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Service level describes, usually in measurable terms, the services a service provider
furnishes a customer within a given time period. E.g. when used as a metric, service
level measures the percentage of incoming calls that an agent answers live in an
established amount of time.
Internal stakeholders are entities within a business (e.g., employees, managers, the
board of directors, investors).
External stakeholders are entities not within a business itself but who care about or
are affected by its performance (e.g., consumers, regulators, investors, suppliers).
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Definition of Service Value: An objective or subjective benefit
appreciated exclusively by the beneficiary from a service.
Service value means the difference between the original cost
and the net salvage value of utility property.
Availability is the ability of an IT service or configuration item
to perform its agreed function when required
Continuity is the unbroken and consistent existence or
operation of something over time.
Service capacity is the volume that a service can handle while
maintaining standards of quality and performance.
Security refers to the methods, tools and personnel used to
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defend an organization's digital assets. The goal of IT security
is to protect these assets, devices and services from being
disrupted, stolen or exploited by unauthorized users, otherwise
known as threat actors.
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In other words, when we do something for another organization that gives them
something they want or value, we're providing a service. Value to a customer can
change over time and staying connected to your customer base will help you track
that.
In IT service management (ITSM) it might be a reduction in cost or cycle times. It
depends on your customer and their wants/needs at the time. For example, a startup
IT organization must be very agile. However, large organizations are more likely
looking for long-term IT projects with sustainability.
IT professionals do not typically focus on delivering value to customers and that’s
because service providers in general don’t understand what value is – it’s not
quantifiable, it’s not tangible, it’s not definable, it’s not measureable and so it can
frighten them.
Management leader Peter Drucker famously said: “Quality in a product or service is
not what the supplier puts in. It is what the customer gets out and is willing to pay
for.”
To define and understand value we need to look to the customer to know what they
want from the end service or product. The customer knows what they need it to do
– it’s not a case of just creating a website if the website doesn’t facilitate all of the
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customer’s needs.
IT professionals and service providers need to start working closely with customers
and end users to define the value and build long-lasting relationships, something
seldom seen in IT. Understanding where the customer sees value needs to come
from the top down; value is co-created and co-defined by both service provider and
customer to decide the necessary activities and processes. If the value is known by
the senior business managers in the IT/service provider organization it will be
reflected in the services produced by IT professionals.
Value from the customer perspective
This is not to say IT professionals choose not to add value; IT professionals believe
what they do is of value but the problem is it’s from their perspective and not the
customer’s.
All organizations and senior business managers should be focused on what Jan
Carlzon calls “Moments of Truth” – every single point of contact with a customer.
We need to focus less on improving targets, measures and processes and more on
trying to delight our customers at each Moment of Truth. It’s been said before but
I’ll say it again: IT professionals are driven more by the technical side of what they do
and less by the end-to-end service and this is something that needs to change.
Service catalogues tell us which services are providing our customers with the most
value and which are redundant and yet you’ll rarely come across an organization
with an accurate service catalogue. It’s no good focusing on processes unless you
have an understanding of how to create value for the customer and to do that we
need the customer to tell us where the value comes from. The relative value of each
service can then be recorded in the service catalogue and can then be used to
prioritize improvements, tasks and activities.
The services IT provides to customers can provide value in a number of ways,
dependent on the industry. Services can support the production and manufacturing
of products, they can underpin financial services in the banking industry, they can
ensure compliance and safety in the drug and airline industries and they can provide
a corporate image and generate brand and shareholder value with public facing
websites. Knowing your customer, knowing their industry and understanding where
they find value in the services you provide is how you can increase the value you
deliver.
It’s so simple and yet we aren’t doing it. Why? Face-to-face interaction has given way
to technology. Too often we send an email instead of picking up a phone. We take
fifteen minutes to word an email and wait hours, sometimes days, for a reply when
the issue could have been resolved over the phone within minutes. The only way we
can know exactly what a customer defines as value is to ask them and not via email;
not everything they want comes across in an email. It really needs to be a face-toface
discussion with customers, wherever possible. A steering group should be
established that allows senior customer and IT managers to take a step back, take a
corporate view and decide what is needed and prioritize the activities of those
creating and providing the services.
