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An effective Demand and Supply Management (DSM) capability aims to:

• Strive for equilibrium between the demand for and the supply capacity of IT services.
• Arrive at an understanding of the total or aggregate demand for IT services, and meet this with a supply capacity that is fit for purpose and cost-effective.
• Forecast the impact of demand for IT services on the scalability of the supply pipeline.
• Maintain a balanced IT services portfolio so that current requirements for IT can be managed, and expected future requirements can be provided for.
• Understand how emerging technologies can replace or substitute current technologies, and open up new supply options.

The Demand and Supply Management (DSM) capability is the ability to manage the IT services portfolio in such a way that there is a balance between the demand for and the supply of IT services.

Representative POMs are described for DSM at each level of maturity.

2Basic

• Practice

  Maintain information on business consumption levels for a subset of key IT services.

  Outcome

  The relevance of current IT services is validated.

  Metric

  Number and percentage of IT services analysed within the IT services catalogue.

• Practice

  Develop a methodology for consistently conducting evaluations of existing and emerging technologies.

  Outcome

  A business case exists for introducing, retaining, upgrading, or replacing technologies.

  Metric

  Number of technology evaluations per annum.

• Practice

  Create a formal documented record of the IT services portfolio.

  Outcome

  A documented record represents the menu of available IT services, and facilitates planning on how best to manage business demand for them.

  Metric

  Frequency of reviews and updates to the IT services portfolio record.

3Intermediate

• Practice

  Document the gaps between current demand for and supply of existing IT services, and how these could be addressed with new technologies.

  Outcome

  A robust business case can be made for investment in appropriate technologies.

  Metric

  Percentage of identified gaps in demand-supply where new or emerging technologies have the potential to deliver positive return on investment (ROI).

• Practice

  Develop a shared understanding of business demand across IT and other business units.

  Outcome

  Business requirements can be centrally documented and catalogued, enabling more holistic discussions regarding how to satisfy business demand.

  Metric

  Number of business requirements that are centrally documented.

• Practice

  Engage stakeholders across IT and other business units to discuss the balance of supply and demand across the IT services portfolio.

  Outcome

  The IT services portfolio is periodically reviewed and realigned to meet business demand.

  Metric

  Percentage of IT services reviewed per annum to assess their alignment with business demand.

4Advanced

• Practice

  Institute an organization-wide policy to moderate the demand for IT services, without negatively impacting business productivity.

  Outcome

  Gaps between demand and supply are smaller, and faster re-alignment with respect to demand-supply variances is possible.

  Metric

  Average time taken to address demand-supply variances for IT services.

• Practice

  Conduct discussions between the IT function and the rest of the business regarding fluctuations and variations in business demand for IT services.

  Outcome

  There is greater understanding of business demand fluctuations, their drivers, and how supply adjustments can be proactively planned.

  Metric

  Percentage of business demand opportunities fulfilled.

• Practices

  • Collate information on current and future supply capacities to support IT services.
  • Monitor industry trends and innovate accordingly.

  Outcome

  There is a coherent picture of supply capacity, and this forms the basis for discussion between IT, other business units, and external suppliers.

  Metric

  Percentage of IT services whose supply capacities are known and documented.

5Optimized

• Practice

  Regularly review and optimize strategies for collecting and processing information relating to business demand for IT services, and for translating such information into defined IT requirements.

  Outcome

  Knowledge about business demand for IT services is kept up to date, thereby reducing the possibility of unexpected demand spikes or falls.

  Metric

  Number of updates to the IT services portfolio per annum.

• Practice

  Continually optimize strategies for collecting and processing information on supply capacities.

  Outcome

  Information on supply capacities is optimized to ensure that appropriate solutions are offered in a timely manner to meet demand for IT services.

  Metric

  Number of updates to the IT services portfolio per annum to meet demands for IT services.

• Practice

  Integrate IT services portfolio management as a key element of organizational strategy planning.

  Outcome

  The IT services portfolio is continually optimized to balance supply with demand.

  Metric

  Number of supply-demand mismatches for key IT services.

This capability was introduced in Revision 19.01 as an update to Demand and Supply Management (16).

The following CCs cover topics that are related to DSM in some way:

CFPCapacity Forecasting and Planning

Scenario modelling regarding the availability of IT resources to satisfy potential demand patterns.

REMRelationship Management

Enhancing relationships between the IT function and other business units.

SRPService Provisioning

Managing service introduction, service performance, service decommissioning, and execution of the IT services portfolio.

SSMSourcing and Supplier Management

Measuring performance of suppliers and operational supplier management.

SSMSourcing and Supplier Management

Sourcing and contracting of IT services and processes.

TCOTotal Cost of Ownership

Calculating the direct and indirect costs associated with IT services and assets.