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Ten steps to change behavior and reduce IT costs

Service Desk Institute

Ten steps to change behavior and reduce IT costs

Service Desk Institute

In slow economic growth environment, IT organizations are under constant and intense pressure to control costs and ensure that spending is aligned with the budget and financial objectives of the company.

It is expected for IT to operate as a company - allocating resources where they generate more value while minimizing resources unproductive areas.

One way to achieve this balance between resources and performance is to increase efficiency. But that's only part of the challenge. To ensure investments on IT are well balanced, IT must measure and control the use of their services, ensuring that end users are not wasting the IT service capacity. The exercise of supervising and ensuring a balance between resources and services is called demand management.

Demand Management:

Demand Management is about modifying the behavior of end user by generating units responsible for the resource consumption and it associated costs.

The steps should encourage end users to consume IT capability in a logical and justifiable way for the company. This will lead to the generation of a strategy in which IT services should be viewed as a separate service management company operating as a profit center.

It is very important to understand that the human dynamics will have a big impact in the creation of this strategy since people change their behavior only when they feel some kind of order, restriction or negative impact on its area.

To facilitate the above mentioned balance it will then be necessary to change not only the number of orders arriving to the Service Desk, but also the nature of the orders. This can be done by giving the necessary information to the user to make the better decisions.

10 steps to manage demand:

  1. Document the services provided by IT and communicate to potential users (catalog services).

  2. Document expected service levels. Service Levels may contain limitations such us number of pages printed, number or size of email, amount of disk used, number of visits to specifics site or any other aspects that have been difficult to manage in the past.

  3. Your billing system should have the flexibility to assess extraordinary charges or penalties.

  4. Redefine services in accordance with the objectives of the company.

  5. Put a price on IT services according to their strategic and financial impact.

  6. Measure the utilization of resources.

  7. Set the workflow and approvals necessary to provide services.

  8. Provide cost reports (chargeback) or invoices to the cost center using IT services.

  9. Provide self-service alternatives.

  10. Provide the required tools to measure customer satisfaction.