What is Incident Management in IT and Why does it matter?

July 30th, 2021

Incident management is the process of identifying and resolving problems that occur in IT services. Incident Management is also used as a metric to measure the health of the IT Service Desk. Let’s discuss what incident management is, why it matters to your business, and how you can apply it to your organization.

What is Incident Management

Incident management aims to manage the lifecycle of all incidents in IT services. Incident Management (or IM) is a process that is used with or without ITIL, which, if done right, can help managers identify and resolve problems as they happen instead of when they’re too late. For IM to work effectively, it needs a system that identifies when incidents are reported and implements a solution. Incident Management aims to fix problems and make sure the same problem doesn’t happen again. 

Types of Incidents in IT

Some of the common types of incidents where incident management is helpful are:

  • IT Support Incidents
  • Network Incidents 
  • System Development Life Cycle(SDLC) incidents
  • Event Alert Incident

Incident management can be used for any tasks involving specific procedures that need to be followed. 

Five Essential Steps of Incident Management Process:

Incident Management Process
Five Essential Steps of Incident Management Process
  • Incident tracking and notification
    The incidents are tracked and logged based on what is causing the incident and how incidents can be resolved. It can then be notified to the concerned team via relevant channels such as Slack, Teams, or Email.
  • Creating policies and diagnosis
    Develop policies for when to make exceptions to the process or create exceptions to solve an incident.
  • Incident recovery
    This step involves the IT personnel responding to incidents and ensuring they know what needs to be done. It is also essential to find the root cause of the incidents and make sure that the incidents do not occur again.
  • Incident resolution and closure
    The final step is to ensure that the incident is resolved and the systems are fully functional again. Here we close the incident, document the events, submit a report to build transparency, and review the procedures followed during the incident management.

A Case Study on how a Large Retail Company in the US gains major time savings with Automated Incident Resolution


The client is a large retail company based in the US. They recently expanded their market by acquiring regional brands with their physical stores and introducing their own e-commerce offerings.

With increasing downtime frequency and duration from their e-commerce and POS systems, the management was also concerned about the impact on customer experience and revenue.

Before implementing the Automated Incident Resolution, the company was facing an increase in key incident management metrics like MTTR & MTTD. After implementing the Automated Incident Resolution, there has been a significant improvement in the key metrics like MTTR & MTTD. 

Implementing a Successful Strategy for Incident management

Companies need to have an incident management strategy in place because it will take time and effort. Proper communication between employees and other departments will help prevent big problems by being notified of incidents as soon as they happen. Ideally, this will include all of the employees and IT teams dealing with incidents in real-time. This could also involve communicating with vendors and partners about any issues that have come up. 

Thoughts on the Future of ITSM with regards to Incident management

The future of incident management is promising. In these highly dynamic and digital environments, both customer and internal demands are constantly changing, and incident management will need to evolve with the needs of the time to keep pace. As the industry matures and technology develops, it becomes easier to deploy processes that are managed through an automated incident management platform. This will allow for a quicker resolution, and simple incidents will be swiftly resolved, while more complicated or longer-term issues that require outside expertise will be handled efficiently.

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