Are you “penny wise, pound foolish? ”If you haven’t heard the phrase, it means that someone is careful with small sums of money but wasteful with large sums. Unfortunately, this situation happens when companies go through implementing and using an IT service management (ITSM) tool. Why? There are lots of places where a plan can get off track and end up costing your organization time and money.
This blog explains 4 mistakes your organization could make and how to avoid them. Additionally, it will help you avoid pitfalls where money is saved upfront in tool selection and implementation, but ongoing costs (including opportunity costs) are higher than necessary.
You might also like: ITSM, ESM, or SM? What is Service Management and How Can It Help?
Mistake #1: Not appreciating the total cost of ownership (TCO) of an ITSM tool
The critical thing here, whether using an ITSM tool for just ITSM or as part of a broader enterprise service management approach, is to appreciate that the “sticker price” of the tool is just a tiny part of the overall TCO. For example, there are also the:
- Implementation and set up costs, including process redesign, tool configuration, customization, and integrations
- Training costs
- Ongoing administration/management costs
- Ongoing support and maintenance costs (if an on-premises tool)
- The customer cost of upgrades, including changes to integrations.
- The impact of underestimating the TCO of an ITSM tool is that the above costs might not be sufficiently budgeted for with the associated activities minimized or omitted as a result.
One of the biggest mistakes we see is insufficient investment in tool implementation. Such that I’ll often state that “the best tools get bad reputations from bad implementations.” Failing to invest appropriately in tool implementation is likely to limit the usefulness of the delivered solution and the benefits realized.
Mistake #2: Making a tool decision based on price rather than value
This is an extension of Mistake #1, but given its importance, it deserves its own “time in the sun.” Here, choosing the cheapest possible tool that “does the job” might also bring with it additional ongoing costs that far outweigh the initial “sticker price” savings.
For example, an organization might not implement a tool to their specific needs to save money – installing a “vanilla” version. This then leads to the organization using the device to run counter to what it needs. Unnecessary costs are then incurred elsewhere, perhaps due to a lack of automation, and there are the opportunity costs of forgone capabilities (and the associated benefits).
Ultimately, the customer hasn’t spent the time entirely understanding the implications of implementing and then using the tool. Whereas engaging an experienced professional can keep organizations from stepping on easily avoidable implementation and cost, land mines.
Mistake #3: Not including enterprise service management needs into the tool selection process
Avoiding this mistake might also help your organization avoid Mistake #2 – with the various needs of enterprise service management and individual business functions helping to ensure that the selected tool has the required flexibility.
Notably, it’s about involving the relevant business stakeholders as early as possible in the requirements gathering/agreeing process. The IT organization shouldn’t be assuming what different business functions need from what will now be a pan-enterprise ITSM tool.
- Missing capabilities
- Difficulties in extending the solution to other business functions,
- Low adoption levels
- And more
Mistake #4: Sticking with an ITSM tool that’s unfit for enterprise service management
This one’s pretty simple to explain. It’s where – due to financial restrictions or the fear of change – an organization attempts to execute their enterprise service management strategy using an existing ITSM tool that’s unable to deliver against their needs.
It’s the proverbial “trying to fit a square peg in a round hole” – with it similar to the earlier mistakes in that your organization has an ITSM tool that can’t do what you need it to do. Or at least not without extra effort and costs. Here, even if ESM strategy execution is possible with the existing tool, it’s likely to be both suboptimal and more costly than it needs to be.
If you want to know more about avoiding these and the other common mistakes made when using your ITSM tool for enterprise service management, then reach out and talk to an expert.
Are you interested in enterprise service management but unsure how to generate buy-in from the rest of your organization? Then, we’ve got a blog for you here. Also, you can find 5 things to look for when selecting an enterprise service management tool here.