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Service Governance	Service Level	Processes and Practices
Mode of Operation	Vendor Relations	Availability

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Matti Grönroos CV

Matti Grönroos

SIAM

The term SIAM, Service Integration and Management, has at least as many interpretations as there are interpreters. Usually, it is about hiding the complexity of multi-vendor service management from the business units. At some point in the value chain, there is a function that takes over the management and control of the vendors.

SIAM is not a silver bullet that will remove all complexity from the world. Instead, it centralizes the management of complexity on fewer people and often into more capable hands. Everyone has seen vendors playing ticket ping-pong.

There are a lot of things to consider when implementing the SIAM model. SIAM is not an off-the-shelf product that you can buy and go.

SIAM is not a new invention. For decades, there have been hub vendors, lead suppliers, service integrators and other such concepts targeting the same goals. SIAM can be implemented by an internal service organization or it can be outsourced, or it can be a mix of both. There is no single SIAM mode of operation.

The traditional model is that the company IS/IT function takes over the network of suppliers.

Problems usually arise if the IS/IT function focuses mainly in technology only. In such cases, it probably has a lack of skills related to contract management, including legal issues. It is often a strategy to have the IS/IT functions as lean as possible. Such teams are usually incapable of taking SIAM-related responsibilities.

In the SIAM model, the pain is transferred to an organization, which is often called a SIAM operator. It is given responsibility (and hopefully also the power) to steer and control other vendors. However, it is good to remember that also in the SIAM model, each service provider is responsible for its subcontractors. The scope of SIAM seldom includes the chain of subcontractors.

The success of the SIAM model is sensitive to how well roles and responsibilities are defined and implemented.

Basically, the SIAM Operator has no contract with those companies it steers and controls. Instead, the contracts are between the customer and the vendors. Normally, the SIAM operator handles the operative questions, and it monitors the vendors' performance. The commercial and legal transactions take place between the customer and the vendors. Hence, the SIAM operator does not have the possibility to impose sanctions or other penalties, but they are negotiated directly between the contracting parties. The SIAM operator cannot proclaim itself to be the SIAM operator, but it executes under an authorization. Raising one vendor to a SIAM operator typically requires negotiations with the other vendors and it might be a source of friction.

The SIAM function does not have to have all service providers in the scope, some may be excluded. The scope can also be extended step by step as the experience increases.