What is IT Service Management (ITSM)?

Alfredo George . Chief Technology Officer

ServiceNow ITSM

IT Service Management (ITSM) is a summative term describing a tactical approach to managing the services of a business, including their design, plan, operation, and delivery. A faultless and uninterrupted provision of services – it’s the concern of almost all the businesses in the world, and ITSM was invented to help companies achieve this conveniently.

If you are looking for a detailed blog on what is IT Service Management (ITSM), you are at the right place. This extensive guide holds various rich insights into different areas of IT Service Management.

To know them in detail, scroll down and keep reading.

What Is IT Service Management?

Here is a straightforward IT Service Management Definition. It’s a general term describing a strategic approach to design, deliver, manage and enhance how businesses deliver their services using Information Technology (IT). ITSM includes all the distinctive processes and activities that provide comprehensive support throughout its life cycle.

To be more specific, the core concept of ServiceNow ITSM is the principle that information technology is deliverable just like a service. It’s believed that it takes three basic steps to follow a proper ITSM approach:

  1. Create, and Implement IT technologies.
  2. Introduce and execute the accurate processes.
  3. People can become competent in technology and follow the process.


Now after these three steps, there is a 4th concept that makes the paradigm above a little different. In addition to them, if the IT teams are learning and growing consistently, the implementation of ServiceNow IT Service Management becomes successful.

Benefits Of ServiceNow IT Service Management

No matter what the size of the business is, every corporation is involved in IT Service Management Solutions. ITSM ensures that IT services, incidents, service requests, problems, changes, and IT assets are coordinated in a streamlined way.

An effective ITSM process ushers positive effects on an IT organization’s overall function. Below are 10 key benefits of IT Service Management Solutions:

  • A sharp decrease in the costs for IT operations

Every business needs to find a way to reduce costs to the company, but keep their quality of work in the best way possible. Implementing ITSM would make sure that you have a systematic approach so that there is an increase in business, operational efficiency and lesser IT wastage.

  • Higher returns on the IT investments

When investors put their money into a specific organisation, it’s natural to want profitable outcomes. ServiceNow ITSM helps to create an ideal and swift overall function for any company using it and leading to better revenue generation.

  • Better clarity on business requirements

ITSM is organised and full proof, this is the reason you can find out your company’s strengths and weaknesses seamlessly. The requirements can be about the end-to-end delivery, design process, management hurdles, etc. This will create better business efficiency.

  • A well-structured and manageable IT process

Having a coherent and convenient IT process via ServiceNow ITSM creates a better understanding of the business. This also helps in creating viable plans for a successful outcome in terms of revenue generation.

  • Risk-free execution of the IT changes

ITSM is a reliable way to plan and execute changes in the IT system. There is no room for error because of the seamless, updated and methodical approach. The organisations can execute their ideas without any doubts.

  • Improved transparency into IT services and processes

There are various ways to improve business sales and effectiveness. Applying ITSM would lead to continual progress in terms of IT capabilities and efficiency. One of them is by receiving transparency in the IT services and processes.

  • Viable analysis of the IT problems to minimize repetitive incidents

Every organization faces some issues regarding their management and process. Due to the application of ServiceNow IT Service Management, there will be less time spent on proverbial issues and more time on a strategic approach. There will be a practical assessment of work so that the company delivers perfect services for their customers.

  • Adaptable to organizations’ needs

For an improved IT service operation, ITSM can set rationalized and flexible ideas or changes in the system and deliver quality assistance for resolutions. ITSM is easy to use and intuitive to use.

Why Service Now ITSM Crucial For Your Business?

You are already implementing ServiceNow ITSM if your business has more than a handful of human resources including at least one IT person. Nevertheless, with the growth of your business, you need to make your ITSM process more robust.

Here are a few reasons why your business needs ITSM:

  • Because it optimizes the IT service quality

Optimal growth is the need of the hour in every sector of work. Implementing of ITSM framework refines the quality of IT services your organization provides. It’s directly concerned with client satisfaction, leading to a better brand image and hence, the revenue.

  • Because it improves flexibility

At the most basic level of ITSM, there lies a flexible toolset that creates an integrated and adaptive approach to your business. This enhances the workflow by manifolds.

