Business Service Management
Encyclopedia
Business service management (BSM) is an approach used to manage business-aligned IT services. A BSM philosophy promotes a customer-centric and business-focused approach to Service Management, aligning business objectives and priorities with IT or ICT from strategy through to operations and continual improvement.
A BSM approach is most commonly applied in an Information and communications technology (ICT) environment, positioned above IT Service Management
(ITSM) (which is often exercised according to guidance such as ITIL
). BSM is distinctive in ensuring that business and customer objectives provide an input which is considered when defining the IT Service Management
approach and the business services to be offered by the IT Service Provider (whether an internal IT department or an external service provider
).
According to the 2011 edition of ITIL
, business service management is "the management of business services delivered to business customers. Business service management is performed by business units."
ITIL
, according to the ITIL books themselves, is "a set of best-practice publications for IT service management". ITIL does not, therefore, give guidance on Business Service Management or Service Management outside of the IT domain.
A BSM approach can be used to understand the impact of business needs on IT Services and infrastructure, helping in the process of planning to ensure the portfolio of Business Services and IT Services aim to support these changing needs and objectives. This approach also helps to understand how technology, including incidents, changes and new developments, impact the business and customers. BSM can provide a dynamic method for linking key service components and capabilities to the goals of the business. It can help prioritize the activity and response of IT staff and service providers based on business priorities, and identify the impact and cost of service outages.
Advocates of BSM often use it to support a cultural change from one which is very technology-focused to a position which understands and focuses on business objectives and benefits. Rather than supporting an internalized technology view, there is a shift to recognize and support customer needs and the delivery of value to business stakeholders including shareholders. A BSM initiative often underpins a shift in maturity for an IT department or service provider towards a more proactive and predictive operating model rather than the reactive and fire-fighting behavior which has been common in many IT operations. IT departments and Service Providers who reach this level of maturity often report improved relationships with their customers and business colleagues, being recognized as 'Trusted Business Partners' and 'Competent Suppliers' who deliver added business value rather than being considered a commodity or 'Necessary Evil'.
The benefits of adopting a BSM approach will vary for different organisations, but typically include: improved relationships with customers, suppliers and colleagues; service quality improvements; cost reductions through improved efficiency; and a reduction in service outages and the impact of outage.
Based on industry best/good practice, standards, guidance and methodologies such as ITIL
and ISO/IEC 20000, a BSM approach can ensure ICT departments and Service Providers operate in a more efficient and effective manner to underpin business objectives.
An IT Service may not be customer-facing, for example an IT Service which is seen as 'back office' as it supports the execution of an internal business process, such as the support for a billing process which the Finance department would own and manage.
IT departments and IT Service Providers may only deliver IT Services, but could also be providers of Business Services.
BSM is a set of management software tools, processes and methods to manage IT via a business-centered approach. BSM technology tools are designed to help IT organizations view and manage technology environments to better support and maintain the main services they provide to the business. BSM tools are critical enablers for the increasingly popular process that focuses on IT Service Management (ITSM) approach. BSM consists of both structured process and enabling software. The Information Technology Infrastructure Library (ITIL
), a set of IT management frameworks and concepts, has recently identified BSM as a best practice for IT infrastructure management and operations.
BSM allows IT departments to operate by service rather than by individual configuration item
s or technology silo, enabling prioritization of efforts, ultimately improving the service that is delivered to the business or organization. Major vendors who offer BSM software and services include Accelops
, ServiceNow, BMC Software
, HP Business Service Management
software, Oracle Enterprise Manager
software, IBM
Tivoli Software
, Novell Business Service Management, Zyrion Traverse
., CA Technologies Computer Associates, and Compuware
.
Touching on all the lifecycle processes within the Information Technology Infrastructure Library
, BSM is a way to bring together many disparate processes and tools, and creating quantifiable improvement in efficiency and the ability to view technology as it is germane to business process.
fail at the same time, these systems offer no way for the network operations center
operator to determine which of these is more critical or which business services have been impacted by the failure of these devices.
Additionally, newer technologies such as service-oriented architectures (SOA), virtualization
, cloud computing
, portal frameworks, grid architectures, and mashup
s within an organizations make troubleshooting and monitoring of business services very difficult. A single business process or service may be supported by a number of composite applications, all of which could be dependent on a diverse set of distributed computing and communications elements. An isolated issue anywhere in this complex web may impact one or more tasks in the business process. Traditional network management systems and technology-centric monitoring approaches are incapable of determining the business impact of an issue in such a complicated infrastructure environment.
