What is ITSM?

ITSM describes the management of end-to-end IT service delivery to meet business goals, including the creation, delivery and support of IT services.

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What is ITSM vs ITIL vs DevOps (Development Operations)? Why is ITSM Important? What are the benefits of ITSM? What are ITSM efficiencies? What are ITSM Processes? What are important ITSM frameworks? ITSM metrics What are considerations when implementing ITSM? What are essential considerations when choosing ITSM software and tools? How can ITSM be applied across business types and industries ServiceNow for IT service management as a strategic investment

Since the mid-20th century, IT services have been a fundamental aspect of business operations. Today, IT is more essential than ever – and more complex. The integration of additional technologies, the need for secure remote work solutions, the requirement for uninterrupted service, and the rapid evolution in IT power and capabilities all present unprecedented challenges. To meet these and other IT-related challenges, organisations are turning to IT service management (ITSM).

ITSM is an approach to managing end-to-end IT delivery. As a fully comprehensive solution, ITSM assists IT teams in the provisioning of all relevant IT services, including planning, designing, building, implementing, deployment and improvement, as well as support for customers, employees and other stakeholders.

Central to ITSM is the principle that IT functions should operate as a service, focusing on the needs of the users and aligning technology systems with established business objectives. As such, ITSM goes well beyond basic IT support desk functions. In fact, ITSM should encompass every aspect of information technology within the company, from configuring basic equipment to identifying and responding to unplanned service interruptions or other disruptive events. The IT information library (ITIL) is one of the most popular frameworks used in ITSM.

 

Expand All Collapse All What is ITSM vs ITIL vs DevOps (Development Operations)?

The right IT framework can make a major positive difference in the efficiency and utilisation of IT services, and businesses have a number of different framework options to choose from. Among the most popular of these frameworks are those associated with ITSM/ITIL and DevOps.

ITSM, ITIL and DevOps are three important models within the information technology domain. They share some common ground in their focus on delivering and managing IT services, yet each possesses distinct principles and practices that set them apart. Taking a closer look at these concepts reveals how they interact and compare to one another in the complex landscape of IT:

ITSM

As previously defined, ITSM refers to a strategic approach to design, deliver, manage and improve the way that information technology is used within an organisation. It ensures that IT services are aligned with business needs, incorporating various practices and processes for end-to-end service delivery. ITSM is about the ongoing lifecycle of IT services, not just their design or deployment. ITSM allows for increased productivity, lower costs, and improved end-user satisfaction.

ITIL

Generally considered a subset of ITSM, the ITIL framework is a set of best practices guidelines for managing IT services. ITIL provides the necessary tools and techniques for aligning IT services with the needs of the business. First introduced in the 1980s, this framework describes key service management processes and has played a major role in helping to standardise ITSM practices worldwide. ITIL 4 is the most recent iteration.

DevOps

DevOps is a philosophy and set of practices that emphasise the collaboration and communication between software development and IT operations. Unlike ITSM and ITIL, which are primarily focused on service management, DevOps aims to shorten the software development lifecycle and provide continuous delivery of high-quality software, integrating the functions of development and operations to improve efficiency, increase automation, and enhance collaboration between teams. Although sometimes viewed as a contrast to ITSM, both share certain commonalities, such as their focus on aligning IT with company goals, an emphasis on user centricity, and a recognition of the importance of collaboration.

ITSM, ITIL and DevOps are not mutually exclusive; all have their own goals and functions, and can be used in conjunction to provide a more rounded approach to IT management. Many modern teams utilise DevOps alongside ITSM and ITIL.

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Why is ITSM Important?

Information technologies now encompass and incorporate tasks and responsibilities from across the entire organisation. Managing these services is an ongoing challenge, and users expect businesses to be up to the task. Companies depend on ITSM to effectively coordinate the nearly countless processes that drive their day-to-day operations, while ensuring that those same processes are providing real value.

Because ITSM is a collection of policies and processes for the management and support of IT services – throughout their entire lifecycle – IT service management helps to improve an enterprise’s efficiency and increase employee productivity.

