Managing Director
Demand Management
Demand Management: Demand management in the context of IT describes a process that records, evaluates and prioritizes the needs of a company or an IT service in order to use resources efficiently. Demand management works closely with capacity management to ensure that sufficient capacity is available in the IT services to meet demand.
- Last update: 03.04.2025
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Demand Management - Key Takeaways
| Definition & Frameworks | Demand management encompasses the planning, control and prioritization of requirements. It is interpreted differently in frameworks such as ITIL and PMBOK - from forecasting IT requirements to the strategic coordination of projects. |
| Relevance in IT | Demand management identifies and evaluates IT requirements on the basis of data analyses. It serves as a basis for contract negotiations and reduces risks such as unnecessary costs. |
| Central advantages | Lower costs, greater operational efficiency, improved planning flexibility, increased customer satisfaction and a sustainable competitive advantage. |
| Core processes | Recording and analysis of requirements, coordination at management level, development of solution strategies and economic calculation of requirements. |
What is meant by the term demand management?
Demand management is defined differently in various frameworks such as ITIL and PMBOK. In general, it encompasses the planning, prioritization and monitoring of requests for projects, products and services. ITIL focuses on forecasting and fulfilling IT demand, while PMBOK emphasizes the collection and coordination of ideas and projects to achieve strategic goals.
Generally speaking, demand management can be defined as a methodology to support organizations in planning, prioritizing, managing and monitoring requests for projects, products and services. This methodology consists of various components, processes and procedures that must be implemented correctly. Numerous advantages for companies from a wide range of industries.
In the ITIL Guide Demand management is the process by which companies can identify, predict and thus satisfy the demand for new IT products and services without unexpected cost overruns. IT demand management works closely with capacity management to ensure sufficient IT capacity and resources at all times.
In the PMBOK on the other hand, demand management is defined as an internal process in organizations. In this process, ideas, projects and needs are collected that precede the implementation of a program or portfolio. The results of this process must also be aligned with the strategic goals defined by the company management so that priorities can be set and initiatives selected that create added value for the company.
Significance for IT
IT Demand Management specifically identifies and evaluates a company's IT requirements in order to Smooth processes to ensure the best possible quality. It forms the basis for contract negotiations and prevents risks such as incorrect quantities or unnecessary costs.
As IT is one of the most important departments in a company, it is crucial to know exactly what its current and future needs are. IT demand management therefore includes Systematic recording and evaluation of IT requirementswhich in turn serve as the basis for deriving specific IT requirements. These requirements are essential for the negotiation of contracts for hardware, software and IT services.
Inadequate planning of IT requirements can lead to incorrect estimates of quantities, inappropriate service level agreements, compliance risks and unnecessary costs.
Demand management in the IT area therefore plays an important role and ensures that IT is always optimally adapted to the customer's needs. individual requirements of the company and all business processes are fully covered.
In the ITIL Guide Demand management is the process by which companies can identify, predict and thus satisfy the demand for new IT products and services without unexpected cost overruns. IT demand management works closely with capacity management to ensure sufficient IT capacity and resources at all times.
In the PMBOK on the other hand, demand management is defined as an internal process in organizations. In this process, ideas, projects and needs are collected that precede the implementation of a program or portfolio. The results of this process must also be aligned with the strategic goals defined by the company management so that priorities can be set and initiatives selected that create added value for the company.
Optimize IT processes with demand management!
The most important advantages of demand management at a glance
Successfully integrated into project portfolio management processes, demand management brings many important benefits. For example, a successfully designed demand management process can ensure higher revenues, better responsiveness to change without unnecessary challenges or disruptions, and better control of the organization's ability to manage demand.
Here are the five most important benefits of demand management for IT departments and the entire company in detail:
Effective reduction of costsSuccessful demand management allows trends in market demand to be analyzed and predicted. As a result, costs due to overproduction or supply bottlenecks can be reduced.
Flexibility in the organizationDemand management promotes responsiveness in the planning of incoming demand and capacities. Demand planning can therefore be carried out more flexibly, especially in turbulent times.
Increase in customer satisfactionCompanies can use demand management to anticipate customer preferences and needs and thus respond to them more quickly.
Greater operational efficiencyBy improving the ability to plan and predict changes in the market, the IT department can optimize its processes, shorten lead times and optimize the entire range of products and services in line with user requirements and needs.
Greater competitive advantageTargeted demand management and integration into other management and governance processes make it possible to identify processes that cause unnecessary costs more quickly. This means that all processes can be effectively optimized to generate value. This significantly increases the competitive advantage.
How the demand management process works
Functioning demand management is based on four processes: Identification of requirements, discussion of needs at management level, development of efficient solutions and economic allocation of requirements. These steps ensure that needs are optimally met and resources are used in a targeted manner. The four basic processes at a glance:
1. Identification of requirementsThis process is used to determine what technical equipment, performance or service capacity is needed to optimally meet the customer's requirements. This may involve additional manpower, special software or hardware, for example.
2. needs assessment and coordination: The identified requirements are reviewed at management level and analyzed together with the project managers on the basis of relevant reports. Various perspectives and technical assessments are brought together in order to create a sound basis for decision-making.
3. development of solutionsThe resulting measures and proposed solutions are checked for their efficiency in this process and the best solution for demand management and the plan is selected. The solutions can be very different. For example, it may turn out that it makes sense to use free technical resources and employees or to use known external service providers.
4. offsetting the necessary requirementsA clear and correct calculation of the necessary requirements ensures that the decisions made actually bring a recognizable benefit for the company and therefore also make economic sense.
Frequently asked questions and answers
What is demand management?
As part of demand management Requirements and needs of a company identifiedto be able to use available resources efficiently. In the IT context, it is primarily about recording, evaluating and prioritizing requirements from different areas of the company. Demand management serves as a Central interface between IT and other company departments.
What is a demand in IT?
A demand in IT refers to a specific Request or a needThe IT department or IT Services receives requests from specialist departments or external customers. This may involve, for example, the development of new functions, systems or entire services.
What is a demand process?
A demand process comprises all the necessary steps to efficiently process a company's requirements. This includes recording and analysing requirements, prioritizing the various requirements and implementing or, if necessary, rejecting them. The aim is to create transparency, prioritize projects efficiently and ensure smooth collaboration between specialist departments and IT departments.
