Enterprise Service Model Canvas (ESMC)
I developed the Corporate Service Model Canvas (ESMC) to help address some major issues linked to the lack of maturity recognised in relation to both how to define services and innovate on new value proposals. The ESMCmodel was inspired by a real use case, a customer’s Computer Security Incident Response Team (CSIRT) service. It is expected that ESMCwill help capture the essence of value creation and delivery and co-create improved value proposals towards the development of minimum viable services towards an improved incident response capability. ESMCis a lean design process that allows us to understand, innovate, validate , implement, and improve services. While ESMCis a valuable first step to conceptualise, design, develop, implement, deliver and improve services in organisations with no service-centric tradition, a second step should address deeper concerns related with more consistent services management frameworks such like ISO/IEC 20000-1.
The ESMCis a niche application of the Business Model Canvas (Osterwalde, 2005).
Customers
Who are we creating value for?
To build an effective service model, we must identify which customers we are trying to serve (customers can be segmented)
E.g.:
- Internal customers (i.e., procurement, privacy, delivery, etc.)
- External customers
Governance and management
What organisational boundaries should be considered?
Boundaries are originated from strategic and policy requirements as well as from management practices and can be linked o different organisational domains.
E.g.:
- Government: Risk management, IS, Compliance, etc.
- Management: Value streams ($), management frameworks, etc.
Value proposition
What value do we deliver to the customers?
Important issues to address:
- Value stream definition,
- Customers needs and expectations,
- Challenges and opportunities.
E.g.: “We support the business making information security risk-informed decisions …”
- High-quality assessment based on current state of the art knowledge, processes, practices, and tools,
- Agile, performant, on demand service,
- Considering the whole threat scope, etc.
Service characterisation
-I/O -Service bus (interaction with other services) -Engagement -Metrics and KPI (mgmt. and ops.)
Channels
How do our customer segments want to be reached?
The medium supporting how we deliver value to our targeted customers in a fast, efficient and cost-effective manner (engagement?).
E.g.:
- Communications:
- Procurement
- Personalised?, Contract based?, Automated?, Co-creation?, other?
- Distribution, sales?
Customer relationships
What type of relation our customers want with us?
E.g.:
- Pre-engagement:
- Why/How customers and different stakeholders contact us?
- Why/How we first contact customers and different stakeholders?
- What information is needed to support and how to get it?
- Post-engagement:
- POC for Q&A
- How we will get new customers,
- How we will keep current customers using our services, and
- How the business will grow its revenue from its current customers.
Value team
Who creates value?
Effective BM requires the right people!
E.g.:
- Management
- Managers
- GRC control
- Operations
- Consultants to deliver value
- Experts to work and improve models, methods, and tools
- Supporting staff (PPM, engagement, knowledge, etc.)
Key partners
Who in the organisation is required to help us create or add value and to deliver it?
In order to improve our value proposition, and to reduce risks on our business model, we need to cultivate relationships with other internal areas to be able to focus on our own activity and strengthen our own delivered value.
Key activities
What key activities are required to create and deliver value?
The most important activities in executing our value proposition.
E.g.:
- Inner process actions
- Shared actions:
- Stakeholders engagement
- PPM
- Knowledge management
- Service continual improvement
- Maturity GRC control and transparency
Key resources
What key resources are required to create and deliver value?
The resources that are necessary for us to create and deliver value for the customer.
Human | Logical | Intellectual |
Value team Internal stakeholders External stakeholders | Company’s brand (financial) Management tools Operation tools Engagement channels Delivery channels Improvement channels | Knowledge Criteria Awareness Training Capability Processes Practices Standards Best practices |
External stakeholders
•Providers (supply-chain) •Regulators •Shareholders •Other
Costs
This describes the most important monetary consequences while operating under different business models.
- Classes of Business Structures: cost-driven vs value-driven
- Characteristics of Cost Structures: fixed, variable, scale, etc.
Revenue
How do our customers purchase our value proposition?
Several ways to generate a revenue stream: contract, licensing, etc.
Our revenues come from:
- Use cases
There are opportunities for other types of future revenues, for example:
- Consulting (e.g.: service or process improvement)
ESMC tool
You are free to use the CSMC tool in your team meetings to co-create services.
References
Osterwalde A. (2005). Business Model Canvas. https://www.strategyzer.com
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