Refine Your Service Value Proposition
IT organizations are service organizations. They don’t become service leaders through sightless evolution. IT leaders must engage their counterpart business unit leaders (i.e., the heads of logistics, purchasing, etc.) to have a good grasp of their own departmental goals, plans and objectives. Understanding the strategy and goals of the business it serves is critical to the alignment of objectives. The IT organization can provide better service if it understands the objectives of internal customers.
Revisiting the IT value proposition during annual planning sessions is an important exercise for IT managers. This will help IT managers understand the real and softer elements that are the differentiators of IT services. For internal customers, Value Proposition is the collective services they receive upon investing in IT capabilities and services. We have to understand that it includes more than just the core IT services (equipments, applications, and connectivity), and even more than just quality— it also involves several softer variables that will differentiate the total service offering such as responsiveness, innovation, collaboration and commitment.
These are two perspectives representing the two words of the terminology “Value Proposition” itself— “Value” and “Proposition”. This is broken down into:
- Value (Internal Customer’s Perspective) = The benefits received by the business upon investment on IT capabilities and services.
- Proposition (IT’s Perspective as Service Provider) = The total offering to the customer in exchange for their investment.
IT best practices such as Information Technology Infrastructure Library (ITIL) and IT Services Management (ITSM) ensure that IT is aligned with the goals of the business organization. IT’s challenge is beyond technology. Its challenge is to deliver services that enable the business to balance performance, quality, risk and cost. IT’s attention is shifting from discrete technology initiatives to optimizing the value of business services delivered by IT, driving positive business outcomes and improving customer experience.
Commitment to the business’ end-customer
Although the IT organization’s direct customers are typically internal (the business units), IT is expected to play an important part in the ultimate value proposition— the value proposition to the customers of the business units (the end-customers). When I was an IT business process manager in the Philippines, we used to program appointments that will require IT personnel and managers to accompany Area Sales Managers on their sales visits with customers. These visits allowed us to experience the action from the frontline and engage our end-customers. At the time, we were implementing Internet and mobile applications to enhance customer service management. These personal meetings with end-customers allowed me to hear first-hand the affirmations, complaints and suggestions. That experience enriched our perspective and allowed us to improve and design better customer solutions for our commercial organization to sell and serve to our end-customer.
Do your information technology (IT) capabilities enhance the experience of your internal customers (business users) and external customers (customers of your internal customers)? Do IT managers throughout your organization recognize their responsibilities for effective customer relationship and business alignment? What’s it like to actually walk in your customers’ shoes? Do you know what your customers actually experience? Simply put, do your IT capabilities achieve meaningful differentiation by enhancing customer experience, in and out?
Photo courtesy of Ivy Remoreras Photography.
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