Demand Management plays a key role in Service Management. It aligns supply with demand and tries to forecast the 'sale' of products as closely as possible.
Service Operation is impossible if there is no demand for products or services as there will be nothing to support operationally. Supply (or service output) cannot be stored waiting for demand to utilize it.
Production Capacity for resources are based upon patterns and forecasts of demand and adjusted accordingly. Patterns of Business Activity (PBA) have impact on demand patterns.
One activity that is extremely important is predicting the PBA, this is achieved by knowing the customer, how they operate and what future requirements they might need. There are different types of packages/services that make up this 'knowledge':
- Service Packages - A detailed description of an IT Service that can be delivered to Customers.
- Service Level Package (SLP) - A specified level of warranty and utility for a particular Service Package, a subset of the above. These SLPs should meet the need of the PBAs.
- Core Service Package - A detailed description of a core service (e.g. email, file and print) that may be shared by two or more SLPs.
- Line of Service - A core service or supporting service that has many SLPs. A Line of Service is managed by the Product Manager.
Core Services deliver the basic results to the Customer. They correspond to the 'value' that Customers require and expect, and that they are willing to pay for.
Bundling core services and associated supporting services constitute a key aspect of the marketing strategy. Strategic decisions shape the long term view and direction of the company, enabling quality and value to be realised.