Service level packages

Services packages come with one or more service level package s (SLP). Each SLP provides a definite level of utility or warranty from the perspective of outcomes, assets and the PBA of customers. Each SLP is capable of fulfilling one or more patterns of demand (Figure 5.26).

Figure 5.26 Business outcomes are the ultimate basis for service level packages

SLPs are associated with a set of service level s, pricing policies, and a core service package (CSP). CSPs are service package s that provide a platform of utility and warranty shared by two or more SLPs (Figure 5.27). Combinations of CSPs and SLPs are used to serve customer segments with differentiated value. Common attributes of SLPs are subsumed into the supporting CSPs. (This is like the popular game of Tetris in which the bottom-most layer of bricks gets subsumed when all its gaps are filled with the falling bricks.) This follows the principle of modularity to reduce complexity, increase asset utilization across SLPs, and to reduce the overall cost of services. CSPs and SLPs are loosely coupled to allow for local optimization while maintaining efficiency over the entire supported Service Catalogue. Improvements made to CSPs are automatically available to all SLPs following the principle of inheritance and encapsulation. Economy of scale and economy of scope are realized at the CSP level and the savings are transmitted to the SLP and to customers as policy permits.

Figure 5.27 Service level packages are a means to provide differentiated services

In certain contexts, CSPs are infrastructure service s offered by a specialized service unit. This allows for greater economy, learning and growth from specialization. This is similar to the arrangements between product marketing groups and manufacturing.

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