IT Effectiveness on Business Process

In the age of digitalization, everything needs to adapt to the market in order to prosper. An ever-increasing number of businesses have to incorporate an IT department in some shape or form. This is because the IT sector is becoming more and more vital for a business to achieve success. Not to mention that the pandemic is still very much an issue, resulting in a large spike of institutions and businesses having to digitalize in order to continue their work and services. The placement of IT in business structures is out of the question at this point, the more important question is how to utilize it most effectively. Here we will discuss some of the factors that having a well-equipped IT department positively influences the most.

Better Productivity

IT service management (ITSM) allows the more accurate measurement of service performance and employee productivity. ITSM is also implemented to increase self-service productivity. By using this modern help model, you will free up much more time for your employees, where they don’t have to spend their efforts on tedious small tasks and instead utilize their skills on other, more pressing matters, leading to a boost in effectiveness and hence income. A self-service program can make a dramatic difference in the structure of a business. Allowing customers to solve their own problems with the help of a knowledgable self-service catalog is a big step in business optimization.

Reduces Expenses

As you might have guessed, ITSM also reduces expenses for most operations. Usually, an IT department will drain a lot of your resources, and this only goes up as your business expands. Due to this, it is vital to make the processes go as efficiently as possible to avoid having a constant money sink. Not to mention the fact that you will free up some unnecessary job slots that can be automatized in order to further relieve economic strain. 

As said by Wu and Ho: “The input variables selected for evaluating efficiency using DEA model should be the key factors that contribute to business outcomes. Similarly, the output variables must reflect the main business objective of the selected IT firms, which is profit maximization.” The necessity of using the data envelopment analysis (DEA) model is essential for financial growth in a firm. 

It’s Risk-free

When managing a business you want to reduce the chances of a risk going bad as much as humanly possible. Change is usually a big risk factor as it can cause all kinds of issues to arise, whether from the business structure or the employees not wanting to adjust. Service management is an almost risk-free endeavor, as there are incredibly small chances of any significant interruptions occurring. It also allows the employees to have better communication channels leading to their further integration into the business structure and strengthening a feeling of belonging. 

Grants More Visibility Into Operations

A manager wants to have as much insight into the operations inside the business as possible. However, when it comes to the IT department, there is usually a disconnection between them and the rest of the business. An ITSM clears this issue, allowing you to have better communication and insight into the IT department and its operations. This, of course, allows the IT department to have a better view of what’s going on with other departments, leading to the integration of the whole structure. ITSM also allows managers and executives to see what tasks are taking too much time to accomplish, where automatization can be implemented, and where there is room for further improvement and to stimulate productivity. All of this takes time. At first, the process will be poorly controlled as it’s a new environment for everyone, but over time people will start to get used to it. Once the entire process gets standardized, it becomes increasingly easier to measure the program performance and employee productivity, allowing you to utilize ITSM to its fullest potential after the dust has settled and the getting-used-to period has passed.

Increased Operational Efficiency 

IT service management allows a business to run its processes way more smoothly. Allowing you to improve workflows saves you a significant amount of time and money that would be spent on overseeing these processes. In order to maintain a high level of operational efficiency, you will need to have managed IT service providers to make sure a break in the system doesn’t arise.

Improves Communication Channels

ITSM greatly improves the flow of communication between the IT department and the business. By effectively establishing a middle point between the IT department and the business you have a much more effective way of dealing with requests, events, and incidents. This middle point assures that every appropriate branch of the business can get support from the IT department, reducing incident response time and the time needed for a service to recover when interrupted. 

Better Customer Experience

Since people have more time to focus on optimization and have increased productivity, the side result of this will be customer satisfaction. When the processes run more smoothly, faster responses, and an effective incident management process that allows the IT team to respond swiftly, customers will be delighted with the experience they have with the business, leading to a heightened feeling of satisfaction and larger odds of them bringing in new customers. 

Better ROI

Some businesses have ditched the concept of ITSM because they didn’t see their profits rise in the first couple of months. As we have already discussed, the optimization of this process takes some time, and cannot be expected to bring major ROI immediately. ITSM is not software that you purchase and magically gain money from. It’s a process that has to be implemented and accepted by everyone, coupled with proper management in the business structure in order to achieve success. Investing in the most optimal IT infrastructure also brings massive ROI over a period of time, but not if it’s underutilized and underappreciated. Imagine giving a sports car to a person who has just passed his driver’s license exam. It all comes down to being able to utilize the tools you possess. Establishing a Configuration Management Database (CMDB) allows you to better track the utilization of said IT assets. It is used to maximize the up-time of the IT assets in order to increase efficiency and optimize the IT infrastructure.

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