What are the benefits of ITSM?

ITSM serves as a vital bridge connecting IT professionals within an organisation to the end users (internal and external) who require IT services. The well-structured approach that ITSM provides translates into a range of benefits for various stakeholders, including businesses, IT departments and individual users.

Benefits for business

By clearly focusing on aligning IT services with organisational objectives, businesses see some of the noteworthy advantages. These include:

  • Increased agility
    ITSM enables organisations to quickly adapt to changes and embrace innovation. By employing flexible methodologies, businesses can respond promptly to market shifts and emerging opportunities, ensuring that they stay ahead of the competition.

  • Reduced costs
    Through the visualisation of workflows, ITSM facilitates more efficient operations, minimising waste and contributing to significant cost savings. It allows for streamlined processes, reducing redundant tasks and improving resource utilisation.

  • Fewer IT problems and improved response
    ITSM methodologies provide proactive management of IT issues, helping to minimise problems and respond swiftly to incidents. This reduces both the cost and disruption linked to IT-related issues.

  • Easy compliance
    ITSM frameworks often align with regulatory requirements, aiding organisations in maintaining compliance. Whether it concerns data protection or industry-specific regulations, ITSM helps ensure all processes are within legal bounds.

  • Better service
    By focusing on user needs and delivering consistent, high-quality service, ITSM enhances satisfaction rates among end users, boosting reputation and customer loyalty.

Benefits for the IT department

Although modern organisations incorporate information technology into essentially every aspect of business, IT departments are the ones who work most directly with technology services. ITSM benefits these professionals through:

  • Improved productivity
    ITSM aligns IT goals with organisational objectives, backed by reliable services. This alignment ensures higher efficiency and fewer problems, leading to increased productivity within the IT department.

  • Increased user or employee satisfaction
    Delivering IT as a service and keeping user needs at the forefront enhances satisfaction among internal and external users. This leads to more tailored solutions that cater to individual preferences and requirements.

  • Better process scaling
    ITSM enhances the efficiency of processes, enabling organisations to handle more significant IT processes and development without sacrificing quality. As the business grows, ITSM allows IT processes to scale smoothly along with it.

  • Faster incident detection and response
    Improved IT visibility under ITSM means that potential issues are identified sooner, allowing for a rapid response before problems have a chance to escalate. This proactive approach minimises downtime and associated costs.

Benefits for users or employees

Finally, the users who rely on IT services see many advantages from ITSM:

  • Improved IT support
    ITSM provides around-the-clock IT support, empowering employees to improve productivity. The clarity regarding available IT services and their proper utilisation means fewer hurdles and more effective work.

  • Omni-channel experience
    Distributed ITSM allows employees to access relevant information and make support requests from any device, at any time, anywhere around the globe. This ubiquity ensures uninterrupted work processes and greater convenience.

  • Clearer roles and responsibilities
    Through ITSM, teams gain a clearer understanding of who is responsible for specific tasks. This clarity enhances accountability and keeps everyone informed, ensuring smoother collaboration.

  • Improved business alignment
    With ITSM, employees benefit from better visibility into what the business and end users need, and why. This alignment ensures that IT efforts are directly tied to business objectives, enhancing overall organisational synergy.

What are ITSM efficiencies?

The application of IT Service Management is synonymous with efficiency. Built on a systematic approach to IT management, ITSM enhances IT operations’ overall effectiveness in several ways, offering an optimal blend of reduced costs, enhanced productivity and minimised risk. Below is a more detailed look at how ITSM improves efficiency within an organisation:

  • Optimal use of limited IT resources
    ITSM encompasses the complete spectrum of IT services, integrating even the most complex processes and functions. This comprehensive approach ensures that resources are allocated and utilised effectively, reducing waste and confirming that the right resources are available when they’re needed.

  • Automated process workflow
    Through automation, ITSM minimises many manual tasks that can be time-consuming and prone to human error. By streamlining workflow processes, collaboration between departments is improved and employees are liberated from mundane tasks. This allows them to focus more on strategic initiatives and invest more time into customer engagement.

