Service Portfolio Management is the latest buzz in the IT industry. It is being looked upon as a strategic planning and executing tool that ensures that the IT strategies are in alignment with the business strategies. Service portfolio management regularly scrutinizes and reviews Information and Communications Technology or ICT services of a company to make sure that they are adding value to the projects at hand and the ones that are being planned. In simple words, SPM guarantees that there is an optimum investment in IT that corresponds to its strategic plans and needs.
Aspects of SPM
The many aspects of the SPM allows the IT supply chain to run smoothly and seamlessly including planning, assessment, fine-tuning of services and even delivery. There are three main aspects that SPM looks into and they are:
- Services in the pipeline, the ones that are currently being worked upon
- Existing services that are already available for the use of the end user
- Discontinued services, that have been withdrawn from the market
Key benefits of SPM
Experts suggest that IT companies that make use of SPM services can significant advantages. They get the opportunity to convert their assets and operating costs into services that can bring in profits and add value to the organization. Here is a look at some of the key benefits of SPM for businesses:
- A shift in the attitude towards IT as a value-generating component instead of an inevitable expense. This leads to a change in the way the company deals with IT and enables it to make use of their expenditure and costs to increase their sales and profits.
- A sensible and cost effective alignment between IT services and the strategic goals for the business.
- Cost efficient processes can be implemented through constant review of the services provided. This further includes the bringing together of duplicate or similar services, elimination of inefficient and value deprecating services, elimination of unused or stagnant services, and boosting of services that are inefficient but have potential.
- An increase in the company’s ability to cater to the demands of the end users.
- Scientific and precise supply chains including the creation of new services besides the enhancement and elimination of the obsolete ones.
- Provides the organization with an insight into the difference and impact IT services actually have on the performance of the business.
- Increased attention and focus on services that garner the most value and profit, in turn increasing employee productivity.
SPM is still a new introduction in the industry. Standard practices, rules and regulations for the same are still being worked upon. This has not prevented it from showing its potential to improve business standards.