Leveraging Best Practice Methods in an Age of Digital Transformation - Slides

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1October 2016 - © 2016 SureSkills
Leveraging Best Practice Methods in an Age of Digital Transformation

Agenda
2
08:15 - 9:00 Registration - Tea/Coffee
09:00 - 9:15 Introductions & Why Best Practice Methodologies? - Ruaidhri McSharry, Director
Service Management SureSkills
09:15 - 9:45 Developing Best Practice Framework - Phil Hearsum, ITSM Portfolio Manager at
AXELOS
09:45 - 10:15 Digital Transformation - what challenges are organisations facing today? - Ruaidhri
McSharry, Director Service Management SureSkills
10:15 - 10:45 Industry Examples / Case Studies
10:45 - 11:15 Adopt & Adapt with Real Business Value - How Best Practice Methodologies Work
together? – Bill Heffernan, Service Management Expert, SureSkills & SP3 Services
11:15 - 11:45 Q&A with all SME's
11:45 - 12:30 1:2:1 Conversations/Networking
October 2016 - © 2016 SureSkills

Introductions
3
PHIL HEARSUM
ITSM Portfolio Manager
AXELOS Global Best Practice
Rosebery Court, St Andrews Business Park
Norwich NR7 0HS
BILL HEFFERNAN
SERVICE MANAGEMENT EXPERT
SURESKILLS | SP3 Services
14 Fitzwilliam Place
Dublin 2
RUAIDHRI MCSHARRY
DIRECTOR SERVICE MANAGEMENT
SURESKILLS
Dublin 2

IT Service Provision Learning Services
Provision
Training Service
Provision
IT Change
IT Transition
IT Support
Develop
Support
Manage
Certification Training
Tailored Training
Managed Training Services (Local)
SureSkills - Who We Are
Consulting &
Solutions
Learning
Services
Training
& Certification

Objectives for Event
5
 Why the Event?
 Help your organisation cope with the constant digital
transformation (change) through effective Service
Management?
 Effective use of resources, people, process, & technology
 Empower your employees and engage them with process and
technology by using a proven framework breaking down the
silos within a business?

Definition – Digital Transformation
6
Digital transformation is the profound &
accelerating transformation of business
activities, processes, competencies &
models to fully leverage the changes &
opportunities of digital technologies &
their impact across society in a strategic
& prioritized way.

Why Best Practice Methodologies
7
 Best Practice?
 Proven
 Common Sense
 3E’s – Effective, Efficient &
Economical Use of Resources
 Agile & LEAN
 Assurance & Confidence
 Governance & QA

Frameworks - Options

Best Practices Everywhere

Digital CIO Mindset
Digital
Transformation
Requires Total
Organizational
Commitment
Traditional Digital
Strategy Efficiency Innovation
Culture Hierarchy Collaboration
Talent Low Cost High Skills
Technology Legacy Cloud, Mobile, Apps, AI
User Experience “Who Cares?” Mission Critical
IT Philosophy Default to “No” Default to “Yes”
Project Management Waterfall Iterative (Agile)
Business Model Service & Support Relationship & Partner
Source: CXOTALK

Barriers to Digital Trend Adoption
Top Barriers That
Impede Taking
Advantage of
Digital Trends

Same Issues Facing Systems (IT) Change
Top 10 Barriers
of Success for
Systems
Implementation
(Digital)

The “What” & “How” of Digital Transformation

Four Types of Digital Maturity
These companies have implemented /
experimented with many sexy digital
applications. Some of these initiatives may
create value, but many do not. motivated to
bring on digitally powered change, but the
digital transformation strategy is not founded
on real knowledge of how to maximize business
benefits.
Favour prudence over innovation. Understand
need for a strong unifying vision as well as for
governance & corporate culture to ensure
investments are managed well. Typically
sceptical of the value of new digital trends,
sometimes to their detriment. Careful approach
may cause them to miss valuable opportunities
upon which their more stylish competitors will
pounce.
Truly understand how to drive value with digital
transformation. Combine a transformative vision,
careful governance & engagement, with sufficient
investment in new opportunities. Through vision
& engagement, they develop a digital culture that
can envision further changes & implement them
wisely. By investing & carefully coordinating digital
initiatives, they continuously advance their digital
competitive advantage.
These firms do very little with advanced digital
capabilities, although they may be mature with
more traditional applications such as ERP or
electronic commerce. Although companies may
be Beginners by choice, more often than not
they are in this quadrant by accident. They may
be unaware of the opportunities, or may be
starting some small investments without
effective transformation management in place.

