What is it?

Business service management or business studies and management (BSM) is an approach used to manage business IT services. BSM promotes a customer-centric and business-focused approach to Service Management, aligning business objectives with IT or ICT from strategy through to operations.

A BSM approach is most commonly applied in an Information and communications technology (ICT) environment, positioned above IT Service Management (ITSM) (which is often exercised according to guidance such as ITIL). BSM is distinctive in ensuring that business and customer objectives provide an input which is considered when defining the IT Service Management approach and the business services to be offered by the IT Service Provider (whether an internal IT department or an external service provider).

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A BSM approach can be used to understand the impact of business needs on IT Services and infrastructure, helping in the process of planning to ensure the portfolio of Business Services and IT Services aim to support these changing needs and objectives. This approach also helps to understand how technology, including incidents, changes and new developments, impact the business and customers. BSM can provide a dynamic method for linking key service components and capabilities to the goals of the business. It can help prioritize the activity and response of IT staff and service providers based on business priorities, and identify the impact and cost of service outages.

Advocates of BSM often use it to support a cultural change from one which is very technology-focused to a position which understands and focuses on business objectives and benefits. Rather than supporting an internalized technology view, there is a shift to recognize and support customer needs and the delivery of value to business stakeholders including shareholders. The benefits of adopting a BSM approach will vary for different organizations, but typically include: improved relationships with customers, suppliers and colleagues; service quality improvements; cost reductions through improved efficiency; and a reduction in service outages and the impact of outage. Based on industry best/good practice, standards, guidance and methodologies such as ITIL and ISO/IEC 20000, a BSM approach can ensure ICT departments and Service Providers operate in a more efficient and effective manner to underpin business objectives.