  • Because it raises the agility for the new IT Services

A well-defined Cloud-Based IT Service Management accelerates the overall performance of the start-up IT service providers. This is much needed for a seamless result.

  • Because it cuts unnecessary IT costs

One of the biggest positive points about ITSM is it eliminates the possibility of your business bearing non-essential IT service management costs. It can be done through better use of scarce IT resources, insightful reports, process workflow, analysis of service-related incident management, etc.

  • Because it lowers the likelihood of risks and improves governance

Risks and threats are part and parcel of IT services. However, knowing the right way to conduct Risk Management and Risk Analysis at the right time is absolutely essential. ServiceNow IT Service Management tools make sure your company is safe from these disastrous risks by developing positive governance.

  • Because it augments customer satisfaction

Customers are now the reason why support teams and service desks are put in the first place. A well-formulated IT Service Management Structure provides value to the customer which in turn raises customer satisfaction rate and customer retention.

What Are The Distinctive ServiceNow ITSM Processes?

At the enterprise level, process improvement is difficult; however, it’s a core aspect of IT service management. An ITSM tool can perform a range of functions. Some of them are-

  • Problem management

The IT business could address an incident but fail to address the underlying issue, which could result in more problems. Thus, problem management is a means to resolve long-term operational issues to boost productivity and service delivery.

  • Incident management

The IT service desk resolves a problem, repairs service availability makes changes, and codifies processes to minimize recurrences when an IT service is affected by performance problems or interruptions.

  • Change management

When a service doesn’t meet customer expectations, it has to be improved, extended, or changed in some other way. IT must assess how these adjustments will impact the service deployment, make the necessary adjustments, and then track the modifications to see if they have the desired impact.

  • Knowledge Management

By collecting and preparing data about IT services accessible, knowledge management helps to prevent duplication of discoveries and efforts.

  • Asset management

Hardware and software resources are needed all the time, for services to operate. These resources need to be monitored, correctly updated, and mapped to demonstrate how they interact. These issues are addressed through capacity management, configuration management, and asset management, which may be combined or carried out separately.

  • Project management

IT services move through distinct lifecycle stages at varying paces and timeframes. IT firms may maintain organised services and steer clear of issues like out-of-date systems or shadow IT by using project management abilities.

During the implementation of the IT Service Management framework, keep the following things in mind-

  • Preparing for a shift in the work culture
  • Focusing on the end users more over processes.
  • Consistent evaluation for continuous improvement.
  • Continuous implementation of the ITSM process.
  • Automation of the repetitious processes.
  • Prioritizing the certified ITSM professionals.
    Using available data for creating meaningful metrics.

ServiceNow IT Service Management Metrics To Measure

Figuring out how well your ITSM initiatives are impacting the business is essential to planning your ITSM roadmap. In this context taking the right metrics will lead you in the right direction; so ensure you’re measuring things rightly.

The typical and basic ITSM metrics are discussed here:

  • Service Availability

It refers to the ability of an IT service or a configuration system to perform the given function as and when required. The 5 key determinants of service availability are Reliability, Serviceability, Maintainability, Security, and Performance.

  • First-call Resolution Rate (FCR)

It’s the percentage of the issues properly mitigated during the customers’ or clients’ first call. This eliminates the need for subsequent interactions on the same issue.

  • Time To Resolve (TTR)

The average time to resolve indicates the average time taken to fix an incident after it’s reported to the service desk. However, TTR works on a priority basis.

  • Cost Per Contact

Cost per Contact also known as Cost Per Ticket is the result obtained after dividing the dollar amount of operating expenses of the IT Service management by all the resolved tickets. The operating expenses include hardware, software, salaries and benefits, telecommunications, etc.

  • Service Level Agreement (SLA) Breach Rate

SLA breach rate determines the number of tickets that have breached or broken an SLA. SLA breach generally happens when your agents do not resolve their cases timely.

  • Net Promoter Score (NPS)

NPS is a feasible way to gauge and improve the customers’ satisfaction and loyalty to the services of the IT service management company.

  • User Satisfaction

User satisfaction or end-user satisfaction is a measure of the effectiveness of the IT services your business is providing. It’s measured through several feedback mechanisms, one of which is a Periodic Survey.

