Managing It Demand

IT organizations often struggle with managing the balance between the supply and demand side of IT products and services. IT managers have often been concerned about delivering products and services, faster, better, and cheaper (i.e., supply side) and left behind the crucial aspects of the demand side of the equation. Therefore, the capability to ensure that IT investments are made as effectively as possible has been hindered by the lack of attention and understanding of managing IT demand. To explore and understand this issue, we conducted a research using focus group methodology. The results from our research suggest that IT demand is a developed organizational capability that requires basic tools (e.g., service catalog, chargeback, and project portfolio management) working in concert with five key organizational enablers. The paper discusses the root causes of IT demand, economics of demand management, and identified the five key enablers vital for effective demand management.