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PESTLE Model In ITIL 4: The Basics About External Environment Influence



In my previous article, I have looked at some of the facts that you need to know about service provisioning in ITIL 4. In this article, I want to talk about the impact of PESTLE Model on ITIL 4. Follow me as we look at this together in this article. Before I start, note that PESTLE means Political, Economic, Social  Technological, Legal and Environmental impact on IT projects.



#1 Political

One of the factors that can affect service management is the political atmosphere in the country.


I was listening to an Economic Analyst on TVC talking about #ENDSARS protest. He was trying to condemn the looting of a palliative warehouse which he said will have negative effects on Foreign Direct Investment in Nigeria. many agreed, that the unrest will have a negative impact on business climate, most especially in Lagos.



Another factor is government policy. The policy of the government will determine the type of businesses that will be attracted to the country.


Most government around the world now talks about Ease of Doing Business. The government at times can discourage some type of business in order to grow the local industries.



Another aspect of the PESTLE Model that can affect businesses is corruption. When the system is corrupt there will be favouritism and nepotism.


It will also increase the cost of doing business in the country. This will have a negative impact on the business climate in the country.



So also, the labour laws in the country will also affect the business climate and service management in the country.


In a situation where an organisation can behave arbitrarily without the government putting a check on them, we will see that there will be a breakdown of law and order in the service sector.



The foreign policy thrust of the government will also affect service management.


They may discourage foreign investors in order to grow certain industries. This might lead to a situation where mediocrity is encouraged.



#2 Economic

One of the factors that can affect the service management practices of the country is the economic growth of the country.


This will determine the type of services that can be rendered in the country. To a large extent, it will determine what the citizens of the country can afford.



Coupled with economic growth, we have issues such as the inflation rate, unemployment rate as well as the general economic atmosphere of the country.



In terms of the social aspect of the PESTLE model, we have to look at the population growth rates.


This talks about the percentage of youth to adults and children in the population.


That will help us to know how many of them are working class. We also look at age distribution, career attitude, safety emphasis, health consciousness, lifestyle attitude as well as cultural barriers among others.



#4 Technology

Technology also has a bigger role when it comes to service management. The rate at which technology is being adopted when it comes to service delivery will also determine the reaction from service consumers.



Based on this, we have to look at areas such as technology incentives, level of innovation, automation, research and development activities, and technological change as well as the overall technological awareness of the citizenry.



#5 Environmental

The environmental aspect of the PESTLE model also covers some of the ways that environmental conditions can affect service management.


It covers areas such as weather climate, Environmental policies, climate change and pressure from NGOs among others.



#6 Legal

The legal aspect of the PESTLE model is also very crucial. It covers laws such as Discrimination laws, Antitrust laws, employment laws, consumer protection laws, copyright, and patent laws as well as health and safety laws.



All of this can affect service management for organizations.


Action Point

PS: I know you might agree with some of the points that I have raised in this article. You might not agree with some of the issues raised. Let me know your views about the topic discussed. We will appreciate it if you could drop your comment. Thanks in anticipation.

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