Service governance

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Governance Technique

Service governance is a means of achieving good corporate governance through governing internal corporate services across, and throughout, an enterprise[citation needed]. Even though the initial focus was on IT services,[1][not in citation given] it can include accounting, business administration, and other internal service sectors. Institutionalizing these services enables the monitoring and control of risk, value, and cost.[2] Principle among the issues is the fair funding for each service and the allocation system for scarce services.

Institutionalizing internal corporate services is the corporate management equivalent a general ledger, only with the line items reflecting the services, not simply departments. The service portfolio allows the governance of services as a means to govern the organization by value.[3]

Service portfolio[edit]

The portfolio of services is a list of all internal services within the organization that is available outside their own department. The portfolio describes each service, how it is funded, associated costs, ownership boundaries, along with its current performance and identified conflicts.[4][better source needed] This portfolio contains all services in the organization, including those which have been outsourced and are now supplied to the organization by third parties.

The portfolio provides a map of the organization that provides directors with a different way of understanding the dynamics of the organization than that received from financial reports, and, thus, makes it easier for the board to make decisions based on accurate, contemporaneous information.


Service governance uses the methods described in the management of value (MoV) to discover the requirements of the organization and to use those on design services, and their measures to deliver those values.[5][6]

Measurement and compliance[edit]

Well established best practice methods are used to design measures and metrics for the organization. These are designed to meet the requirements of the corporate mission, charter, and policy. This ensures that they measure what is required by the organization and, thus, supply accurate real-time information to the board for strategic governance decisions, and to management for operational decisions.[7][8]

This also ensures compliance with the requirements of Audit as well as enabling the production of the financial and sustainability report and reporting on good corporate citizenship.

Enterprise service management[edit]

Enterprise service management (ESM) is a means of extending service management across an entire organization, often from IT service management (ITSM). It is a component of service governance.[9]

ESM provides an integrated view of core service business processes, often in real-time, using common databases. ESM systems track business resources—people, parts, assets, and the status of customer commitments: service requests, orders, repairs and SLAs (Service-level agreement). The applications that make up the system share data across various departments (customer service, technical support, sales, field service, etc.) and they use the information for their work. ESM facilitates information flow between departments and coordinates activities with external resources involved in the service business process.

Enterprise service management is also a term used to sometimes generically describe the use of service processes and technologies across an organization. It is meant to be a broader term (like ERP and EAM) in contrast to IT service management which only concerns the management of IT services.


The term has been used to describe the success that a number of organizations have had in using the Best Practice advice, found in frameworks such as ITIL, TOGAF, and others, for company-wide service design and operation.[10][not in citation given]


  1. ^ Jäntti, Marko; Hotti, Virpi (30 June 2015). "Defining the relationships between IT service management and IT service governance". Information Technology and Management. 17 (2): 141–150. doi:10.1007/s10799-015-0239-z. Retrieved 17 October 2018.
  2. ^ AXELOS (2015-08-11). Adopting Service Governance: Governing Portfolio Value for Sound Corporate Citizenship. The Stationery Office. p. 6. ISBN 9780113314652.
  3. ^ Betz, Charles T. (2007). Architecture and patterns for IT service management, resource planning, and governance : making shoes for the cobbler's children. Elsevier/Morgan Kaufmann. ISBN 9780123705938.
  4. ^ "Service Portfolio". Archived from the original on December 22, 2015.
  5. ^ Vásquez, W. (2013). An economic valuation of water connections under different approaches of service governance. Water Resources and Economics, 2-3, 17-29.
  6. ^ Handbook of research on service-oriented systems and non-functional properties : future directions. IGI Global (701 E. Chocolate Avenue, Hershey, Pennsylvania, 17033, USA). ISBN 978-1-61350-432-1.
  7. ^ Cai, Hongming; Xu, Lida; Xu, Boyi; Zhang, Pengzhu; Guo, Jingzhi; Zhang, Yuran (22 February 2018). "A service governance mechanism based on process mining for cloud-based applications". Enterprise Information Systems: 1–18. doi:10.1080/17517575.2018.1442933.
  8. ^ Gómez-Baggethun, Erik; Kelemen, Eszter; Martín-López, Berta; Palomo, Ignacio; Montes, Carlos (October 2013). "Scale Misfit in Ecosystem Service Governance as a Source of Environmental Conflict". Society & Natural Resources. 26 (10): 1202–1216. doi:10.1080/08941920.2013.820817.
  9. ^ [1][dead link]
  10. ^ "CERN uses ITIL to rethink facilities management". Retrieved 17 October 2018.

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