A corporate view from the top with collaboration from the customer, IT and the
business is the answer. Once you’ve got that, all processes and activities can be
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driven based on service importance and value.
There’s room for development in best practice when looking at soft skills and the
more practical, less technical side of IT. ITIL®
touches on service strategy and there is
mention of it in project management best practice too, but there’s not enough
there yet to really drive a change.
Focusing on the value stream
IT practitioners need to begin to focus more on the value stream following the
Moment of Truth – that’s how you manage the point of contact and deliver value to
the customer.
There are five types of value stream/Moments of Truth in IT:
• Customers get in touch when things go wrong. This could be a failed
service or something that isn’t performing right on a laptop or PC –
anything that needs IT involvement. Think about what route the customer
has to follow in your organization when an issue occurs, who they have to
go through and the amount of time it takes for the issue to be resolved. Is
it an efficient service?
• A standard request – for example, a new employee needs a computer and
phone, etc. How quickly can that be fulfilled?
• The business has a new requirement – how easy and effective is it for our
business and customers to register their needs and how accurately are
they captured and delivered?
• A change in strategy or a change in service, possibly even a new service.
How can and should we respond?
• Operational service – every time someone logs on to a service it needs to
be simple. They should be able to find exactly what they are looking for
quickly. For example, a retailer’s website would be pointless if customers
couldn’t find where to pay for their items.
Does the customer walk away from their interaction feeling unsatisfied, not listened
to or confused? If the answer is yes then you’re not delivering value to them. We
should be making this process as simple as possible for the customer, not us and
that’s where value comes from – effective and efficient services that actually deliver
something to the customer, or to their customer.
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Traditional view sees IT Assets in an organization represent the CAPEX (the CAPital
EXpenditures) part of IT Infrastructure. They can be hardware or software.
Hardeware assets may include workstations and tehir components, network
decvices, pronters, smartphones, etc. Software assets may include licenses,
installations, OSs, etc. IT asset management is a set of business practices that
incorporates all IT assets in an organization. It manages the overall life-cycle of assets
by joining financial, inventory, contractual and risk management responsibilities for
strategic decision making. However ITIL extends this definition and adds any
resource or capabilty.
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The service owner
The service owner owns a service. The service owner is usually someone in the IT
provider organisation, and the role provides a point of contact for a given service.
The service owner doesn’t necessarily know everything about the service, but he
does know a man (or woman) who does. Here are some responsibilities of the
service owner role:
• Participates in internal service review meetings
• Represents the service across the organization
• Represents the service in change advisory board meetings
• Is responsible for continual improvement of the service and management
of change in the service
• Understands the service and its components
The process owner
A process owner owns a process. This role is accountable for the process. For
example, if the incident management process doesn’t achieve its aim of restoring
the service to the user, the process owner gets shouted at (hopefully not literally).
The process owner is accountable for the process and is responsible for identifying
improvements to ensure that the process continues to be effective and efficient.
Here are a few responsibilities of the role:
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• Ensuring that the process is performed in accordance with the agreed and
documented process
• Documenting and publicising the process
• Defining and reviewing the measurement of the process using metrics
such as key performance indicators (KPIs)
Every SM process adopted should have a defined process owner.
The process manager
A process owner (see the previous section) is accountable for the process, but may
not get involved in the day-to-day management of the process. This is a separate
role often allocated to a different person: the process manager. A process manager
is responsible for operational management of a process. The process manager’s
responsibilities include planning and coordination of all activities required to carry
out, monitor and report on the process.
Every service management process should have a defined process manager – though
this may, of course, be the same person as the process owner.
The process practitioner
The process practitioner is the role that carries out one or many of the process
activities. Basically, these people are the ones who do the work. However, it’s
important that they have a clear list of responsibilities related to the process that
they get involved in.
Fit for purpose - well equipped or well suited for its designated role or purpose.
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Change-advisory board.
A change-advisory board (CAB) delivers support to a change-management team by
advising on requested changes, assisting in the assessment and prioritization of
changes.
Service Level Agreement
A service-level agreement (SLA) is a commitment between a service provider and a
client. Particular aspects of the service – quality, availability, responsibilities – are
agreed between the service provider and the service user.
