What is ITSM (IT Service Management)? Meaning, Processes, and Best Practices
ITSM is the practice of meeting tech requirements by treating users as customers and the requirement as a service.
ITSM (short for information technology service management) is defined as the structured practice of meeting an organization’s technology requirements by treating its users as customers and every requirement as a service request, which has to be fulfilled keeping in mind the organization’s resources and quality standards. This article provides an overview of the concept of ITSM. It explains the processes of IT service management and its importance in an enterprise.
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What Is ITSM?
ITSM (short for information technology service management) is defined as the structured practice of meeting an organization’s technology requirements by treating its users as customers and every requirement as a service request, which has to be fulfilled keeping in mind the organization’s resources and quality standards.
It is the process through which IT personnel oversee the comprehensive delivery of information technology services to clients. This comprises IT services’ design, creation, delivery, and support functions and activities.
ITSM is predicated on the premise that information technology should be provided as a service. An example of ITSM scenarios may entail requesting new equipment, such as headphones, for a contact center. One would send your requirement through a portal, complete a request with all pertinent details, and start a routine procedure. Then, one would place the request in the queue of the IT staff, wherein incoming requests are prioritized and treated accordingly.
People often mistake ITSM for basic IT assistance due to their frequent interactions with IT. ITSM teams manage all types of workplace technology, including endpoint devices, servers, and mission-critical software applications.
IT teams use many frameworks to govern their work—additional ideas, such as COBIT, SIAM, IT4IT, Lean Six Sigma, etc. However, ITSM and DevOps are the most frequently discussed. ITIL (Information Technology Infrastructure Library) is one of the most commonly used ITSM methodologies. It may assist businesses in adapting to continuous change and expansion. ITIL 4 is the most recent collection of standards that leads teams through a company- and customer-centric IT framework. It encourages cooperation, ease of use, and feedback.
IT Service Administration (ITSM) is the process of creating, providing, managing, and enhancing the IT services an organization offers to end customers. ITSM, in its essence, covers the management and administration of an organization. It emphasizes harmonizing IT procedures and IT solutions to promote business expansion.
The importance of ITSM in an enterprise
ITSM is advantageous for the IT department, and service management practices may benefit the organization as a whole. It increases efficiency and production. A systematic management method also aligns IT with business objectives by standardizing service delivery depending on finances, resources, and outcomes. It saves expenses and hazards and eventually enhances customer satisfaction.
The top three justifications for using ITSM are:
- Minimizing the risk from digital disruption
The risk associated with any transition may seem catastrophically high, especially if the transformation is inadequately conceived, evaluated, or conveyed to the company and team members. With ITSM, the likelihood of large service or business outages is drastically minimized. Formalized rules, procedures, and responsibilities facilitate effective communication with customers and other stakeholders.
- Managing costs while scaling
As organizations expand in size and complexity, IT departments must recruit additional personnel or risk being overburdened with tactical and operational activities. IT service management may facilitate the scalability of IT operations without the need for additional staffing, owing to automation tools that decrease IT operators’ manual intervention.
- Driving visibility and accountability
ITSM helps IT administrators to monitor the resolution of events and service requests. It provides transparency into the way the IT group provides services. IT managers may check incident logs to ensure services are offered consistently and following company rules and procedures. In addition, they may monitor business activities on the company’s network and identify policy violations.
Currently, information technologies include and integrate duties and responsibilities from all areas of a business. Customers anticipate that companies are competent enough to manage these services on an ongoing basis. Businesses rely on IT Service Management (ITSM) to successfully organize these operations and procedures while guaranteeing that they provide genuine customer value.
See More: DevOps vs. Agile Methodology: Key Differences and Similarities
The evolution of modern ITSM
One may trace the first application of ITSM principles to when IT companies utilized massive mainframe infrastructures. Over time, the technology and the functions reached a high degree of maturity. Managing change, production scheduling, configuration, recovery procedures, performance management, and availability management are among the most outstanding examples of ITSM approaches.
The critical distinction between mainframe settings of the past and ITSM practices of today is that mainframes often used a centralized system. One may, nonetheless, use ITSM for both centralized and decentralized systems. In addition, mainframe technology was mostly technology-based and provided as stand-alone practices, while ITSM focused on various integrated services to meet business objectives.
ITSM is closely associated with ITIL (Information Technology Infrastructure Library). ITIL is the official document of the Cabinet Office of the United Kingdom, and it addresses several related issues as independent disciplines. The most recent edition of ITIL is its 4th edition, which introduces significant enhancements over the 2011 edition, which is a modification of the 2007 edition.