Maturity by Industry

Digital Maturity Matters in Every Industry
Beginners
Pharmaceuticals – Executives see threat in digital transformation
but less opportunity than other industries do, perhaps because of
regulation.
CPG – Digital opens new possibilities for firms to engage directly
with customers. 24% of firms surveyed stand out as Digirati, while
others lag far behind.
Manufacturing – Traditionally slow to react to digital,
manufacturing is on the cusp of emerging from Beginner status.
Efforts in digital remain focused on operational efficiencies and
worker enablement
Conservatives
Insurance – High expectations for digital and strong vision and
governance suggest that the insurers should be leading the digital
revolution. Yet, this is not the case for most firms.
Utilities – For the Conservative Utilities industry, efficiency is the
name of the game in digital transformation. Constant pressure to
reduce costs and the advent of smart metering create digital
opportunities in customer experience, worker enablement, analytics
and process improvement
Fashionistas
Telecom – Facing ever-increasing levels of connectivity and data
consumption, Telecom firms have been quick to respond.
Travel & Hospitality – Since the advent of the web, digital has
turned the industry upside down. The industry has responded, with
81% of firms in the Digirati or Fashionista quadrants and no
Beginners. Opportunities exist to improve worker enablement in
many companies.
Digirati
Banking – Digital is revolutionizing the relationship between customers
and retail banks, who have responded with strong capabilities in customer
service, analytics and even social media.
Retail – A decade-long history with digital disruption has seasoned retailers
and produced a number of Digirati (26% of firms surveyed). Retailers are
generally confident in the potential for social and mobile, as well as their
digital skill set.
High-Tech – For High-tech, digital is close to home. Firms generally enjoy
well-developed capabilities and high digital maturity. They are also – not
surprisingly – enthusiastic about digital’s potential.

Digital Leaders & Change

1. Business/IT relationship is key (closing the gap between both,
focusing on the same goals & NOT overlooking the role of IT)
2. There is a common DNA among digital leaders and the path to
digital transformation shows common traits (even if context
matters)
3. As said, each industry is impacted, including your industry.
Customers, employees, partners, nor competitors or new,
disruptive players, will wait for business to catch up, regardless of
industry
4. Digital transformation is led from the top (or at least requires firm
buy-in from the top – and all stakeholders)
Four Digital Transformation Realities to Emphasize
MYTH REALITY
Digital is primarily about the customer
experience
Huge opportunities exist in efficiency,
productivity & employee leverage
Digital primarily matters only to tech or
B2C companies
Opportunities exist in all industries with no
exceptions
Let a thousand flowers bloom, bottom-
up activity is the right way to change
Digital transformation must be lead from
the top
If we do enough digital initiatives, we will
get there
Transformation management intensity is
more important for driving overall
performance
Digital transformation will happen
despite our IT
Business/IT relationships are key, & in
many companies they must be improved
Digital transformation approach is
different or every industry & company
Digital leaders exhibit a common DNA
In our industry we can wait & see how
digital develops
There are digital leaders outperforming
their peers in every industry today

Agenda
19
AXELOS

PHIL HEARSUM
PHIL HEARSUM
ITSM Portfolio Manager
AXELOS Global Best Practice
Rosebery Court, St Andrews Business Park
Norwich NR7 0HS

AXELOS.com
PUBLIC
PUBLIC
Phil Hearsum
ITSM Portfolio manager
DIGITAL TRANSFORMATION
HOW BEST PRACTICE IS EVOLVING
AXELOS, the AXELOS logo, the AXELOS swirl logo, ITIL are
registered trade marks of AXELOS Limited.

PUBLIC
PUBLIC
Who am I and what is AXELOS
• My name is Philip Hearsum
• I am the ITSM portfolio manager at AXELOS.
• I have worked in IT for 35+ years and ended up working for the UK government. During that
time I became an evangelist for ITSM and ITIL® in particular
• ITIL was created in the 80’s by the UK government to help their provision of IT
• It undertook several revisions over the years becoming the de facto framework for ITSM in the
world
• In 2012 a joint venture to look after ITIL and the others in the Global Best Practice stable was
created. A tender was undertaken which resulted in AXELOS.

PUBLIC
PUBLIC
Traditional ITSM facts and fiction
• ITIL is process based
• ITIL is heavy influenced by infrastructure, hence the name
• ITIL works best for traditional IT that have a more waterfall
approach to ITSM
• You don’t need ITSM if you have your services in the cloud.