Operation Level Agreement
An operational-level agreement (OLA) defines the interdependent relationships in
support of a service-level agreement (SLA). The agreement describes the
responsibilities of each internal support group toward other support groups,
including the process and timeframe for delivery of their services
Single Point of Contact
A point of contact (POC) or single point of contact (SPOC) is a person or a
department serving as the coordinator or focal point of information concerning an
activity or program. A SPOC is used in many cases where information is time-
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sensitive and accuracy is important. For example, they are used in WHOIS databases.
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There are five stages in the ITIL V3 Service Lifecycle:
• Service Strategy,
• Service Design,
• Service Transition,
• Service Operation,
• Continual Service Improvement.
Service Strategy
The Service Strategy phase of the Service Lifecycle provides guidance on how to design,
develop, and implement IT Service Management.
Students will understand how service strategies can be developed to give the business
a distinct advantage in the marketplace. During Service Strategy, an organization will
determine its target markets and how to differentiate itself from its competitors.
The organization’s management team will understand the costs and risks associated with
their Service Portfolios and can efficiently use this information in their operational
decision-making. Practical examples will be used to describe the assessment and planning involved within
the IT departments of small, medium, and large corporations. Having the proper strategies in place can
give the company a proactive and productive approach to their business operations.
Service Design
The Service Design phase of the Service Lifecycle provides guidance on how to design and develop
services and IT Service Management processes that will support the service strategies already
developed. Learning how to design service plans will prepare IT professionals and business leaders to
address customer concerns in the most proficient manner.
Service Transition
The Service Transition phase of the Service Lifecycle teaches IT professionals and their business associates
to manage changes in a productive manner. Service Transition provides guidance on how to efficiently
and effectively transition new and changed services into operations without disrupting or interrupting
other services or processes.
Service Operation
The Service Operation phase of the Service Lifecycle provides guidance on the practical aspects of day-today
business operations. The goal is for the IT department to keep things running smoothly, reliably,
efficiently and cost-effectively. The activities and processes in this phase ensure that services are
delivered to customers at the agreed upon levels with minimal interruptions and disruptions. Service
Operation focuses on providing value to both the customer and the service provider.
Continual Service Improvement
Even if nothing changes in an organization, there is always room for development and improvement in IT
services. Continual assessment is the key to understanding where improvements can be made. ITIL
training can help learners identify where these possibilities for progress are.
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WBS - Work-Breakdown Structure is is a deliverable-oriented breakdown of a project
into smaller components. A work breakdown structure is a key project deliverable
that organizes the team’s work into manageable sections
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Continual - of regular or frequent recurrence; often repeated; very frequent
Continuous - uninterrupted in time; without cessation:
Although usage guides generally advise that continual may be used only to mean
“intermittent” and continuous only to mean “uninterrupted,” the words are used
interchangeably in all kinds of speech and writing with no distinction in meaning:
The president's life is under continual (or continuous) scrutiny. Continuous (or
continual) bursts of laughter punctuated her testimony. The adverbs continually and
continuously are also used interchangeably. To make a clear distinction between
what occurs at short intervals and what proceeds without interruption, writers
sometimes use the contrasting terms intermittent (intermittent losses of power
during the storm) and uninterrupted (uninterrupted reception during the storm) or
similar expressions. Continuous is not interchangeable with continual in the sense of
spatial relationship: a continuous (not continual) series.
CONTINUAL CONTINUO (CON INTERRUPCIONES)
Continual indicates duration that continues over a long period of time, but with
intervals of interruption. Here are some examples:
The continual street repair disrupted traffic for nearly two years.
I've had continual problems with this car ever since I bought it.
I'm sorry - I can't work with these continual interruptions.
In the end, it was the continual drinking that destroyed him.
CONTINUOUS CONTINUO (SIN INTERRUPCIONES)
Continuous indicates duration without interruption. Here are some examples:
The continuous humming of the fluorescent lights gave him a headache.
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My computer makes a continuous low buzzing noise.
A continuous white line (= line without spaces) in the middle of the road means no
overtaking.
