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Important digitization tool

While acquisition pressures continue to mount in the enterprise service management tools space, the consultant offers
E-3 Magazine
August 31, 2021
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This text has been automatically translated from German to English.

Thanks to novel approaches in artificial intelligence, cognitive automation and machine learning, enterprise service management (ESM) solutions are emerging as one of the most important means of digitizing service-based business processes across enterprises.

Although the basic idea of applying the organizational principles of IT service management (ITSM) to the design of non-IT processes is only a few years old, the ESM market is already recording above-average growth rates. The main driver is once again the corona pandemic, which is prompting large companies in particular to shift the management of business-critical service processes to web portals that can be used regardless of location.

Against this background, the ESM market holds high growth opportunities for both tool providers and consulting firms. This is reported in the new comparative study ISG Provider Lens Enterprise Service Management Germany 2021.

"Functioning ESM platforms solve one of the cardinal problems of many digitization projects. This consists of not being able to access current databases consistently enough. It is at this point in the IT value chain that Enterprise Service Management provides an effective remedy.", says Heiko Henkes, Director and Principal Analyst at Information Services Group (ISG), and explains: "With highly automated end-to-end processes, ESM establishes a versatile design framework to provide employees, partners and customers with sufficient interaction options. And it does so across organizations along the entire value chain. For example, in the areas of purchasing, facility management, customer service, human resources management, and accounting."

Functioning ESM platforms solve one of the cardinal problems of many digitization projects.” –
Heiko Henkes, Principal Analyst at ISG

However, the growing demand is leading to diverging market developments on the part of the various ESM providers. According to ISG, there is a strong increase in consolidation pressure in the software sector. Currently, hardly a day goes by without takeovers and mergers of tool providers.

The goal is to permanently expand the functional reach of the company's own product portfolio. In contrast, the consulting market offers sufficient growth potential for many more companies, ISG continues.

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