Enterprise Service Management is about applying a service-oriented business model to the way your organization works internally. It is an operational architecture where each functional area of the business is defined as a service domain that offers services. These services deliver outcomes for other business functions and help to support them in their ability to deliver results for external customers. Thus, the productivity and profitability of the company will be improved by improving the efficiency of internal operations.
As John Seddon of Vanguard (an advocate of the application of systems thinking to service domains) says, “cost is in flow; value is inactivity”, i.e. costs are incurred through the poor flow of work between organizational functions. The fundamental idea of ESM is to:
Reduce the overheads commonly associated with the department-to-department interaction.
- Increase predictability in terms of both the quality and timescale of output (e.g. ensuring the desired outcome is delivered right and delivered fast).
- Increase process efficiency within service domains to keep the cost of execution as low as possible without compromising the quality or delivery timescale.