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This IDC Retail Insights Perspective looks at the emerging best practice of creating a service management office (SMO). One of the long-term planning assumptions we have been sharing with clients is that, over the next five years, IT organizations will transition from a project-driven organization that must be aligned with business needs to a service offering–based group that is evaluated on how much the business consumes those services. The state of maturity in retail is relatively low, but some retailers we spoke with are already on the path. One best practice that has emerged is the idea of a service management office as a replacement for the program (or sometimes project) management office (PMO), which makes perfect sense given the planning assumption.