IT Service Management (ITSM) is a strategic approach for designing, delivering, managing and improving the way information technology (IT) is used within an organization.
ITSM helps align IT services with the needs of the business, leading to improved efficiency, productivity and customer satisfaction. Tallyfy’s workflow automation can help streamline ITSM processes.
Who is this article for?
- Organizations of all sizes looking to improve their IT service delivery
- IT managers, directors and executives
- Service desk managers and staff
- Business leaders wanting to better align IT with overall business goals
These roles can benefit from understanding ITSM principles and best practices to optimize IT services, increase efficiency and provide better value to the business.
What is IT Service Management (ITSM)?
IT Service Management (ITSM) refers to the entirety of activities – directed by policies, organized and structured in processes and supporting procedures – that are performed by an organization to design, plan, deliver, operate and control information technology services offered to customers (McNaughton et al., 2010).
The core concept behind ITSM is that IT should be delivered as a service, in a customer-focused way. For example, if an employee needs a new laptop, they would:
Submit a request through a self-service portal
The request gets prioritized in the IT team’s queue
IT staff fulfill the request and provide the laptop
This structured, service-oriented approach ensures IT is effectively meeting the needs of the business and end users.
Quote
Information technology and business are becoming inextricably interwoven. I don’t think anybody can talk meaningfully about one without the talking about the other.
– Bill Gates, Co-founder of Microsoft
How does ITSM relate to ITIL and DevOps?
ITSM is often associated with two other frameworks:
ITIL (Information Technology Infrastructure Library) is the most widely accepted approach to ITSM. It provides a comprehensive set of best practices for delivering IT services. ITIL 4, the latest version, takes a holistic approach focused on value, agility and flexibility.
DevOps (Development and Operations) is a set of practices that combines software development and IT operations to shorten the development lifecycle and enable continuous delivery. DevOps emphasizes collaboration, automation and monitoring.
While sometimes positioned as alternatives, ITSM and DevOps can actually be complementary. High-performing IT teams leverage elements of both, using ITSM for process and control while adopting DevOps practices to work faster and more collaboratively (Iden & Eikebrokk, 2013).
Tip
Don’t think of ITSM and DevOps as an either/or choice. Combine relevant aspects of each to create an approach that works for your unique environment and goals.
Why is ITSM important?
Implementing ITSM provides significant benefits to both IT teams and the overall organization:
- Aligns IT with business priorities and goals
- Increases efficiency through streamlined processes and automation
- Improves service quality and customer satisfaction
- Enables better collaboration between IT and other departments
- Reduces costs by minimizing waste and redundancy
- Provides metrics to measure and continuously improve performance
Ultimately, ITSM helps transition IT from a technology-centric cost center to a customer-focused, value-generating part of the business. As Sundbo (1997) notes, innovation in services is increasingly strategic and focused on improving the customer experience.
Key ITSM processes
ITSM encompasses a range of processes for managing the end-to-end delivery of IT services:
Service Request Management
Fulfilling requests from users for information, advice, access to a service, or a pre-approved change (Winniford et al., 2009). Common requests include provisioning equipment, resetting a password, or granting access to software.
Fact
A study found that organizations with a service request management process handled an average of 492 service requests per month, with a first contact resolution rate of 84% (HDI).
Incident Management
Restoring normal service operation as quickly as possible to minimize business impact, ensuring that agreed levels of service quality are maintained (Johnston, 1994). This involves identifying, logging, categorizing, prioritizing and resolving incidents.
Problem Management
Preventing problems and resulting incidents from happening, eliminating recurring incidents, and minimizing the impact of incidents that cannot be prevented. Problem management works together with incident management and change management.
Change Management
Controlling the lifecycle of all changes, enabling beneficial changes to be made with minimum disruption to IT services (Iden & Eikebrokk, 2013). This covers the planning, design, build, configuration and testing of changes to ensure they will provide the expected outcomes.
Knowledge Management
Gathering, analyzing, storing and sharing knowledge and information within an organization. The primary purpose of knowledge management is to improve efficiency by reducing the need to rediscover knowledge.
