Enterprise Service Management: Meaning, Benefits And Tips

By Indeed Editorial Team

Published 29 September 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Enterprise service management (ESM) provides various strategies for businesses to improve their service delivery and internal processes. This strategy often employs software and automation tools to transform how companies interact with their customers and employees. Understanding how to implement ESM effectively can prove beneficial for enhancing the performance of the company for which you work. In this article, we define ESM, discuss its examples and benefits, share some tips for implementing it in a business and answer a few frequently asked questions about ESM.

What Is Enterprise Service Management?

Enterprise service management (ESM) is a process that businesses use to streamline and automate their services. ESM applies several concepts, from information technology service management to multiple business areas, such as information technology, customer service, human resources, accounting and project management.

Organisations can use ESM to offer services to their staff or to give their clients additional value. They achieve this by utilising standard information technology service management (ITSM) procedures, including self-service portals, virtual help desks and automated chatbots. Through automation, these systems may reduce the workload of support staff by enabling consumers or employees to access services quickly and conveniently.

Related: What Is Scope Of Management? (Definition And How To Write It)

ESM In Different Departments

To enhance business operations and employee services, ESM uses many ITSM methods as a model. These procedures often involve software automation for crucial business functions. Here are a few example ways a business may apply ESM techniques to various departmental operations:

Customer service

ESM can offer multiple ways to enhance and streamline customer interactions. A business may create an automated help desk that enables clients to submit questions and receive responses without directly contacting support staff. The company may use software to provide marketing teams business insights and monitor key customer metrics. They can also develop automated email campaigns that may recall customers to finish the checkout process, send special offers or ask them to share their experiences.

Related: What Is Customer Service? Definition And Career Advice

Human resources

Businesses can use ESM in various ways to enhance their human resource (HR) operations. An organisation can purchase or develop an automated platform for training and onboarding new hires, enabling them to finish the induction process independently. It can give its staff members access to an employee dashboard that allows them to submit leave requests or benefit changes without speaking with HR staff directly. Businesses can ensure the deactivation of a former employee's business accounts and permissions by grouping and automating the post-termination processes.

Related: The Functions And Departments Of HR: A Complete Guide

Workplace collaboration

Employers can use ESM to enhance their workplace's collaborative capabilities. They can design team and individual workspaces with the help of software tools so that employees can quickly access resources and feedback from their peers. These platforms can also enable teams to work together on projects and exchange information about their jobs, such as project specifications, due dates, meetings and training.

Related: 11 Ways To Collaborate With Your Team (With Benefits)

Benefits Of Utilising ESM

ESM facilitates the transformation of a slow, reactive organisation with silo-based business functions and departments into an integrated work environment, which is efficient and satisfies the users and the organisation. Following are some key ways ESM benefits an organisation:

  • Standardise service delivery: Standardisation enables a shared service catalogue for IT and non-IT services. It is a prerequisite for automated fulfilment, which allows the departments to concentrate on delivering business value rather than manually assisting employees with various requests.

  • Speed up service delivery: Many business functions can decrease associated delivery workloads, avoid human errors and offer higher-quality services by automating service management, especially support and delivery of services outside of IT.

  • Enhance visibility: With automated reporting systems, ESM techniques can help managers and business leaders have more visibility and control. This can assist business executives in monitoring crucial metrics, identifying issues and quickly resolving them.

  • Increase customer satisfaction: By making it simple and quick for customers to find answers to their questions and solve their issues, automated customer support platforms can help improve their satisfaction. Monitoring customer metrics can also help offer a more personalised customer experience.

  • Improve service performance: Reporting and analytics capabilities establish the foundation for continuous service improvement, enhancing service delivery and user experience.

  • Reduce overall cost: Companies can often improve many other operations using the same processes and software. This can assist them in lowering their spending on new technologies and systems and achieving a faster return on their investments.

