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Last updated on 2024年7月8日

How do you align IT capacity management with business goals and strategies?

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Capacity management is a key process in IT service management (ITSM) that ensures the IT resources are adequate and optimized to meet the current and future demands of the business. However, capacity management is not a one-time activity, but a continuous cycle of planning, monitoring, analyzing, and improving the IT capacity. In this article, we will explore some of the common challenges and solutions for effective capacity management in the context of ITSM.

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Surinder S. Rait

Head of Global IT Security Assurance at Ericsson
Manikanth Pulicheri

Strategic IT Leader | Driving Innovation and Operational Excellence in Technology | Transforming Businesses for Growth

1 Aligning capacity with business goals

One of the main challenges of capacity management is to align the IT capacity with the business goals and strategies. This requires a clear understanding of the business requirements, priorities, and expectations, as well as the current and projected IT capabilities, constraints, and risks. A solution for this challenge is to establish a regular communication and collaboration between the business and IT stakeholders, and to use a framework such as the Business Capacity Management (BCM) model, which helps to translate the business needs into IT capacity requirements and plans.

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Surinder S. Rait

Head of Global IT Security Assurance at Ericsson
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Capacity management is very closely related to the availability aspect of business and works closely with business impact assessment and risk assessment of business continuity. Firstly various process must connect the dots and then make sure there is an automated ways of notifying impact based on capacity triggers. Once you have a strong process than either automate the flow or find a solution which can help connect various dots of different processes and also manage the workflow automatically.

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Manikanth Pulicheri

Strategic IT Leader | Driving Innovation and Operational Excellence in Technology | Transforming Businesses for Growth
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In my experience the future forecast of the business in terms of growth e.g transaction volume if it’s a financial institution or production increase if it’s a manufacturing company etc, needs to be taken into consideration.Once you have the forecast it’s easy to look at the current IT capacity and come up with a plan to increase it before the growth kicks in to avoid any impact to the business.

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2 Balancing cost and performance

Another challenge of capacity management is to balance the cost and performance of the IT resources, and to optimize the utilization and efficiency of the IT infrastructure. This requires a careful analysis of the trade-offs between investing in more capacity, improving the existing capacity, or reducing the demand for capacity. A solution for this challenge is to use a combination of tools and techniques, such as capacity modeling, simulation, forecasting, and benchmarking, which help to evaluate the impact of different scenarios and options on the cost and performance of the IT services.

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Benny Herlambang

IT Service Management | Change Management
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This challenging part is indeed requires careful analysis of trade-offs. There is no 100% success rate ways to do this but the best approach we can do is using capacity modelling, utilize historical data and predictive analytics to forecast future resource needs and benchmarking our performance and costs against industry standards. This is not a static one, we may have peak times in some months of a year while slower months. Sometimes we need to adjust our capacity accordingly (i.e. short term temporary support team for peak months) to make sure our cost in controlled.

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3 Managing demand and supply

A third challenge of capacity management is to manage the demand and supply of the IT resources, and to anticipate and respond to the fluctuations and changes in the IT workload. This requires a proactive and reactive approach, which involves monitoring the current and historical trends and patterns of the IT demand and supply, analyzing the root causes and effects of the variations and deviations, and implementing the appropriate actions and adjustments to maintain the service levels and avoid capacity issues. A solution for this challenge is to use a process such as the Demand Management (DM) process, which helps to influence, shape, and control the IT demand and supply, and to align them with the capacity plans and policies.

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4 Integrating capacity with other ITSM processes

A fourth challenge of capacity management is to integrate the capacity with other ITSM processes, such as service design, service transition, service operation, and continual service improvement. This requires a consistent and coordinated approach, which ensures that the capacity is considered and incorporated in every stage of the service lifecycle, and that the capacity information and feedback are shared and used across the ITSM processes. A solution for this challenge is to use a framework such as the ITIL (Information Technology Infrastructure Library), which provides a set of best practices and guidelines for integrating the capacity management with other ITSM processes, and for achieving the alignment and integration of the IT services with the business needs and objectives.

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Benny Herlambang

IT Service Management | Change Management
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The key is early and continuous involvement of capacity management in whole process. For example: when you are doing service design, do capacity planning workshops with stakeholders to align resources with expected demand. When you do service transition, do capacity analysis to assess how the change will affect current resources and ensure adequate capacity is in place BEFORE the transition.

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5 Adopting a holistic and agile perspective

A fifth challenge of capacity management is to adopt a holistic and agile perspective, which recognizes the complexity and dynamism of the IT environment, and the need for flexibility and adaptability in the capacity management. This requires a shift in the mindset and culture, which embraces the uncertainty and change, and fosters the innovation and learning in the capacity management. A solution for this challenge is to use a methodology such as the Agile Capacity Management (ACM) methodology, which helps to apply the agile principles and practices to the capacity management, and to deliver the IT capacity in an iterative and incremental manner, based on the feedback and value.

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6 Leveraging the emerging technologies and trends

A sixth challenge of capacity management is to leverage the emerging technologies and trends, such as cloud computing, virtualization, automation, artificial intelligence, and big data, which offer new opportunities and challenges for the capacity management. This requires a continuous learning and improvement, which involves exploring and experimenting with the new technologies and trends, and evaluating and adopting the ones that are relevant and beneficial for the capacity management. A solution for this challenge is to use a strategy such as the Capacity Management as a Service (CMaaS) strategy, which helps to leverage the cloud-based services and solutions for the capacity management, and to access the on-demand, scalable, and cost-effective IT capacity.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you align IT capacity management with business goals and strategies?

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1 Aligning capacity with business goals

2 Balancing cost and performance

3 Managing demand and supply

4 Integrating capacity with other ITSM processes

5 Adopting a holistic and agile perspective

6 Leveraging the emerging technologies and trends

7 Here’s what else to consider

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