Tip
Make knowledge management a priority from the start. Documenting processes, known issues and resolutions will pay dividends in the long run by reducing time wasted “reinventing the wheel”.
How to implement ITSM
1. Assess your current state
Before embarking on an ITSM initiative, take stock of your current IT environment, processes, pain points and goals. Identify areas for improvement and envision your desired future state.
2. Get executive buy-in
Implementing ITSM often requires cultural change. Ensure you have support and sponsorship from IT and business leadership to drive adoption. “Senior management commitment to change and a determination to bring about improvement in management practice” is critical (Curry, 1999).
3. Build your ITSM team
Assemble a cross-functional group to lead the charge. Include representation from the service desk, desktop support, applications, infrastructure, security and the business. Clearly define roles and responsibilities.
4. Choose your approach
Determine which ITSM framework to use as your foundation, such as ITIL. Adopt the principles and practices that make sense for your organization; don’t feel you have to do everything by the book. Leverage automation where possible.
5. Select the right tools
Implement user-friendly technology that will support your processes and make it easier to deliver great service. Look for IT service management software that is easy to configure and customize.
6. Communicate and train
Make sure everyone understands the reasons for implementing ITSM and how it will benefit them. Provide training on new processes and tools. Celebrate quick wins to build momentum.
7. Measure and improve
Establish KPIs and benchmarks to track your progress. Regularly review your metrics and feedback from customers. Continuously improve your processes based on the insights you collect.
Quote
However beautiful the strategy, you should occasionally look at the results.
– Winston Churchill, Former Prime Minister of the United Kingdom
Risks and pitfalls to avoid with ITSM
- Viewing ITSM as a one-time project rather than an ongoing program
- Failing to get buy-in and active participation from key stakeholders
- Overcomplicating processes and procedures to the point they become unworkable
- Neglecting the people side of change in favor of just focusing on the process and technology elements
- Not providing sufficient training and communications to drive adoption
- Implementing tools that are inflexible and hard to use, discouraging engagement
- Treating ITSM as just the responsibility of the IT department
Tallyfy offers key capabilities that can enable successful ITSM:
Explain it once – AI-driven documentation: Easily create and maintain knowledge articles to enable self-service.
Structure intake – go from standalone forms to trackable workflows: Efficiently handle service requests by integrating forms with automated workflows.
If this then that – set amazingly simple and powerful conditional rules: Design dynamic, intelligent workflows that route work based on specified criteria.
Real time tracking – track the status of a workflow without asking anyone: Gain instant visibility into the status of requests and incidents.
By leveraging a flexible platform like Tallyfy, you can digitize and streamline your ITSM processes in a way that empowers your team and delights your customers. ITSM is ultimately about people – equipping IT staff with the practices and tools they need to deliver value to the business and provide outstanding service.
How is Information Technology Service Management (ITSM) Evolving?
Information Technology Service Management (ITSM) is a critical aspect of managing an organization’s IT function. The most popular and influential framework for applying ITSM is the IT Infrastructure Library (ITIL). As adoption of ITIL grows globally, it’s important to understand the benefits that ITIL processes can bring to an organization (McNaughton et al., 2010).
Research into ITSM and ITIL implementation has focused on key areas like motives, critical success factors, implementation status, and benefits. Each of these areas would benefit from further study (Iden & Eikebrokk, 2013). There is also some conceptual confusion around what constitutes ITSM, with conflation of terms and practices (Winniford et al., 2009).
What Role Does Innovation Play in IT Service Management?
Service firms do innovate, and it’s important to understand how they organize their innovation activities. Research has shown that service firms rarely have R&D departments and innovation is generally an unsystematic search-and-learn process (Sundbo, 1997).
In the public sector, a strategic approach to innovation and “best value” involves measuring customer perceived service quality, operational planning using ranked priorities, and a framework for continuous improvement (Curry, 1999). Key elements include a focus on the customer/citizen, sound strategic management, and sound operational management.
