Drive Stakeholder Value Drive Stakeholder Value (DSV) is focuses on creating value for all stakeholders, including customers, employees, suppliers, and partners. The goal is to ensure that IT services deliver real benefits and meet business needs effectively. OR In simple terms: Stakeholders expect value from IT services. IT service providers must understand and fulfill these expectations. The entire customer journey is important, from the first interaction to service delivery and ongoing support. Why is DSV Important? Helps IT teams build strong customer relationships. Ensures services are aligned with business goals. Improves customer satisfaction and business success. Encourages collaboration between IT and other business units. Example of DSV in ITSM: Imagine a hospital implementing a new patient management system. Stakeholders include: Doctors & Nurses (who need an easy-to-use system). Patients (who need quick access to reports). IT Team (who must ensure security and uptime). Hospital Management (who need cost-effective operations). For success, the IT team must engage with all stakeholders and ensure the system meets everyone's needs while adding value. The Customer Journey in ITSM (7 Steps) The customer journey describes how customers interact with IT services from initial exploration to value realization. Step 1: Explore What happens? Customers explore different IT service providers. They identify their needs and expectations. Example: A retail company wants a new cloud-based inventory system. They research different IT vendors, compare features, pricing, and support options. Step 2: Engage What happens? Customers communicate with service providers. IT teams build trust and understand customer needs. Example: The retail company contacts three cloud providers for demos and detailed discussions about security, scalability, and integration with their existing software. Step 3: Offer What happens? The service provider presents an offer (proposal, features, and pricing). The customer evaluates if it meets their needs. Example: One cloud provider offers customized inventory tracking with 24/7 support and a free 3-month trial. The retail company compares this with other offers. Step 4: Agree What happens? Both parties finalize terms, SLAs (Service Level Agreements), and contracts. Expectations, performance standards, and responsibilities are set. Example: The retail company signs a contract for the cloud service, ensuring it includes data security guarantees and 99.9% uptime. Step 5: Onboard What happens? The IT service provider helps the customer set up and start using the service. Training, configurations, and initial troubleshooting take place. Example: The cloud provider trains the retail staff, migrates old inventory data, and ensures smooth integration with existing systems. Step 6: Co-create What happens? The service provider works closely with the customer to optimize the service. Continuous feedback and improvements are made. Example: The retail company requests new reporting features. The cloud provider develops a dashboard to track sales trends in real time. Step 7: Realize What happens? The customer experiences real value from the service. Business operations improve, and the customer decides whether to continue using the service. Example: The retail company sees faster inventory management, reduced errors, and increased efficiency, leading to higher profits. They renew their contract with the cloud provider. Case Study: How Netflix Used ITSM to Drive Stakeholder Value Background Netflix started as a DVD rental service, where customers had to wait for DVDs to be delivered. Over time, people wanted a faster and more convenient way to watch movies and shows. To meet this demand, Netflix transformed into a global streaming service. This shift required strong IT service management (ITSM) to ensure a smooth and enjoyable experience for all stakeholders: Customers (who wanted fast and high-quality streaming). Content creators (who needed a platform to showcase their work). Business partners (like movie studios and cloud service providers). How Netflix Followed the Customer Journey Steps in ITSM 1. Explore – Understanding What Customers Want Before streaming, people had to wait for DVDs to arrive in the mail. Customers wanted instant access to movies and TV shows without delays. ✅ Netflix researched cloud computing and IT solutions to provide on-demand streaming worldwide. 2. Engage – Connecting with Partners and Customers To make streaming possible, Netflix needed a powerful IT infrastructure that could handle millions of users at once. ✅ Netflix partnered with AWS (Amazon Web Services) to move its IT system to the cloud, ensuring fast and reliable streaming. ✅ They collected customer feedback on video quality, buffering issues, and preferences. 3. Offer – Creating a Valuable Service ✅ ✅ To make streaming better than DVDs, Netflix introduced: A recommendation system powered by AI, which suggests movies based on customer interests. A subscription-based model with different pricing options, making it affordable for everyone. 4. Agree – Setting Clear Expectations Netflix had to ensure high-quality streaming and smooth operations. ✅ They defined clear SLAs (Service Level Agreements) with AWS to guarantee high uptime (99.9%) and fast streaming speeds. ✅ Netflix signed content licensing agreements with movie studios to provide a wide selection of movies and shows. 5. Onboard – Helping Customers Get Started ✅ ✅ To make streaming easy for customers: Netflix designed a simple and user-friendly interface so anyone could browse and watch content easily. They improved customer support to help users with issues like playback errors or account problems. 6. Co-Create – Improving the Service Together ✅ ✅ Netflix continuously improves its services based on customer feedback: They optimized video compression, allowing people with slow internet to watch without buffering. They created original content like Stranger Things and Squid Game, based on what users love to watch. 7. Realize – Delivering Value to All Stakeholders ✅ ✅ ✅ With these improvements, Netflix became the world's largest streaming platform, benefiting everyone: Customers enjoyed high-quality, buffer-free streaming anytime, anywhere. Content creators gained a global audience for their movies and shows. Investors and business partners saw great financial success with Netflix's continued growth.
