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Straight Talk IT

Ovum view

IT service management (ITSM) solutions continue to evolve in meeting the needs of business units beyond those associated with IT infrastructure and operations, extending their value to improve the management of broader enterprise activities. HR, facilities management, product lifecycle management, finance, and many other business units can now realize value from service management solutions, and today the discipline is more “enterprise service management” rather than ITSM.

Ovum’s Enterprise Application Software Market Forecast data shows strong demand for enterprise service management capabilities, particularly in rapidly evolving economies such as China and India. The HR function is leading the way, which is hardly surprising given the interface between HR and IT and the global growth expected in this market over the next three years.

Enterprise service management vendors such as ServiceNow provide the ability to deliver solutions that offer value across multiple business units. Adopting an enterprise service management solution to build an integrated technology layer across various business units benefits an organization in many ways. For example, work and activities become more transparent, better defined, and more effectively automated and reported upon.

The opportunity is evident, but capitalizing on it represents a key challenge for vendors offering enterprise service management solutions. In Ovum’s experience, the greatest challenge lies in communicating the value proposition to a broader market. Many executives in the wider business still perceive ITSM solutions as tools to support break/fix and request fulfillment. The ways in which ITSM solutions have evolved, and the wider value they can now deliver, need to be better communicated by vendors. At present, this message is often conveyed to the wider organization by IT, and although this approach is fine, it will be important for vendors to market their value proposition directly to the broader enterprise, focusing on the business benefits.

Straight Talk is a weekly briefing from the desk of the Chief Research Officer. To receive this newsletter by email, please contact us.

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