Fact
According to Wikipedia, as of 2016, ITSM is estimated to be a US$1 trillion industry.
How Can IT Service Management Evolve in the Future?
Looking ahead, a key challenge for operations management academics is to try to embrace the service imperative more fully into the mainstream discipline. Some researchers will need to shake off their inward-looking, efficiency-oriented view of operations which seems to be more concerned with applying quantitative techniques to operational subsystems rather than designing and controlling operations to meet customer needs (Johnston, 1994).
As artificial intelligence, machine learning, robotic process automation and other emerging technologies continue to advance, they will have a profound impact on how IT services are managed and delivered. These technologies can enable:
- Predictive analytics to proactively identify and resolve issues before they impact users
- Intelligent automation of routine IT tasks and processes
- Chatbots and virtual agents to provide 24/7 user support
- AIOps platforms that use machine learning to streamline IT operations
By embracing these technologies, IT service management can evolve to become more proactive, automated, and user-centric. This will help IT departments deliver higher quality services more efficiently while freeing up staff to focus on higher-value work that drives innovation and business value.
Tallyfy Tango – A cheerful and alternative take
Scene: A cozy coffee shop. Two friends, Izzy and Tessa, are catching up over lattes.
Izzy: Hey Tessa, how’s your new job going?
Tessa: It’s great! I’m working in the IT Service Management department. We’re like the superheroes of the company, making sure all the tech runs smoothly.
Izzy: (laughs) Superheroes, huh? So what kind of heroic tasks do you tackle?
Tessa: Well, we’re always on the lookout for any IT issues that might pop up. It’s like we have a “Spidey sense” for tech troubles.
Izzy: (grins) I bet you do! And then you swoop in to save the day?
Tessa: Exactly! We have all these awesome processes in place to make sure problems get solved quickly. It’s like having a utility belt full of IT solutions.
Izzy: Wow, sounds like you’re really making a difference there. The company must be thrilled to have such a dedicated IT Service Management team.
Tessa: Definitely! We’re always looking for ways to improve and keep everything running like a well-oiled machine. It’s pretty satisfying to know we’re keeping the company’s tech game strong.
Izzy: (raises her latte) Here’s to the unsung heroes of IT Service Management! Keeping the digital world spinning, one issue at a time.
Tessa: (clinks her mug with Izzy’s) Cheers to that! Now, let me tell you about this hilarious ticket that came in the other day…
Related Questions
What is meant by IT service management?
IT service management (ITSM) refers to the entirety of activities – directed by policies, organized and structured in processes and supporting procedures – that are performed by an organization to design, plan, deliver, operate and control information technology services offered to customers. It’s about making sure that the right processes, people and technology are in place so that the organization can meet its business goals.
What is the responsibility of IT service management?
The key responsibility of IT service management is to deliver quality IT services that meet the needs of the business. This includes managing the entire lifecycle of IT services, from strategy and design to transition, operation and continual improvement. ITSM teams work to ensure that IT services are delivered efficiently, effectively and in alignment with the goals of the organization.
What is difference between ITIL and ITSM?
ITIL (Information Technology Infrastructure Library) is a set of detailed practices for IT service management that focuses on aligning IT services with the needs of business. ITSM, on the other hand, refers to the actual implementation of IT service management in an organization. In essence, ITIL provides the framework and best practices, while ITSM is the actual practice of managing the services.
What is the objective of IT service management?
The primary objective of IT service management is to ensure that the right processes, people and technology are in place to deliver value to customers in the form of IT services. This involves understanding the needs of the business, designing and transitioning appropriate services, and then delivering and supporting those services effectively and efficiently. The ultimate goal is to maximize the value that IT delivers to the business.
How much does managed it services cost?
The cost of managed IT services can vary widely depending on the size of the organization, the complexity of the IT environment, and the specific services included in the contract. Some managed service providers charge a flat monthly fee, while others charge based on the number of devices or users supported. In general, small businesses can expect to pay a few hundred dollars per month, while larger enterprises may pay thousands or even tens of thousands per month.
