The Evolution of Business Service Management (BSM)

Looking back, the emergence of business service management (BSM) seems inevitable. This new generation of tools helps IT organizations manage technology infrastructures within the context of the key services they provide for their customers. BSM tools are critical enablers for the increasingly popular process-focused IT Service Management (ITSM) approach.

What’s driving this evolution to BSM and its related IT management paradigms? Executive Consultant Troy DuMoulin of Pink Elephant, an ITIL events and consulting firm, explains, “The interest in ITIL, the evolution of legislation like SOX (Sarbanes-Oxley Act of 2002), and the interest in standards is symptomatic of something much more rudimentary. At the base of this growing focus on formalization and legislation is a growing awareness of exposure and dependency that the business has on IT. Before, IT was seen as an enabler, supportive but yet somehow separated from the business processes themselves. But now there is a realization that there is no true separation between the business process and the underlying IT services and systems.”

Information technology has become so vital to business today – so ubiquitous in every aspect – that most businesses literally cannot function without it anymore. Even simple manual tasks like filling a car with gas or cashing a check now require the support of an IT system.

This heightened reliance on IT has placed companies at a crossroads. They are compelled to address this new dependency by putting processes and technology in place to ensure IT does its job serving the business effectively. So the move to BSM can be seen as a natural reaction to the new way IT interacts with and enables business.

“BSM is a way for a company to agree on what the business expectations are, and manage the IT performance to those agreed upon expectations,” clarifies Brian Childers, a consultant who also serves on the Board of Directors for itSMF USA, a non-profit organization dedicated to promoting best practices in IT services management. “Once we understand the expectations, we can build the processes to suit the expectations, and manage against them.”

Vendors are responding rapidly to these new service management imperatives. Leading software providers – like HP, BMC, Mercury and Managed Objects – are already introducing new BSM-versions of their popular tools to help revolutionize the way IT managers gauge technology performance and leverage that knowledge to meet business needs. And new kinds of automated, self-learning software from companies like Netuitive, are making it easier than ever for managers to cut across their technology silos and tie together their existing management tools.

“Over the years – especially during the frenetic IT build-out of the late 1990s – companies cobbled together a mishmash of systems within their IT organizations,” adds Tony Gilbert, vice president at Netuitive. “The result now is a heterogeneous set of components in the IT environment, and individual departmental silos for managing each one. The right set of BSM tools makes it possible to tie together all of these pieces of technology across an enterprise and to monitor IT from the perspective of the service it delivers.”

BSM tools help IT groups see technology in terms of how it impacts their business services, and zero-in on the cause of a particular performance issue that is affecting that service — a capability companies do not have when they manage IT solely through technology silos. The new BSM tools can also enable a company to prioritize resources based on the relative importance of multiple business services. For example, a brokerage firm could manage online trading or online banking services holistically instead of piecemeal within silos: the server group, the database group, the application group.

More Than Just Technology

But completely changing a management approach is not easy. “For the last 20 years our industry has been focused on managing technology. Management of IT has been by domains, such as mainframes, networks and databases. But those domains don’t truly live in isolation.” Pink Elephant’s DuMoulin continues, “A basic premise is that there is a business requirement for IT to understand how any given IT component relates to another and how these devices support or potentially disable a business process. When you understand IT from this perspective you see that you cannot manage by technology or device. You need to understand the relationship between those devices, and how they relate to IT services, and ultimately how IT services are consumed by business.”

The people factor remains an issue, too. For many organizations, BSM often requires a corporate culture change. IT personnel must learn that they don’t just manage boxes and applications, but actually provide services that the business consumes in order to survive and thrive. Most experts agree that the tools are out there, and are necessary, but they go hand in hand with changing processes and changing the way companies perceive the value of IT.

“Some people believe that it doesn’t matter what technology you use as long as you have the right processes in place,” comments Ken Wendle, the ITSM Solution Lead at HP. “But I have always said that IT service management is a combination of people and process, enabled by the right technology, all working in synergy with each other. It is about the intelligent blending of technology to enable and enforce the right processes, which then will allow an organization to execute around business priorities.”

“I have seen companies that put the right processes in place, and trained the right people, but then created process silos,” HP’s Wendle also notes. “But ITSM is about cutting across the technology silos, not just creating another set of process silos on top of them. ITSM is about taking a holistic approach.”

The BSM Evolution Continues

Where is BSM going from here? “One of the missing ingredients today is the enrollment of the business community,” itSMF’s Childers believes. “They need to understand what BSM is and why they would want to support it. I think the better job everyone does with bringing the business side onboard, the faster BSM will progress.”

“I don’t think companies have gained all the benefits of technology that they could,” HP’s Wendle agrees. “The business people need to understand and appreciate what IT can do to help the business side of the organization.”

Clearly there is work to be done, but the adoption of ITSM and the BSM tools that support it continues to gain momentum as more companies realize this is a prerequisite for success in a new world where business and IT have become one.

“The prediction is that over the next five years, ITSM will be as impactful as ERP systems were, or maybe more,” itSMF’s Childers concludes. “I don’t think ITSM is going away, because it makes too much sense.” And innovative BSM vendors will continue to develop new tools to help.

Organizational Culture – Service Industry

One of the most underrated aspects of making a business successful is the importance of the organizational culture. The culture is built on the shared values, beliefs, and principles of individuals within the organization. Instead of focusing on building a strong, sustainable culture, organizations are more concerned with cutting costs. The service industry is a prime example of this. I have worked in different facets of the service industry for the past five years and all the organizations I have worked for are structured the same way. They use labor, food, and bar costs as a barometer to measure how well the organization is operating. Management is judged by how well they are able to manage these costs.

