Service Management Office

Service Management Office

How is IT doing, and how could it do better?

Can you say (after all of the hard work and late nights) that you have made measurable progress on improving service delivery quality, or is it a struggle to even define what that means?

Having perspective on this question is critical to setting and achieving goals that can be demonstrated to the business, and one way to achieve this perspective and its benefits is establishing a Service Management Office (SMO).

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On the Precipice of Digitalization

Waves_in_pacifica_1Every industry will face an inflection point at which technology will introduce dramatic change. Some companies will not be ready for their respective revolution, and their legacy business models and the quaint advantages upon which they traded will no longer be sufficient.

Digitalization in Banks

The banking industry is a great example. Banks are facing this challenge more immediately than most for a few reasons:

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Businesses move to support remote working

coffee-shop-393954_960_720Stepping into Carbon Beverage Cafe on Platte, you’ll hear light music, steam from an espresso machine, and the chatter of keyboards from the patrons who spend their day at community tables or converging around the spare visible outlet.

These remote workers are here every day for a few minutes or hours. They work at some of the largest companies in Colorado and for some of the smallest startups.

Working remotely is growing in popularity. Surveys have shown that 37%[i] to 45%[ii] of employees work from home or remotely every month. Among college educated employees the number is higher at 55%.

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Application Rationalization

Cloud applications have empowered business managers outside of IT to select software and systems that can grow to become mission critical. This “Shadow IT” makes enforcing IT strategy and governance more difficult and often leads to duplication, compatibility issues, and other unintended problems.

Application Rationalization is the process by which IT reasserts control and brings technology investments in line with current and future business needs. By pursuing application rationalization:

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Turnover

The onslaught of Linkedin recruiters, changing norms with the younger generation (Of which I am a proud member), and a hundred other factors have had their toll, and as a consequence the average tenure of an employee has decreased to as little as 1 year in highly technical companies.

Even if internal recruiters can fill roles as fast as they open, companies are still challenged with retaining the corporate knowledge, building culture, and meeting goals – all of which is rendered more difficult by frequent turnover.

For some skill sets, the true cost of talent is much higher than the going rate, and the market is tripping over itself to correct that delta. Software engineers, for example, know that if they have been in a position for more than 6 months, they are probably being underpaid.

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