ITIL Demand Management

Demand for services needs to be managed. Overthen:o Service Design can optimise designs to suit
subscription for services is a source of risk. There aredemando Service Catalogue can map demand
many examples where supply has been outstrippedpatterns to appropriate serviceso Service Portfolio
by demand. Poorly managed demand represents aManagement can approve investment in additional
risk for service providers because it representscapacity, new services or changes to services based
uncertainty.on business planso Service Operation can adjust
Excess capacity could be put in place to meetallocation of resources and schedulingo Service
demand that might materialise but for the majorityOperation can identify opportunities to consolidate
of the time excess capacity represents a costdemand by grouping closely matching demand
without creating value that represents a basis forpatternso Financial Management can approve suitable
cost recovery. Customers are reluctant to pay forincentives to influence demand Demand management
idle capacity unless it has value for them. Some leveltechniques such as off-peak pricing, volume discounts
of spare capacity may be desirable. Indeed it may beand differentiated service levels can be used to
creating value through higher levels of assurance. Itinfluence the arrival of demand in specific patterns.
has a purpose and therefore should not be thoughtThe basic need still has to exist. Simply having
to be idle or valueless.capacity will not generate a demand for it. Service
Insufficient capacity will have an impact on the qualitycapability is not like a manufactured good. It cannot
of services provided and may be the cause ofbe stored in the warehouse and brought into play as
incidents. It may also hinder the rate of growth of aand when required. Resolved incidents cannot be
service. Service level agreements, forecasts, plansstockpiled. The resource to resolve them will need to
and tight coordination with the customer can reducebe available at the time the incidents occur.
the uncertainty of demand but cannot entirelyThe Service Management Foundation Course is a
eliminate it.three day event leading to the examination for the
In order for resources not to be wasted onITIL Foundation Certificate in IT Service
developing service capability for services that do notManagement. ITIL is a Registered Trade Mark, and a
exist it is necessary to understand the activitiesRegistered Community Trade Mark of the Office of
which create demand. The primary source of demandGovernment Commerce, and is registered in the US
for services is business process. To truly understandPatent and Trademark Office, and is used here by
the demand for services it is necessary toSYSOP Ltd under licence from and with permission of
understand how the business process creates thatOGC.
demand. If there is change in that business process,IT Infrastructure Library is a Registered Trade Mark
another 50 people are employed for example; weof the Office of Government Commerce and is used
should be able to accurately predict what the impacthere by SYSOP Ltd under licence from and with the
on demand will be. If the understanding is deeppermission of OGC.
enough then every unit of demand generated by(C) Crown copyright material is reproduced here
business activity is allocated to a unit of serviceunder license from and with permission of OGC,
capacity.under delegated authority from the Controller of
If Patterns of Business Activity (PBA) are understoodHMSO.