  • Time and cost savings
    ITSM emphasises identifying and eliminating recurring problems, promoting faster issue resolution. This not only minimises the time spent on resolving issues, but also translates into tangible cost savings. By preventing unnecessary expenditures and improving efficiency, ITSM directly impacts the bottom line.

  • Reduction in downtime
    With ITSM’s proactive approach to IT response and availability management, downtime is significantly reduced. Resources are consistently aligned to ensure uninterrupted business operations, which translates into higher productivity and satisfaction among both employees and customers.

  • Preventive measures and customised responses
    ITSM enables the early detection of potential IT issues, allowing for the formulation of effective, customised responses before problems escalate. This proactive stance mitigates risks and maintains the integrity and reliability of IT services.

  • Insightful reporting
    Automation in reporting not only makes the process more cost-effective, but also promotes accuracy and timeliness. ITSM’s insightful reports provide an in-depth view of IT operations, allowing for informed decision-making and continuous improvement.

  • Service-based incident management
    By increasing incident visibility and facilitating rapid response, ITSM ensures that potential issues are identified and addressed promptly. This service-based approach keeps incidents from spiralling into significant problems, maintaining stability and efficiency within IT operations.

  • Resilience in the face of critical IT scenarios
    ITSM equips organisations with the strategies and resources required to withstand and quickly recover from severe IT disruptions. Whether it concerns a technical failure or a cybersecurity breach, ITSM ensures that recovery plans are in place, enabling a swift return to normal operations.

What are ITSM Processes?

Technology is an integral part of IT processes, but it should not necessarily be the primary focus. ITSM is more comprehensive, expanding to include business objectives in addition to traditional IT objectives. As a result, IT service management improves processes across the board. ITSM does this in the following ways:

  • Change and release management
    ITSM’s change and release management processes focus on tracking scheduled, planned infrastructure changes. It ensures that changes are implemented efficiently, consistently and with minimal risk. With integrated approval processes, it facilitates coordination with incident, problem and service-level management applications, resulting in smoother transitions and alignment with business goals.

  • Configuration management
    Involved in tracking all configuration items within an IT system, configuration management encompasses hardware, software, personnel and documentation. This process provides a reliable repository for system information, establishing clear relationships between IT infrastructure systems and services – allowing for better control and ensuring alignment between IT and business needs

  • Continuous improvement management
    A key aspect of ITSM, continuous improvement management involves the constant identification and implementation of improvement opportunities. It connects improvement efforts with overall business strategy, measuring success and tracking performance goals. This approach fosters a culture of ongoing enhancement, adapting to evolving business landscapes and enhancing service efficiency.

  • Incident management
    Incident management in ITSM involves tracking and resolving incidents that disrupt normal operations. These incidents can include requests for new services, software or hardware. The primary goal of incident management is to restore normal service operations as quickly as possible. By prioritising incidents and service requests based on business impact, IT staff can allocate resources where they are most needed, ensuring swift and effective resolutions.

  • Knowledge management
    In the context of ITSM, knowledge management is a crucial process that involves the collection, organisation, analysis and dissemination of knowledge within the organisation. This includes all types of IT information – from technical specifications and solutions through to common problems, best practices and lessons learned. Knowledge management makes sure that the right information is available to the right people at the right time – improving training and development, decision making, collaboration and communication, productivity, and risk reduction.

  • Problem management
    Problem management streamlines the investigation of incidents from detection to eradication. This process utilises ITIL’s sub-processes, such as problem control, error control and proactive problem analysis. Problem management aims to eliminate recurring incidents, remove defects from the IT infrastructure and stabilise the environment, enhancing overall service reliability.

  • Request management
    Request management involves the handling of various service requests, such as resetting passwords, installing new workstations or updating personal information. By streamlining these requests, ITSM ensures that essential activities continue to progress without unnecessary delays.

