Category: Value Management

Managing Assets in a Free-Wheeling World

Trillion-dollar dotcoms get trillion-ized by not carrying inventory. Wall Street creates “products” by packaging things that were NOT provided (payments due).  Employees bring their own devices. Lines-Of-Business grab what they want from the external Everything-As-A-Service buffet. And obsession with innovation, fueling the pace of change, makes almost anything in hand at risk of being “obsoleted” far sooner than was ever projected.

Story after story, being in charge of Stuff is an authority that has fallen on hard times.

Or not… A division of Needs has simply taken over from a division of Belongings, and the solutions to Needs are more clearly and vigorously attached to how things are obtained instead of what things are already in hand. It’s a natural evolution, allowed more speed and prominence by technology having finally gotten us past institutionalized scarcity.

It doesn’t mean, however, that assets have just gone away. It does mean that Resourcing is the big issue, and that managing assets is a requirement of resourcing. Resources are assets that have been given an operational assignment. Resources are derived from assets.

This takes place in three interesting scenarios, summarized in the chart here, and detailed in the document linked below it.

Managing Derived Resources

For a full description of why and how resourcing is the lead POV on asset management, see Assets as Resources in the Next Normal.

The provided logic, and the objectives of resourcing, explains how assets apply to innovation, XaaS, collaboration, “freemiums”, services, and many of the other defaults that have collectively and concurrently become “the next normal” of production.


Digitized Production Service Solutions

Some companies are literally in the business of engineering IT infrastructures and managing the exposure of the company operations to those infrastructures.

For them, ITSM is part of a strategy to protect the value of providing IT to the business operations.

But from the demand side of things, credible providers are increasingly non-proprietary to the company. Meanwhile, the production value of IT utilization simply outweighs the impact on the Providers of doing the providing.

For companies not operated directly to engineer IT infrastructures, services still align IT to usability. The concept of a service and the agreement that defines service availability remains instrumental to making IT a part of business capacity.

But business seeks to align services to productivity. The point is that productivity dictates the requirements of capacity — instead of capacity dictating the potential value of availability.

 

SERVICES VERSUS DEMAND

Actual demand for service is linked closely to production requirements.

The value of production is far more sensitive to (a.) exposure to complexity and (b.) unreconciled scheduling. From the demand-side point of view, the primary assumption is that engineering creates an environment in which there can be reliable standing conditions supporting the opportunity to deliberately generate desired real-time outcomes. But, the on-demand world is emerging under management as a compilation of innovation, mobility, A.I., predictive analytics, dev/ops, lean, virtualization, and broadband. Meanwhile, the influence of competition, economies and cultures now more frequently causes changes in requirements. Consequently, use of services must be more flexible.  This means that the specific pathways and requirements of production may not be predefined and may need to be detected and composed “on the fly” with easily tolerable risk. Systems must continually or even suddenly generate processing that is immediately available to business operators.

Production Services Digitization

 

MANAGEMENT FOR BUSINESS

Demand-based strategic management of the production environment can be viewed thematically.

The management themes put an explicit emphasis on recognizing systemic conditions that promote immediate and adequate throughput of technology power, at low risk of misalignment to work objectives. The key themes ( in gray below) address the throughput constraints of on-demand production including target outputs, adaptability, governance, optimization and standards. They expect that management, services and needs are always negotiated in production.

Production Services Digitization2

 

Solution Providers are expected to address the elements of the model and the alignment of the elements. The elements shown in the model (such as context, knowledge or presentation) are all independently variable. But this means that the components of a solution can change asynchronously, directly affecting the complexity and integrity of the overall production system.

Elemental variability also highlights the hypothetical case of implementing full production throughput on terms other than through a single-source provider. A provider’s components offer more or less elegance and coherence to the production, and from one component to another, different providers have different levels of achievement in that regard.

In turn, that highlights the true importance of current-state digitization in IT.

 

DIGITIZATION

Digitization primarily means two things: one, the difficulty of engineering functional objects is greatly reduced; and two, the practical access to any implemented functionality is greatly increased. Digitization gives the same benefit to multiple sources, making each of the sources more likely useful to a given customer.

As a result, business requirements, for rationally maximizing the utilization of automation technology to exploit information, can be more generically defined by the customer aside from particular sources.

Said differently, essential business-relevant information uses such as explanation, instruction, communication and recording can be more readily modeled with a simpler architectural level of logic. In turn, the implementation of that logic in action can proceed in a faster time frame and with more assurance of operational stability.

Production Services Digitization3

 

THROUGHPUT DESIGN GLOSSARY

The business version of the production throughput model applies strategic goals (productivity, provision, management) to the production conditions, not just to the production outputs. It also applies goals (convenient, dynamic, integrated) to the runtime experience of the production.

In that demand oriented framing, the model broadly solicits the pertinent elements of a desired production solution. For example, catalogs and  location-triggered alerts both address service awareness. Collaboration functions and publishing both address knowledge. Discovery and mapping both address surveillance. Rules address interpretation; versions address referencing; and user interfaces address workflow.

More of the logic: demand-based management views on systems involve solution features that are automated and integrated specifically to apply to supporting production’s enablement with IT.

  • Presentation: consistent recognition and display of symptomatic evidence
  • Interpretation: formulaic or heuristic semantics and analyses
  • Referencing: policies, standards and specifications
  • Surveillance: real-time detection and exploration of states

Those assignments are part of the model’s persistent logic, while allowing both current and future components to apply.


Strategic Support Now

The customary “holy trinity” of People/Process/Technology still holds its place in IT strategy, accounting for key elements of managed value. Meanwhile, IT innovation has dramatically emphasized the central position of the individual user, who arbitrates tools and information with unprecedented liberties and options. This newfound power even directly challenges “process” by more frequently injecting improvisation into user procedures with beneficial results.

Because of this shift from process to people, it is far more important strategically to understand and manage why people do what they do. With that understanding, it is more evident that strategic support is fundamentally proactive, and is logically definable from the user’s point of view.

 

Support as Proactive User Empowerment

The general mindset of a User has an underlying structure that gives Support the indications of what generates manageability of the user’s acts and decisions towards getting “value” from IT utilization. The User’s self-image, desire, technology and information are all aimed at practicality, impact, expectations and decisions in a consistent way. The consistency comes from the User’s instinctive need to combine competency and autonomy (opportunity) for driving justified performance (outcomes). Proactive support consistently focuses on the practicality, expectations, decisions and impacts. The long-term significance of the consistency is that it accommodates the increasing breadth and pace of changes in user practices, tools and information without needing support to be re-conceived itself. Implementations of support can adapt and adopt within the same formula for generating business value.