What Is an ESM System and Why Your Business Needs One

In any modern company — regardless of its size or industry — employees interact with dozens of internal departments every single day. Someone needs a document from accounting. Someone else is booking vacation time. Another person needs access to a system, a new security pass, a laptop setup, or a contract approved.

These requests, even the simplest ones, flow through HR, accounting, IT, legal, office management, and many other teams. All of them are providing services to one another, often without even thinking about it in those terms.

Yet, the way these services are delivered is often chaotic. Requests come in through messaging apps and email and are tracked in Excel spreadsheets or some basic ticketing system. Some companies might have their own homegrown system, while others are just working out of three different "Inbox" folders. As a result, requests get lost or duplicated, employees don't know who to contact or how to ask for something correctly, and tasks just hang in the air with no clear deadlines or SLAs. The internal teams are overworked, but it still feels like everything is moving too slowly. On top of that, it's often impossible to get a clear, end-to-end analytics of what's happening, draw meaningful conclusions, or make the right management decisions, because pieces of information for the same process are scattered across different systems or aren't even digitized at all.

In business terms, this means slower request processing times, a bloated administration budget due to a "zoo" of disconnected solutions, and a complete lack of process transparency. It's exactly this kind of situation that leads companies to embrace the ESM (Enterprise Service Management) approach.

What is ESM in Simple Terms?

The core idea of ESM is to manage all services through a single portal, with transparent processes, clear routing, and end-to-end analytics.

What does an ESM system do?

• It gives employees and customers a clear, easy-to-use interface for submitting service requests (like a corporate portal, messengers, or AI assistants);
• It provides service catalogs where different departments act as service providers;
• It sends requests directly to the right department based on predefined routes;
• It keeps track of deadlines for completing requests (based on SLAs).
• It helps automate approvals and other routine actions.
• It shows you in real-time which team is overloaded and where a process can be improved;
• It provides a consistent experience for the employee, no matter if they're contacting HR or IT.

On top of that, modern ESM platforms are increasingly moving beyond just internal processes. Many companies are also using their ESM to serve external customers through service portals, digital storefronts, and systematic support for partners and contractors.

So, ESM is a way to organize the delivery of any service: clearly, quickly, and with measurable results. Whether it's inside the company or for external customers, there's practically no difference.

The diagram below shows how ESM brings all of a company's departments together into a single value-creation system. The support functions (IT, HR, finance, procurement, facilities, legal) enable the company's core activities (development, production, marketing, sales, service), which directly create products for customers. The ESM system coordinates the interaction of all these functions through unified processes and service standards.

In the next section, we'll break down the problems that ESM helps solve and explain why it's so hard to develop a digital culture, scale a business, and improve operational efficiency without it.

Why Companies Need an ESM System and What Problems It Solves

Imagine two companies. In the first company, employee requests to various departments are handled through email, corporate chats, and a mix of different feedback forms. Each department has its own way of doing things, request deadlines are fuzzy, tickets regularly get lost, and employees are frustrated by the constant waiting.

In the second company, everything is organized through a single digital platform. An employee selects the service they need from a portal, submits a request, gets a unique ticket number, and has a clear understanding of when it will be completed. The process itself is transparent — there are clear routes, assigned responsibilities, set deadlines, and a notification system. As a result, the departments can focus on their main tasks, not on manually sorting through a flood of emails and phone calls.

Let's take a closer look at the specific business problems that Enterprise Service Management helps solve.

These improvements are especially crucial for growing companies. As the number of employees increases and the organizational structure gets more complex, the problems with inter-departmental communication grow exponentially. An ESM system provides a scalable solution that grows with your business and keeps your processes manageable at any level of complexity.

How an ESM System Works — What It's Made Of and What It Does

At first glance, ESM might just seem like a convenient way to submit requests through a portal. But in reality, it's a technological platform that brings together processes, data, and interactions between departments into a single digital ecosystem.

To understand how an ESM system works, let's look at its key components and mechanisms.

Managing Service Providers

Modern ESM platforms need to support multiple service providers — both internal departments and external partners. Each provider can serve clients through their own service catalogs or participate in delivering complex services together with other departments. To make this work, you need more than just an ITSM system designed for a single service provider; you need a full-fledged ESM platform with the ability to identify service providers and consumers at any level of the organizational structure. This provides end-to-end transparency in service relationships, clear accountability, and the ability to get objective analytics for managing costs and service quality.

