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Service integration and management

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Background

Service integration and management (SIAM) as a concept is not new.  Organizations have been using services delivered by multiple service providers for many years. Historically, models for managing this type of ecosystem were proprietary to very large service providers, developed to meet specific client requirements, and rarely shared outside those providers.  The term ‘service integration and management’ or SIAM, and the concept of SIAM as a management methodology originated in around 2005 from within the UK public sector (also the source of other best practice methodologies such as ITIL®). The methodology was initially designed for the Department of Work and Pensions to obtain better value for money from services delivered by multiple service providers, and specifically to separate out service integration capabilities from systems integration and IT service provision. This new approach reduced the duplication of activities in the service providers, and introduced the concept of a ‘service integrator’. This new service integration capability provided governance and co-ordination to encourage service providers to work together to drive down costs and improve service quality.

SIAM can, at first glance, seem to be simply an adaptation of commonly understood service management approaches such as ITIL®, COBIT®, the Open Systems Interconnect (OSI) model or the Microsoft Operations Framework (MOF). Where SIAM differs is that it acknowledges and focuses on the specific challenges associated with multi-sourced service delivery models.

The service integrator provides the customer with a single point of accountability and control for the integrated delivery of services. This is achieved through the definition and application of controls within a robust governance methodology that also provides the necessary coordination between the service providers within the SIAM ecosystem. The service integrator also drives collaboration and improvement across the service providers, acting on behalf of the customer.

The service integrator takes ownership of these activities on behalf of the customer, allowing the customer organization to focus on the activities necessary for its business, rather than focusing on service providers and technology. The service integrator manages the complexities of dealing with multiple service providers, allowing the customer to benefit from its specialisms and capabilities without incurring any additional management burden.

The application of the SIAM methodology creates an ecosystem where all parties involved in the delivery of the services are clear about their roles and responsibilities and are empowered to deliver within those boundaries. SIAM also provides an understanding of the necessary interactions between the services and the service providers, and the techniques to manage those interactions effectively. This facilitates the coordination of delivery, integration and interoperability. The service integrator provides assurance of the performance of individual service providers and over the end to end service, ensuring that the expected outcomes are delivered to the customer.

SIAM enables the flexibility and innovation necessary to support the pace of change demanded by today’s fast moving organizations.

Growth and Adoption of SIAM[1]

The service integrator takes ownership of these activities on behalf of the customer, allowing the customer organization to focus on the activities necessary for its business, rather than focusing on service providers and technology.

In 2010, the UK Government published a new information and communications technology (ICT) strategy. This included moving away from large prime supplier contracts to a more flexible approach using multiple service providers and cloud based solutions.

A paper was published in support of this strategy that set out a new approach for service management governance and organization. The proposal was to appoint an appropriate service management framework to coordinate multiple services, providers and consumers in a secure and seamless lifecycle of service delivery and improvement. This accelerated the development and awareness of SIAM both in the UK public sector and elsewhere.

This acceleration led to the publication in 2012 of the UK Government ‘Cross Government Strategic SIAM reference set’. This was developed based on experience and expertise in SIAM from the Department of Work and Pensions, Ministry of Justice, NHS Connecting For Health, and the Government Procurement Service. The aim was to enable transformation in UK public sector organizations to a disaggregated, multi-source, multi-service environment. The reference set described a wide range of SIAM capabilities and a suggested enterprise model, but encouraged adaptation to suit local requirements.

This was the first widely available description of SIAM. Its publication rapidly increased the awareness, development, and discussion of SIAM worldwide.

The term SIAM was predated by the term Service Integration which has been in use since at least 2009.[2] It should not be confused with the term System integration. Unlike ITIL (IT service management) and PRINCE2 (project management) it is not a framework. Instead it is largely implemented in line with proprietary models developed by large IT service providers, including Telstra Purple, Epicon, IBM, SAIC, TCS, Accenture, HCL, NTT DATA, CGI, DXC, Capgemini, Cognizant, Infosys, and Atos to meet requirements developed by third party advisors, notably KPMG, Gartner and ISG. In UK government it is seen as a way for large governmental IT organizations to better manage and control multi-sourced operations, by compiling (and then sharing between themselves) their best practices and their most successful management methods.[3]

Terminology

SIAM is the generally accepted acronym for service integration and management.

