3.1 Introduction

The subject of this chapter is the IT service that is delivered to the business by the IT function. Performance management requires the IT function to provide value to the customer. To understand where to focus from a performance management perspective, an insight is needed into the structures and characteristics of the IT portfolio and the processes for IT service provisioning and new service introduction.

It has been argued before that IT service provisioning should be considered to be a business within a business. Sometimes this can become blurry, specifically when the word customer is used. In this book we will distinguish between:

• external customer , being the end customer which by definition is outside the company, being the entity that buys finished goods or services from the company;

• internal customer being the entity that gets IT services supplied. A specific subset of the internal customer is referred to as the end user . This is the person who is directly supported with IT; and

• customer being either internal or external or both.

Additionally, a management approach to the processes for service delivery and new service introduction is described, along with the key management roles in IT service provisioning.

3.2 Structuring IT Services

Managing a specific IT services portfolio requires a good understanding of the structures of services. Transparency in service delivery and related pricing structures is based on a common understanding of these structures.

The traditional way to structure goods and services is the bill of material . The bill...