The tape ran in a continuous loop, repeating the same songs over and
over.assages.
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Continual Service Improvement is a type of process which utilizes techniques from
quality management so as to learn from prior success and failures and aims
constantly to increase efficiency and effectiveness of IT services and processes.
The goal is to define and manage the steps needed to identify, define, gather
process, analyze, present and implement improvements. The objective of the sevenstep
process is to identify opportunities for improving services, process etc and
reduce the cost of providing services.
ITIL Continual Service Improvement should predominantly focus on maximizing the
effectiveness and also increasing the efficiency of the IT Service Management
Process. Listed below are a few objectives of ITIL Continual Service Improvement:
• To evaluate, analyze, and make necessary recommendations to improve the
existing opportunities in each phase of the ITIL Service Lifecycle such as Service
Strategy, Service Design, Service Transition, and Service Operation.
• Increasing the cost-effectiveness and process efficiency of the IT service.
• To ascertain and implement activities to increase the quality of the IT service and
improve the effectiveness and efficiency of the IT service management process.
• To increase the cost-effectiveness of IT service delivery while maintaining the
same level of customer satisfaction.
• To ensure that a standard and relevant method is used for quality management.
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The Deming cycle-The PDCA cycle
The Deming Cycle (also known as the PDCA cycle) is used as the foundation for
quality improvement activities across various types of enterprises. It is used in
various industries for controlling and measuring results and taking appropriate steps
based on the results to come up with a better output in the later steps.
The PDCA cycle is a four-part lifecycle and thus constitutes the acronym PDCA cycle:
Plan, do, check, and act.
• Plan: The first step of the process involves planning the improvements. A gap
analysis is undertaken and a plan is made to overcome the gap through a series of
improvement steps.
• Do: The second phase refers to the Implementation of improvements. A project is
instigated to close the gaps identified in the previous phase. This phase includes a
series of changes to improve the process.
• Check: This phase is more accurately defined as monitoring, measuring, and
reviewing. The end result of the implemented improvements is associated with
the measures for success identified and approved in the planning phase.
• Act: The identified improvements are entirely implemented in this step.
The PDCA cycle can be utilized to improve any of the ITIL Service Management
processes.
Principles and Basic Concepts of the Seven-Step Improvement Process
Continual Service Improvements should center on increasing efficiency, maximizing
the effectiveness, reducing the cost of service, and underlying IT service
management. And the only way to accomplish the task is to ensure that the
improvement opportunities are identified throughout the service lifecycle.
The service providers operate in a very competitive market and they need to assess
their services against the expectations in the market persistently.
New delivery mechanisms such as cloud computing can increase the efficiency of
the service and need to be considered for implementation.
The service provided must be compared to the present market offerings to ensure
that the service adds actual business value to the clients, so that the service
provider remains competitive.
The services must be regularly reviewed to keep up with the latest technological
advances to ensure that the services they are delivering are the most efficient.
Stages in the Seven-Step Improvement Process
The below mentioned seven steps constitute what is known as a knowledge spiral.
The knowledge gathered from one level becomes the input to the other level. It
moves from operational management to tactical management and finally strategic
management.
Feedback from any stage of the service lifecycle can be used to identify
improvement opportunities for any other stage of the lifecycle.
The stages in the 7 step improvement process are listed below:
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• Identify the approach for improvement: Prior to implementing an improvement
strategy, it’s necessary to understand the necessity for continuous improvement.
We must take into account the final goals we have set for the business and see
how the IT organization can assist in achieving those targets through continuous
improvements. Whilst accomplishing this, consider future and present plans as
well.
• Define what should be measured: A comparison should be made amid what we
can ideally measure and what we can actually measure. Gaps should be identified
and a realistic measurement plan should be incorporated to support the strategy
for improvement.
• Collect the essential data: Data is gathered through persistent monitoring. The
process of monitoring can be done either through manually or technology can be
utilized to the fullest to automate the entire process and simplify it.
• Process the data: Once the data is collected through continuous monitoring, it is
then converted into the form required by the audience. This can be considered as
a conversion of metrics into Key Performance Indicator (KPI) results and change
the available data into information.
