Why Enterprise Service Management is becoming a strategic management function

From an IT issue to a question for senior management 

Market analysts clearly see ESM on its way into the boardroom: By the end of 2026, the market for ESM software is expected to reach a volume of around 50 billion US dollars, whilst the associated services and consultancy business will exceed 150 billion US dollars – with annual growth rates of up to 15 per cent. 

The real driver, however, lies deeper: “Many companies have made great technological strides – yet organisationally, they are still operating according to old patterns,” says Staffan Hasselrot, Strategic Development Cross Market Services at Materna, describing the current situation. 

Despite the adoption of the cloud, SaaS platforms and increasing automation, enterprise service management processes remain fragmented in many organisations. Various portals, separate processes and silos that have formed over time prevent seamless end-to-end workflows. The result is increasing complexity, high operating costs and limited capacity for innovation. At the same time, pressure from regulatory authorities is mounting.  

Enterprise Service Management therefore ultimately determines a company’s ability to implement change in a predictable manner – quickly and with acceptable operational and regulatory risks. 

Why traditional approaches are reaching their limits 

Even though IT landscapes have been modernised, workflows and processes within organisations have often remained unchanged. Enterprise Service Management is still organised more along lines of responsibility than along business processes. “The real problem is not the technology, but the way in which processes are organised within Enterprise Service Management,” says Hasselrot. 

This leads to inefficiencies precisely where companies need speed: in cross-departmental end-to-end processes. 

AI exacerbates the problem – and brings it to light 

The hype surrounding artificial intelligence is further exacerbating the situation. Whilst companies are investing heavily, the expected benefits often fail to materialise. One reason for this is that AI is currently mostly used within individual systems rather than across multiple systems. 

“AI is currently fragmented within companies,” 

explains Hasselrot. 

“The tools offer functionality within their silos, but business processes span multiple functions.” 

Added to this is a second key problem: data quality and governance. 

“You can’t simply buy AI and expect it to solve problems,” 

says Hasselrot. 

“It only works on the basis of clean data, clear processes and integrated systems.” 

Without these foundations, AI remains reactive rather than transformative – it optimises sub-processes, but not end-to-end value creation. 

Ohne diese Grundlagen bleibt KI reaktiv statt transformativ – sie optimiert Teilprozesse, aber nicht die durchgängige Wertschöpfung. 

ESM as the enterprise’s integration layer 

Against this backdrop, the role of Enterprise Service Management is undergoing a fundamental shift. ESM is becoming increasingly important as the connecting layer between IT and the organisation’s business performance. 

“The building blocks are in place – but they are not designed as a complete system,” 

says Hasselrot. 

ESM is no longer just an operational platform – it is an architectural layer that connects workflows, data processing, automation and governance across the entire organisation. In this model, AI is not an add-on, but a crucial integrated component. 

“Today, Enterprise Service Management must be capable of managing data, processes and workflows across the entire organisation in order to remain competitive,” 

explains Hasselrot. 

“AI is not an additional layer – it must be embedded in the architecture from the outset.” 

From interconnectivity to scalability: what modern ESM must deliver 

This development is also fundamentally changing expectations of service management. It is no longer just a matter of making existing processes more efficient – but of creating a sustainable operating model for the entire organisation. 

1) Integration rather than fragmentation 

Many of today’s problems arise from a confusing tool landscape and isolated service structures. Modern ESM tackles precisely this problem: it connects fragmented processes and data to form a unified service ecosystem. 

This means standardised workflows and shared data across IT and business functions, thereby laying the foundations for transparency, control and scalability. 

2) Automation as the foundation for predictable service management 

At the same time, operational logic is changing. The trend is moving away from reactive ticket handling towards predictable, standardised processes. Automation and AI deliver their greatest benefits where they reduce manual, repetitive tasks: in self-service, in the intelligent classification of requests, or in the proactive identification of problems. 

The aim is not merely speed, but predictable service quality: repeatable results, reliable compliance and a consistent user experience. Automation strengthens processes; it does not replace them. 

3) Trust as a new system requirement 

At the same time, a third aspect is becoming increasingly important: trust. Service processes handle sensitive corporate and personal data. Meanwhile, regulatory requirements are increasing – for example, regarding data locations, the traceability of decisions and the use of AI. 

As a result, trust is becoming a systemic characteristic. It is not created retrospectively through control mechanisms, but is integrated directly into the processes: through governance structures, ‘compliance by design’ and clear guidelines for the use of AI. 

The greatest leverage does not lie in IT 

The economic impact of this transformation is often underestimated. 

“Over 70 per cent of the savings are not generated in IT, but in day-to-day operations,”

 says Hasselrot. 

The reason for this is simple: if Enterprise Service Management isn’t working, work comes to a standstill – regardless of whether IT is operating efficiently or not. Productivity only arises where processes function seamlessly across organisational boundaries. 

From tool-based thinking to platform logic 

Many companies already have powerful ESM platforms – but only use them in specific areas. 

“Most companies today have an enterprise-grade platform, but continue to use it as an isolated solution,” 

explains Hasselrot. This brings a paradigm shift into focus: moving away from a ‘best-of-breed’ approach towards integrated platform ecosystems. 

The aim is clear: fewer systems, greater integration, improved controllability – and a unified data and process logic as the foundation for automation and AI. 

Materna: From technology partner to implementation partner 

Such a transformation requires more than just technical decisions. 

“No company can manage this transformation on its own,” 

says Hasselrot. 

“It requires partners who understand how technology, processes and operating models interact – and who can support the transformation at an operational level.” 

This is precisely where Materna positions itself: not as a tool provider, but as a results-oriented strategic partner. With in-depth ESM expertise and decades of experience, Materna helps companies reduce complexity, safeguard strategic investments and translate Enterprise Service Management into measurable business results. “ESM is no longer a question of technology,” summarises Hasselrot. “It’s a question of business results.” 

Service is becoming a strategic management task 

ESM therefore marks not a technological trend, but a structural shift within organisations. Service management is becoming a controllable variable – and thus a direct lever for efficiency, quality and growth. 

For senior management, the implication is clear: service is no longer just an IT discipline. The crucial question is no longer how well a ticketing system works, but how effectively a company can combine execution and automation and manage the end-to-end experience in an increasingly complex world.