Service Catalogs Link ITSM to IT Business Performance | Axios Systems

Service Catalog Business CaseBenefits to You and Your Customers


The Value of a Service Catalog

IT departments spend a significant amount of wasted time processing requests – e.g. for logins and PCS. Many large organizations will give a lead time of up to 6 weeks to provide a new PC – this is mainly due to:

  • Inefficient and manual processes
  • Sometimes no agreed processes at all
  • The need to get and chase authorization from a number of sources

IT people therefore spend a lot of time manually raising and chasing orders when they could be doing productive IT tasks. This can result in more people being hired simply to carry out these tasks – often they are relatively junior and don’t have the authority to press for action and response outside their areas. In addition, if there is no agreed process or tool in place, it can take weeks for the ‘paper-chase’ to be resolved – hence the long lead times. So developing and automating processes for fulfillment can cut out a lot of wasted time and effort – and radically improve delivery times. It can also help to reduce staffing levels by removing the need for manual intervention and chasing activities.

Industry analysts estimate bottom line savings for IT budgets of around 20% from a service catalog implementation – that’s not including the further opportunities for improvement and cost optimization that can be made from the ‘bundled’ service approach through business and technical catalogs.

The service catalog provides the link between IT infrastructure and business performance, by defining business and process-based bundles of IT components as 'services'.

Through the process of designing and managing bundled services, IT organizations are in a strong position to deliver and demonstrate value and optimum efficiency.

Analysts estimate that implementing effective ITIL® processes integrated around a service catalog will deliver:

  • A reduction of 20% on the IT operational budget within 18 months
  • Improved efficiency and productivity, through an efficient user request catalog, portal and workflow. It is estimated that this can bring savings up to 39% off operating budgets
  • The ability to prioritize and optimize services, through visibility and control of service 'bundles'. The focus of reporting and monitoring shifts from technology areas and 'silos' to service-based reporting
  • Ultimately service catalog provides the ability to demonstrate and deliver value from IT. In an Axios survey, 57% of IT Executives believe that their systems do not deliver the value expected by the business. 64% of IT Executives felt that they were 'unable to provide the business with quantifiable metrics demonstrating the value of IT services and assets.'

Service catalog is the key to unlock the value of ITSM processes to IT – and to demonstrate the value of IT to the business it supports.


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Related Resources

Factsheet: Service Catalog
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Guide: Building the business case for Service Catalog
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