• Analyze the information and data: The multiple sources of data are combined to
transform the information into knowledge, which is further analyzed to find the
gaps and their impact on the overall business. The information is further
evaluated considering all the relevant internal and external factors. It also helps to
answer questions regarding something that is good or bad and is it expected and
in line with the targets.
• Proper presentation and utilization of information: The information which is
gathered and analyzed needs to be presented in a proper manner with the right
amount of detail so that the information is comprehensible and provides the
required amount of detail to support informed decision making.
• Implement the improvements: A change implemented with continuous
improvement sets a new baseline for the entire process. The knowledge obtained
should be combined with the previous experience and are used to make informed
decisions and necessary improvements. The improvements which are made must
focus on optimizing and correcting the services, processes, and tools.
To conclude
The 7 step improvement process is a vital process of CSI and thus identifies the
opportunities available for improving services, tools, processes, etc. The process
initiates service measurement, service reporting, and improvement. This helps to
define the service baseline and processes, metrics, KPIs, critical success factors, and
corrective measures are taken to identify and improve the gaps in the IT service
management.
ITIL CSI desires a commitment from the people working throughout the service
lifecycle. It requires enduring attention to monitoring, analyzing, a well thought plan,
and reporting results aiming towards improvement.
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TCO – Total Cost of Ownership
Total cost of ownership (TCO) is a financial estimate intended to help buyers and owners
determine the direct and indirect costs of a product or system. It is a management accounting
concept that can be used in full cost accounting or even ecological economics where it includes
social costs.
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The term ‘best practice’ generally refers to the ‘best possible way of doing
something’. As a concept, it was first raised as long ago as 1919, but it was
popularized in the 1980s through Tom Peters’ books on business management. The
idea behind best practice is that one creates a specification for what is accepted by a
wide community as being the best approach for any given situation. Then, one can
compare actual job performance against these best practices and determine
whether the job performance was lacking in quality somehow. Alternatively, the
specification for best practices may need updating to include lessons learned from
the job performance being graded. Enterprises should not be trying to ‘implement’
any specific best practice, but adapting and adopting it to suit their specific
requirements. In doing this, they may also draw upon other sources of good practice,
such as public standards and frameworks, or the proprietary knowledge of
individuals and other enterprises.
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ITIL as the “dogma” – meaning process for process implementation only instead of
process supporting business
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The ITIL certification scheme provides a modular approach to the ITIL framework,
and is comprised of a series of qualifications focused on different aspects of ITIL best
practice to various degrees of depth and detail.
The tiered structure of the qualification offers candidates flexibility relating to the
different disciplines and areas of ITIL and the ability to focus their studies on key
areas of interest.
There are five certification levels within the scheme:
Foundation
The ITIL Foundation level is the entry level certification which offers you a general
awareness of the key elements, concepts and terminology used in the ITIL service
lifecycle, including the links between lifecycle stages, the processes used and their
contribution to service management practices.
Practitioner
The ITIL Practitioner level is the next stage in the ITIL scheme. It has been developed
to provide a step between Foundation and the Intermediate Level and aims to
improve the ability of individuals to adopt and adapt ITIL in their organizations.
Intermediate
The ITIL Intermediate level certification has a modular structure with each module
providing a different focus on IT Service Management. You can take as few or as
many Intermediate qualifications as you need. The Intermediate modules go into
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more detail than the Foundation level and Practitioner, and provide an industryrecognized
qualification.
Expert
The ITIL Expert level qualification is aimed at those who are interested in
demonstrating knowledge of the ITIL Scheme in its entirety. The certificate is
awarded to candidates who have achieved a range of ITIL certifications and have
attained a well rounded, superior knowledge and skills base in ITIL Best Practices.
Master
To achieve the ITIL Master certification, you must be able to explain and justify how
you have personally selected and applied a range of knowledge, principles, methods
and techniques from ITIL and supporting management techniques, to achieve
desired business outcomes in one or more practical assignments.
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The original ITIL was created in the late 1980s as a framework of best practices for
delivering value to the business through information technology (IT) services.
Throughout the past three decades, the ITIL framework has gone through several
iterations, with ITIL 4, the much-anticipated update to the framework, released in
2019.
