4.5 Service value chain

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Summary of Section 4.5: Service Value Chain

Overview

The central element of the ITIL Service Value System (SVS) is the service value chain. This operating model outlines the key activities required to respond to demand and facilitate value realization through the creation and management of products and services.

Key Activities of the Service Value Chain

The service value chain includes six interconnected activities that lead to the creation of products and services, and consequently, to value realization. These activities are:

1. Plan: Ensures a shared understanding of the vision, current status, and improvement direction for all dimensions and products/services across the organization.

   • Inputs: Policies, requirements, constraints, consolidated demands, value chain performance information, knowledge about new/changed products, third-party components.
   • Outputs: Strategic, tactical, operational plans, portfolio decisions, architectures, policies, improvement opportunities, product/service portfolio, contract/agreement requirements.

2. Improve: Ensures continual improvement of products, services, and practices across all value chain activities and the four dimensions of service management.

   • Inputs: Product/service performance information, stakeholder feedback, performance information, improvement opportunities, knowledge about new/changed products, third-party components.
   • Outputs: Improvement initiatives, value chain performance information, improvement status reports, contract/agreement requirements, service performance information.

3. Engage: Provides a good understanding of stakeholder needs, ensures transparency, continual engagement, and good relationships with all stakeholders.

   • Inputs: Product/service portfolio, demand for services/products, service/product requirements, customer requests/feedback, incidents/service requests, user support task information, marketing opportunities, cooperation opportunities, contract/agreement requirements, knowledge about new/changed products, third-party components, product/service performance information, improvement initiatives/status reports.
   • Outputs: Consolidated demands, product/service requirements, user support tasks, improvement opportunities, change/project initiation requests, contracts/agreements with suppliers, knowledge about third-party components, service performance reports.

4. Design and Transition: Ensures products and services continually meet stakeholder expectations for quality, costs, and time to market.

   • Inputs: Portfolio decisions, architectures, policies, product/service requirements, improvement initiatives/status reports, service performance information, service components, knowledge about third-party components, contracts/agreements with suppliers.
   • Outputs: Requirements/specifications for obtain/build, contract/agreement requirements, new/changed products/services, knowledge about new/changed products/services, performance information, improvement opportunities.

5. Obtain/Build: Ensures service components are available when and where needed and meet agreed specifications.

   • Inputs: Architectures, policies, contracts/agreements with suppliers, goods/services from suppliers, requirements/specifications, improvement initiatives/status reports, change/project initiation requests, change requests, knowledge about new/changed products, third-party components.
   • Outputs: Service components for deliver/support, design/transition, knowledge about new/changed service components, contract/agreement requirements, performance information, improvement opportunities.

6. Deliver and Support: Ensures services are delivered and supported according to agreed specifications and stakeholder expectations.

   • Inputs: New/changed products/services, service components, improvement initiatives/status reports, user support tasks, knowledge about new/changed service components, third-party components.
   • Outputs: Services delivered to customers/users, information on user support task completion, product/service performance information, improvement opportunities, contract/agreement requirements, change requests, service performance information.

These activities represent the steps an organization takes in the creation of value. Each activity transforms inputs into outputs and is interconnected, receiving and providing triggers for further action. The value chain activities utilize different combinations of ITIL practices, drawing on internal or third-party resources, processes, skills, and competencies as required.

Common Rules for Using the Service Value Chain

• All interactions with external parties are performed via the Engage activity.
• All new resources are obtained through the Obtain/Build activity.
• Planning at all levels is performed via the Plan activity.
• Improvements at all levels are initiated and managed via the Improve activity.

Value Streams

Organizations create value streams to carry out specific tasks or respond to particular situations by combining activities and practices. Each value stream is designed for a particular scenario and should be subject to continual improvement. Examples of value streams can include resolving user incidents or developing new IT services.

The service value chain is flexible, adaptable to multiple approaches, and can address various stakeholder demands effectively and efficiently.

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