You may have come across the concept, “ITSM” (IT Service Management), without really grasping its purpose and essence. You may even have wondered how anchoring ITSM thinking contributes value for an organization. Here we break it down for you and discuss: What is ITSM? What are the benefits? And what frameworks and tools exist to apply ITSM? Watch our video to know the answer.
ITSM, what is it?
The first step in understanding what ITSM entails is defining its meaning. So, how do we define ITSM?
To put it simply: ITSM refers to all the activities you do in your organization to manage the complete lifecycle of IT services and deliver quality IT to meet business needs. That includes planning, designing, creating, delivering and maintaining those services. Thereby, ITSM assures the right mix of people, processes and technology to create real value between IT and business. Thus, ITSM becomes a bridge between IT and the business.
That may not come as a surprise, right? But then comes the next question: “What are IT services?”
Imagine your laptop, phone, submission of business cases for new applications, requests for a new passwords. These are all services provided to you by your IT team and thus IT services. Frequently, ITSM is thought of simply being IT support. However, ITSM is much more than just that. It goes beyond just solving day-to-day issues. The IT team is not only responsible for delivering services, but also quality, cost and business value aspects are considered. ITSM assures that IT delivers quality IT effectively and efficiently, by getting the most out of their IT budgets. Thereby, ITSM contributes to business value by enabling the business to achieve its goals.
What are the benefits of ITSM?
The main benefit of ITSM is naturally increased alignment between business needs and services provided by IT. With ITSM, you anchor service thinking in your organization. IT becomes a service provider who must deliver services that satisfy its customers.
What does this mean? It means, as a service provider you need to understand and know your customers’ needs in order to deliver services that are valuable for them. As a result, IT would not just focus on doing their jobs. They will focus on delivering services that caters to the business’ needs, creates value for them to a cost and quality which is viable for both parties.
The service minded approach triggers benefits for both the IT and the business. These are some of the common benefits achieved:
Benefits for IT:
- Business alignment and understanding of business needs
- Reduction of IT costs through repeatable processes
- Increased productivity
- Increased customer satisfaction with realistic expectations
- Proactiveness from IT – Ability to prevent problems before they happen
- Analytics to measure and improve IT’s performance
Benefits for the Business:
- Agility from IT to react to product development and market changes
- Improved employee productivity
- IT issues are decreased
- IT Services are transparent
- Lower IT costs
- Better and quality driven IT services
Frameworks for ITSM?
The question now is: “how do you anchor ITSM in your organization?” There exist several frameworks that offer guidance on how to do ITSM. However, the acknowledged best practice ITSM framework is known as “ITIL”.
Based on a value system, ITIL has a focus on co-creating value across the organization. Through a set of principles, practices and value chains, ITIL “provides an end-to-end IT/digital operating model for the delivery and operation of tech-enabled products and service and enables IT teams to continue to play a crucial role in wider business strategy. s” (Axelos, 2019)
The focus on services and value rather than viewing IT as a set of components is the reason why we, in Sofigate Denmark, encourage and help our customers incorporate the ITIL framework as a part of their ITSM approach. However, it is important to remember ITIL is only one way to do ITSM. Although ITIL is commonly used and referred to as best practice, other frameworks and standards exist such as COBIT, ISO20000, IT4IT, DevOps and SIAM.
The most important element of doing ITSM is that you create business value and deliver services that meet the needs of your customers. Yet, remember that you can do ITSM without doing good ITSM. Interested in hearing more on ITSM or ITIL? ITIL has recently launched a new version of their framework, “ITIL 4”. Read our take on it here: https://www.sofigate.com/insight/itil4-just-another-upgrade/.
For more insights, we welcome you to contact us here.