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Demand Management from an ITIL perspective
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.


2016-10-05 by "tejas.maru"

I am trying to create work instruction document for Demand Management process to capture the activities Demand Manager should perform in order to identify demand.

I can think of dividing the input to Demand Management in two streams. Demand coming from Business (Projects) and Demand recognized from BAU operations.

Project demand is coming from customer end but I am struggling to understand and capture the BAU operational demand. Can someone help me with parameters that should be analyzed to recognize the operational demand?

In of the article I have read Pattern of Business Activity (PBA). To understand PBA is very important to find the demand. But what exactly one should capture in order to identify and analyze the demand.
Reply on 2016-10-17
From a BAU perspective it is important to capture the peaks and troughs of system / service usage. For example, a payroll application will typically be utilised more towards the end of the month in order to ensure that salaries get paid, same goes for financial year end. Speaking to the Business Users of the system will determine the usage.

Another example could be that Exchange passwords need to be changed on 90 day basis to comply with the Information Security Policy. Users may reset and then forget their passwords and contact the Service Desk therefore increasing the demand on the Desk. The same would be true of an automated password reset system that would experience higher utilisation and therefore demand.
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Tags; Demand Management,Service Management,Service Operation,Patterns of Business Activity,PBA,Service Packages,Service Level Package,Core Service Package,Line of Service,Core Services
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