Aligning Incident Categorization to CSDM: A Service-Centric Approach

[sgrison]

Executive Summary

Incident categorization is one of the most critical design choices in IT service management. For years, most organizations have relied on a simple Category and Subcategory model. While this can appear sufficient at first, I’ve seen it quickly break down when organizations need actionable insights, stronger service alignment, or clear reporting for business leaders.

Executives want to know which services are most impacted. Service desk managers need to analyze trends in high-volume areas. Resolver teams require precision for accurate routing and problem identification. From my perspective, the old category/subcategory model simply doesn’t serve any of these groups well.

As organizations mature, linking incidents directly to services becomes essential. A service-based approach aligned with ServiceNow’s Common Service Data Model (CSDM) provides clarity, consistency, and business relevance. This paper explains why moving beyond Category/Subcategory matters, how to design a service-based model, and the pitfalls to avoid.

Why Categorization Matters

Categorization isn’t just about labels — it drives how IT operates:

• Routing – Ensures incidents reach the right support group.

• Prioritization – Helps distinguish critical issues from low-level ones.

• Trend Analysis – Surfaces recurring problems and potential problem records.

• Service Reporting – Shows leaders where IT resources are being consumed.

• Governance – Supports compliance and audit processes.

In practice, when categorization is weak, every one of these processes suffers — from misrouted tickets to reports which are unreliable. 

Limitations of Category/Subcategory

• Ambiguity

  • Same issue often logged in multiple ways.

  • Example: password reset → “Access Issue,” “Account Problem,” or “Login Failure.”

  • Leads to inconsistent data and unreliable reporting.

• User Burden

  • End users face long, technical lists.

  • Many default to “General” or “Other.”

  • In some environments, “Other” used in 40%+ of tickets — making the model ineffective.

• Limited Value

  • Executives don’t care about broad labels like “Software.”

  • They need to know which services (Payroll, HR, Email) were impacted, and how often.

• Reporting Gaps

  • Model doesn’t align to services or CIs.

  • Makes it hard to roll up into trends, SLAs, or compliance metrics.

A Service-Based Model Aligned to CSDM

The stronger approach is to tie incidents to Services, link them to a Configuration Item (CI), and, where helpful, include a Service Offering.

• Service – The anchor point representing outcomes the business relies on.

• Configuration Item (CI) – The technical component (server, app, DB) behind the service.

• Service Offering – An optional but valuable slice of a service (e.g., “Mobile Email Access”).

This model eliminates ambiguity. Instead of debates over “Hardware” vs. “Software,” the record clearly shows: Payroll Service → Salary Processing Offering → payroll-db01 CI. Leaders see the service impact, and technical teams gain the detail needed to resolve and prevent recurrence.

Best Practices for Modern Design

1. Start with Services

   • Make services the primary categorization layer.

   • In my work with clients, models built only on technical categories rarely resonate with executives.

2. Add Component/CI Dimension

   • Capture the failed element.

   • Example: “Payroll Service + Database CI.”

3. Integrate with CMDB and Discovery

   • Use Service Mapping and Discovery to keep CI data fresh.

   • I’ve seen categorization efforts collapse when the CMDB is stale.

4. Measure Data Quality

   • Regularly audit incident records.

   • Provide feedback and refresher training to agents.

Common Pitfalls

1. Overcomplicating – Too many layers confuse agents and slow down data entry.

2. Poor End-User Experience – Business users disengage when forced to choose from technical lists.

3. No Governance – I’ve seen duplication like “Outlook,” “Exchange,” and “Email” all existing as separate services. A governance forum prevents this.

4. Weak Training – Without reinforcement, even a strong model deteriorates quickly.

5. Ignoring CSDM – Skipping service alignment leads to categorization no one trusts.

Roadmap for Redesign

Step 1 – Assess Current State

• Analyze Category/Subcategory values.

• Identify redundant or unused entries.

• Look for overuse of “Other.”

Step 2 – Define Desired Outcomes

• Prioritize what categorization should support: routing, reporting, or problem identification.

• Engage both IT and business stakeholders.

Step 3 – Redesign the Model

• Introduce service and CI dimensions.

• Keep the structure intuitive.

Step 4 – Pilot with Critical Services

• Apply to a small set of high-value services.

• Measure routing improvements and reporting impact.

Step 5 – Integrate with ITSM Processes

• Ensure Incidents, Problems, and Changes all reference the same services and CIs.

• Link to the CMDB for consistency.

Step 6 – Govern and Refine

• Establish a governance forum.

• Audit regularly to ensure quality.

Case Example

I worked with a healthcare provider that had over 300 subcategories in its incident categorization model. Agents often defaulted to “Other,” and executives had no visibility into which services were failing.

Approach:

• Replaced the model with Service + Component/CI.

• Services aligned to CSDM; components mapped to CI classes.

• Portal displayed business-friendly service names.

Results:

• Routing accuracy improved by 45%.

• Executives gained dashboards showing incidents by service and component, enabling targeted investments in high-failure areas.

Conclusion

Incident categorization is the foundation of ITSM. Traditional Category/Subcategory models are simply too limited for modern enterprises.

By moving to a Service + CI model aligned with CSDM, organizations can:

• Improve routing accuracy.

• Deliver meaningful reports executives actually use.

• Identify recurring technical issues tied to specific CIs.

• Strengthen alignment between IT and business services.

The organizations that modernize incident categorization today will build a CMDB-integrated framework that is accurate, sustainable, and valuable for the long term.