PUBLIC
PUBLIC
How did we end up with these views?
• The core ITIL books consist of a lot about process.
• However it also talks about people and culture.
• It talks about outcomes not outputs but shows outputs for each process
• Adopt and adapt is talked about a lot but we have relied on consultants and
trainers to provide guidance to the enterprise.
• Change is rigid and controlled and heavily based on the CAB
• This is an often quoted misconception

PUBLIC
PUBLIC
What has ITIL to offer to digital
transformation?
• ITIL is non prescriptive
• It is flexible
• It is based on outcomes not outputs
• By using your risk appetite and technology enablers you can adopt and adapt ITIL to
your organization
• New guidance has been released The ITIL practitioner

PUBLIC
PUBLIC
ITIL Practitioner
Continual Service Improvement
Communication
Measurement
& Metrics
Organizational
Change Management

PUBLIC
PUBLIC
What are my top tips?
1. Always remember that YOU are accountable for YOUR service.
2. Outcomes are what matters not outputs, define what you want and measure them.
3. Communication is vital.
4. Create an organizational culture around service management.
5. Ensure that measures are MEANINGFUL and contribute towards outcomes.
6. Work in small steps ensuring that the changes are embedded.
7. Understand your needs and partner with your service provider if possible.

COMMERCIAL IN CONFIDENCE
COMMERCIAL IN CONFIDENCE

Agenda
33
AXELOS

What is the Reference Point for Digital Transformation?

Digital Transformation - Music

Industry Digital Transformation
36
 Used technology to improve in-
store experience & increase
operational excellence
 Automating mining operations to
improve efficiency & safety while
creating new business opportunities
 Developed vision & governance
capabilities before it began to
implement new digital services in
its cars
 Built a digital division (Nike Digital
Sport) to coordinate & extend the
successful activities it had built
separately in social media, digital
product design, custom manufacturing

How Digital Transformation Changes the Nature of Work

Digital Transformation
38
 Organisations today are “rushing” to become
more digital - So what does digital mean?
 new shiny technology
 new way of engaging with customers, suppliers &
employees
 new way of doing business
 By definition if we are surrounded by technology
– pervading every aspect of our working & social
lives.
 effort to maximise the value the organisation
 effective service management is at the core of great
organisations – delivering effective, efficient & economical
use of “resources” in terms of People, Process, Technology

The Digital Transformation Divide

Digital Strategy is Not Yet Business Strategy

Stages of Digital Transformation
Business as
Usual: Organizations
operate with a
familiar legacy
perspective of
customers,
processes, metrics,
business models, and
technology, believing
that it remains the
solution to digital
relevance.
Present and
Active: Pockets of
experimentation are
driving digital
literacy and
creativity, albeit
disparately,
throughout the
organization while
aiming to improve
and amplify specific
touchpoints and
processes.
Formalized: Experime
ntation becomes
intentional while
executing at more
promising and
capable levels.
Initiatives become
bolder, and, as a
result, change agents
seek executive
support for new
resources and
technology.
Strategic: Individual
groups recognize the
strength in
collaboration as their
research, work, and
shared insights
contribute to new
strategic roadmaps
that plan for digital
transformation
ownership, efforts,
and investments.
Converged: A
dedicated digital
transformation team
forms to guide
strategy and
operations based on
business and
customer- centric
goals. The new
infrastructure of the
organization takes
shape as roles,
expertise, models,
processes, and
systems to support
transformation are
solidified.
Innovative and
Adaptive: Digital
transformation
becomes a way of
business as
executives and
strategists recognize
that change is
constant. A new
ecosystem is
established to
identify and act upon
technology and
market trends in pilot
and, eventually, at
scale.

7 Layers of Digital Transformation
Know where to startCustomer
Experience
Culture
Organization
Business
Model
Processes
Infrastructure
Leadership &
Capabilities

Creating a Digital Transformation Engine

Digital Transformation: Catalysts & Inhibitors
DIGITAL ETHNOGRAPHY
Focus on the new customer
journey
DIGITAL DARWINISM EVOLUTION
DIGITAL DARWINISM
Adapt to new technology or
die
BEHAVIORAL ECONOMICS
Digital opens new touch
points
LEADERS LEAD
Empowerment is top down,
inspiration cascades
DATA PARALYSIS
Actionable insight need
new support paradigm
CAUSE EFFECT
No dedicated
resources
TUNNEL VISION
Silos prevent CX
collaboration
EDUCATION
Execs need to know
what they don’t know
No common vision
Competitive disadvantage
Lack of sense of urgency
Broken experience
Internal collaboration
Expand market opportunities
Culture of innovation
Hero’s journey, customer
inspire change
CSI

Dynamic Value Opportunity
BUT………….

