October 23, 2015

What will change with SIAM, what will remain the same?

Veli Pirttiaho

Head of Strategic Concepts and Business Development, Tieto

Service Integration and Management (SIAM) represents a major shift in the provisioning of IT services. The much talked about acronym will bring with it extensive changes into the consumption and delivery of IT services. Veli Pirttiaho discusses the changes from both a customer and service provider perspective.

The headache scenario

It is typical for large organizations to outsource at a least part of their IT services. Their in-house IT have their hands full managing this environment and the related contracts. Every supplier have their own Service Level Agreements, which they dutifully comply with, but in an environment of hundreds of suppliers, the IT department is overwhelmed to form an overall picture of the situation – and making sure this complex setup really serves their company’s business in the best way.

When business departments ask IT for help enhancing their business, for instance through digitalization, they run into a wall of scarce resources. Everyone in both business and IT is working hard but development stalls.

Investments become sub-optimally allocated and new business opportunities are missed.

SIAM handles the entire service ecosystem

The new governance model that a capable SIAM partner brings to the table will rationalize the collaboration of business, IT and suppliers.

First, it consolidates supplier management. The partner’s SIAM Management Office takes care of supplier management, freeing up your company’s resources for more strategic initiatives and lowering ecosystem management costs.

Second, it improves demand management. It takes the responsibility for ensuring that the suppliers have the right services to support your business through a verified service catalogue.

Third, because the SIAM partner provides service lifecycle management, you are assured that the services ought stay compatible with one another after the contracts have been made.

The SIAM partner is your company’s single point of contact in all matters concerning purchased services, all the time taking care that what you buy delivers the end result you were buying in the first place.

What will not change with SIAM

The SIAM Management Office acts as a broker, meaning that it will integrate services for the best result for you, but not manage how the individual service suppliers produce or develop their services.

SIAM does not supplant the internal IT organization within corporations. SIAM does, however, align, orchestrate and integrate external and internal services into one unified service experience.  The overall responsibility of IT services toward business units will remain within the corporate IT organization.

Design aspects of corporate-wide IT will remain within the corporation. In essence, the IT organization moves one step upward in the value chain.

A change with dual benefit

The SIAM model delivers significant savings in admin costs. The number of supplier meetings can be as much as halved. The new systematic governance model creates transparency and a bird’s-eye view into the whole supplier ecosystem in real time. As the service is highly automated, multivendor service management becomes easier and less time-consuming, allowing your IT organization to organize its work in better alignment with business requirements and shift its focus to innovation and business development.

You can download the SIAM whitepaper here.

Stay up-to-date

Get all the latest blogs sent you now!