ITIL incident categorization is a critical element in the overall incident management process as the way an incident is categorized becomes a useful future input element for problem management, supplier management and acts as a cross reference point for service asset and configuration management.
Incident logging is the third step in the incident management process. It follows incident logging.
Multi-level categorization is a common practice and is easiest to explain through an example. An incident can be categorized as a Hardware, Server, CPU incident. The greater the granularity of the incident categorization the more beneficial the information for future analysis.