Six Steps to Getting Digital Transformation Started

Digital Reshape
47
Digital can reshape every aspect
of a modern enterprise

Building Digital Maturity: Digital DNA
48
1. Transformative Vision
2. Digital Governance
3. Engagement
4. IT-Business relationships
Four key transformation management practices that enable companies to align their digital efforts under a
common vision & coordination structure, & engage the company in making that vision a reality:

Conducting Your Own Digital Transformation
49
 Frame the Digital Challenge
1. Understand the threats
2. Access your firms digital maturity
3. Create/have a transformative digital vision
4. Senior team should have common vision
 Focus Investment
1. Identify where the company should excel
2. Decide if you need to adapt your business
model
3. Develop strong enterprise level
governance
 Engage the Organization at Scale
1. Putting the organization in motion early
2. Continuous two-way communication
3. Encourage employees to ID new practices
& opportunities
 Sustain the Transformation
1. Fill the skills gaps
2. Quantify & monitor progress
3. Iterate & improve

You Don’t Become Digitally Mature Overnight

51
Digital Service Management
Digital Innovation
Digital
Workplace
360 Customer
Engagement
Digital
Marketplace
IoT Automation
Customer Internal
Service
Requests
Business
Enablement
Service Optimization
Open ITIL Process & Solution Content
Digital Service
Management

Go from Zero to One
Leverage the world where
your clients experience
does not exist (yet)
Nespresso; iPhone;
Amazon; Groupon
Instagram
What does
Transformation of Legal
Business mean to you?
Just 5 words?
“The best way to
predict the future is to
create it” Peter Drucker
Focus on:
client experience, new
customers & users,
profitability, quality of
life
PAIN + LOVE
Hellven (hell + heaven)

 Adoption of AI/IA
contract review of risk & value
 Voice Recognition & Digitized
no paper
 Mobile First -> AI First
quick & easy to use
 Drafting 2.0
 Case/Project Management
Where will the Transformation Happen?

Consulting Features
57
 Lean 6 Sigma
 Non FE’s becoming FE’s
 Value Billing
 New Corporate entities (LS; Consulting; More…)
 International Focus
 IT & R&D Function

Five Previous Transformations

Lessons from Previous Transformations

Agenda
60
AXELOS

BILL HEFFERNAN
BILL HEFFERNAN
SERVICE MANAGEMENT EXPERT
SURESKILLS | SP3 Services
Dublin 2

Why Me?
62
 30 years experience in IT
 15+ years specialising in IT Management Best Practice
 Customers
 Public & Private Sector
 Small, medium & Large
 Targeted improvements to Organisation transformation
 But mostly because …….

I like to give out!

So what is ITIL®
65
• A Framework
• Service Management
• Lifecycle approach
• Deliver value
• Continually improve
• Process based but 4 P’s

“ITIL is not Agile”
66
 CSI
 Incremental Improvement
 PDCA (Deming) -> LEAN, 6 Sigma
 Communication & Control Framework
 Inherent CSI
 Cross functional Collaboration
 Internal & External Communication & Collaboration
 Manage
 Delivery- People (Resources), Process (activities), Products (technology & automation),
Partners
 Services – Utility & Warranty

Strategic Objectives to Incremental Improvement
Objectives / Outcomes in all plans & CSI register
Incremental Changes towards objectives, not projects
Priorities assessed Weekly, Monthly, Bi-Annual, Annual
Opportunities identification – metrics, Customers (BRM), Service Owners, Process Owners
Business Strategy

IT Strategy Year 1 Year 2 Year 3

Annual Plan Cycle 1 (Q1 & Q2) Cycle 2 (Q3 & Q4)

Cycle Plan
CSI Register u M1 u M2 u M3 u M4 u M5 u M6

Realities – This Example
68
Service Transformation
Utility to Trusted Partner
 Service Provider (not
Technology management)
 Business Aligned (Value
Adding)
 Trusted Partner
 Local to Global
Year 1
 Establish core (basic) Organisation,
processes, systems
 Relatively ‘Waterfall’
Year 2 + 3
 Organisation Objectives (e.g.
Globalised services)
 Service Improvements /
Remediation

The Bottom Line?

