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Trying to impose traditional portfolio management techniques on a portfolio
of BtoB services is a recipe for severe discomfort at the least and corporate
sclerosis at the worst. Most services providers lock market opportunity
to transaction type to capability. The results of this approach include
untoward complexity, offering proliferation, overlap, and organizational
silos.
A new approach to services portfolio management that eliminates the
requirement for a mutually exclusive and collectively exhaustive offerings
provides a better way to communicate offers, make investment decisions,
and stay competitive.
In this Update, ITSMA explores a model that aligns three “layers” of
the portfolio:
- Capability layer
- Commercial model layer
- Market opportunity layer
In the new model, which presents the portfolio as a multilayered set
of building blocks, providers optimize their flexibility and capability
utilization and are therefore better able to meet specific client needs.
This Update provides concrete examples of how to analyze each of the three
layers in the portfolio, as well as an example of how to align the layers
to arrive at a portfolio structure that will evolve with the needs of the
marketplace and maintain competitive advantage. The Update also includes
a brief case study example of how CSC has structured its multilayered, “building-block” approach
to portfolio management.
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