  • Service-level management
    Service-level management empowers organisations to track service-level agreements (SLAs) with customers (or employees) and vendors. By identifying weaknesses, this allows management to take corrective actions to promote compliance with agreed-upon standards, enhancing customer satisfaction and vendor accountability in the process.

  • Workflow and talent management
    The right placement of skilled and knowledgeable individuals in appropriate roles is vital to ongoing success. ITSM’s workflow and talent management ensure that employees are positioned effectively to align with business objectives. This process leverages the unique talents of team members, delivering top-notch services that are tailored to specific needs.

What are important ITSM frameworks?

IT Service Management frameworks are structured approaches that guide the management of IT services within an organisation. These guidelines provide a set of standardised processes, procedures and practices designed to help in delivering consistent and quality IT services. Ideally, adhering to an ITSM framework ensures alignment with business goals, optimal utilisation of resources and continuous improvement, though certain frameworks are a better fit for some organisations than others.

Below are some of the most prominent ITSM frameworks widely used across various industries:

ITIL

To reiterate, ITIL is perhaps the most widely recognised framework for ITSM. It offers a set of best practices for IT service management and focuses on aligning IT services with business needs. ITIL provides a modular approach, defining the entire service lifecycle. Incident, problem and change management are the most commonly adopted ITIL practices, and organisations also frequently implement self-service and a service catalogue. High-performing ITSM services mapped to ITIL processes help to keep employees happy and productive, and confirm that business needs are being addressed.

CMMI

Capability Maturity Model Integration (CMMI) guides organisations in improving their processes by providing best practices for product development and maintenance. The CMMI framework is extremely effective at evaluating the maturity of processes, thereby ensuring the delivery of quality end products. CMMI is designed for intuitiveness, ease of use, flexibility and integration across methodologies.

Six Sigma

Six Sigma is a data-driven approach aimed at process improvement and operational excellence. The overall goal of the Six Sigma framework is to completely eliminate errors through the quick identification of the root causes behind defects. By identifying and eliminating problems and reducing variability, Six Sigma enhances both the quality and efficiency of IT. Six Sigma’s methodology includes the phases of define, measure, analyse, improve and control (DMAIC).

COBIT

Control Objectives for Information and Related Technologies (COBIT) is a comprehensive framework for managing and governing enterprise IT. It focuses on aligning IT goals with strategic business objectives, ensuring regulatory compliance and optimising IT investments. COBIT offers a set of guidelines and best practices for governance and management in IT. Widely accessible and effective regardless of the size of the business, COBIT offers many advantages, with perhaps the greatest one being that it can be easily used in conjunction with other frameworks.

eTOM

The Enhanced Telecom Operations Map (eTOM) is specifically tailored for the telecommunications industry. Offering a comprehensive, business-oriented approach, eTOM provides a common language and standardised processes to ensure quality and efficiency in the provision of telecommunications services.

ISO/IEC 20000

ISO/IEC 20000 (based on the earlier BS 15000 framework developed by the British Standards Institution) is an international standard for ITSM. This outlines requirements for service providers to plan, establish, implement, operate, monitor, review, maintain and improve a service management system. The ISO/IEC 20000 framework supports many other frameworks and approaches, ensuring adherence to quality standards while also optimising consistency and reliability in service delivery.

TOGAF

The Open Group Architecture Framework (TOGAF) is an architecture framework used in developing efficient IT strategies by improving designing, planning, implementing and governing within an organisation’s IT architecture. TOGAF introduces a methodology and set of resources that establish the alignment of IT with business strategy and facilitates communication across different parts of the business.