What are the benefits of managed it services?
Managed IT services can provide a number of benefits to organizations, including improved reliability and performance of IT systems, enhanced security and compliance, predictable costs, and access to a broader range of skills and expertise. By outsourcing routine IT tasks to a managed service provider, internal IT teams can focus on more strategic initiatives that drive business value. Managed services can also help organizations scale their IT capabilities up or down as needed to meet changing business requirements.
References and Editorial Perspectives
Curry, A. (1999). Innovation in Public Service Management. Managing Service Quality, 9, 180 – 190. https://doi.org/10.1108/09604529910267082
Summary of this study
This study focuses on a strategic approach to delivering best value in public services by measuring customer perceived service quality, using operational planning with ranked priorities, and implementing a framework for continuous improvement. It demonstrates the use of techniques like Servqual to measure customer expectations, Quality Function Deployment (QFD) to determine service delivery priorities, and the Business Excellence model to ensure ongoing improvement. The case study highlights the importance of senior management commitment to driving positive change in management practices.
Editor perspectives
At Tallyfy, we find this study highly relevant to IT service management as it showcases practical techniques for aligning IT services with customer needs and expectations. By prioritizing continuous improvement and using data-driven approaches, IT teams can deliver more value and adapt to evolving business requirements. The emphasis on senior management buy-in is also crucial for the success of any IT service management initiative.
Iden, J., & Eikebrokk, T., R. (2013). Implementing IT Service Management: A Systematic Literature Review. International Journal of Information Management, 33, 512 – 523. https://doi.org/10.1016/j.ijinfomgt.2013.01.004
Summary of this study
This systematic literature review examines existing research on implementing IT Service Management (ITSM) and the Information Technology Infrastructure Library (ITIL). It identifies the most frequently studied areas, including motives, critical success factors, implementation status, and benefits. The review aims to support further research by making it easier for researchers to find relevant studies and propose future research directions. It also provides IT managers with research-based insights into ITSM and ITIL implementation.
Editor perspectives
As a workflow automation platform, we at Tallyfy recognize the importance of understanding the key factors and best practices for successfully implementing IT service management frameworks like ITIL. This literature review provides a valuable synthesis of existing research, highlighting areas that warrant further investigation. By staying informed about the latest ITSM research, we can better guide our customers in optimizing their IT workflows and service delivery.
Johnston, R., B. (1994). Operations: From Factory to Service Management. International Journal of Service Industry Management, 5, 49 – 63. https://doi.org/10.1108/09564239410051902
Summary of this study
This study traces the historical development of operations management from its factory management origins to its incorporation of service management issues in the 1980s and 1990s. While there is now a significant body of knowledge on service operations management, it appears to have had limited recognition in the broader service management field. The author suggests that operations management researchers need to embrace a more customer-centric, service-oriented perspective, while service management academics should ensure the inclusion of operations issues and perspectives in their work.
Editor perspectives
At Tallyfy, we believe that effective IT service management requires a holistic approach that integrates both service and operations perspectives. This study highlights the importance of breaking down silos between these two areas and ensuring that IT operations are designed and controlled to meet customer needs. By leveraging workflow automation, organizations can bridge the gap between service promises and operational delivery, enabling more seamless and customer-centric IT services.
McNaughton, B., E., Ray, P., & Lewis, L. (2010). Designing an Evaluation Framework for IT Service Management. Information & Management, 47, 219 – 225. https://doi.org/10.1016/j.im.2010.02.003
Summary of this study
This study presents the design of a holistic evaluation framework for assessing IT service management improvement efforts, with a particular focus on the IT Infrastructure Library (ITIL) framework. As ITIL adoption grows globally, it is crucial to understand the benefits that ITIL processes can bring to an organization. The authors note that, to date, the benefits of implementing and using ITIL have been largely predicted or assumed, with limited research and anecdotal evidence to support these claims.
