November 5, 2015

How to get started with SIAM and what is its budget impact?

Iva Gueorguieva

Topic Owner SAP ALM, Tieto

SIAM, Service Integration And Management, is a consolidated management method for IT services that allows companies to cut their IT costs while making their operations more agile, even in complex multivendor environments. How does SIAM work in practice and what is its effect on your IT budget? Iva Gueorguieva explains.


Introducing simplicity into complexity

Managing sometimes up to hundreds of separate service suppliers ties up a lot of internal IT resources that could be otherwise allocated to business support and development.

A consolidation layer that helps manage all those separate suppliers, and orchestrates the services end-to-end, is needed. This is where SIAM comes in. Additionally, SIAM provides the benefit of standardizing  processes and brings together reporting in a way that allows a better overall picture of the operations. You can think of it as plugging a large number of devices into a centralized hub that gives you a dashboard view and controls to make all those devices run in unison.

The four building blocks of a modular but comprehensive SIAM

Cliché as it is may sound, a job well planned is half done. A hands-on approach starts with a SIAM assessment, conducted in collaboration between the SIAM supplier and the client. In a short period (usually 1 to 2 months), a clear roadmap will be presented on where it makes the most sense to start and what to do in which order when it comes to SIAM.

When the most pressing problems have been identified and the journey to SIAM adoption looks clearer, you can choose the SIAM scope that best fits your needs.

To make it easier, Tieto has defined four different SIAM building blocks that provide progressively higher business value. They are designed modularly, with each block building upon the previous one, yet making it possible for you to buy parts of the services.

The foundation for each building block is Service Desk and SIAM Management Office, SMO.

1.  Streamlined processes free up resources

At the core level, the first block streamlines your core processes and enables  your resources to concentrate on business development instead of day-to-day systems management. It builds an end-to-end view of operations, consolidates reporting across suppliers and aligns it for business.

2. Service lifecycle with no holes in it

The next level manages the whole value chain of design, build and run. Often the service lifecycles have gaps or overlaps, with no reliable source for the whole services lifecycle.

Tieto takes over the coordination for requirement management and respective releases to minimize overlapping activities between different vendors and to prevent gaps, and works with you to design future service operations.

3. A business view to the supplier base

The third level addresses issues such as missing transparency in suppliers’ deliveries and agility in supplier management. It supports your tactical IT operations with a clear focus on business needs.

Tieto manages your service portfolio, programmes and projects across the entire supplier base to ensure business agility and to drive innovation. Standardized Service Level Agreements (SLA) across all deliveries and Key Performance Indicators aligned with your specific business needs improve performance. This reduces operational risk and overhead while securing your business continuity.

4. IT becomes a true business enabler

Even with all the previous steps taken, you may find that your technology is not enabling business innovation nor new business models, or that there is a mismatch between business requirements and IT performance.

A full-scope SIAM service addresses all your IT requirements. To enable you to focus on your core business and vision for the future, your primary SIAM partner can run the IT and orchestrate the vendors. Jointly with its ecosystem partners, Tieto is in a position to support you through holistic future solutions.

The big question: money

While there is always a price involved, what counts is the payback period and benefits.

A shift to the SIAM model brings benefits at many levels. It reduces the cost of the day-to-day running of your IT while making more human resources available for development.

Because your SIAM partner also takes care of service procurement, you always get the best “spot” prices for the services your business requires.

With the increased agility, you can exploit new business opportunities quickly. You can commission new services for experiments without upfront investment, and if they do not produce results, decommission them quickly and avoid further cost.

If the concept of SIAM has given the impression of being confusing, it doesn’t have to be. Choosing an experienced partner with a broad service portfolio will put you on the road to success in today’s digitalized world with minimum effort and maximum speed.

Even though SIAM as an acronym gets thrown around a lot in today’s IT discussion and it may seem like a daunting task to initiate, starting with an assessment and building the SIAM layer with a modular approach can smooth the way toward SIAM implementation and its benefits.

For more information about SIAM, please visit our website and read our whitepaper.

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