Other acronyms that are in use are:

  • MSI (Multi Sourcing Integration)
  • SMI (Service Management Integration)
  • SI (Service Integration)
  • SMAI (Service Management and Integration)
  • SI&M (Service Integration & Management).

Service integration and management (SIAM) is a management methodology that can be applied in an environment that includes services sourced from a number of service providers. SIAM has a different level of focus to traditional multi-sourced ecosystems with one customer and multiple suppliers. It provides governance, management, integration, assurance, and coordination to ensure that the customer organization gets maximum value from its service providers. SIAM governance operates at three levels in the ecosystem:

  • Strategic
  • Tactical
  • Operational.

SIAM is an evolution of how to apply a framework for integrated service management across multiple service providers. It has developed as organizations have moved away from outsourced contracts with a single supplier to an environment with multiple service providers. SIAM has evolved from the challenges associated with these more complex operating models. SIAM supports cross-functional, cross-process, and cross-provider integration. It creates an environment where all parties:

  • Know their role, responsibilities and context in the ecosystem
  • Are empowered to deliver
  • Are held accountable for the outcomes they are required to deliver.

SIAM introduces the concept of a service integrator, which is a single, logical entity held accountable for the end to end delivery of services and the business value that the customer receives.

Sourcing from multiple suppliers allows an organization to maintain in-house technical teams or large single source suppliers, and become more adaptable by taking advantage of competitive marketplace behaviors which incentivise cost reduction and leverage innovation. The use of multiple suppliers can incur large management overhead costs and lead to difficulty in managing end to end (E2E) services. SIAM thinking has developed to aid that management challenge. It has expanded beyond IT services to be used for many different types of business service.

The term SIAM was predated by the term Service Integration which has been in use since at least 2009.[2] It should not be confused with the term System integration. Unlike ITIL (IT service management) and PRINCE2 (project management) it is not a framework. Instead it is largely implemented in line with proprietary models developed by large IT service providers, including Telstra Purple, Epicon, IBM, SAIC, TCS, Accenture, HCL, NTT DATA, CGI, DXC, Capgemini, Cognizant, Infosys, and Atos to meet requirements developed by third party advisors, notably KPMG, Gartner and ISG. In UK government it is seen as a way for large governmental IT organisations to better manage and control multi-sourced operations, by compiling (and then sharing between themselves) their best practices and their most successful management methods.[3]

SIAM is a rapidly developing area of service management, and one that is closely associated with multiple disciplines including IT service management, enterprise architecture, organisational change management, quality management and risk management.[4]

In 2016, Scopism, a management consultancy, worked with a team of experts from companies including Atos, TCS, Kinetic IT and Sopra Steria to create the SIAM Foundation Body of Knowledge. This BoK is available for free download from the Scopism website.[5] It is linked to a new SIAM certification scheme launched by EXIN, a Dutch certification organisation and Scopism. The SIAM Foundation BoK was then followed by the SIAM Professional BoK in 2017 and the associated SIAM Professional certification. In 2019, the SIAM Foundation and Professional BoKs were revised to reflect changes in the SIAM and IT management landscape, including the publication of COBIT 2019, introduction of VeriSM[6] and ITIL 4.[7]

Scope of SIAM

The scope of SIAM will vary from organization to organization. For the customer organization to derive any benefit from a transition to a SIAM model, the service(s) that are in scope must be defined.

This service definition makes it clear what is being governed, assured, integrated, coordinated and managed by the service integrator.


For each service within the scope of SIAM, these areas need to be defined:

  • Service outcomes, value, and objectives
  • The service provider(s)
  • The service consumer(s)
  • The service characteristics, including service levels
  • The service boundaries
  • Dependencies with other services
  • Technical interactions with other services
  • Data and information interactions with other services.

A service model should be created that shows the hierarchy of services.

Types of service

SIAM can be applied to both IT services and technologies and non-IT services. Historically, it has mainly been adopted for IT services. SIAM can be applied to managed services and cloud services, as well as to more traditional IT services, such as hosting or end user computing.

