The value of service management

I’m often asked for examples of the return on investment that sound IT service management delivers and I’m always put on the spot to quote concrete examples.

Whatever your position in your company, like me you know that IT Service Management matters. You know that implemented correctly, the ITIL® Service Management disciplines will provide you with a stable, reliable, and cost effective environment for the provision of your IT services.

I’m sure that at some point, early in the ITIL implementation lifecycle you conducted a baseline exercise and that, as you conducted further measurements, you found real evidence of process improvement:

• better problem management resulting in fewer incidents,
• Improved change management resulting in smoother implementations and fewer post-implementation glitches,
• more comprehensive monitoring of device performance resulting in fewer hardware failures and capacity issues,
• more realistic customer expectations as a result of sound service level agreements,
• greater customer satisfaction as a result of better service level monitoring and reporting.

All of these things are real and tangible benefits of improved service management processes. All are measurable. But none of them are expressed in terms of the contribution to the profit and loss account. What’s the bottom-line effect?

I’m sure there are organisations out there that have calculated the return in this way – I’m just surprised that they are not readily available as case studies. Do you know differently?

Stuart Sawle

1 thought on “The value of service management

  1. Boring as it may seem I have to agree with Stuart, appropriate deployment of processes such as ITIL Service Management can and should result in savings at the bottom line. A few illustrations from my experience with several organisations (with IT budgets of £10 to £15million pa) include:-

    – improved ability of the Service desk to handle 5000+ calls per month and with fewer staff.
    – FPOC rate circa 75% ( up from 15 days
    – abandoned call rate 140 calls per month and failure rate cut to <5%
    – rigorous RCA work reduced P1 calls to 40, and
    – >95% of SLAs pass each month
    Subjective and objective assessments conducted every 6 months showed Customer Satisfaction measurably improved year on year.

    The addition of basic CMDB processes resulted in:-
    Annual Contract saving examples of (£150k), (£30k) and another of (approx 50%).
    Budget control / savings of £120k
    Asset management, licence harvesting savings of £100k in year 1 and then £150k in year 2.

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