Editor perspectives
At Tallyfy, we strongly believe in the importance of measuring and evaluating the impact of IT service management initiatives. Without a clear framework for assessing the benefits and outcomes of ITSM processes, organizations risk investing time and resources into efforts that may not deliver tangible value. This study’s focus on developing a holistic evaluation framework aligns with our own commitment to helping customers track and optimize their IT workflows for maximum impact.
Sundbo, J. (1997). Management of Innovation in Services. Service Industries Journal/The Service Industries Journal, 17, 432 – 455. https://doi.org/10.1080/02642069700000028
Summary of this study
This study explores whether service firms innovate and how they organize their innovation activities. Through a series of case studies in Danish service firms, the author concludes that service firms do innovate, but their innovation processes are often unsystematic and rarely involve dedicated R&D departments. The study also distinguishes between organizational learning, which leads to lower and continuous growth, and innovation, which results in significant jumps in turnover and profit.
Editor perspectives
As a workflow automation platform, Tallyfy is deeply interested in how service firms, including IT service providers, approach innovation. This study’s findings underscore the need for more structured and systematic approaches to innovation in the service sector. By leveraging tools like workflow automation, service firms can streamline their innovation processes, capture organizational learning, and drive more impactful innovations that lead to step-change improvements in service delivery and business outcomes.
Winniford, M., Conger, S., & Erickson-Harris, L. (2009). Confusion in the Ranks: IT Service Management Practice and Terminology. Information Systems Management, 26, 153 – 163. https://doi.org/10.1080/10580530902797532
Summary of this study
This study examines the understanding of IT service management (ITSM) concepts and terminology among U.S. IT managers. The authors note that while the ITSM movement is gaining adopters worldwide, there is confusion surrounding related terms and frameworks such as ITIL, service level management, business service management, COBIT, and IT governance. The survey findings suggest that ITSM adoption and knowledge may be lower than some studies have indicated, and there is conceptual confusion about what constitutes ITSM, with conflation of terms and practices.
Editor perspectives
At Tallyfy, we recognize that the proliferation of ITSM frameworks and terminology can be overwhelming and confusing for IT professionals. This study highlights the importance of clarity and consistency in how we communicate about ITSM concepts and practices. As a workflow automation provider, we strive to cut through the jargon and help our customers understand how our platform can support their ITSM goals in clear, practical terms. By demystifying ITSM, we can help more organizations realize the benefits of structured, service-oriented IT management.
Glossary of terms
IT Service Management (ITSM)
IT Service Management (ITSM) refers to the set of processes, policies, and practices that organizations use to plan, deliver, and support IT services to end-users. ITSM aims to align IT services with the needs of the business, focusing on customer satisfaction and continuous improvement. It encompasses various activities, such as incident management, problem management, change management, and service level management.
IT Infrastructure Library (ITIL)
The IT Infrastructure Library (ITIL) is a widely adopted framework for IT service management. It provides a comprehensive set of best practices for delivering high-quality IT services that meet business requirements. ITIL covers five core volumes: service strategy, service design, service transition, service operation, and continual service improvement. Organizations can use ITIL to establish a structured approach to ITSM and improve the efficiency and effectiveness of their IT operations.
Service Level Agreement (SLA)
A Service Level Agreement (SLA) is a formal agreement between an IT service provider and a customer that defines the level of service expected from the provider. SLAs specify metrics, responsibilities, and expectations for service availability, performance, and support. They help ensure that IT services meet the needs of the business and provide a basis for measuring and reporting on service quality.
Configuration Management Database (CMDB)
A Configuration Management Database (CMDB) is a repository that stores information about the hardware, software, and other components that make up an organization’s IT infrastructure. The CMDB provides a single source of truth for IT assets and their relationships, enabling better decision-making, change management, and problem resolution. It is a key component of many ITSM frameworks, including ITIL.
Incident Management
Incident management is the process of identifying, logging, categorizing, prioritizing, and resolving incidents or disruptions to IT services. The goal of incident management is to restore normal service operation as quickly as possible, minimizing the impact on the business. Effective incident management requires well-defined processes, clear communication, and collaboration between IT teams and end-users.