Different organizations will have different types of services within the scope of their SIAM model. Some models may only include services that were previously provided by internal IT, as part of a strategy to outsource these services to external organizations. Others may include a wide range of externally provided services and retain their internal IT department as an internal service provider. The customer organization will determine the scope in line with its strategy and requirements.

Key concepts

The SIAM Foundation Body of Knowledge from Scopism Ltd defines SIAM as ″a management methodology that can be applied in an environment that includes services sourced from a number of service providers″.

The SIAM Foundation Body of Knowledge also introduces the four most common SIAM structures:

  • Internal service integrator
  • External service integrator
  • Hybrid service integrator
  • Lead supplier as service integrator


SIAM can be applied to different sizes and types of organization, and to different industry sectors. Customers that only require a single service provider are unlikely to get the full value from SIAM.

SIAM can be applied to environments that include external service providers only, internal service providers only, or a combination of internal and external service providers. The effectiveness of SIAM and the value it delivers will increase as the number of service providers and the number of interactions between services increase. Some organizational cultures are more able to adapt to SIAM than others. Effective SIAM requires control to be balanced with trust, devolution of responsibilities, openness, and collaboration across all parties. A transition to SIAM is likely to require significant changes in attitude, behavior, and culture in ecosystems that previously relied on command and control structures for effective service delivery.

The SIAM methodology encompasses:

  • Practices
  • Processes
  • Functions
  • Roles
  • Structural elements.

SIAM structural elements

Within SIAM, ‘structural elements’ are organizational entities that have specific responsibilities and work across multiple organizations and layers in the SIAM ecosystem.

These structural elements link the functions with the practices, processes, and roles of SIAM. The role of the structural elements includes governance, developing and maintaining policies, reviewing and improving end to end service performance identifying, encouraging, and driving continual service improvements and innovation, resolving shared issues and conflicts and more.

Structural elements include representatives from the service integrator, the service providers, and, where required, the customer. Using structural elements helps to establish relationships between the different parties. This encourages communication and collaboration, as attendees work together to achieve shared goals.

The use of structural elements differentiates SIAM from other methodologies and helps to facilitate the desired outcomes from SIAM.

There are three types of structural element:


1.   Boards - Boards perform governance in the SIAM ecosystem. They are formal decision-making bodies, and are accountable for the decisions that they take. Boards will convene regularly, for as long as the SIAM model is in place.

2.   Process forums - Process forums are aligned to specific processes or practices. Their members work together on proactive development, innovations, and improvements. Forums will convene regularly, for as long as the SIAM model is in place. Their responsibilities include developing and sharing common working practices, continual improvement and innovation.

3.   Working groups - Working groups are convened to address specific issues or projects. They are typically formed on a reactive ad-hoc or fixed-term basis. They can include staff from different organizations and different specialist areas.

Why SIAM?

Without effective service integration, many of the benefits anticipated from services delivered by multiple service providers can remain unrealized.

Transforming an organization to a SIAM model ensures that critical artefacts are developed as part of the SIAM roadmap. These will include:

  • A clear design for how the overall end to end service will operate and integrate
  • A standard governance approach
  • Definition of accountability for the integrated service
  • An end to end performance management and reporting framework
  • Coordination between service providers
  • Integration between the processes of different service providers
  • Definition of roles and responsibilities
  • Definition of ownership and coordination for incidents and problems that involve multiple suppliers.

Organizations must be clear about why they want to adopt SIAM. Transitioning to a SIAM-based model is not an easy task. It will require investment and changes for all involved parties. The changes will affect areas including:

  • Attitude, behavior, and culture
  •  Processes and procedures
  • Capabilities
  • Organizational structures
  • Resources
  • Knowledge
  • Tools
  • Contracts.

Senior level sponsorship and management commitment will be essential. Without management commitment, the transformation to a SIAM model is unlikely to succeed. There are organizations for whom SIAM is not appropriate. Before any organization embarks on a transition to SIAM, it must fully understand SIAM and the benefits it could derive. This will enable it to make a value-based judgement.

The organization can gain this understanding in one of three ways, or in combination:

  1.  Educate and train the staff who are leading on SIAM discovery and strategy in the SIAM methodology
  2.  Seek help from outside the organization, either from similar organizations or from organizations experienced in SIAM adoption
  3. Recruit new staff who have the required understanding and experience.

