SS

Encapsulation follows three separate but closely related principles: separation of concerns , modularity, and loose coupling.

2.4.3.1 Separation of concerns

Complex issues or problems can be resolved or separated into distinct parts or concerns. Specialized capabilities and resources address each concern leading to better outcomes overall. This improves focus and allows optimization of systems and processes at a manageable scale and scope . Challenges and opportunities are suited with appropriate knowledge, skills, and experience.

It is necessary to identify persistent and recurring patterns, to separate fixed elements from those that vary, and to distinguish what from how (Figure 2.1). These separations are important for a service-oriented approach to IT management or simply service orientation. For example, it is useful to identify and consolidate demand with common characteristics but different sources and serve it with shared services.

2.4.3.2 Modularity

Modularity is a structural principle used to manage complexity in a system.12 Functionally similar items are grouped together to form modules that are self-contained and viable. The functionality is available to other systems or modules through interfaces. Modularity contributes to efficiency and economy by reducing duplication, complexity, administrative overheads, and the cost of changes. It has a similar impact through the reuse of modules.

Encapsulation is possible at several levels of granularity, from software and hardware component s to business process es and organizational design . Figure 2.8 illustrates the role of service management in encapsulating business processes and IT applications into business service s and IT service s.

Figure 2.8 Encapsulation based on separation of concerns and modularity

2.4.3.3 Loose coupling

Separation of concerns and modularity facilitate loose coupling between resource s and their user s. With loose coupling, it is easier to make changes internal to the resource without adversely affecting utilization. It also avoids forcing changes on the customer’s side, which can add unexpected costs to the customer . Loose coupling also allows the same set of resources to be dynamically assigned to different uses. This has several advantages, including shared services, Demand Management , redundancy , and investment protection for the customer and the service provider from reduced lock-in. Loose coupling requires good design, particularly of service interfaces, without which there will be more problems than benefits.

2.4.4 Principles of systems

System

A system is a group of interacting, interrelated, or interdependent components that form a unified whole, operating together for a common purpose.

2.4.4.1 Open-loop and closed-loop control processes

There are two types of control processes: open-loop and closed-loop. Control processes in which the value of the outcome has no influence on the process input are open-loop. Control processes in which the value of the outcome has influence (with or without some delay) on the process input in such a manner as to maintain the desired value are closed-loop. Open-loop system s take controlling action based simply on inputs. Changes in inputs result in changes in action. Effectiveness of open-loop systems depends excessively on foresight in design of all possible conditions associated with outcomes. When there are exceptions, open-loop systems are unable to cope. Control action in closed loop systems is goal driven and sensitive to disturbances or deviations.

Open-loop solutions attempt to solve the problem by good design, to make sure it does not occur in the first place. Once a design is implemented, mid- course corrections are not made. Closed-loop solutions, however, are based on compensating feedback. A well-designed household air-conditioner or furnace leaves the home too cool or too warm – unless regulated by the feedback of a thermostat. It is an outcome-based mindset.

Conventional brakes in automobiles apply stopping action or friction against the rotating wheels as long as the brake pedal is pressed down by the driver. Serious accidents happen when the brakes lock and cause the vehicle to lose control. To avoid this undesired situation drivers are taught not to slam the brakes, rather apply them in pumping action while constantly monitoring the braking outcome. This open-loop design expects too much of the driver’s braking skills and composure by ignoring the possibility of conditioned reflexes, not taking into account the human limits of information processing, and other complicating factors such as road condition, weather, and vehicle load. Anti-lock brakes (ABS) use electronic sensors to detect the locking of brakes and loss of traction under the wheels and immediately adjust the input, cutting off and applying the braking action in rapid succession until the optimal pressure is applied on the wheels. They can override the driver’s input by taking into account other factors that the driver may not be able to quickly apply. In that sense, the outcome is maintained even in the presence of rogue input.

2.4.4.2 Feedback and learning

Learning and growth are essential aspects of the way successful organizations function. Learning occurs from the presence of feedback as an input to a process in one cycle based on performance or outcome in the previous cycle. The feedback can be positive or self-reinforcing, leading to exponential growth or decline (Figure 2.9). It can be negative or self-correcting leading to balance or equilibrium. Goal-seeking behaviour is a widely observed pattern of control possible because of self-correcting feedback.

Figure 2.9 Types of feedback

Function s, processes, and organizations can have more than one feedback loop of each type. The interaction of the feedback loops drives the behaviour of the process as it functions as a dynamic system. It is possible to visualize IT organizations as dynamic system s with functions and processes, with specialization and coordination, providing each other feedback towards the goal of meeting customer objective s. Interaction can be between processes, lifecycle phases, and functions. It is important to note that delays in negative feedback lead to oscillations or swings in the system due to intervening corrections. Improved measurement and reporting can reduce this destabilizing effect. The changes in output are not always linear or proportional to changes in input. This means that non-linearity is a widely observed characteristic of real-world systems such as service organizations. Understanding these principles helps managers correctly identify the nature of challenges and opportunities by observing patterns in performances and outcomes of functions and processes

2.5 The Service Lifecycle

Case example 1: Telecommunication Services

Some time during the 1990s, a large internet service provider switched its internet service offerings from variable pricing to all-you-can-use fixed pricing. The strategic intent was to differentiate from competitor services through superior pricing plan s. The service strategy worked exceedingly well – customers flocked to sign up. The outcomes, however, included large numbers of customers facing congestion or the inability to log on.