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Monday, 14 November 2011

Demand Management

Demand Management:

Demand management is a critical aspect of service management. Poorly managed demand is a source of risk for service providers because of uncertainty in demand. Excess capacity generates cost without creating value that provides a basis for cost recovery.


The purpose of Demand Management is to understand and influence customer demand for services and the provision of capacity to meet these demands. At a strategic level this can involve analysis of patterns of business activity and user profiles. At a tactical level it can involve use of differential charging to encourage customers to use IT services at less busy times.

A Service Level Package (SLP) defines the level of utility and warranty for a
Service Package and is designed to meet the needs of a pattern of business activity.

The demand management Sub Process is part of the Service Strategy Process.

Service Strategy:
·        Strategy Generation
·        Financial Management
·        Service Portfolio Management
·        Demand Management
                                      Image: Demand Managment in High Level Service Management

ITIL Demand Management’s objectives are to optimize the use of capacity by moving workload to less utilized times, servers, or places…. (Nothing to do with users having business requirements!).
This new process refers to:
·        Activity-based Demand Management. Analyzing and tracking the activity patterns of the business process makes it possible to predict demand for service assets that support those services.
·        At a strategic level, Demand Management can involve analysis of Pattern of Business Activity (PBA) and user profiles. Each profile can be associated to one or more PBA.
·        At a tactical level it can involve use of differential charging to encourage Customers to use IT Services at less busy times.
·        Service packages. They represent the value that the customer wants and for which they are willing to pay.

Inputs/Outputs of Demand Management:
Patterns of Business Activity
Identified business demand for future IT services
Value to the Business:
Ensure that the IT service provider is able to adjust to changing business needs.
For an internal IT Service Provider the Demand Management process can be implemented by including a representative from the IT department in the Business Steering Group.
For an IT Service Provider delivering services to external customers the Demand Management process is closely connected to the long term strategy of the company, in particular the Strategy Generation Management process.
The key elements of the ITIL V3 Demand Management refers to:
·         Core/supporting services
·          Developing differentiated offerings
·         Service Level Packages
·         Advantage of core service packages
·         Segmentation
    Job Description for the position of Demand Manager:

The role of Demand Manager is to ensure the goals of the Demand Management process are achieved. The main goal is to identify Patterns of Business Activity, analyze the activity and trigger other key processes to act proactive, e.g. Capacity Management.

Other goals include predicting Business demands and possibly regulating the demand from Business. A properly functioning Demand Management process works closely with Business to reduce any uncertainty. in present or future demand of services whilst controlling unnecessary risks and costs.

Business Demand lifecycle Patterns of Business Activity (PBA) trigger Demand Management. It is crucial to study, analyze, present and use PBAs to provide input for Capacity Management. By analyzing PBAs, the value can be seen throughout all life cycle stages (Operational, tactical and Strategic). E.g. Service Catalogue can map demand to Services. Service Design can design to PBAs.

Responsibilities of Demand Manager:

·        The Demand Manager ensures uncertainty in demand
·        The Demand Manager ensures proactive preventive maintenance is coupled with customers demands.
·        Making recommendations for Service Improvement Plans
·        Ensuring the Demand Management process is performed as designed.
·        Developing a Demand Management process model for the role of Demand Manager.
·        Ensuring the Demand Management process is fit for purpose.
·        Ensuring process description meets objectives
·        Sponsorship, design, and continual improvement of the process and its metrics.
·        Following the organization's policies relating to employment

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