Service Strategy Demand Management in ITIL - ITIL Course

Service Strategy

Demand Management

Purpose and Objectives

The purpose of Demand Management is to assist the IT Service Provider in understanding and influencing customer demand for services, and the provision of capacity to meet these demands.

Service Strategy Demand Management in ITIL - ITIL Course

Objectives

Demand Management aims at minimizing uncertainty in demand to avoid excess capacity.

Demand Management supports Capacity Management by providing reliable planning data. It also tries to understand and possibly influence end-user behavior with regard to service usage.

Demand Management avoids unused excess capacity and insufficient capacity.

Key Concepts

Patterns of Business Activity (PBA’s)

Customer assets such as people, processes and applications all perform business activities, and because of the way these assets are organized or because of the tasks they are completing, this activity will tend to be performed in patterns.

Once a PBA has been identified, a PBA profile should be drawn up and details about the PBA documented. The following items need to be documented:

Classification: This indicates the type of PBA, and could refer to where it originates (user or automated), the type and impact of outcomes supported, and the type of workload supported.

Requirements: Such as performance, security, availability, privacy, latency or tolerance for delays.

Service asset requirements: Such as performance, security, availability, privacy, latency or tolerance for delays.

Attributes: Such as frequency, volume, location and duration.

User Profiles (UP): User profiles are based on roles and responsibilities within. Each UP can be associated with one or more PBA. This ensures a systematic approach to understanding and managing demand from customers. They also require customers to better understand their own business activities and view them as consumers of services and producers of demand.

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Service Strategy Demand Management in ITIL - ITIL Course

Introduction to Service Strategy

In ITIL V4, Service Strategy is a core stage of the IT Service Management (ITSM) lifecycle that focuses on aligning IT services with business objectives. One of its critical processes is Demand Management, which ensures that IT services are provided efficiently while meeting customer demand.

Demand Management helps organizations understand, anticipate, and influence customer demand for IT services, allowing better planning and capacity optimization. It bridges the gap between business requirements and IT capabilities.

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Demand Management in ITIL

Purpose and Objectives

Purpose:
The purpose of Demand Management is to assist the IT Service Provider in understanding and influencing customer demand for services and ensuring that capacity meets demand effectively.

Objectives:

Minimize uncertainty in demand to prevent excess capacity.
Provide reliable data to support Capacity Management.
Understand and influence end-user behavior regarding service usage.
Avoid both unused capacity and insufficient capacity.

Key Concepts of Demand Management

Patterns of Business Activity (PBAs):
PBAs are recurring patterns in how customers use IT services. They help IT teams understand when and how services are consumed.

Documentation for PBA includes:

Classification: Type of PBA, origin (user/automated), workload type, and impact.
Requirements: Performance, security, availability, privacy, latency, tolerance for delays.
Service Asset Requirements: Hardware, software, applications needed for the PBA.
Attributes: Frequency, volume, location, duration.

User Profiles (UPs):

UPs define user roles and responsibilities.
Each UP is linked to one or more PBAs.
Helps systematically manage demand from customers.
Encourages users to view themselves as both consumers and producers of service demand.

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Benefits of Demand Management

Benefit	Description
Optimized Resource Usage	Avoids over-provisioning or underutilization of IT resources.
Better Capacity Planning	Provides accurate data for Capacity Management and forecasting.
Cost Efficiency	Reduces unnecessary costs caused by unused or insufficient capacity.
Enhanced Customer Satisfaction	Ensures services are available when needed, improving user experience.
Informed Decision Making	Helps IT make strategic decisions based on predictable demand patterns.

Key Points to Remember

Key Concept	Explanation
PBA (Pattern of Business Activity)	Recognize recurring business patterns to manage demand effectively.
User Profile (UP)	Map users’ roles to PBAs to analyze and influence service usage.
Demand vs. Capacity	Demand Management supports Capacity Management by predicting requirements.
Objectives	Minimize uncertainty, optimize resources, influence customer behavior.
Purpose	Align IT services with business demand efficiently.

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Top 5 FAQs for ITIL V4 Exam

FAQ	Answer
What is the purpose of Demand Management in ITIL?	To understand, influence, and manage customer demand for IT services while ensuring adequate capacity.
How does Demand Management support Capacity Management?	By providing accurate and reliable data on demand trends, allowing better resource planning.
What are Patterns of Business Activity (PBAs)?	Recurring patterns of service usage by customers, helping IT anticipate demand.
What is the role of User Profiles (UPs) in Demand Management?	UPs map user roles to PBAs to systematically manage and predict service demand.
What is the main objective of Demand Management?	To minimize uncertainty in demand, avoid excess or insufficient capacity, and optimize IT service delivery.

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5 Interview Questions and Answers

Q: What is Demand Management in ITIL?
A: Demand Management is a process in Service Strategy that helps IT providers understand and influence customer demand for services and ensure capacity meets these demands.
Q: How do Patterns of Business Activity (PBAs) help in IT service management?
A: PBAs identify recurring trends in service usage, enabling better capacity planning and resource optimization.
Q: Explain the difference between a User Profile and a Pattern of Business Activity.
A: A User Profile represents roles and responsibilities of users, while a PBA represents the pattern of service usage linked to those roles.
Q: Why is minimizing demand uncertainty important?
A: Minimizing uncertainty ensures that IT resources are neither underutilized nor overburdened, reducing costs and improving efficiency.
Q: How can Demand Management influence end-user behavior?
A: By analyzing usage patterns, IT can implement policies or incentives to encourage efficient service usage, aligning demand with available capacity.

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