Newer BSM systems provide a unified view of the data center, allowing data center administrators to view and manage applications, networks and events, usually from a common dashboard. This means data center managers can see and troubleshoot problems before business customers do.
by aligning IT services and the IT infrastructure supporting those services with business processes, it is also sometimes considered a methodology for business management by helping businesses, including their IT departments, view their activities as services that are provided to external and internal customers.
BSM provides a critical framework to make sure that the work of customer-facing and internal teams within an organization is defined and transparent to their customers, who can then influence the functionality and quality of the services they receive.
BSM complements business process management
(BPM) by helping an organization deliver more effective services across business processes. Together, BSM and BPM form the basis for all-encompassing, full-stack process-optimization platforms. BSM adds a service-centered view across business processes and facilitates economies of scale for services that contribute to multiple processes.
BSM also goes beyond IT service management
(ITSM). BSM helps organizations better understand the business services that operate on top of the IT infrastructure, combining IT and non-IT management tools into a cohesive system for service delivery.
BSM is team-focused and can be used by any team in an organisation to improve performance, based on ownership, pride, commitment and teamwork. Through BSM, teams can formalise the services they provide as internal service level agreements (SLAs) or operational level agreements (OLAs). BSM can also help teams review their “People, Process and Technology” capabilities and limitations to see how they can improve them and consequently improve the services they provide.
A BSM approach is most commonly applied in an Information and communications technology (ICT) environment, positioned above IT Service Management
IT Service Management
IT service management is a discipline for managing information technology systems, philosophically centered on the customer's perspective of IT's contribution to the business. ITSM stands in deliberate contrast to technology-centered approaches to IT management and business interaction...
(ITSM) (which is often exercised according to guidance such as ITIL
Itil
Itil may mean:*Atil or Itil, the ancient capital of Khazaria*Itil , also Idel, Atil, Atal, the ancient and modern Turkic name of the river Volga.ITIL can stand for:*Information Technology Infrastructure Library...
). BSM is distinctive in ensuring that business and customer objectives provide an input which is considered when defining the IT Service Management
IT Service Management
IT service management is a discipline for managing information technology systems, philosophically centered on the customer's perspective of IT's contribution to the business. ITSM stands in deliberate contrast to technology-centered approaches to IT management and business interaction...
approach and the business services to be offered by the IT Service Provider (whether an internal IT department or an external service provider
Service provider
A service provider is an entity that provides services to other entities. Usually, this refers to a business that provides subscription or web service to other businesses or individuals. Examples of these services include Internet access, Mobile phone operators, and web application hosting...
).
According to the 2011 edition of ITIL
Itil
Itil may mean:*Atil or Itil, the ancient capital of Khazaria*Itil , also Idel, Atil, Atal, the ancient and modern Turkic name of the river Volga.ITIL can stand for:*Information Technology Infrastructure Library...
, business service management is "the management of business services delivered to business customers. Business service management is performed by business units."
ITIL
Itil
Itil may mean:*Atil or Itil, the ancient capital of Khazaria*Itil , also Idel, Atil, Atal, the ancient and modern Turkic name of the river Volga.ITIL can stand for:*Information Technology Infrastructure Library...
, according to the ITIL books themselves, is "a set of best-practice publications for IT service management". ITIL does not, therefore, give guidance on Business Service Management or Service Management outside of the IT domain.
A BSM approach can be used to understand the impact of business needs on IT Services and infrastructure, helping in the process of planning to ensure the portfolio of Business Services and IT Services aim to support these changing needs and objectives. This approach also helps to understand how technology, including incidents, changes and new developments, impact the business and customers. BSM can provide a dynamic method for linking key service components and capabilities to the goals of the business. It can help prioritize the activity and response of IT staff and service providers based on business priorities, and identify the impact and cost of service outages.
Advocates of BSM often use it to support a cultural change from one which is very technology-focused to a position which understands and focuses on business objectives and benefits. Rather than supporting an internalized technology view, there is a shift to recognize and support customer needs and the delivery of value to business stakeholders including shareholders. A BSM initiative often underpins a shift in maturity for an IT department or service provider towards a more proactive and predictive operating model rather than the reactive and fire-fighting behavior which has been common in many IT operations. IT departments and Service Providers who reach this level of maturity often report improved relationships with their customers and business colleagues, being recognized as 'Trusted Business Partners' and 'Competent Suppliers' who deliver added business value rather than being considered a commodity or 'Necessary Evil'.
The benefits of adopting a BSM approach will vary for different organisations, but typically include: improved relationships with customers, suppliers and colleagues; service quality improvements; cost reductions through improved efficiency; and a reduction in service outages and the impact of outage.