Digital Transformation – Service Managers Perspective
70
Using earlier slides:
 Digital CIO Mindset
 What & How of Digital Transformation
 Six Steps to getting Digital
Transformation Started
 Digital Transformation Realities to
emphasise
 Barriers to Digital Trend Adoption
 Issues Facing Systems (IT) Change

Digital CIO Mindset
Digital
Transformation
Requires Total
Organizational
Commitment
Traditional Digital
Strategy Efficiency Innovation
Culture Hierarchy Collaboration
Talent Low Cost High Skills
Technology Legacy Cloud, Mobile, Apps, AI
User Experience “Who Cares?” Mission Critical
IT Philosophy Default to “No” Default to “Yes”
Project Management Waterfall Iterative (Agile)
Business Model Service & Support Relationship & Partner
Source: CXOTALK

What & How of Digital Transformation

Six Steps to Getting Digital Transformation Started
ITIL Value
ITIL Service Perspective (4P’s)
ITIL Metrics
ITIL – Service Requirements
ITIL – CSI
ITIL – Knowledge & People Management

1. Business/IT relationship is key (closing the gap between both,
focusing on the same goals & NOT overlooking the role of IT)
2. There is a common DNA among digital leaders and the path to
digital transformation shows common traits (even if context
matters)
3. As said, each industry is impacted, including your industry.
Customers, employees, partners, nor competitors or new,
disruptive players, will wait for business to catch up, regardless of
industry
4. Digital transformation is led from the top (or at least requires firm
buy-in from the top – and all stakeholders)
Four Digital Transformation Realities to Emphasize
MYTH REALITY
Digital is primarily about the customer
experience
Huge opportunities exist in efficiency,
productivity & employee leverage
Digital primarily matters only to tech or
B2C companies
Opportunities exist in all industries with no
exceptions
Let a thousand flowers bloom, bottom-
up activity is the right way to change
Digital transformation must be lead from
the top
If we do enough digital initiatives, we will
get there
Transformation management intensity is
more important for driving overall
performance
Digital transformation will happen
despite our IT
Business/IT relationships are key, & in
many companies they must be improved
Digital transformation approach is
different or every industry & company
Digital leaders exhibit a common DNA
In our industry we can wait & see how
digital develops
There are digital leaders outperforming
their peers in every industry today

Barriers to Digital Trend Adoption
Top Barriers That
Impede Taking
Advantage of
Digital Trends
Barriers to any
change?
But effective
ITSM can help.

Same Issues Facing Systems (IT) Change
Top 10 Barriers of
Success for
Systems
Implementation
(Digital)
Standard IT
Change issues?
Resistance to
business agility?

ITIL® & Digital Transformation – My View
77
 Different types of services but still services
 Different service delivery models
 Driving greater IT & Business collaboration
Digital Transformation
Challenging for Service Providers
But
Not for Service Management

ITIL is not suitable for digital age?
78
 Beware the evangelist!
 Manage process but focus on outcomes – bureaucracy, fail
to manage, all or nothing
 ITIL® says ……
 Understand business value
 Manage culture – business & IT
 Communications & Control – channels & content (MI)
 Relationship Management (Business & Suppliers)
 Continual Service Improvement - leadership

Remember Pragmatic ITSM – Theory into Practice
79
Practitioner Principles
 Focus on Value
 Design From Experience
 Start Where You Are
 Work Holistically
 Progress Iteratively
 Observe Directly
 Keep It Simple
 Collaborate
 Be Transparent
Grumpy’s Principles
 Understand the Customer & Market
 Understand the Service Provider
 Validate / Create Strategic Vision
 Understand / Focus on value
 Engage Senior Stakeholders
 Don’t implement ITIL®
 Get visibility (services & delivery)
 Communication & Control Framework
 Incremental Improvement
 Service Managers in charge (not process)

Parting Advice
One Solution does NOT Fit All
ITIL®, DevOps, Lean, 6 Sigma, PRINCE2™, SCRUM….
Adopt & Adapt

What Digital Transformation means to me?
81
Digital Transformation:
 Does not require a new service management framework
 Does not challenge ITIL® Principles
 Can help transform the business perspective of services and service
delivery …….
OPPORTUNITY
IT as Service Champions in the business?

Questions – SO WHAT!!

SureSkills Ireland
14 Fitzwilliam Place, Dublin 2,
D02 W025, Ireland
Sales: +353 1 240 2262
Reception: +353 1 240 2222
Fax: +353 1 240 2233
info@SureSkills.com
SureSkills N. Ireland
Callender House, 58–60
Upper Arthur Street, Belfast
BT1 4GJ, United Kingdom
Sales: +44 28 9093 5565
Reception: +44 28 9093 5555
Fax: +44 28 9093 5566
niinfo@SureSkills.com
SureSkills Canada
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K1N 8S7, Canada
Toll Free: +1 855 278 7555
cadinfo@SureSkills.com
SureSkills USA
Suite 200, 7000 N. Mopac
Expressway, Austin,
TX 78731, USA
Toll Free: +1 855 278 7555
usainfo@SureSkills.com
Thank you
Ruaidhri McSharry
Director Service Management
SureSkills
Phil Hearsum
ITSM Specialist
Axelos
Bill Heffernan
ITSM Expert
SureSkills | SP3 Services

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