How much total revenue the organization brings in seems to be almost irrelevant. The overall goal of the organization is to maximize profit. Lowering labor, food, and bar costs and maximizing profits do not go hand in hand. For example, a manager could decide to cut the number of employees working on a Saturday night in half. The manager could also order poor quality food in attempt to lower food cost. Meanwhile, the service and quality of the product suffer because of the structure put in place by the organization, so no one wants to patronize the organization, thus actually reducing profits. Organizations structured in this manner suffer from weak cultures. The organization’s goal, maximizing profits, and the management’s goal, lower costs, are not aligned, resulting in a large organizational performance gap. According to the article “Importance of Organization Culture”, building a strong organizational culture helps with many aspects of making a business successful including the following:

• Aligning individual and organizational goals
• Creating healthy competition amongst employees
• Helping create a positive brand image of the organization
• Creating a common platform allowing employees to perform at their best
• Helping unify employees from different backgrounds
• Promoting healthy relationships between employees
• Extracting the best out of each individual

A strong organizational culture conveys the goals, beliefs, ideas, and appropriate behaviors to individuals within an organization in order for the organization to achieve its goals (Gupta,2009). Poorly structured organizations in the service industry need to adapt by making changes to their culture. Changing the culture of an organization can be a very difficult task to accomplish. Leaders of the organization need to facilitate the change by evaluating ineffective strategies and recommending new strategies (Gupta,2009). The leaders must promote the cultural values of the organization by conveying these values to all individuals in the organization and encouraging socialization among employees. By developing a strong, sustainable culture, organizations will extract the best out of their employees, become more efficient, and increase profitability(Gupta,2009).

References

Gupta, A. (2009). “Changing Organizational Culture”. Practical Management Retrieved from
http://practical-management.com/Organization-Development/Changing-organizational-culture.html

“Importance of Organization Culture”. Management Study Guide. 2013. Retrieved from
http://managementstudyguide.com/importance-of-organization-culture.htm.

How to Write Articles For the Service Industry

If you go online and read some of the online content in the business sector you will see tens of thousands of articles about every aspect of business. Still, you will see a disproportionate number of articles on the service industry. This seems odd considering that more people are employed in the service industry than any other sector of our economy.

It’s true, go to the Department of Commerce, and see for yourself. There is also information at the Small Business Administration on this. It’s a known fact that our service sector employs more people in the service companies are both large and small.

Some are doing billions of dollars a year, single corporations, but for the most part they are small and medium-size businesses. And they do just about everything in our society; they fix our cars, do our home improvements, wash our cars, and take care of our elderly. These companies don’t sell a product, they are service companies; and whereas, they might sell a few products now and again their business primarily in servicing America.

Over the last three years, I’ve written over 50 articles specifically geared towards the service industry, what I’ve found is these articles are very well received, and the readers of these articles often send me feedback thanking me for the information. For those that write business articles, I sometimes don’t understand why they skipped this sector, as if it doesn’t matter. It does matter, and there is a thirst for information in the service industry.

Companies want to know how to stay more efficient, schedule their work, train their employees, recruit the best workers, manage their businesses, market their companies, and a whole slew of other subtopics. You literally could write all your online articles on the service industry alone and never run out of things to write about. I hope you will please consider this.

Online Business Services Classifieds Will Go Along Way In Resolving Manpower Issues

In these advanced ages of state of the art technologies and avant-garde contrivances, it is matter of mere seconds, before you can lay your hands on pertaining and precise information on virtually anything you need from Manpower to real estate and from Tours and Travels to IT and software.

If you have been looking for a specific thing, as well as the added advantage of getting the stuffs instantly and precisely, the Online Business Services Classifieds absolutely are a best place to discover what you need. The Indian service industry is increasingly becoming aware of the power of the internet to get work done and save loads of time, resources and effort at the same time.

Not only management personnel and agents, but these Online Business Services classifieds let you search for apt talent in whichever niche industry segment you necessitate. No matter if you need an item, or have one to trade, the World Wide Web can be the most excellent place to come across relevant solutions.

It should also not come to you as a surprise that a lot of people are not going to be able to find what they were in search of, and would in basic terms go lacking, without such business classifieds which simplify their search endlessly. And what is the best part of indulging into such Online Business Services Classifieds is the fact that you can get response from the Indian service industry in real time and can attract Manpower pertaining to various arenas such as: – Management, IT, software, Consultants, Agents, Tours and Travels, Real Estate and a lot more.

These online business services classifieds makes the chore of finding a job very easy and not to mention that it proffers pretty good results. With a bit of intricate research on the World Wide Web you will be able to lay your hands on precise and pertinent information relevant to Indian service industry.

However the sheer number of alternatives accessible will sweep you off your feet and you will be perplexed as to which service provider or web portal to choose. It is easy just enough to whether or not you moderate for a particular occupation, from examining the sales promotions. You will often times also understand what the wage will likely be. This can eliminate the want to apply for careers that may not be compatible with your needs. Looking for shelter is difficult feel.

This is because all these grouped web pages serve up since one stop destination for the buyers as well as sellers. You only need to try to find the global popularity and excellent providers in the on line classifieds internet pages where you can placed your sales promotions safely and with overall locality and contact facts. You could grasp this specific while ability to build up your individual labeled web page and begin a source of income. So if you are looking for fitting Manpower, you should consult the internet at the earliest as it is the only place where you can compare various web portals for their functionality and reach and choose the best amid the rest.