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QUESTION NO: 1
Scenario
A clothing manufacturer has made a decision to supplement factory-based retail outlets by opening a series of stores at out-of-town shopping malls.
The internal IT organization provides support to many mission-critical business systems for both the manufacturing and retail operations. It must increase its portfolio of services and service options to meet the planned new expansion. Typically, the business is subject to seasonal patterns of demand, which recently have begun to exceed the capability of some of the IT services. This has led to periods of poor performance of some of the critical systems and therefore to degraded service quality. In periods of minimal demand, there is a surplus of capacity and performance is optimal.
There is concern that the additional business demand from the new stores will exacerbate these service performance issues.
The board of directors, made up of representatives from each business unit, has asked for a review of the business supply and demand issues currently being faced by the IT organization. Many service management processes have been implemented including service portfolio management and capacity management. However, IT does not have a demand management process.
Additionally, performance levels on many of the supporting services have remained unchanged for the past 3 years, even though some may now be less relevant to the overall performance of the critical services.
Refer to the Scenario.
The review of the supply and demand issues concluded that the implementation of a demand management process could help the IT organization address the issues. Which one of the following options provides the BEST solution to both the problems currently being faced and those related to the proposed expansion?
A. The service portfolio should be reviewed and an analysis carried out of each business unit's requirements to understand their current usage of the IT services and where seasonal variations lead to fluctuations in usage.
Discussions should take place with the business units to impose limits within specific time periods for each business unit's usage of IT services.
Work with business relationship management and capacity management to develop long term plans to meet the extra demand resulting from the company's expansion plans.
B. An analysis should be carried out of each business unit's patterns of business activity (PBA), and appropriate services for each business unit selected from the service catalogue.
In conjunction with the finance department, a revised cost model should be introduced to allow for the fluctuation in usage and costs.
Differential charging should be introduced to address the issues of service quality.
C. The service portfolio should be reviewed and an analysis carried out of each business unit's requirements in order to understand their patterns of business activity (PBA) and corresponding usage of the IT services.
Differentiated service offerings should be developed to match PBA; this will make better use of available IT resources. Supporting service performance targets should be amended to reflect these changes.
Work with business relationship management and capacity management to develop long term plans to meet the extra demand resulting from the company's expansion plans.
D. The service portfolio should be reviewed and the business unit's cumulative service usage should be reviewed, monitored and analyzed.
Work with the business to develop short-term measures to manage demand for the IT services, such as delayed or batch processing of retail transactions.
Service levels should be reviewed to take into account changes to supporting service performance targets and, where applicable, agreements should be updated through change management.
Answer: C
QUESTION NO: 2
Scenario
The IT organization of a manufacturing company is carrying out an annual review of its service portfolio. There is limited budget available for the next year and some projects may be delayed or cancelled. The company has control of most of its IT services, however some are mandated by the company's corporate owners.
The following services are under review:
* Service 1: Web ordering service. This is a new service that will enable the company to fulfill its strategy to sell products on-line and increase its customer base by 20%. Only high-level business requirements have been established so far but. if the project goes ahead, the system will be provided by a supplier using standard applications and technology. A business case has been created which shows the ratio of value-to-cost to be much greater than one.
* Service 2: Sales office service. The service has grown from a number of separate applications that have been combined into one suite. The technical solution for each application is similar but some use different versions of the same operating system. The applications themselves provide the required utility and support their business outcomes well. There is some overlap in functionality across the set of applications contained in the service suite.
* Service 3: Finance reporting service. The service is used by the finance department to create statutory reports to fulfill legal obligations. The service is hosted on a legacy system. The cost of supporting the service is increasing gradually and the return obtained from the service is decreasing.
Eventually the service will be replaced by the new enterprise resource planning (ERP) service. It is projected that, over the next two years, the ratio of value-to-cost will drop to less than one.
* Service 4: This is a new ERP service that is being implemented across all companies in the corporate group. It will eventually replace many existing services including the finance reporting service. The service has been approved and chartered, and has a current status of "design". A large number of assets have been allocated to this project. As this service is mandated by the corporate owners, no further decision is required.
Refer to Scenario:
As part of the service portfolio management team you have been asked to recommend whether investments should be made in these services in the next year.
Which of the following options is the BEST set of decisions to make for the services?
A. Service 1 - promote to the service catalogue, project
Service 2 - retain. Keep the service and support
Service 3 - delay decision. It is likely that this project will use assets that will be allocated review.
Allocate resources to the transition stage of the it in its current form service will be retired, but not yet. The retirement elsewhere this year. Reconsider at next annual
B. Service 1 - promote to the service catalogue. Allocate resources to the transition stage of the project Service 2 - re-factor. Set up project to redesign the applications to concentrate on the core functionality of the service Service 3 - retain. As the service is needed to fulfill legal and statutory compliance it should be retained.
C. Service 1 - invest. Charter the service and set up a service design project Service 2 - rationalize. Se t up a project to identify the best way of retaining the support of the business outcomes but eliminating the duplication of functionality and supporting components Service 3 - delay decision. It is likely that this service will be retired, but not yet. The retirement project will use assets that will be allocated elsewhere this year. Reconsider at next annual review.
D. Service 1 - invest. Charter the service and set up a service design project Service 2 - replace. Set u p project to replace the set of applications with a single application designed to support the business outcomes Service 3 - retire. Mark the service for retirement and set up a retirement project. This will make best use of resources and ensure that information is migrated to the ERP service.
Answer: C
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Updated: May 26, 2022