ITSM metrics

Establishing and tracking metrics is crucial for gauging the performance, efficiency and effectiveness of IT services. Metrics provide quantifiable measurements that allow IT teams to identify areas for improvement, make data-driven decisions and ensure alignment with business goals. Moreover, they help in maintaining accountability and transparency with stakeholders. Here are some of the essential ITSM metrics that organisations often focus on:

  • Service availability
    This metric measures the percentage of time that a particular IT service is available to end users. This is useful for understanding how reliably a service is performing. High service availability ensures minimal interruptions, leading to enhanced user experience and productivity.
  • Time to resolution
    Time to resolution refers to the average time taken to fix an issue, from the moment it’s reported until it’s completely resolved. This is an essential measure of efficiency in handling incidents and indicates how responsive the IT team is to problems.
  • First-call resolution rate
    This metric quantifies the percentage of incidents or service requests that are resolved during the first interaction with the service desk. A higher first-call resolution rate implies effective troubleshooting and contributes to higher customer satisfaction.
  • Agent Productivity
    Agent productivity is a measure of how efficiently service desk agents handle incidents and service requests. It can include metrics such as the number of tickets resolved per agent, time spent per ticket etc. Monitoring agent productivity helps in optimising workflows and resource allocation.
  • SLA breach rate
    SLA breach rate is the percentage of incidents or requests that are not resolved within the agreed-upon time frame. Monitoring this rate ensures compliance with contractual obligations and helps in identifying recurring issues that might need addressing.
  • User/customer satisfaction
    User or customer satisfaction is a subjective measure obtained through surveys, feedback and other means to understand how satisfied end users are with the IT services. Tracking this metric helps in aligning IT services with user expectations and making necessary improvements.
  • NPS
    The net promoter score (NPS) is a customer loyalty metric that assesses the likelihood of customers recommending a company’s product or service to others. It provides insights into overall customer satisfaction and loyalty and can be a significant indicator of long-term success.
What are considerations when implementing ITSM?

Implementing IT service management can mean a substantial shift in the way an organisation’s IT department functions and delivers value. However, it is not a one-size-fits-all solution: The implementation of ITSM requires careful planning and must take the specifics of the company and its structure into account.

Before fully committing to an ITSM solution, consider the following:

  • Successful implementation of ITSM is about fostering a cultural shift. End users should view the IT department as a service provider rather than merely another internal department. This shift in perspective necessitates training, communication and ongoing support to cultivate a service-oriented mindset.
  • Identify specific problems or challenges to be addressed. Creating a problem statement should answer important questions about the state of the organisation. Are there recurring issues? Are cost reductions needed? Understanding these aspects helps in aligning ITSM implementation with real organisational needs. ITSM can introduce systematic processes and predictability that address these concerns.
  • There are various ITSM frameworks available, and choosing the right one is contingent on the organisation’s specific requirements and goals: ITIL, COBIT, Six Sigma and others offer different methodologies that target various organisational needs. Carefully selecting the most suitable framework ensures alignment with the problem statement as well as support for overall strategic objectives.
What are essential considerations when choosing ITSM software and tools?

The right IT Service Management tools are fundamental in assisting IT departments in delivering seamless services across their organisations. Investing in the right software solution will help to streamline processes, foster collaboration and increase efficiency. When considering an ITSM solution, here is what to look for:

  • Simplified setup and activation
    Simplified setup and activation: An ITSM tool that is difficult to get working can become a hindrance rather than a help. Seek solutions that offer a straightforward, intuitive setup and activation process, complete with self-service portals and support from knowledgeable management strategies and service agents to assist in the initial implementation.
  • Ease of use
    An ITSM solution should be user-friendly and intuitive to encourage complete adoption across various departments. It should include a self-service portal where users can find solutions and reliable information and track progress on any issues that may arise.
  • Flexibility, adaptability and scalability
    Businesses are not static: They are constantly growing and changing, and ITSM software tools must be capable of adapting alongside them. Look for solutions that can scale to handle new growth, adapt to changing resolutions and processes, and consistently offer value as IT teams and systems evolve.
  • Powerful collaboration
    Effective collaboration is vital in ITSM, and an effective ITSM software solution should foster coordination and collaboration across departments. Look for tools that provide a single, unified platform to facilitate teamwork and improve issue resolution times.
  • Software challenges
    Not all approaches to ITSM are created equal – and neither are all ITSM tools. Understanding the challenges and limitations of the software will help the organisation to make an informed decision. This includes recognising issues related to compatibility with existing systems, integration, customisation and future upgrades.
  • Total cost of ownership
    At the end of the day, the most important consideration will usually be whether the solution improves revenue, reduces costs and helps the business to meet its financial goals. Consider the full lifecycle costs of the ITSM solution, including purchase, implementation, maintenance, support and potential upgrades. Analysing the total cost of ownership ensures that the chosen tool aligns with budget constraints and offers a favourable return on investment.
How can ITSM be applied across business types and industries