A Unified Service Portal — The Entry Point for All Requests

The portal becomes the central interface for interacting with all of the company's service departments. Here, users don't just fill out standard forms; they choose the services they need from a structured catalog.

The interface is designed with the principles of modern digital services in mind: clear navigation by category, a detailed description of each service, an indication of completion times, the ability to attach documents, and fill out specialized fields to clarify the details of a request, as well as tools for escalating critical issues.

The Service Catalog as a Digital Showcase of Capabilities

The service catalog is a structured description of all the services that the company's departments provide. Each service includes detailed information about what it entails, what's required from the requester, the timeframe for completion, and who is responsible.

For each service, Service Level Agreements (SLAs) are established — specific commitments regarding deadlines and quality. This creates clear expectations and allows you to measure the performance of your service processes.

The service provider must also assign service owners — employees who are personally responsible for the quality of delivery and the continuous improvement of the service.

The catalog simplifies work planning for the service providers and eliminates the need for back-and-forth questions, since all the requirements and procedures are described in advance. The service request will contain all the information needed to start working on it right away.

Automated Request Processing and Routing

After a request is submitted, the ESM system analyzes its content and automatically sends it to the appropriate specialists or teams according to pre-set rules. If the process requires approvals, the platform triggers the relevant workflows, taking into account the organizational hierarchy, budget constraints, and other business rules.

The real value of ESM systems shines in their support for end-to-end service processes — integrated services that involve multiple departments on a single platform. For example, the process of onboarding a new employee includes tasks like processing documents in the HR department, creating user accounts in IT systems, issuing a security pass by the security department, and preparing a workstation by the administrative staff. In these cases, a single service request automatically generates linked sub-requests and tasks in all the involved departments (the service providers). The system tracks the overall status of the service and coordinates the work of the different teams. This eliminates the need for endless email chains between departments and provides transparency for complex, cross-functional processes for everyone involved, from the requester to the management.

Monitoring Deadlines and Escalation

Every service request gets a timeframe for completion based on its established SLA. If there are internal agreements between departments, the system also tracks the fulfillment of Operational Level Agreements (OLAs).

The ESM platform automatically monitors compliance with these timeframes, sends reminders to the responsible specialists, and, if necessary, escalates overdue requests to a higher level of management. This ensures a timely response to problems and maintains a high level of service.

A Knowledge Base and Self-Service Tools

Modern ESM platforms integrate a comprehensive knowledge base that includes troubleshooting articles, FAQs, video tutorials, and procedural documentation.

Users can find the information they need on their own without having to create a request to the support team. Many solutions also include AI assistants that can help quickly find relevant materials or even automatically solve simple tasks.

This significantly reduces the workload on support lines and increases user satisfaction by providing instant access to the information they need.

Analytics and Tools for Continuous Improvement

All operations in the system are automatically logged and fed into analytical reports. Managers can track the number of requests by type, the speed of processing, the workload of their specialists, SLA compliance, and other metrics.

The ESM approach allows you to not just process standard service requests, but to truly manage your services: analyze their quality, identify bottlenecks in your processes, and make informed decisions to optimize resources and improve the user experience.

Integration with Corporate Systems

An ESM platform doesn't operate in a vacuum — it integrates with HR systems, accounting platforms, email servers, directory services, contract management systems, and other corporate applications.

This integration allows you to create end-to-end processes that automatically pull the necessary information from related systems and send the results of completed requests back to the appropriate systems of record, so no one has to transfer data by hand.

Flexibility and Adaptability

High-quality ESM solutions are built on Low-code platforms, which are changing the way corporate systems are implemented and developed. Unlike traditional solutions that require lengthy development and bringing in programmers for every single change, a Low-code architecture allows business users to adapt the system to their needs on their own.

• Flexible Configuration. Companies can create their own processes, add new types of services, set up unique workflows, and modify request forms without writing any code. This means that changes to business processes can be rolled out in days, not months, and you don't need a developer to do it. An analyst or even a business user with no special skills can make it happen.
• Scalability. When a company decides to connect new departments to the ESM system, a Low-code platform makes this process much simpler. You don't have to re-design the architecture or rewrite integrations — new services and processes are added using ready-made components and templates.
• Cost-Effectiveness. Development on a Low-code platform requires significantly less time and resources compared to traditional programming. Companies save money on both the initial implementation and on subsequent enhancements and support.
• Eliminating the "Zoo of Systems." A Low-code architecture solves the problem of having a patchwork of different corporate applications by bringing all your data and processes together on a single platform. This simplifies administration and creates opportunities for deep integration between different business processes. The result is a lower total cost of ownership for your IT infrastructure and higher data quality because you've eliminated duplicate information.
• Fast Integrations. When you need to connect a new system as part of automating a process, a Low-code platform allows you to do it as quickly as possible, using ready-made connectors and APIs, without having to bring in developers.