Based on industry best/good practice, standards, guidance and methodologies such as ITIL
Itil
Itil may mean:*Atil or Itil, the ancient capital of Khazaria*Itil , also Idel, Atil, Atal, the ancient and modern Turkic name of the river Volga.ITIL can stand for:*Information Technology Infrastructure Library...
and ISO/IEC 20000, a BSM approach can ensure ICT departments and Service Providers operate in a more efficient and effective manner to underpin business objectives.
Business Services and IT Services
Business Services are delivered to customers, supporting their needs, sometimes through the support for a business process or directly supporting a service or product delivered to end customers. A business service may be supported by one or more IT Service(s), and may consist almost entirely of IT Services especially where the IT Service is directly customer-facing. Examples include online banking and online shopping.An IT Service may not be customer-facing, for example an IT Service which is seen as 'back office' as it supports the execution of an internal business process, such as the support for a billing process which the Finance department would own and manage.
Service Management
Service Management is a generic activity which didn't originate from the IT industry, and therefore is much bigger and more widely applied than IT Service Management or Business Service Management. BSM and ITSM can be considered as applications of Service Management in a specific context.IT departments and IT Service Providers may only deliver IT Services, but could also be providers of Business Services.
BSM Technology Tools
Many software vendors offer products which aim to support ITSM and/or BSM. These tools are often described as BSM tools, but they should not be seen as BSM in themselves. The tools may underpin and support a service management capability which includes people who execute service management, their portfolio of services and the process framework. BSM, ITSM, and Service Management in general, are not a set of software tools or products. They are all activities and approaches to the management of services throughout their lifecycle.BSM is a set of management software tools, processes and methods to manage IT via a business-centered approach. BSM technology tools are designed to help IT organizations view and manage technology environments to better support and maintain the main services they provide to the business. BSM tools are critical enablers for the increasingly popular process that focuses on IT Service Management (ITSM) approach. BSM consists of both structured process and enabling software. The Information Technology Infrastructure Library (ITIL
Itil
Itil may mean:*Atil or Itil, the ancient capital of Khazaria*Itil , also Idel, Atil, Atal, the ancient and modern Turkic name of the river Volga.ITIL can stand for:*Information Technology Infrastructure Library...
), a set of IT management frameworks and concepts, has recently identified BSM as a best practice for IT infrastructure management and operations.
BSM allows IT departments to operate by service rather than by individual configuration item
Configuration item
The term configuration item or CI refers to the fundamental structural unit of a configuration management system. Examples of CIs include individual requirements documents, software, models, plans, and people...
s or technology silo, enabling prioritization of efforts, ultimately improving the service that is delivered to the business or organization. Major vendors who offer BSM software and services include Accelops
Accelops
AccelOps provides integrated datacenter monitoring and Business Service Management software delivered as a Virtual Appliance or Software-as-a-Service .-Overview:...
, ServiceNow, BMC Software
BMC Software
BMC Software, Inc. is a multinational corporation specializing in Business Service Management software, with record annual revenue in fiscal 2009 of $1.87 billion...
, HP Business Service Management
HP Business Service Management
HP Business Service Management is a suite of service management software tools developed and marketed by the HP Software Division for end-to-end monitoring of services in the data center and the underlying infrastructure...
software, Oracle Enterprise Manager
Oracle Enterprise Manager
The computer application Oracle Enterprise Manager aims to manage software produced by Oracle Corporation as well as by some non-Oracle entities.-Oracle Enterprise Manager Database Control :...
software, IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
Tivoli Software
Tivoli Software
Tivoli Software is the service management brand of the IBM Software Group. IBM purchased Austin-based Tivoli Systems, Inc. on March 4, 1996 and allowed existing executive management to operate Tivoli as a wholly owned subsidiary in the IBM Software Group...
, Novell Business Service Management, Zyrion Traverse
Zyrion Traverse
Zyrion Traverse is a IT Infrastructure & Cloud monitoring software that leverages the concept of Business Service Management using ‘service containers’ for correlating application and network problems. BSM has gained prevalence in the network management arena in recent years...
., CA Technologies Computer Associates, and Compuware
Compuware
Compuware Corporation is a software company with products aimed at the information technology departments of large businesses. The company's services also include testing, development, professional services automation, project and portfolio management, cloud-based collaboration and performance...
.
Touching on all the lifecycle processes within the Information Technology Infrastructure Library
Information Technology Infrastructure Library
The Information Technology Infrastructure Library , is a set of good practices for IT service management that focuses on aligning IT services with the needs of business. In its current form , ITIL is published in a series of five core publications, each of which covers an ITSM lifecycle stage...
, BSM is a way to bring together many disparate processes and tools, and creating quantifiable improvement in efficiency and the ability to view technology as it is germane to business process.