Top information technology service management (ITSM) frameworks
Let us now examine the various ITSM frameworks currently in use:
- MOF: The Microsoft Operations Framework (MOF) is a collection of 23 publications that describe the procedures for developing, delivering, and maintaining IT services. The overarching objective of the MOF is to provide an environment where IT and business may collaborate effectively toward operational maturity.
- COBIT: COBIT, an acronym for Control Objectives for Information and Related Technologies, provides tools for constructing, monitoring, and enhancing the implementation and risk management solutions. The COBIT Core Model has forty goals for governance and management.
- TOGAF: The Open Group Architectural Framework (TOGAF) is a structure and technique designed to identify business objectives and connect them with software development-related architecture objectives. This 1996-created high-level architecture continues to demonstrate its relevance in the DevOps age.
- ITIL: ITIL, launched in the 1980s, offers businesses guidance on using technology for transformational change, development, and innovation. ITIL 4 provides the service management skills necessary to adapt IT to cloud, Agile, and DevOps scenarios.
See More: What Is CI/CD? Definition, Process, Benefits, and Best Practices for 2022
Prominent ITSM Processes
The stages of a service’s life cycle, from conception through delivery, are often referred to as ITSM processes. These are the ten most essential ITSM procedures one must understand:
1. Incident management
ITIL defines an incident as “an unanticipated interruption or degradation of an IT service”. In addition, it highlights that an incident could also include something that is not apparent to the user, such as a component failure identified by systems monitoring tools. The primary objective of this procedure is to return the service to regular functioning as rapidly as possible while minimizing the effect on business activities. Consequently, the SLA must define “normal operation.”
2. Change management
This is one of the most critical processes for enhancing the availability of your IT services. Before any modification, big or small, can be made to the IT Service, it must be planned and well-considered, and one must understand the ramifications. This does not imply that one must slow down changes since the process may be adjusted to each company’s requirements, but it does imply that each change is examined in some way before being implemented. This alone results in fewer errors, enhancing your IT services’ availability.
3. Service order fulfillment
The delivery of software licenses and hardware components must be expedited so that customers may perform their duties or become productive promptly after joining a company. In addition to controlling expenses, businesses must ensure they only purchase what is necessary and do not have depreciating licenses or hardware lying on the shelf. An efficient fulfillment process may prevent this from occurring and guarantee the proper monitoring of assets.
4. Service level agreement (SLA) management
It is essential to understand the business’s IT service requirements. Uncertainty may indicate that the service offered is not supporting the company and that the IT services being delivered exceed its current needs. Both of these might incur costs for a company. This procedure enables the implementation of the appropriate service level agreements (SLAs) to guarantee that the IT service fulfills business requirements.
5. Access management
This method involves account credentials. Because password renewals are the most frequent requests within access management, automating the fulfillment of such requests may allow an organization with, say, 600,000 yearly password resets to save up to $1,850,000 per year. Such cost reductions are frequent among businesses with robust ITSM installation.
See More: What Is Configuration Management? Working, Tools, and Importance
6. Continual service improvement (CSI)
Successfully implementing IT procedures should not be the ultimate stage for any organization. There is always space for growth and improvement depending on challenges that arise, client requests, and user input. Metrics and key performance indicators (KPIs) are crucial in identifying improvement or change areas. IT teams may embrace processes such as IT service appraisals, process assessments, and CSI project management as a component of CSI.
7. Demand and capacity planning
This ITSM process is designed to examine and forecast upcoming requirements for the defined IT services and ensure that sufficient IT resources are readily available to meet current and future corporate needs at a reasonable cost. It is closely linked to financial management, which manages the company’s IT budget, expenditure, and other financials, as well as IT service portfolio or catalog management.
8. Supplier management
Businesses need to monitor their vendors: are they performing well? Will they remain in existence next year? Are they providing the support and quality that the company requires? Are you spending money on solutions people no longer need? A solid supplier management approach allows businesses to answer these and other questions. It also enables companies to present the vendor with a blueprint of the organization’s plans, allowing them to serve future demands better. If one manages the partnership proactively, one should seldom need to impose SLA penalties.