  • Improve communication and collaboration: Collaborative work systems enable employees to work more efficiently on team projects, improve communications and easily access guidance and data. These benefits are especially useful when employees work remotely.

  • Improve user experience: A unified portal built on a shared catalogue offers virtual support agents, an easy-to-access information centre, social collaboration and omnichannel self-service. This often solves most service requests automatically and enables employees to return to work quickly and easily.

Related: What Are User Onboarding Tools? (With Benefits And Examples)

Tips For Implementing ESM

Consider the following tips can while implementing an ESM model in a business:

Identify the priorities of the company

When considering an ESM model for a business, it may be helpful to review the organisation's priorities to find where ESM might be most beneficial. You can use such considerations to decide where to focus your efforts and how to allocate the resources. Consider the following questions when determining where to focus your ESM implementation efforts:

  • What is your primary service?

  • Where do you wish to save money?

  • What processes in a company require the most improvement?

  • What processes are most successful in a company?

  • Which staff members might benefit from a reduced workload?

Empower departments

While ESM can have some centralising effects, it is often helpful to customise each part of your ESM model to the different requirements of the individual departments. To help ensure that departments benefit most from ESM, discussing your plans for ESM development with departmental managers and employees in the development process might be helpful. You can then ask them to develop strategies for implementing ESM in a way that satisfies their requirements.

Start with one department

While planning an ESM rollout for an organisation, it is often helpful to start with one department. Considering the strengths and weaknesses of each department and its leaders can often help you decide where new ESM models may be most effective. It is often suitable to begin ESM development in high-performing departments that are more comfortable with change. You can consider the following questions to help you assess departmental readiness:

  • Which departments have the strongest collaboration ability?

  • Which departments require the most improvement?

  • Where might new processes be least disruptive?

  • Which departments have the strongest and most innovative leadership?

  • Which departments can adapt to change the easiest?

  • Which departments are most comfortable with technology?

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Incorporate existing tools

It is often helpful to incorporate existing business tools into ESM models to lower costs and help make an easier transition. If a business is already using systems like performance monitoring, employee portals, automated customer support or collaboration software, consider using them as the basis for the new ESM architecture. Using familiar systems can help the employees transition more easily and may lower the investment costs in implementing new solutions.

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Limit the risks

When investing in new products and procedures, it is often beneficial to limit risk initially. You can do this by revamping one department at a time using existing infrastructure and starting your transition to ESM with internal processes. Focusing on the company's internal processes can allow you to test new systems and fix bugs before moving to customer-facing processes and ensure performance efficiency and reliability.

Related: What Is Risk Management? (Crucial Steps And Strategies)

Frequently Asked Questions About Enterprise Service Management

Here are a few frequently asked questions about ESM and a few related service management approaches:

How does ESM differ from shared service management?

Share service management (SSM) is a further evolution of the ESM model, rather than an independent concept. The ESM model seeks to streamline and automate a company's processes using some centralisation while allowing different departments to find systems that work suitable for them. The SSM model often attempts to centralise operations completely by using one central platform to manage all of a company's processes.

Related: What Is Management? Definition, Functions And Levels

How does ESM relate to ITSM?

Information technology service management (ITSM) and ESM are similar concepts that use many of the same processes to improve a company's performance. Here are some similarities and differences between ESM and ITSM:

Similarities between ITSM and ESM

ESM is an extension of the ITSM concept, which means they have many similarities. These similarities involve having similar goals, including streamlining company processes, lowering costs and improving customer experiences. ITSM and ESM also use the same tools, including software platforms, automated customer and employee services and metric monitoring systems.

Differences between ITSM and ESM

While ITSM and ESM share many processes, the two have significant differences, too. ITSM applies only to an organisation's IT processes. ESM extends the ITSM practices to encompass the entire business operations. Besides this, ESM may involve human resources, customer service, marketing and sales. As ESM includes a more versatile range of services, it often requires more specialised resources and components to function effectively.

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