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Friday, March 16, 2012

Goals, Purpose and Objectives of Demand Management

In the previous chapter, we learnt about what Demand Management is. In this chapter, let’s look at the goals, purpose and objectives of this process.

Goal of Demand Management

The goal of Demand Management is to optimize the use of capacity by moving workload to less utilized times and resources. In so doing, more efficient use is made of the resources because their utilization can be evened out over time instead of having to cater for peaks or troughs in load.

Purpose of Demand Management

The purpose of Demand Management is therefore to understand and influence customer demand for services in order to support the provision and management of minimum capacity to meet these demands.

Objectives of Demand Management

The objectives of Demand Management are:
• characterizing and codifying business activities into specific and recognizable patterns that have a common service consumption profile;
• characterizing the usage of services by users into user profiles;
• Encouraging the use of services at less busy times, for example by offering discounts at these times.

The first two objectives help to understand and predict the demand for resources better. This makes it easier for the service provider to match the services and resources to the identified needs of each user profile. Ultimately, this leads to improved value for both customers and suppliers by minimizing costs and poor performance.

Prev: Introduction to Demand Management

Next: More on Demand Management

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