9. Problem management
Discovering and addressing the causes of problems in an IT service is known as problem management. It is not only a matter of locating and resolving occurrences but also of recognizing and comprehending the underlying reasons for an incident and determining the most effective way to eliminate that root cause. One may resolve the issue after service is restored, but the problem persists till root causes and contributory factors are addressed. Consequently, issue management should be an ongoing and widespread process across many teams, including IT, cybersecurity, and software developers.
10. Knowledge management
Knowledge management is collecting, assessing, storing, and disseminating IT service desk knowledge. It is meant to help service desk teams make the appropriate choices throughout the service life cycle and issue resolution process by regulating and managing the flow of information effectively. ITIL4 identifies knowledge management as the critical process that delivers insights to all other ITSM operations.
See More: What Is Value Stream Mapping? Definition, Working, and Examples
ITSM Best Practices
Now that we have discussed the meaning of IT service management (ITSM) and its key processes in detail, let us look at how you can optimize it. Here are six best practices to help you make the most of ITSM in your organization:
1. Strategically deploy IT service automation
Automation is among the essential ITSM best practices. However, applying automation to inefficiencies will exacerbate that wastage. Therefore, automating the most vital and well-mapped processes is a crucial aspect of automation.
Automation serves many crucial functions, including freeing human agents for more complex duties, providing consumers with self-service so that they may better assist their customers, and establishing a self-reliant self-service value chain. These measures constitute the shift-left initiative, which entails transferring Level 0/1 requests to self-service and conserving agent capacity for Level 2 and above so that consumers are treated more effectively and fulfilled.
2. Be ready to embrace an organization-wide culture shift
Implementing ITSM in businesses may be quite the “culture shock” for the workforce. The implementation process will likely fail if the workforce is not well prepared.
This is why all workers require some rudimentary training and an awareness of the modifications they need to adjust to after implementing the ITSM framework. Organizations can only reverse the mindset until the workers are prepared to accept the transformations that are being made to the organization. Otherwise, it will likely lead to significant resistance and revenue loss.
3. Don’t avoid customizations altogether
Numerous organizations invest in new technology, expecting it to function as advertised. Any customization will likely bring integration problems, complexity, and errors; therefore, IT departments implement technology solutions. However, the effort and time saved with the “out of the box” installation of ITSM solutions don’t necessarily translate into meaningful business value.
Even the most clearly defined technological solutions must be set and often adapted to meet particular business, technical, or service requirements.
4. Augment self-service with knowledge-centric service (KCS)
Knowledge-centered service (KCS) is the ideal complement to self-service since it may become the means for developing and curating information already being gathered as part of the help desk’s troubleshooting and problem-solving activities.
Using this information to create new items in the knowledge base increases the likelihood that someone encountering an issue may discover the relevant content and resolve it without submitting a ticket. Not only does this save valuable time, but it also enables the IT help desk personnel to concentrate on significant issues or concerns rather than the most common inquiries, such as password reset assistance or accessing a calendar to arrange a meeting space.
5. Centralize the fulfillment process using a help desk
Consumers of administrative IT services, whether they’re clients or workers, must have several options for contacting your company in the event of a problem. For instance, they may employ web chat, mail, call, self-service, etc., as communication methods. With so many diverse channels accessible to users, how can a single system record and manage incidents? Effective IT help desk solutions may assist here. ITSM agents may monitor every engagement, regardless of whether users submitted it via online forms or emails.
Keeping track of everything in a single location minimizes switching between multiple tools. Agents will be able to react to all incidents and queries from a single dashboard, as opposed to utilizing a different application for each channel.
6. Improve the effects of ITSM with the right metrics
IT managers must define key performance indicators (KPIs) for the IT services management solutions and any self-service extensions to fine-tune their strategy and identify process improvements. Without KPIs, it is impossible to determine if the team is doing well. This necessitates methods for defining performance and collecting data that could accurately represent what happened, both negatively and positively. Some of these metrics include:
- Average ticket resolution time
- Self-service usage
- Month-to-month cost per transaction
- Overall customer satisfaction (CSAT)
- Level Zero Solvable (LZS), i.e., requests resolved without raising a ticket.
See More: ZenDesk, Spiceworks Cloud Help Desk or N-Able: Which ITSM Tool Is Best for Businesses?
Takeaway
IT service management, or ITSM, came into its own during the pandemic. ITSM framework and solutions allowed organizations to function relatively smoothly, even remotely. Companies could switch to new ways of working in a matter of weeks and have the technology to support them. ITSM is essential for business success in the best of times and as part of your business continuity plan when technical support is indispensable.
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