ITIL 4 addresses common critiques of previous versions, adds new terminology and
models, and focuses on the concepts of value, cost, and risk. Find out what's new in
this framework, as well as what you and your organization need to know to get
started using it.
What led to this latest update? To understand, let's first examine the history of this
framework.
The first version of ITIL was published in 30 separate volumes and released over a
12-year period beginning in 1989. ITIL Version 2 came out in the year 2000 and
included a reorganization and refinement of the ITIL framework into eight
publications. The ITIL framework leaped forward in 2007, with the newly released
ITIL V3 (also called ITIL 2007 edition) organized around the five stages of the IT
service lifecycle. This framework had a strong emphasis on IT roles and
responsibilities, as well as clearly defined processes and sub-processes for managing
IT services from their initial strategic inception through to continual improvement
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and service termination.
In 2013, AXELOS, a joint venture set up by the UK Government and Capita, was
established to manage manage ITIL and other Office of Government Commerce
(OGC) best practice properties.
Aside from some minor updates in the ITIL 2011 release, the ITIL V3 standard
remained the industry-leading framework for IT service management (ITSM) until
the release of ITIL 4 in February 2019.
ITIL 4 represents a much-needed update to the ITIL framework. While ITIL V3
advanced process-oriented delivery of IT services and strengthened the relationship
between IT services and business value, there were still many criticisms of ITIL V3:
• Too prescriptive and inflexible. Due to its heavy focus on processes and subprocesses,
some IT professionals felt ITIL V3 compelled them to adopt elements
of the framework that might not have been suitable for their unique
circumstances.
• Lack of guiding principles. The organization of processes around a service
lifecycle tells IT organizations what to do without necessarily explaining why or
offering high-level guidance or core principles to follow. As a result, organizations
using ITIL V3 lacked a set of reliable principles that could direct IT decision-making
beyond the prescribed ITIL processes.
• Lack of emphasis on value delivery. ITIL V3's focus on service management
processes meant that it overlooked some of the external factors that impact
value creation, such as effective governance and working methods.
Prior to the release of ITIL 4, Stuart Rance, a long-time ITIL author and IT service
management industry authority, described five key reasons why the ITIL V3 2011
Edition required updating:
1. Excessive focus on process
2. Siloed implementation
3. Insufficient focus on value, outcomes, costs, and risks
4. The need for support for digital transformation
5. The need for compatibility with Agile, Lean, DevOps, and other
management approaches
The update strives to reinforce linkages with business strategy while maintaining
core ITIL elements from previous versions that are valuable. To that end, ITIL 4 has
been redesigned and restructured to address these criticisms and ensure that ITIL
remains the most relevant international framework for IT service management.
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• Too prescriptive and inflexible. Due to its heavy focus on processes and subprocesses,
some IT professionals felt ITIL V3 compelled them to adopt elements
of the framework that might not have been suitable for their unique
circumstances.
• Lack of guiding principles. The organization of processes around a service
lifecycle tells IT organizations what to do without necessarily explaining why or
offering high-level guidance or core principles to follow. As a result, organizations
using ITIL V3 lacked a set of reliable principles that could direct IT decision-making
beyond the prescribed ITIL processes.
• Lack of emphasis on value delivery. ITIL V3's focus on service management
processes meant that it overlooked some of the external factors that impact value
creation, such as effective governance and working methods.
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TIL 4 represents a fundamental reorganization of the ITIL framework with an
increased focus on the concepts of value, cost, and risk. The new framework
includes many of the same components as ITIL V3 while incorporating updated
knowledge and concepts that reflect a more value-oriented focus to IT service
delivery.
The most obvious changes in ITIL 4 are the loss of the ITIL V3 service lifecycle
terminology and imagery, and changes to the elements that comprised it: service
strategy (there’s now a strategy management practice—more on “management
practices” in a minute), service transition (there’s now “Design and transition” in the
service value chain shown below), and service operation (there’s now “Delivery and
support” in the service value chain). The most significant structural update to ITIL is
the organization of the framework around two core components: the ITIL Service
Value System (SVS) and the Four Dimensions Model.
