Strategies for Service Providers, E-Commerce and Outsourcing

Your customers don't care whether it is you, your ISP, ASP, or other outsourced provider who screws up - they just know they can't do business with you when they want to. All that matters is that your e-business is failing to deliver - and that you need to hold someone accountable. [amazon cover 0964164892]Meaningful Service Level Agreements (SLAs) are unambiguous, comprehensive, and enforceable. SLAs commit suppliers to a defined quality of service: failure to meet explicit service levels can result in penalties or even legal action. Spectacular losses often follow e-business outages, particularly when SLAs are not in force. The biggest hit is not necessarily loss of income or profit, but impact on stock values - especially when markets are skittish. Some losses have exceeded $40 million with stock values falling by 26%. This book offers the keys to effective SLAs with Internet Service Providers (ISPs) and Application Service Providers (ASPs), which can go a long way toward averting catastrophic losses as well as day-to-day headaches  About the Author ANDREW HILES is founder and Chairman of Survive, the international user group for business continuity planning and was a founding Director of the Business Continuity Institute, the international body for certification of business continuity professionals. He is a founder Director of Kingswell, international consultants. Having commenced his management career with the Royal Air Force, he pioneered IT systems before leaving to take up a position within the Finance Department of London Transport. Subsequently in their Central Productivity Unit he was a Senior Projects Manager and later became responsible for the business re-engineering function, implementing new services and major technical projects. He left to take up a position with the UK Post Office as their first Business Systems Consultant responsible for major projects. Andrew then joined the UK Atomic Energy Authority at the Harwell Laboratories where he managed the supercomputing, mainframe and other bureau and outsourcing services. Andrew is a pragmatic consultant and trainer in the areas of Business Continuity Planning and Service Management. Andrew left Harwell to set up Kingswell, an international training and consulting company specializing in service management, customer - supplier relationships and enterprise risk management. He has helped hi-tech, financial, transport and government bodies to develop and enhance Customer Support and Service Desk functions and has supported both customers and suppliers in Service Level Agreements, Market Testing and Outsourcing. Andrew is an international speaker on service management and has featured on conference programs in the USA, Southern Africa, Europe, the Middle East and the Pacific Rim. He has presented workshops and seminars on these topics for Frost & Sullivan (Europe), IIR/ IFF (Europe and Gulf), AIC (South Africa), CEL (Hong Kong), UPOM (Middle East) and other companies having also lectured at Ashridge, Cranfield, GEC Dunchurch and Henley Management Colleges in the UK. He has broadcast on radio and TV. He has published over 300 articles on service management and is author of two other books on Service Level Agreements. Andrew is a Fellow of the Business Continuity Institute, a Member of the British Computer Society and a Freeman of the City of London.  Excerpted from E-Business Service Level Agreements: Strategies for Service Providers, E-Commerce and Outsourcing by Andrew Hiles.by Paul F. Kirvan, FBCI  “With all the interest in e-business, companies large and small are jumping on the techno-business bandwagon. While this certainly sounds like a positive trend, much awaits the company that hopes to enter – and succeed in –the world of e-business.  “First, one must have a good business plan, one that uses a model that factors in the unique aspects of the Internet and today's advanced networking technologies. Second, one must understand the nuances of e-business, as it is a different world than ten years ago; customer relationships are orchestrated and managed much differently. Third, one must have a well-designed technology plan, one that maps precisely to the overall business plan. Both strategic and tactical business issues must be addressed in the technology plan. Fourth, one must have solid funding, whether from private resources or initial public offerings. Fifth, one must have the right team members, thus ensuring the business objectives are met. Sixth, one must be prepared to adjust expectations and business processes as the company grows and matures. Finally, one must have a way of ensuring that the all-important technological underpinnings of the company are able to continue functioning without interruption.  “This last issue is where we are especially concerned in today's e-business world. It is not enough to design and implement the most technologically sophisticated systems and network services for a new e-business. What are really needed are programs that provide documented assurances that equipment and network service providers will deliver their goods on time, in proper working order, and remain in good working order. Loss of information systems, business applications, Internet and worldwide web access, and voice and data communications systems and networks could immobilize any enterprise.  “One of the most important ways to ensure that information systems and networks are protected is to enact Service Level Agreements, or SLAs. These documents detail the products and services to be provided, the expected quality and reliability of service, and the penalties and remedies the vendor faces for failure to perform as contracted. But with all of the nuances of e-business today, where do service level agreements fit into the overall picture?  “This book by Andrew Hiles, an internationally respected consultant, author and educator, provides important guidelines and insights about SLAs and how they factor into e-business. The book is supported by anecdotal information, industry statistics, and product descriptions. One can actually get a solid picture of how an SLA ought to fit into the grand scheme of things.  “But this book is not just for brand-new e-businesses. Established firms that are entering the world of e-business, as a way of expanding into new markets or growing existing ones, will find the wisdom contained in this book especially useful.  “The worst thing to do when entering the world of e-business is to be poorly prepared. One of the best things to do is to read this book. Use its guidance and insights. It will help ensure that the systems you need for success are protected, thus ensuring that your e-business – stays in business.  "Typically SLAs will cover: - Availability timings and service levels - Maintenance and scheduled service outages - Reliability (i.e. number of incidents of outage) - Packet loss - Latency service levels - Outage resolution times (possibly in different priorities) - Escalation procedures (possibly in different priorities) - Customer / user satisfaction - Service Performance Review items. "Key weaknesses in existing Service Level Agreements include: - Specification of effort or targets rather than of results - Unclear service specifications - Unclear definition of service level metrics - Inappropriate or misleading measurements." User Ratings and Reviews 4 Stars A Handy Planing Tool.Considering all the buzz today for e-business, outsourcing and other business models, it's important to have a way of ensuring the best possible results when moving in these directions. Mr. Hiles' book [amazon title 0964164892] provides clear insight and guidance on how to plan and implement service level agreements that ensure the best results for your organization. A useful tool is you are new to service level agreements and/or e-business.