What Are ServiceNow IT Service Management Tools?

IT Service Management Tools refer to software to deliver IT services. It could be single software or a website. They consist of a plethora of apps intended to perform a wide range of tasks.

For instance, the Service Desk being an ITSM tool acts as the Single Point Of Contact (SPOC) between the service provider and the customers. It’s responsible for providing support or constant monitoring of services during downtimes. Service desks handle issues like service requests, incidents, software licensing, and 3rd Party Contracts.

Criteria To Select ITSM Tool

Selection of an ITSM Tool is not a matter of the IT team only; rather it affects the entire organization. In this procedure, there involve multiple stakeholders and therefore it makes sense to choose the right ITSM tool for your organization.

Keep in mind the below questions every time you are going to select an ITSM Tool OR an IT Service Management Software. At the end of answering these questions, you’ll be able to select the right ITSM software for your organization.

  • What Problem You Are Trying To Solve?

Ask yourself – what more can you do to refine the delivery of your IT services? What is missing from the already existing ITSM processes? What can be the best fit for an ITSM Tool?

  • What Are You Expecting From Your ITSM Tool?

An organization’s current process determines the expectations regarding your ITSM tool. For example, if the company uses several 3rd party software, then the ITSM tool has to integrate with all of them.

  • What Are The ITSM Requirements For Your Organization?

Think about the following: Are you managing assets? Are you trying to streamline the service requests? Do you want to develop and implement a self-service portal?

Role Of Artificial Intelligence In ServiceNow ITSM

Collaboration of AI, as well as Machine Learning with IT Service Management Tools, automates and improves the services for the end users. Needless to say, it’s one of the essential tools. These result in context-based resolutions, anomaly detection, root-cause analysis, improved correlation, and much more:

Alignment of AI in IT Service Management Workflows takes place in several forms like:

  • Sentimental Analysis

This predicts the emotions of the end users while submitting the ticket that, in turn, facilitates the agent to respond quickly. Furthermore, it also optimizes the CSAT Score.

  • AI-Powered Knowledge Management

This provides a solution from the knowledge base or searches through the web to put forward effective solutions. Based on the agents’ responses, it provides smarter recommendations to the agent providing the solution.

  • Predictive Maintenance

The AI-equipped service desk continuously monitors the existing IT infrastructure and issues tickets if any trouble occurs.

  • Intelligent Asset Provisioning

The AI-Powered Service Desk governs the performance of an asset. It then raises a ticket for asset replacement if its performance deteriorates.

What Is IT Infrastructure Library (ITIL)?

Now that you know what is IT Service Management (ITSM), it’s time to learn what ITIL is.

ITIL is a bunch of documents creating a standard framework of IT Service Management Solutions. This indicates that ITIL lies at the heart of ITSM. Businesses supporting a robust IT infrastructure increase efficiency as well as reduce the cost of service management if they adopt the ITIL processes.

How is ServiceNow ITSM Different From ITIL?

If your organization’s first and foremost goal is to expand its IT Service Management offerings, understanding how ITSM differs from ITIL is a must. Here are a few conceptual differences highlighted between ITSM and ITIL:

  • In simple words, ITSM is the actual professional discipline or practice of managing IT operations for the customers. On the other hand, ITIL is a tool for enhancing ITSM.
  • Moreover, Service Management is deeply related to how you are managing the services you deliver to your customers or business partners. Whereas ITIL is one of the different items your toolbox has to help you in bettering your services.
  • ITIL is a “Micro” concept that only focuses internally on Information Technology Services. But ITSM is a “Macro” concept that’s concerned with the overall business.


Therefore, in the easiest sense, ITIL is ITSM but not all ITSMs are ITIL. Your company might use ServiceNow IT Service Management but it may not need ITIL. One of the most widely used ITSM frameworks is ITIL but it’s not the only way to do ITSM.

What Is IT Service Management (ITSM) Processes In ITIL?

Wondering what is IT Service Management (ITSM) process is in ITIL? ITIL, the most famous ITSM framework or tool, is divided into five core books, each of which is relating to a different aspect called “service lifecycle.”