Compared to traditional network monitoring
BSM software is an outgrowth of network management systems as the software tracks the performance and availability of the networks components across a data center. Traditional network management systems focus on measuring and monitoring the technical metrics and trends of IT applications and infrastructure. The primary users of these systems are technicians and systems administrators in the IT operations organization. Although these systems enable the IT operations team to identify problem areas from a technical point-of-view for a given piece of the infrastructure, significant gaps exist in determining the business impact of a specific problem. For example, if a router and a serverServer (computing)
In the context of client-server architecture, a server is a computer program running to serve the requests of other programs, the "clients". Thus, the "server" performs some computational task on behalf of "clients"...
fail at the same time, these systems offer no way for the network operations center
Network Operations Center
A network operations center is one or more locations from which control is exercised over a computer, television broadcast, or telecommunications network....
operator to determine which of these is more critical or which business services have been impacted by the failure of these devices.
Additionally, newer technologies such as service-oriented architectures (SOA), virtualization
Hardware virtualization
Computer hardware virtualization is the virtualization of computers or operating systems. It hides the physical characteristics of a computing platform from users, instead showing another abstract computing platform...
, cloud computing
Cloud computing
Cloud computing is the delivery of computing as a service rather than a product, whereby shared resources, software, and information are provided to computers and other devices as a utility over a network ....
, portal frameworks, grid architectures, and mashup
Mashup (web application hybrid)
In Web development, a mashup is a Web page or application that uses and combines data, presentation or functionality from two or more sources to create new services...
s within an organizations make troubleshooting and monitoring of business services very difficult. A single business process or service may be supported by a number of composite applications, all of which could be dependent on a diverse set of distributed computing and communications elements. An isolated issue anywhere in this complex web may impact one or more tasks in the business process. Traditional network management systems and technology-centric monitoring approaches are incapable of determining the business impact of an issue in such a complicated infrastructure environment.
Newer BSM systems provide a unified view of the data center, allowing data center administrators to view and manage applications, networks and events, usually from a common dashboard. This means data center managers can see and troubleshoot problems before business customers do.
Business Management Methodology
Although BSM is sometimes known as a methodology for information technology managementInformation technology management
IT management is the discipline whereby all of the technology resources of a firm are managed in accordance with its needs and priorities. These resources may include tangible investments like computer hardware, software, data, networks and data centre facilities, as well as the staffs who are...
by aligning IT services and the IT infrastructure supporting those services with business processes, it is also sometimes considered a methodology for business management by helping businesses, including their IT departments, view their activities as services that are provided to external and internal customers.
BSM provides a critical framework to make sure that the work of customer-facing and internal teams within an organization is defined and transparent to their customers, who can then influence the functionality and quality of the services they receive.
BSM complements business process management
Business process management
Business process management is a holistic management approach focused on aligning all aspects of an organization with the wants and needs of clients. It promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. BPM attempts to...
(BPM) by helping an organization deliver more effective services across business processes. Together, BSM and BPM form the basis for all-encompassing, full-stack process-optimization platforms. BSM adds a service-centered view across business processes and facilitates economies of scale for services that contribute to multiple processes.
BSM also goes beyond IT service management
IT Service Management
IT service management is a discipline for managing information technology systems, philosophically centered on the customer's perspective of IT's contribution to the business. ITSM stands in deliberate contrast to technology-centered approaches to IT management and business interaction...
(ITSM). BSM helps organizations better understand the business services that operate on top of the IT infrastructure, combining IT and non-IT management tools into a cohesive system for service delivery.
BSM is team-focused and can be used by any team in an organisation to improve performance, based on ownership, pride, commitment and teamwork. Through BSM, teams can formalise the services they provide as internal service level agreements (SLAs) or operational level agreements (OLAs). BSM can also help teams review their “People, Process and Technology” capabilities and limitations to see how they can improve them and consequently improve the services they provide.
See also
- Business process managementBusiness process managementBusiness process management is a holistic management approach focused on aligning all aspects of an organization with the wants and needs of clients. It promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. BPM attempts to...
- Business transaction managementBusiness Transaction ManagementBusiness transaction management , also known as business transaction monitoring, application transaction profiling or user defined transaction profiling, is the practice of managing information technology from a business transaction perspective...
- Business transaction performanceBusiness transaction performanceBusiness transaction performance is a methodology providing for comprehensive visibility into complex, multi-tier business transactions. BTP provides real-time discovery of transaction topology, behavior and performance; visualization, analysis, automation, reporting and process...
- Team Service ManagementTeam Service ManagementTeam service management is an open-source management framework that uses and integrates existing management methods and techniques to help teams deliver ever improving services...