The Service Value Chain lies at the heart of the ITIL SVS. The service value chain is a business paradigm for developing, delivering, and improving IT services. It defines the key activities needed to produce value in response to demand, such as product development and delivery.
ITIL 4 is a digital operating model that allows businesses to co-create meaningful value from IT-supported products and services.
ITIL 4 expands on decades of progress by adapting traditional ITSM techniques to the broader context of customer experience, value streams, and digital transformation. ITIL 4 encourages more alignment with emerging working methods, such as Lean, Agile, and DevOps, to co-create business value.
A service is defined in ITIL 4 as:
"A method of enabling value co-creation by supporting desired outcomes without requiring the client to manage specific expenses and risks."
ITIL 4 can assist you in:
Encourage a comprehensive, systems-thinking approach to value co-creation to break down silos.
To further your digital career and set yourself apart from your peers, learn the common language of IT-enabled service delivery.
Recognize how IT influences strategy and how professionals can apply the four service management elements to a larger business environment.
Work with adaptable systems and processes that can adjust to changing circumstances.
Develop effective and timely communications with stakeholders and build trusting relationships with them.
Use the guiding principles to handle change, streamline work, and promote flexible and collaborative working habits.
Outcomes Service outputs and service outcomes are not the same things. An outcome is a result made possible by a service's outputs. A photo album, for example, maybe an output of a wedding photography service, but the outcome is the happy memories created when gazing at the album. |
Value "The perceived benefits, usefulness, and importance of something," says ITIL 4. It is critical to recognize that value is relative. We can only know how valuable our services are to our clients if we know how they view them. |
The ITIL service value chain identifies six core activities that can be coupled in various ways to create numerous value streams. To address the need for multiple service management models, the service value chain is flexible enough to be adapted to numerous techniques, including DevOps and centralized IT. The value chain's elasticity allows firms to respond to changing stakeholder demands most effectively and efficiently.
Although the Service Value Chain appears complex, it is simply an operational model at the heart of the Service Value System. It is responsible for providing users with a new method to view and control services. It essentially pushes firms to divide all activities into two categories: the desire for action and the value that action may generate.
The Service Value System can be regarded as the ITIL 4's "big picture architecture," conceived and built to help service companies select a more holistic approach to service management.
To ensure that you have been enabled to deliver your business, there are four necessary components:
Service Value Chain
7 Guiding Principles of ITIL
ITIL 4 Practices
Continual Improvement
Because the majority of the elements are interrelated, they are crucial. Nothing in ITIL 4 exists in isolation. An operational model will quickly lose alignment with what your company requires without governance. Without practice, an operating model will not work. It won't get better unless you keep improving. Without appropriate guiding principles, it is unlikely to improve correctly.
Each activity contributes to the value chain by converting specific inputs into outputs. The transformation is assisted by ITIL practices, which are implemented utilizing internal or third-party resources, processes, skills, and competencies. The information could be demands outside the value chain or outputs from other activities.
The service value chain has six activities in ITIL that describe the processes an organization takes to create value:
Plan - Any planning at any level
Engage - All interactions with persons outside the service value chain (workers, customers, management, partners/suppliers, etc.).
Design And Transition - Analysis of the business and the development of new and improved services
Obtain/Build - This is how any new resource is brought into the value chain.
Deliver and Support - Providing services as well as assistance and information.
Improve - Enhancements on all levels
Let's take a closer look at each activity, paying particular attention to the purpose, inputs, and outcomes. Because each value stream comprises a unique set of activities and practices, the inputs and outputs listed may not always apply because they are unique to each value stream. The lists of inputs and outputs provided are not exhaustive, and they can and should be tweaked as value streams are designed.
Plan
Purpose | Ensure that all four dimensions, as well as all products and services, have a shared understanding of the goal, current state, and improvement direction across the firm. |
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Engage
Purpose | To gain a thorough grasp of stakeholder demands, preserve transparency, and maintain ongoing involvement and positive relationships with all stakeholders. |
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Design and Transition
Purpose | To ensure that products and services continue to fulfil stakeholder quality, cost, and time-to-market expectations. |
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Obtain/Build
Purpose | Ensure that service components are available when and when required and that they conform to agreed-upon specifications. |
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Deliver and Support
Purpose | To ensure that services are supplied and supported in accordance with agreed-upon specifications and expectations from stakeholders. |
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Improve
Purpose | To ensure that products, services, and procedures are continuously improved throughout all value chain activities and the four dimensions of service management. |
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Service Value Chain (SVC) Activities
The SVC activities operating together in unison establish the service value stream. Each SVC action makes a unique contribution and complements the others in the service value chain. They define a specific set of activities, procedures, practices, and various resources. Each activity has a bunch of objectives that are aligned with value stream enablement. All of the activities have their own set of inputs and outputs.
For example, the value chain activity "engage" might draw on practices such as service relationship management, service desk management, service request management, and (or) supplier management, among others, to respond to varying demands for services and products, which would aid in making the best decisions by gathering the necessary data from various stakeholders.
The ITIL 4 certification system can meet individual and organizational learning needs. It employs a modular, tiered approach to allow you to establish a complete picture of service management or to concentrate on particular areas of expertise.
The ITIL certification program will educate you to manage services and products in today's business climate and empower your staff to add value and level up in the fast-paced global and digital economy.
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