23 January, 2007

Are there any relationship between Demand Management, Requirement Management, Request Management and Change Management?

In the context of IT, Demand Management is a process which manages the complex and strategic IT demand requests issued by the business. In this process we prioritize, consolidate, schedule the requests, enabling the business users and IT to collaborate efficiently at every step, cutting costs and accelerating resolution. Normally, this is an activity belonging to Portfolio Management which is the the process of determining (and monitoring) how much money the enterprise should spend on the various categories of IT-enabled business investments. Demand Management works with both business and its IT peers through an ongoing and iterative process that aggregates demand for IT services, represents the resources requested and their costs to the business, and helps optimize the deployment of IT resources over time. Demand Management is often covered by Portfolio Management solutions or Request Management solutions.

A few examples are Mercury ITG, Clarity (Niku) from CA, Compuware Changepoint and Borland Tempo.

These suites are more in the PPM market than anything else and these vendors should be considering to link PPM suites with IT Service Management suites for several reasons.

Requirements Management is the science and art of gathering and managing user, business, technical, functional requirements, and process requirements within a product development project. The project could be for a new consumer product, a web site, a system or a software application. In all these cases, the five classes of requirements should be represented.

Solutions such as RequisitePro from IBM and Telelogic Doors support that process.

Here we see in some way some identical concepts with Demand Management and potential links also with IT Servie Management.

But let’s still define two additional concepts.

ITIL doesn't have a separate process for Request Management as it does, for instance, with Incident Management in version 2. The Request Management will manage (from request to fulfillment) the goods and services requested by users based on the catalog provided. Standardized goods and services can be made available to the end users through self-service interface or by calling the Service Desk. When handling the request the Request Management will also refer to the SLA.. Version 3 should clarify the situation and define a new process, where Service Requests are now a function of Request Management which ties on the Change Management process (In version 2, Service Requests were a part of the 'Incident Mangement' life cycle).

The Change Management process ensure that standardized methods and procedures are used for efficient and prompt handling of all changes to minimize the impact of change-related incidents and improve day-to-day operations. Changes are issued either from Incidents, Problems or customer’s requests. There are also touch points between Project Management and Change Management.

Finally and to keep it very simple, everything is about a user asking something to an IT department, with different levels of importance. From a new product to a new service, from a additional or new feature to a physical piece of hardware, allowing the business to be more efficient.

There should be a clear alignment of these concepts with an end to end process, integrating IT Service Management at the end. All demands should end up in the ITIL Change Management process and vendors should integrate their platforms to facilitate that integration.

9 comments:

Charles T. Betz said...

Good stuff. See also my post here:

http://erp4it.typepad.com/erp4it/2007/01/the_two_faces_o.html

and this McKinsey article:

http://erp4it.typepad.com/erp4it/2006/11/mckinsey_demand.html

Charlie Betz
http://www.erp4it.com

Anonymous said...

Great write-up, Serge.

As for Request Management products, you should include RequestCenter - from NewScale: www.newscale.com/solutions/newscale_requestcenter.html

It's certainly the most widely deployed Request Management solution on the market, with more than 1 million users worldwide.

Anonymous said...

You should also include PMG Service Catalog Suite http://www.pmg.net

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