A common criticism of the ITIL V3 framework was that it lacked a set of overarching
principles to inform the design and execution of ITSM processes. ITIL V3 was
sometimes viewed as an overly prescriptive standard because it told IT organizations
what processes to implement and when, but often failed to explain why or how a
process should be managed in a specific way.
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To address this issue, the ITIL 4 framework includes a set of seven guiding principles
that ITIL practitioners can follow as they seek to drive value creation for their IT
organizations. These guiding principles can play an important role in guiding IT
decision-making and help IT managers develop their own strategies and conclusions
in cases where the ITIL framework does not provide explicit guidance. Below, it is
described each of the seven new guiding principles of ITIL 4.
1. Focus on Value - The first guiding principle of ITIL reminds practitioners that their
focus should always be on delivering value to the business, either directly or
indirectly, through the effective management of IT services.
2. Start Where You Are - The second guiding principle of ITIL reminds organizations
not to throw out their existing systems when adopting the ITIL 4 framework. Instead,
organizations are encouraged to preserve capabilities that meet their needs,
improve them when necessary, and develop new ones when required.
3. Progress Iteratively with Feedback - Big changes, even big improvements, can
often lead to big problems that are difficult to measure or resolve. ITIL 4
practitioners are encouraged to improve their processes iteratively, collecting
feedback and measuring success along the way to avoid setbacks. Change takes
time. Slow and steady wins and changes should be measured for success before the
organization builds on them further.
4. Collaborate and Promote Visibility - ITIL 4 practitioners are encouraged to
promote transparency and visibility of IT operations between team members,
stakeholders, and partners. Increased visibility promotes communication and
collaboration between departments, enables project and process owners to collect
valuable feedback and insight from throughout the organization, and helps eliminate
redundancies and information or knowledge silos.
5. Think and Work Holistically - The fifth guiding principle of ITIL 4 encourages
practitioners to assume responsibility for how their work fits into the overall service
value system. No task exists in a vacuum and each action, sub-process, or process
should be conducted with a view to minimizing risks and costs while delivering the
greatest amount of value for the business.
6. Keep It Simple and Practical - Simplicity and practicality are antithetical to the
view that some practitioners have of ITIL as a prescriptive and inflexible framework.
ITIL 4 addresses this criticism by directing its practitioners to simplify and right-size
the use of processes, tools, and resources to match organizational needs. As a side
note, ITIL V3's "processes" are called "practices" in ITIL 4, a change that reflects their
newly emphasized flexibility for the needs of IT organizations.
7. Optimize and Automate - The final guiding principle of ITIL encourages
practitioners to automate and optimize processes wherever possible. Manual
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processes are easily forgotten or overlooked, error-prone by nature, and tedious and
time-consuming. IT organizations should automate anything that they can, reserving
human intervention for processes where it is genuinely necessary.
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The new ITIL Service Value System describes the chain of activities necessary to
convert a business opportunity or demand for a service into business value. The IT
service lifecycle has been refined into a new operational model known as the ITIL
Service Value Chain that acts as the core component of the SVS. These changes
reflect ITIL 4’s new focus on “the co-creation of value.”
The Four Dimensions Model is a new version of the 4P's Model that was
represented in ITIL V3, which included people, products, partners, and processes.
The Four Dimensions Model addresses:
• Organizations and people
• Information and technology products
• Partners and suppliers
• Value streams and processes
IT organizations are encouraged to assess the impact, value, costs, and risks
associated with each of the 4Ps in each component of the service value system.
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As to the “management practices” point above: first, the 26 ITIL V3 processes have
been replaced with ITIL 4 management practices. Some of the V3 processes have
maintained their ITIL V3 name, while others have been renamed, and new processes
have been added. There are now 34 management practices in total—divided into
general management, service management, and technical management categories.
In "ITIL® Foundation, ITIL 4 Edition," a guide put out by AXELOS, these management
practices are defined as: “A set of organizational resources designed for performing
work or accomplishing an objective.” So, more than the processes of old.
Each Practice is described in detail, including description on how the practice
contributes in the SVS. ITIL® no longer describes these as processes, in process steps,
but rather explains how they contribute to value creation, explaining their mission,
etc.
