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Demand Management

Service Management must always establish a balance between consumption and capacity. Demand Management is responsible for accurately evaluating the demand for the service as well as appropriately managing the capacity to serve clients. This process ensures that the organization is capable of meeting customer demands.

If the capacities of the organization are not appropriately managed, the cost of the service delivered to the end user may have to be increased. In turn, the client may be unwilling to pay those costs, which may result in losing that customer.  This is why Demand Management is a very important process in the Service Lifecycle. Capacities must be adequately managed. In another instance, the capacity may have to be reserved to ensure that the service delivery is done with greater efficiency and guaranteed reliability.

Demand Management is used to understand the demand for the services that the client requires, but it can also be used to influence their needs as well.  After analyzing the customers’ needs, the organization can use strategies to lead the client into using other services as well. One example of this is influencing a client to use IT services during off-peak periods when support is minimal. This can help maintain client satisfaction and reduce overhead costs.

Demand Management can be engaged at different stages in the Service Lifecycle to assure that the service delivery to the client is done in a cost effective, satisfactory and timely manner.

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