Who Needs an ESM System and What Problems Can It Solve Right Now?

There are three main categories of organizations that most often come to the decision to implement Enterprise Service Management. Let's look at each of them and the typical problems they're trying to solve.

Companies with ITSM Systems That Want to Scale the Approach to Other Departments

Many organizations are already successfully using ITSM solutions to automate their IT processes but run into limitations when they try to apply the same service-oriented approach to other departments.

• Typical problems: Existing ITSM systems often can't effectively separate data for different departments because they were originally designed for a single service provider — the IT department. When they try to connect, say, HR or administrative services, they run into difficulties with managing access rights, setting up separate processes, and maintaining independent service catalogs.
• What they want to solve: They want to create a single service system for all of the company's departments, while still preserving the unique processes of each department. They also want to implement centralized analytics across all service processes and standardize the user experience of interacting with internal services.
• How ESM helps: Modern ESM platforms are architecturally designed to work with multiple service providers. They allow you to create isolated workspaces for different departments, each with its own processes, service catalogs, and access rights, while still giving you the ability to get end-to-end analytics and coordinate cross-departmental processes.

Shared Service Centers Without a Modern Technological Foundation

Shared Service Centers (SSCs) are often created to centralize service functions, but many of them are still running on outdated, homegrown systems or a patchwork of different solutions.

• Typical problems: The lack of a single platform leads to duplicated data, difficulties in routing requests between services, and challenges in building end-to-end analytics. The costs of supporting this technological infrastructure just keep growing.
• What they want to solve: They want to bring all their service processes together on a single technological platform, automate cross-departmental processes, and reduce their operational costs by getting rid of duplicate systems and processes.
• How ESM helps: A single platform allows an SSC to consolidate all its service processes, automate the routing of requests between different services, and create a single interface for service consumers. This significantly increases the center's efficiency and improves the quality of service.

Companies Without Any Systematic Automation of Their Service Processes

A large number of organizations are still managing their internal service processes through email, messengers, and spreadsheets, without any centralized system for tracking and control.

• Typical problems: Lost requests, a lack of control over deadlines, no way to analyze the workload of different departments, low employee satisfaction with the quality of internal services, and a huge amount of time wasted on coordinating between departments.
• What they want to solve: They want to bring order to how they handle internal requests, ensure their service processes are transparent and that they can be monitored, and increase the efficiency of their service departments and the satisfaction of their employees.
• How ESM helps: A comprehensive implementation of the ESM approach allows these companies to fundamentally change their culture of internal service. They get a structured process for submitting and handling requests, a transparent system for prioritization, automated monitoring of fulfillment, and the ability to measure the quality of the services they provide.

What to Look for When Choosing an ESM System

Choosing an ESM system is a strategic decision that will define the efficiency of your company's service processes for years to come. Let's look at the criteria you should pay attention to when evaluating systems.

A High-Quality ITSM Module as the Foundation of ESM

No company today can operate without IT processes, so an ESM system must include a well-balanced set of ITSM processes. It's important to make sure that the system supports not just the basic functions of handling requests, but also full-fledged processes for managing incidents, problems, changes, and configurations.

A critical point: Many ITSM systems are architecturally designed to work with a single service provider — the IT department. When you try to connect other departments, you run into problems with separating data, setting up individual processes, and maintaining independent service catalogs. Make sure that the solution you choose was designed from the ground up to work with multiple service providers.

An ESM Platform with Ready-to-Use Service Management Tools

The ideal scenario is when an ESM system is built on a specialized ESM platform that already contains all the ready-made components for the full cycle of corporate service management. It should include tools for separating service providers at the system level, ready-made service portals, systems for managing SLAs, a CMDB, and knowledge bases.

Integration of Artificial Intelligence Technologies

Modern ESM solutions should include AI technologies for automating routine operations. Pay attention to the availability of tools for automatic text recognition (OCR), AI agents for handling common requests, and intelligent request routing.

The AI components should be integrated at the platform level, not just added on as external modules. This ensures a deeper integration with your business processes and better system performance.

