In my previous post I showed you the basics of Applications Cycle Management, part of the Application Services Library (ASL), currently on version 2.0. ASL2.0. ASL2.0 is usable for all application management organizations, i.e., application management organizations that deliver application services (management and maintenance) and application management organizations that realize the integration of underlying services.
Application management comprises managing, maintaining, and renewing applications, drawing up policies for the application management organization and the application portfolio under management, and directing the activities required for this purpose.
To refresh your memory, I’ll show you below figure again, the Application Services Library (ASL2.0) Framework with the following pillars:
- Organization Cycle Management
- Applications Cycle Management
- Maintenance
- Enhancement & Renovation
This post will be about the top left corner of the ASL2.0 Framework, Organization Cycle Management.
Definition of Organization Cycle Management
Organizational Cycle Management (OCM) is one of the ASL processes specifically focused on managing the entire life cycle of the organization’s applications. These processes aim to develop a future vision of the ICT service organization and translate it into a policy for its renewal.
The OCM processes provide a long-term strategy for the ICT organization within which application management occurs. The following matters are essential:
- Market developments: the market definition
- The desired approach of the user or customer organization: the account definition
- The preferred services of the market: the service delivery definition
- The desired knowledge and skills within the ICT organization: the skills definition
- The desired technological resources for the ICT organization: the technology definition
These matters lead to determining the services that organizations deliver in the long term.
Market Developments: the market definition
The market definition determines the market segments to which an organization provides services in the future based on a market analysis, supply chain analysis, and client developments.
Market developments can significantly impact organization cycle management, which refers to the process of managing business cycles, including periods of growth, recession, and recovery. You can model and simulate various market scenarios, such as changes in consumer demand, economic policy shifts, or market competition changes.
You can also model and simulate organizational responses to market developments. For example, an organization may adjust its production levels, marketing strategies, or pricing policies in response to changes in market demand. By modeling and simulating different scenarios, organizations can better understand how market developments may impact their business and develop strategies to manage these changes effectively.
The desired approach of users or customers organization: the account definition
The account definition determines the image, strategy, and organizational form to realize the desired markets’ approach.
The approach of users or customers plays an essential role in organization cycle management in ASL 2.0, as it impacts an organization’s revenue, cash flow, and profitability.
You can model and simulate different user or customer scenarios, such as changes in consumer demand, market competition shifts, or consumer behavior. By modeling and simulating these scenarios, an organization can better understand how users or customers approach changes that may impact their business and develop strategies to manage them effectively.
For example, suppose an organization relies on a single product or service for most of its revenue. In that case, a shift in consumer demand or a new competitor entering the market could significantly impact the organization’s financial position. By simulating these scenarios, the organization can better understand the potential impact of these changes and develop strategies to mitigate risks and manage business cycles.
An organization can also model and simulate different marketing strategies and customer acquisition scenarios, allowing organizations to test different approaches and determine which strategies are most effective for managing business cycles. These simulations can include testing different pricing strategies, marketing campaigns, or product features to determine how they impact user or customer approach and the organization’s financial position.
Desired services of the market: the service delivery definition
The desired services of the market chart the service that a market wants and that the ICT service provider can supply by using their skills and translating them into policy and strategy.
The ability to effectively deliver services to customers is a critical factor in determining an organization’s success and can impact the organization’s revenue, profitability, and overall financial position. An organization can model and simulate different service delivery scenarios, such as service demand changes, service delivery processes, or changes in service quality. By modeling and simulating these scenarios, an organization can better understand how service delivery changes may impact its business and develop strategies to manage these changes effectively.
For example, if an organization experiences a sudden increase in service demand, it may need to adjust its service delivery processes or hire additional staff to meet the demand. You can then model and simulate different staffing and process scenarios to determine the most effective approach for managing the increase in service demand.
You can also model and simulate different service quality scenarios, such as changes in customer satisfaction or service reliability. By modeling and simulating these scenarios, an organization can determine how changes in service quality may impact customer retention and revenue and develop strategies to improve service quality and manage business cycles.
By modeling and simulating different service delivery scenarios, organizations can better understand the potential impact of changes in service demand, service quality, or service delivery processes and develop strategies to manage business cycles effectively.
Desired knowledge and skills: the skills definition
The skills definition determines the skills, knowledge, and expertise that organizations require for future services of the organization.
Knowledge and skills play an important role in organization cycle management. An organization’s ability to effectively manage business cycles is often closely tied to the knowledge and skills of its employees.
Organizations can model and simulate different knowledge and skill scenarios, such as changes in employee expertise, changes in employee training, or changes in employee turnover. By modeling and simulating these scenarios, organizations can better understand how employee knowledge and skills changes may impact their business and develop strategies to manage these changes effectively.
Suppose an organization experiences high levels of employee turnover. In that case, it may need to invest more resources into employee training and development to ensure that new employees have the necessary knowledge and skills to manage business cycles effectively. You can also model and simulate different training and development scenarios. You do this to determine the most effective approach for managing employee turnover. You can combine this with varying scenarios of expertise as well. Examples of these scenarios are changes in the expertise of key employees or changes in the availability of external knowledge. By modeling and simulating these scenarios, you can determine how changes in employee expertise may impact their ability to manage business cycles and develop strategies to mitigate risks and manage business cycles effectively. Knowledge and skills are essential components of organization cycle management. You can model and simulate different knowledge and skill scenarios, giving you a better understanding of the potential impact of changes in employee expertise, training, or turnover, which can help you develop strategies to manage business cycles effectively.
Desired technological resources: the technology definition
The desired technological resources determine the (development) tools, technology, and methods the organization wants to use to realize the future service. Technical resources play a crucial role in organization cycle management. An organization’s ability to effectively manage business cycles is often closely tied to its use of technology to support and streamline its operations.
You can model and simulate different technological resources scenarios, such as changes in technology infrastructure, software systems, or data management processes. By modeling and simulating these scenarios, you will better understand how changes in technological resources may impact your business, and you can develop strategies to manage these changes effectively.
If your organization experiences an increase in data volume, you may need to upgrade the technology infrastructure or data management processes to handle the additional data. By modeling and simulating different infrastructure and data management scenarios, you can determine the most effective approach for managing the increase in data volume.
You can also use different software system scenarios for modeling and simulation purposes, such as changes in software functionality or performance. By modeling and simulating these scenarios, you can determine how software system changes may impact your organization’s ability to manage business cycles and develop strategies to mitigate risks and manage business cycles effectively.
Technological resources are a critical component of organization cycle management. By modeling and simulating different technical resource scenarios, you will better understand the potential impact of changes in technology infrastructure, software systems, or data management processes and develop strategies to manage business cycles effectively.
Final Thoughts
Organization Cycle Management relates to demand, supply, and delivery. Organizations couple the account and market definitions with demand from the market and the clients. The skills and technology definitions indicate which technologies and services are feasible and can be delivered. The delivery is the final result, in which organizations define the desired service profile based on demand, supply, and available resources.
Feel free to contact me if you have questions or in case you have any additional advice/tips about this subject. If you want to keep me in the loop if I upload a new post, make sure to subscribe, so you receive a notification by e-mail.
