August 19, 2016

Data speaks louder than words - when it comes to SIAM maturity

Manish Kumar

Head Offering Management & Customer Enablement Consulting, Tieto

It is a proven fact now: There is a long way to go for attaining maturity in Service Integration and Management in the Nordics.

We have often wondered about Service Integration and Management (SIAM) maturity in the Nordic countries. How mature are we as organisations to make use of this new way of working in order to be better able to manage and navigate the multitude of suppliers that we need to deal with in the digital world? Whether we like it or not the digital world will bring in complexity that we cannot avoid - Internet of Things, cloud based services and many more. How ready are we for this change? Is there a difference in readiness between the countries? Are some industries more prepared than others?

In order to get reliable data and a better understanding of SIAM readiness, Tieto teamed up with IDC to conduct a focused survey of over 300 respondents spread across Finland, Sweden and Norway, covering different industry segments and sizes of organisations.

The result is overwhelming: across countries and industries SIAM readiness and the ability to deal with this change is low. Most organisations are just getting started. The bigger ones are a bit better prepared with vendor and sourcing management as a function, but none of them could be defined as being ready to dealing with the change needed in managing and integrating the diverse IT services. 

First findings

Below a sneak peek into the initial survey results, evaluated on a maturity scale from 0 to 5 in areas such as Process maturity, Tooling, People/Skills, Service catalog and Organisational readiness:

  • We realised that the average maturity was just around 2 (trying to attain some kind of repeatability).  This should not come as a surprise as we in the Nordics have been rather laggards when it comes to new innovative forms of outsourcing and supplier management. Also as expected, the organisations with 1000+ employees were about 1 point above the smaller ones in almost all areas.
  • In terms of countries, Finland is slightly ahead of Sweden and Norway but then the difference was not that significant.
  • Interesting to note are differences between industries. Banking & Financial services along with the IT & Telecommunications sector seem to have a better understanding and idea of how to deal with this change.
  • Also an interesting thing to note is that companies are still looking at SIAM as a means to mainly save cost, when in fact, they should look at a growth opportunity by making better use of their supplier ecosystem.

According to our respondents, the top 3 reasons for implementing SIAM or other service integration models are

  1. Reduce cost (36%)
  2. Improve performance or quality of service (32%)
  3. Free up internal resources (30%)

The top 3 barriers not to implement such models are

  1. Our existing vendor and service management processes are good enough (22%)
  2. We lack internal competencies to implement it (18%)
  3. Lack of awareness/understanding of possibilities/solutions (18%).

All of this stated, I don't see it as a challenge but rather as an opportunity for all of us to learn and grow. The future leaders of their sectors will implement models such as SIAM for handling services and relationships internally and externally. This will create business value and foster innovations as a result of business and IT working more closely together in creating the new business services that customers are getting used to and will demand in the future.

SIAM is quite new for most organisations in the Nordics and should be seen as a huge opportunity for high business value creation.

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For more information:

Download the IDC report Maturity of SIAM in the Nordics, 2016 
See our press release on the topic

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