A Low-Code Foundation for Flexibility and Scalability

An ESM system built on a Low-code platform allows for fast integrations with new systems as you automate your processes. When you need to connect additional software or adapt a process to changing business requirements, a Low-code architecture allows you to roll out those changes in days, not months.

A Low-code platform also solves the problem of having a "zoo" of different systems by bringing all your processes and data together in a single environment. This reduces the complexity of administration and the total cost of ownership of your IT infrastructure.

The Ability to Scale and Add New Departments

When you're choosing an ESM system, it's important to see how easily you can add new departments and service providers. A high-quality solution should allow you to create isolated workspaces for different teams without a complex reconfiguration of the entire system.

Each new department should get access to a basic set of service tools — a service catalog, request management, a knowledge base, an approval system — with the ability to configure them to their specific needs.

Readiness for High Loads and Compliance with Requirements

In large organizations, the number of users and business transactions is constantly growing. An ESM system must support horizontal scaling and be able to handle significant loads without a drop in performance.

Meeting local legal requirements — such as data protection laws and industry standards — is critical. The platform is required to provide enterprise-grade security and maintain all necessary certifications.

Who Has Already Implemented ESM: Real-World Company Examples

ESM is no longer just a trend — it's a real tool that helps large organizations solve their specific business problems. Let's look at the experience of two companies that have successfully implemented Enterprise Service Management and have seen measurable results.

Alfa-Leasing: From a Chaos of Requests to a Unified Service Ecosystem

Alfa-Leasing (a top-5 company in its country's leasing company rankings, with over 2,000 employees) was facing the typical problems of a growing organization. Their internal requests were being handled through a system called Redmine, which wasn't designed for service processes. Requests were getting lost between projects, every request had to go through the first line of support (adding at least 15 minutes to its routing), and specialists had up to 100 tasks in their backlog at any given time.

In just 4 months, the company implemented the SimpleOne ESM platform, creating 91 services and 395 request models for all of its departments. The result was even better than they expected: the time to resolve requests was cut by 33%, the number of open tasks per employee dropped from 50-100 to just 5-7, and 55% of all requests now go to non-business departments (HR, marketing, facilities). The marketing department's assessment was particularly telling: the time they spent on managing routine tasks was cut by 40-50%, and over 90% of employees are happy with the quality of internal services.

ESM for All 6,000 Bank Employees

Our client (NDA) became a pioneer in implementing the ESM approach in its country's banking industry. The project to transform their entire service model took a record-breaking 120 working days and involved almost all of the organization's employees — over 6,000 users (90% of the bank's staff).

The bank implemented complex, end-to-end processes: managing bank tariffs with the involvement of product teams, committees, and the legal department; HR processes with integration between HR, security, and IT; and automating the management of operational risks in accordance with central bank requirements. The ESM platform handles customer requests through an integration with their CRM and provides an accurate calculation of SLAs with an error margin of just 0.3%. The system automates the processes of the IT department, HR, facilities, information security, and operational departments.

A Quick Summary of ESM Systems

1. ESM is the evolution of corporate management. Enterprise Service Management is the natural next step from a chaotic way of handling internal requests to a systematic, service-oriented approach. Companies can no longer afford to handle requests through email and messengers — every lost task has a direct impact on their operational efficiency.
2. A systematic approach brings measurable results. The experience of companies like Alfa-Leasing and MTS Bank shows concrete numbers: a 30-50% reduction in request processing times, a jump in employee satisfaction to 90%, and a dramatic decrease in the operational load on service providers.
3. Not all ESM systems are equal. It's critically important to distinguish between full-fledged ESM platforms and just adapted ITSM systems. A high-quality ESM solution should be designed from the ground up to work with multiple service providers and include Low-code tools for quick adaptation to a business's specific needs.
4. ESM solves the problems of scaling. As an organization grows, the complexity of interaction between departments grows exponentially. An ESM system provides a scalable solution that grows with your business and keeps your processes manageable at any level of complexity.
5. The technology must support cultural change. ESM isn't just a technological solution; it's a cultural transformation. The platform should include ready-made tools for automating complex, cross-functional processes and support a shift in internal interaction models.
6. The early adopters gain a competitive advantage. Companies that master the service-oriented approach before their competitors get significant advantages in the speed of their decision-making, the quality of their process execution, and their ability to adapt to market changes. ESM is becoming a key factor for competitiveness in the age of digital transformation.