{"id":148104,"date":"2023-02-23T15:56:27","date_gmt":"2023-02-23T18:56:27","guid":{"rendered":"https:\/\/sandbox2.institutopmg.com\/itsm\/the-differences-between-demand-management-and-capacity-management\/"},"modified":"2025-12-16T14:48:43","modified_gmt":"2025-12-16T17:48:43","slug":"the-differences-between-demand-management-and-capacity-management","status":"publish","type":"post","link":"https:\/\/sandbox2.institutopmg.com\/en\/the-differences-between-demand-management-and-capacity-management\/","title":{"rendered":"The differences between Demand Management and Capacity Management"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Dealing with supply and demand is a critical point for any company. In this sense, two processes are vital: Demand Management and Capacity Management.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Both help any company achieve financial balance, without sacrificing quality service that positively impacts the customer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, both processes have specific sections in <a href=\"https:\/\/www.iso.org\/standard\/70636.html\">ISO\/IEC 20000<\/a>, given the value of each.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That is why these two processes are often confused, as they deal with service demand. However, the way Demand Management and Capacity Management handle demand has some differences.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In summary, we can define the function of each as follows: Demand Management comprises the current and future demand of the customer for services, while Capacity Management plans and provides sufficient capacity to meet demand.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I will explain each one of them calmly and explain why both work so closely together.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Navegue por t\u00f3picos de interesse:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/sandbox2.institutopmg.com\/en\/the-differences-between-demand-management-and-capacity-management\/#Demand_Management\" >Demand Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/sandbox2.institutopmg.com\/en\/the-differences-between-demand-management-and-capacity-management\/#Capacity_Management\" >Capacity Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/sandbox2.institutopmg.com\/en\/the-differences-between-demand-management-and-capacity-management\/#Working_together\" >Working together<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Demand_Management\"><\/span><span style=\"font-weight: 400;\">Demand Management<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In the context of <a href=\"https:\/\/itsmhouse.com\/what-is-it-service-management-itsm-and-what-is-its-purpose\/\">Service Management<\/a>, Demand Management determines the current demand and predicts the future demand for a particular service.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, Demand Management monitors and reports on both demand and service consumption, to measure more accurately how sought-after a certain service is.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That is why this process works closely with Capacity Management; it is Capacity Management that will provide what is necessary to meet the demands.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As an example, we can think that it is Demand Management that will define how capital can be distributed. Then, this process seeks to optimize resources and allow the company to improve service delivery.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Therefore, Demand Management observes how the customer behaves and can formulate strategies thinking about business opportunities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Understanding demand helps IT, as often this demand can be minimized with tasks that act on the root cause or in service design.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Capacity_Management\"><\/span><span style=\"font-weight: 400;\">Capacity Management<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If in Demand Management, it is necessary to observe the demand for a certain service and define what will be done from that, Capacity Management will deal with the capacity of the resources that support the services. So, it checks whether it is sufficient to meet the service requirements at any time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then, Capacity Management measures and adjusts this capacity when necessary.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And attention! When I say capacity, I am not referring only to technical capacity (such as the company&#8217;s internet).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I am also talking about human resources, for example: the number of people who are part of a Service Desk; financial: for example, the budget required to update computers; and information capacity: for example, the capacity of the database behind a ticketing system.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Referring to ISO\/IEC 20000, it clarifies the activities of this process. According to the norm, Capacity Management plans capacity to include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Current and predicted capacity based on demand for services;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expected impact on capacity of agreed service level targets, availability and service continuity requirements;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Schedules and limits for changes in service capacity.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">So, in other words, the company needs to provide sufficient capacity to meet agreed capacity and performance requirements.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Working_together\"><\/span><span style=\"font-weight: 400;\">Working together<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Explained the two processes, it is clear how there are some differences between them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, this difference does not change what was mentioned at the beginning of this article! Demand Management and Capacity Management work together. Thus, demands for a certain service are met!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dealing with supply and demand is a critical point for any company. In this sense, two processes are vital: Demand Management and Capacity Management. Both help any company achieve financial balance, without sacrificing quality service that positively impacts the customer. In fact, both processes have specific sections in ISO\/IEC 20000, given the value of each. [&hellip;]<\/p>\n","protected":false},"author":85233,"featured_media":148105,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8044,9436,9433],"tags":[10052,10053,9554,10054,10055,10056,9556,10057,9571,9704,9451,9528,9452,9531],"class_list":["post-148104","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-itil4","category-tutorials","tag-capacidade","tag-capacity","tag-capacity-management","tag-demand","tag-demand-management","tag-demanda","tag-gerenciamento-de-capacidade","tag-gerenciamento-de-demanda-2","tag-gerenciamento-de-servicos-de-ti-2","tag-gsti-2","tag-it-service-management-2","tag-it-services","tag-itsm-2","tag-servicos-de-ti"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Demand Management and Capacity Management - PMG Academy<\/title>\n<meta name=\"description\" content=\"Demand and Capacity Management are two very similar and easily confused processes. 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