Service Mapping to automate the process of linking CIs to business services.
You can also create manual mappings using the ServiceNow CI Class Manager or the CMDB configurator.
Step 2: Build a system of action for delivering digital business services (Continued)Practitioner insight: Involve Enterprise Architecture teams from the beginning to define the architecture connecting the system of engagement with a digital business service to the system of action for fulfillment.Steps
1. Offer digital business services in a system of engagement
2. Build a system of action for delivering digital business services
3. Build insight and integration
4. Create foundations for enterprise service management
Slide9Step 1: Build metrics to assess service performance and guide continuous service improvement
Service owners are accountable for the most critical KPIs for each business service.
Define service efficiency/effectiveness metrics – How has the customer’s experience improved?
Service owners should start with these metrics.Examples include the number of business transactions supported, quality of service/reduction of errors, and cost of service.Keep these limited and focused, changing them only when the target customer’s objectives change.
Define the service delivery performance – How well is the service delivered? For example, measure the lead time from the request to delivery or the number of requests fulfilled.
Process owners should then look to diagnostic metrics to help them test hypotheses around trends in performance, cost, or satisfaction, and to spot opportunities for improvement.Digitizing a service transaction delivers only part of the potential value of a digital business service. For most organizations, the real potential of digital business services is in the ability to connect a system of engagement and action to a system of insight. This involves following two key steps.Step 3: Build insight and integration
Step 2: Build an integration plan aligned with the service use case
Define the integration requirements.
Identify the data elements that the business service either relies on or builds insight from.
Partner with enterprise architecture resources to define the appropriate integration architecture for each use case.
Consult our Success Checklist on
implementing ServiceNow integrations
for additional information.
Steps
1. Offer digital business services in a system of engagement
2. Build a system of action for delivering digital business services
3. Build insight and integration
4. Create foundations for enterprise service management
Slide10Formalize the existing service roles and assign expanded service roles
Service owner:
Accountable for the full lifecycle of services to ensure they’re providing value to the organization
Defines and socializes a mandate for a formal service owner’s role within ITUses the mandate to start building the service owner’s job description and identifying a suitable candidate poolDepending on the size of the organization, may be assisted by service managers, who are responsible for the day-to-day delivery and operation of a service; otherwise, these roles may be performed by the same person
Service architect:
Responsible for creating and updating service records in the service portfolio management toolService manager:Responsible for the day-to-day delivery and operation of a servicePortfolio owner:Accountable for managing a hierarchical collection of services (i.e., a portfolio of services) for the maximum benefit of the businessAfter achieving success creating and delivering your initial business services, you’ll next need to scale up to support additional demand for business services. This may include creating a formal shared services organization or may be supported from within IT, but you’ll need to develop the roles, service taxonomy, and underpinning service components to support growth toward a full enterprise service management function.Step 4: Create foundations for enterprise service management
Steps
1. Offer digital business services in a system of engagement
2. Build a system of action for delivering digital business services
3. Build insight and integration
4. Create foundations for enterprise service management
Slide11Create a standard service lifecycle
Define business services:
Work with partners in the business to define additional use cases for digitization.
Gather business goals and objectives for the use case.Replicate the activities found in Step 1 of this Success Checklist.Review and provide approval of a service concept.
Deliver business services:Create the system of action for the business service as described in Step 2.
Develop the fulfillment and approval processes.Test the services with the service customer.Deploy the business service.Capture the operational metrics.Review business services: Conduct regular service review meetings at least quarterly.Include performance and operational metrics of your services (captured weekly/monthly, reviewed quarterly).Oversee updates and improvements to services.Execute updates and improvements to your service such as new offerings or improved commitments.Retire or replace business services: Decide when to retire a service and/or offering that is no longer adding value.
Step 4: Create foundations for enterprise service management (Continued)
Steps
1. Offer digital business services in a system of engagement
2. Build a system of action for delivering digital business services
3. Build insight and integration
4. Create foundations for enterprise service management
Slide12Create a services taxonomy/hierarchy
Define the services and dependencies to understand your optimization opportunities.
Start with grouping them by IT technology for IT-related services.
Group business services by business unit, end user type, or geography.These services should be above the application and process layer and focus on what the organization does rather than how it does it.Create metrics on the regretted attrition within the first 180 days, satisfaction, and intent to stay—not technical or incident management metrics.
Step 4: Create foundations for enterprise service management
(Continued)
Identify metrics to demonstrate the engagement/business relationship management (BRM) and business impact
Step 1: Engagement/BRM KPIs:
Number of customer inquiries
Number of new customersNumber of planned new servicesStep 2: Business impact KPIs:Work with business liaisons to determine the appropriate KPIs tied to their business goals.
Obtain historical data to compare with the post-service impact.
Practitioner insight:
The ServiceNow common service data model (CSDM) provides a single, shared set of services and related
definitions
. These definitions are divided into three domains with components listed from most general to most granular:
Service domain –
Service portfolio, service category, service line, service, service offering, catalog offering
Application domain –
Application, infrastructure CIs
Business domain –
Business capability, business process, business application
The service system can be a combination of business services, technical services, products, applications, processes, workflows, and tasks, such as the Now Platform plus applications.
Steps
1. Offer digital business services in a system of engagement
2. Build a system of action for delivering digital business services
3. Build insight and integration
4. Create foundations for enterprise service management
Slide13Key performance indicators
Essential KPIs# of business transactions supported# of services offeredQuality of serviceCost of service% of errors reduced
Service delivery time (request to fulfillment)# of requests fulfilled Nice-to-have KPIs# of new customers
# of customer inquiries# of planned new servicesStakeholder mapResponsible/accountableService ownersProcess owners Service managersPortfolio ownersPortfolio managersConsulted/informedCIO
Business leadershipServiceNow governance committees
Business stakeholders (informed only)Vendor representatives (informed only) Business engagement teams PartnersKPIs and stakeholders
Slide14Glossary of terms
For an updated list of common service-related definitions across ServiceNow solutions, consult the Common Service Data Model product page. Also refer to the common service data model forum on Community.
Slide15Customer Success Best Practices
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