Drivers for SIAM

The drivers will be used to create a business case for the transition to SIAM. They will also help the organization to maintain focus throughout the SIAM roadmap. There are generic drivers for SIAM that can be tailored for each organization. These can be placed into five driver groups:

1.   Service satisfaction

2.   Service and sourcing landscape

3.   Operational efficiencies

4.   External drivers

5.   Commercial drivers.

SIAM Benefits

An organization should consider its own drivers to achieve the necessary clarity for the anticipated business benefits.

There are generic benefits that are likely to be relevant to most organizations making the transition to SIAM.

The benefits can be placed into four groups:

1.   Improved service quality

2.   Optimized costs and increased value

3.   Improved governance and control

4.   Improved flexibility and pace.

SIAM Roadmap

This roadmap outlines an example plan for the implementation of SIAM as part of an organization’s operating model.

Using a roadmap for the implementation has several benefits, including:

  • Defining the SIAM requirements
  • Providing a planning framework
  • Determining the most appropriate SIAM structure and SIAM model
  • Guiding the implementation
  •  Directing ongoing continual improvement

There are four stages in the SIAM roadmap:

1.   Discovery & Strategy

2.   Plan & Build

3.   Implement

4.   Run & Improve.

Whilst the activities are presented here in a sequential manner, many are likely to be iterative or may even be undertaken in parallel. High-level requirements are defined in the first stage. These are then further developed in the second stage, before being implemented in the third stage. The fourth stage is where the SIAM model is operated and continually improved.

Challenges & Risks

Adopting a SIAM model requires an organizational transformation. The changes that are involved will affect people, processes, technology and the interfaces between them.

As with any organizational change, there will be challenges to face. These challenges can have a significant impact on the transition to a SIAM model and will require concerted effort to overcome.

Each challenge has associated risks, which need to be recorded, evaluated, managed and mitigated (where appropriate) using a risk management methodology. The impact of the challenge and associated risks will influence the amount of time and resources that will be used to address them. The main challenges include:

  1. Building the business case
  2. Level of control and ownership
  3. Commercial challenges
  4. Security
  5. Cultural fit and behaviors
  6. Measuring success

Organizational structure

There are three layers in a SIAM ecosystem:

1.   Customer organization (including retained capabilities)

2.   Service integrator

3.   Service provider(s).

Each layer has a role as part of effective end to end management of services and the delivery of maximum value. Each layer should have sufficient capability and maturity to fulfil its role.

ITIL and SIAM

ITIL processes and capabilities provide a strong foundation for implementing SIAM because they cover the lifecycle of IT services, and the terminology is recognized and understood by most IT suppliers. ITIL, therefore, provides a strong platform and common language with which a SIAM team can manage and work with a full spectrum of suppliers. SIAM draws on other sources of best practice as well in specific domain areas, for instance COBIT5 and ISO/IEC 38500. Whilst ITIL provides high level guidance on many aspects of IT management relevant to SIAM it does not currently do so in the context of a multi-supplier eco-system. Axelos, the current owners of ITIL have published several white papers on SIAM[8].

In an organisational ecosystem using processes based on ITIL, SIAM capabilities are needed to align processes across service providers.

References

  1. ^ "You are being redirected..." www.scopism.com. Retrieved 2021-09-16.
  2. ^ a b "Service Integration Deliver's Multisourcing's Promise" Euan Davis, Forrester, 2009
  3. ^ a b "Is SIAM the right answer for Government – what about the business process?". Archived from the original on 2014-10-23.
  4. ^ Goldberg M., G. Satzger and A. Kieninger (2015), A Capability Framework for IT Service Integration and Management in Multi-Sourcing, forthcoming, Twenty-Third European Conference on Information Systems (ECIS), Münster, Germany.
  5. ^ "The SIAM Foundation Body of Knowledge".
  6. ^ "VeriSM". VeriSM. Retrieved 2021-09-16.
  7. ^ "Global Best Practice Portfolio | ITIL, MSP, PRINCE2". AXELOS. Retrieved 2021-09-16.
  8. ^ Who is the King of SIAM?. "Who is the King of SIAM? | ITIL | White Paper". AXELOS. Retrieved 2021-09-16.{{cite web}}: CS1 maint: url-status (link)
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