Portfolio management tends to be vital for an organization in order to provide good IT or business services to customers. It helps to acquire better governance requirements and enhances better deliverance of services. The services portfolio management is segment of latest service management practices that comes under the guidance of ITIL framework, and it is advisable for IT service organizations undertake this practice to ensure the streamlined provision of services to their clients and customers.
Superficially the IT service portfolio management appears to be simple, but it carries a full-fledged IT and business services available for customers. Suppose this practice is used to its fullest, then it will indeed flourish the workforce of an organisation. It is remarkably noticed by surveys that the IT service portfolio management isn’t used to its fullest, although using it makes a lot of difference in working process of an organisation in comparison to the organisations who don’t encourage it’ use.
IT service portfolio management definition
Under the ITIL framework, the service portfolio management can be defined in simple terms as management of service portfolio, which means maintenance of a set of lists of services and their present related status with the history of previous of and current services provided.
The service portfolio can be further studied by the three distinct classifications:
- A Service Catalog
A service catalogue can be defined as a set of information that gives a basic outlook all visible, feasible and buyable services for the customers.
- The Service Pipeline
A service pipeline acquires related to services that are going to be launched in the near future and aren’t visible to the customers. This so, because these services are under development. The service pipeline also helps to forecast the growth of a new service and timeline for the same.
- The Retired ServiceCatalog
It basically stores the information related to services that are no more in use or can be called retired services. It keeps all such history which can be used for studying later for auditing purpose or some other objective.
The maintenance of these service information isn’t meaningless, but it is vital for managers to test the quality of services and it also helps the managers for auditing of expenditure of services. This also allows the managers to understand that which services admired, unlinked and anticipated by the customers.
Why is it necessary to maintain service portfolio?
A well-managed service portfolio can help an organisation to answer some of the most anticipated questions, such as:
- Why should a customer service from a particular organisation?
- Is it necessary to buy a particular service?
- What is the pricing system of an organisation?
- How to allocate resources for a particular service?
Difference between Product Portfolio Management and Service Portfolio Management
Product Portfolio Management is always confused with Service Portfolio Management by many organisations. It although seems similar, but it isn’t identical at all.
Well, a product is something that can be purchased and delivered moreover, it tends to be tangible, whereas, in case of service, there is a deliverance of some intangible value.
A product can be used for a specific purpose, but services are more concerned with the provision of solutions issues. Services include customer service transition assistance and management. Well, altogether, the outcome of services depends on the needs of a customer.
Difference between Project Portfolio Management and Service Portfolio Management
Services can be altered, and new services can be established on the basis of customers needs, and it cannot be changed without any reason. Service management is used to audit the expenditure that takes place in order to change a service. It should track the expenses through the lifecycle of services, design of services and through transition and operation of services and ultimately by tracking the retirement of a particular service. It should also track and manage the trading strategy for services.
Whereas Project Portfolio Management is more inclined towards tracking expenses that may take place in the development of a particular project and everything related to a project portfolio.
Service Portfolio Management and its benefits
- It helps the customers to understand your terms when you deliver any service to them.
- There high transparency that shows the risks intended costs and values of services.
- It justifies and supports significant changes that may occur in the provision of services.
All these benefits can be enjoyed by a company if they manage to maintain a better Service Portfolio of their services.