IT service management is not confined to a specific business type or industry: Just like the technologies it encompasses, ITSM has a near-universal appeal and application. ITSM can be tailored to meet the unique needs and challenges of various sectors, enabling them to leverage technology to drive efficiency, innovation and customer satisfaction. Here, we explore how ITSM is applied across different business types and industries.

Telecommunications, media and technology

As telecommunications, media and technology companies vie for competitive advantage in a rapidly evolving marketplace, they often struggle to scale support operations for a growing customer base while still delivering exceptional service experiences. System intelligence is divided between silos and support teams become overburdened. There is too much to monitor and too many tools – turning into a ‘swivel chair’ situation where agents need to constantly switch between multiple applications and screens just to keep up. Telecom organisations need to cut costs by replacing legacy processes with end-to-end digital workflows and self-service tools. They need at-a-glance visibility into operations to detect potential service impacts before they become major issues. And they require greater agility, so that they can quickly adapt to market demands and efficiently deliver technology.

Financial services institutions (FSIs)

Globally, financial institutions of varying sizes and types rely on ITSM to support their digital transformation. ITSM enables these FSIs to navigate the challenges of a rapidly transforming digital landscape and evolving market dynamics. This includes harnessing innovation to gain a competitive edge, surpassing customer expectations by ensuring operational excellence and improving employee experiences, and building resilience to maintain customer trust and safeguard their reputation. Effective ITSM plays a crucial role in addressing the overarching needs of FSIs in today’s dynamic financial environment.

Manufacturing

Deadlines won’t wait when equipment breaks down or service requests go unseen because of isolated databases. Manufacturing customers expect speedy case resolution and a seamless customer experience that delivers on time. Unfortunately, siloed departments and disconnected point solutions can make it nearly impossible to build enterprise-level processes that lead to first-call resolution of customer or plant issues. At the same time, people-intensive processes continue to increase internal operating costs. Manufacturing organisations need end-to-end business workflows that deliver growth with a reliable, resilient innovation machine. ITSM makes it possible for these businesses to improve productivity, mitigate risks and proactively monitor and address cases that would otherwise stand in the way of a positive customer experience. Manufacturing companies need ITSM solutions that include self-service tools that let customers see real-time status updates without having to call – while empowering them to take a more active role in their customer journey.

Healthcare and life sciences

Healthcare and life sciences organisations thrive on happy clinicians and satisfied patients. Siloed departments, disconnected point solutions and low operating margins make it difficult to build the enterprise-level processes that will give both care teams and patients the level of service they expect. Just as significantly, people-intensive tasks drive operating costs ever higher in an age of perpetual cost containment. What is needed are end-to-end business processes that streamline complex activities, such as clinician onboarding and asset management. ITSM provides easier ways to keep connected medical devices up and running, along with tools that let clinicians spend less time on IT issues so that they can dedicate more of their focus to their patients.

Public Sector – Government

Government agencies are under extreme pressure to innovate faster and deliver better citizen experiences. That said, legacy systems and tight budgets are serious barriers to modernisation. With employees spending much of their time on routine manual tasks, most have difficulty keeping pace with the rising volume of everyday work. To address these issues, government agencies require a solution that automates workflows for mission and business applications – a single cloud platform that enables agencies to modernise citizen and employee experiences while saving millions of dollars and staff hours every year. ITSM allows them to leverage the power of the cloud to not only become more efficient, but also to meet compliance regulations through continuous monitoring and automated remediation of risks and vulnerabilities.

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