Architecture Management – A complete architecture management practice
should address all architecture domains: business, service, information,
technology, and environment.
Measurement and reporting – Supporting CSI, this practice make sure
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management has data and information to make decisions, based on collected
KPIs.
Organizational change management – Described as separate Practice, this is
a practice focusing on organization itself, affecting behavior, culture, work or
people roles.
Project management – Lists using project management techniques as one of the
important part of the organization.
Risk management – Asks for a Risk management system to be in place, to assure
organized approach to managing risks to the organization. Mentions ISO31k
Workforce and talent management – set of activities focusedon successfully
engaging with the organization’s employees and people resources, including
planning, recruitment, onboarding, learning and development, performance
measurement, and succession planning.
Business analysis – analyses business, so processes, services, etc to achieve
understanding in business need. Cooperates with C(S)I, evaluates and proposes
actions on IT services side to fulfill business needs, making sure IT strategy supports
the Business strategy.
Infrastructure and platform management – Similar to technical management
function in V3, speaks about technology management. Includes SaaS, PaaS and
IaasS, Cloud service models, talking about how needs to be infrastructure managed
to deliver the value.
Software development and management – Simmilar to Applications management in
V3 speaks about applications development and their management through the
lifecycle.
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This system is representative of how all the components and activities of an
organization come together to facilitate value creation through IT-enabled services.
Central to this system is the Service Value Chain. This is an operating model for
delivery of services through six key activities, which can be combined in a variety of
ways to provide a flexible set of value streams.
The six key activities of the Service Value Chain are Plan, Improve, Engage, Design
and Transition, Obtain/Build, and Deliver and Support. Each of these contributes to
value creation by transforming various inputs into specific outputs. These inputs may
be external, or they may come from other activities within the value chain itself.
Each activity is supported by one or more Practices. This combination of Service
Value Chain activities and practices is then transformed into a value stream for
specific tasks, or to respond to situations.
The Service Value Chain has key inputs and outputs for each activity. Inputs can
come from external sources, such as Governance; they also come from other
activities in the Service Value Chain, such as Improve, Engage, and Obtain/Build.
Similarly, outputs can be provided to external consumers, as well as to other
activities within the Service Value Chain.
Plan
The Plan activity ensures understanding of the vision, current status, and
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improvement direction for all four dimensions, as well as products and services
across the organization. This is a very strategic activity.
Improve
The Improve activity’s purpose is the continual improvement of products, services
and practices across all the Service Value Chain activities and the four dimensions of
service management.
Engage
The Engage activity provides understanding of stakeholder needs, transparency, and
good relationships with all stakeholders. This activity takes requirements from
customers and transforms them into design requirements for the Design and
Transition activity.
Design and Transition
Design and Transition ensures that services and products meet stakeholder
expectations, considering quality, cost and time-to-market. The primary focus is to
take the requirements from Engage and provide specifications for Obtain/Build. This
activity also delivers new and changed services and products to the Deliver and
Support activity.
Obtain/Build
The Obtain/Build activity is responsible for ensuring that all service components are
available when and where needed, and that they meet the agreed specifications.
Requirements delivered by Design and Transition are transformed into service
components that are, in turn, provided to the Deliver and Support activity, as well as
to Design and Transition.
Deliver and Support
Deliver and Support delivers services and products to the customer, ensuring that
such delivery meets agreed specifications and the stakeholders’ expectations. This is
where the proverbial rubber meets the road, and where the customer sees and cocreates
value. Its primary inputs are the services and products delivered by Design
and Transition, as well as service components delivered by Obtain/Build.
As one can see, each activity engages in a highly interdependent lifecycle, all leading
to value creation for stakeholders. Individual streams include specific roles and
responsibilities, and these are dependent on the service or product being provided.
As each activity transforms its inputs to specific outputs, new activities take over,
further developing the overall value chain. The Improve activity is the overarching
guide to gradual and continual improvement in all activities and value streams.
The Service Value Chain exists as the core of the ITIL Service Value System, it is
informed and impacted by each of the other aspects of the Service Value System.
Through this interaction and the six key activities of the Service Value Chain, value is
delivered to stakeholders in the form of services and products.
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