  • Service Strategy

It involves the entire mechanism of getting prepared and planning what your service provider needs to do for delivering services to your business’s critical needs.

  • Service Design

This relates to the designs of everything needed to efficiently deliver a service. Starting from the service itself to its after-delivery performance evaluation, service design considers everything.

  • Service Transition

Service transition covers changing, retiring, and introducing faulty or obsolete services that will come to no use.

  • Service Operation

This is in connection to the main processes linked to ServiceNow ITSM. It defines the process in an improved way so that every

  • Continual Service Improvement

It’s all about holistic improvement; be it improving operational activities or changing the business needs.

What Is The Future Of ServiceNow IT Service Management?

For greater workflow efficiency, every company needs wants to spread its wings in the best way possible. The distribution and support of IT services are undergoing a great deal of change right now, and this doesn’t appear to be slowing down anytime soon. While some of this has to do with the technology adopted to supply the necessary business and IT solutions, there are a lot more factors to take into account when making plans and getting ready to face the future.

When it comes to ServiceNow IT Service Management, its future is secured with Artificial Intelligence (AI). It’s possible to estimate that IT organizations spend 66% of their resources on everyday operations just to keep the business activities continued. AI in ITSM is expected to call forth automation of the regular works along with the changes. This involves workload optimization, predictive maintenance, improvement based on the value of a business, auto ticket resolutions, and others.

Nearly all organizations are prioritizing efficient and scalable IT service management processes over anything else. According to the research of GlobalNewswire, the global Cloud ITSM market size is likely to expand from USD 4.7 billion in 2020 to USD 12.2 billion by the end of 2025. Plus, the Compound Annual Growth Rate (CAGR) will be 21.2%.

Meanwhile, AI is only one aspect of it, the future sees improved business and IT capabilities due to ServiceNow IT service management. There will also be-

  • Automation Exploration

Automation is now popular across the board, and IT service desks particularly are looking for methods to increase speed, cut costs, and improve quality. The overburdened, understaffed, and under pressure IT sector can benefit from automation and artificial intelligence (AI), which can increase speed, costs, and performance.

  • Meeting varied customer demands

Customer experience is currently the top marketing and business strategy for B2C companies. Employee expectations of all internal service providers, including IT, are growing quickly due to consumerism, professionals bringing their personal lives, experiences, and demands into the office, and the other mentioned B2C developments. Your IT department must consistently up its game to fulfil these demands and this is possible with ServiceNow ITSM in the future.

  • Adaptive Improvement for Business Value

As is increasingly clear, companies today are eager for innovation and the digitalization of business operations, both internally and externally. Designing and implementing ServiceNow IT service management processes, along with those of other company operations, will speed up workflow, diminish human errors, and eventually make life simpler for both clients and employees. Business outcomes rather than IT outputs are the primary emphasis of these initiatives and will continue to improve under those sections.

These forecasts and future scenarios prove, and even the industry leaders are now agreeing, that ITSM is more salient than ever. Artificial Intelligence will be heavily influencing its future thereby ushering effects across multiple departments, from top management bodies to the customers.

Milic Media- The Best ServiceNow ITSM Solutions

Milic Media provides the best ServiceNow IT service management service. We ensure the provision of resilient IT service management services that revolutionizes your IT results as well as productivity. The ITSM Solutions we provide inject a unique superpower to your business, as a result of which it will be able to deliver outstanding customer services.

Do you want to know the pricing for ServiceNow IT service management? Get in touch with our professionals to get a set of personalized and curated solutions for your business.

Wrapping It Up

At present, ITSM is standing at the center of the modernization of the organizations. With the fast rise of software-powered services globally, IT service teams are focusing more on delivering values at a faster rate. The major change here has happened in the role of the IT teams. Their primary objective is now differentiating the business from its competitors apart from only supporting the business. It’s high time to move on to the ITSM approaches that focus on faster delivery of values, collaboration, and ease of use.

Try ServiceNow IT Service Management from Milic Media to accelerate the service delivery of your business. At Milic Media, we have the experts to offer you a plethora of required solutions. Hope the guide gave you significant insights on ITSM and its need in contemporary business organizations.

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