A company’s service portfolio can be defined as a group of services that are listed in terms of their value for business. This portfolio can include everything from in-house services to outsourced ones. Service portfolio management is the process of managing and improving the business through careful assessment of quality requirements, associated costs as well as their changing financial value. The main goal of service portfolio management is to maximize the realization of value to the business and meanwhile balance the risks with the costs.
How does service portfolio management help?
To manage your service portfolio successfully, there are five questions you must always ask yourself. These five questions include understanding the reasons for a client wanting to buy your services, why they should buy it from your company, your price and charge backs, allocation of capabilities and resources as well as understanding your strengths, weaknesses, risks and priorities. When it comes to successful service portfolio management, product managers play an important role as they are expected to manage the services and products throughout their lifecycle.
A product manager is also responsible for focusing the project on important tasks and coordinating as well as owning the service catalog.
Sub-processes of service portfolio management
Portfolio management for services can be divided under three sub-processes including analysis, approval/rejection and review. The objective of the first step is to define the outcomes of the new proposed or altered services and analyze the impact on other services in the portfolio. The second step in managing the service portfolio includes submitting a formal proposal and having it authorized by the responsible management team. The final step in the process is to review the changes and assess the services periodically to ensure that the portfolio is being managed effectively and aligns with the service strategy.
What does a service portfolio contain?
Any service portfolio contains three subsets. The service catalog is the section of the portfolio that is visible to your customers and provides an insight into the services and products your business delivers. The service pipeline includes the list of services that are currently under development or consideration for a specific market or demographic. The pipeline also includes details of the projected growth of the portfolio in the future.
The service pipeline can also include goals, priorities as well as short term and long term goals of your business. The last subset of the portfolio is the retired services that include products and services that are soon to be withdrawn or have already phased out. This section of the portfolio overlaps with service transition.