Lesson 5 - The Service Value Chain

ITIL® 4 Foundation
Based on AXELOS ITIL® material. Material is reproduced under licence from AXELOS. All rights reserved.
ITIL® is a registered trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.
IT Infrastructure Library® is a registered trade mark of AXELOS Limited used under permission of AXELOS Limited. All rights reserved.
AXELOS® is a registered trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.
The Swirl logo™ is a trade mark of AXELOS Limited, used under the permission of AXELOS Limited. All rights reserved.
The Service Value Chain
Learning Objectives
By the end of this lesson, you will be able to:
Describe the interconnected nature of the service value chain

and how this supports value streams
List the value chain activities
Describe the purpose of each value chain activity
Outline the inputs and outputs of value chain activities

The service value chain is an operating model that outlines the key activities required to
respond to demand.
Figure 4.1 The ITIL service value system
It facilitates value creation through the creation and management of products and services.
Copyright © AXELOS Limited 2019. Used under permission of AXELOS Limited. All rights reserved, Page 37
Service value chain activities represent the steps an organization takes in the creation of value.
Figure 4.2 The ITIL service value chain
Each activity contributes to the value chain by transforming specific inputs into outputs.
Value chain activities use different combinations of ITIL practices to convert inputs into outputs.
Inputs Outputs
ITIL practices

Activity 1: Plan
Activity 1: Plan
Plan value chain activity ensures a shared understanding of the vision, current status, and
improvement direction for all products and services.
Activity 1: Plan
Plan: Input Plan: Output
• Policies, requirements, and constraints • Strategic, tactical, and operational plans

• Consolidated demands and opportunities • Portfolio decisions for design and transition
• Value chain performance information, • Architectures and policies for design and
improvement initiatives, and plans transition
• Improvement status reports • Improvement opportunities for improve
• Knowledge and information about new and • Product and service portfolio for engage
changed products and services • Contract and agreement requirements for
• Knowledge and information about third-party engage
service components
Activity 2: Improve
Activity 2: Improve
Improve value chain activity ensures continual improvement of products, services, and practices
across all value chain activities and the four dimensions of service management.
Activity 2: Improve
Improve: Input Improve: Output
• Product and service performance information • Improvement initiatives and plans for all value
• Stakeholders’ feedback chain activities
• Improvement opportunities • Value chain performance information for plan
• Knowledge and information about new and and the governing body
changed products and services • Improvement status reports for all value chain
• Knowledge and information about third-party activities
service components • Service performance information for design
and transition
Activity 3: Engage
Activity 3: Engage
This activity provides a good understanding of continual engagement, transparency, and promotes
good relationships with all stakeholders.
Activity 3: Engage
Engage: Input
• Product and service portfolio provided by plan

• High-level demand for services and products provided by internal and external customers
• Detailed requirements for services and products provided by customers
• Requests and feedback from customers
• Incidents, service requests, and feedback from users
• Information on the completion of user support tasks from deliver and support
• Market opportunities from current and potential customers
Activity 3: Engage
Engage: Input
• Cooperation opportunities and feedback provided by partners and suppliers

• Contract and agreement requirements from all value chain activities
• Knowledge and information about third-party service components from suppliers and partners
• Knowledge and information about new and changed products and services from design and
transition and obtain or build
• Product and service performance information from deliver and support
• Improvement status reports from improve
• Improvements initiatives and plans from improve
Activity 3: Engage
Engage: Output
• Consolidated demands and opportunities for plan

• Product and service requirements for design and transition
• User support tasks for deliver and support
• Improvement opportunities and stakeholders’ feedback for improve
• Change or project initiation requests for obtain or build
• Contracts and agreements with external and internal suppliers for obtain/build and design and transition
• Knowledge and information about third-party service components for all value chain activities
• Service performance reports for customers
Activity 4: Design and Transition
This activity ensures that products and services continually meet stakeholder expectations of
quality, costs, and time to market.
Design and Transition: Input
• Portfolio decisions provided by plan

• Architectures and policies provided by plan
• Product and service requirements provided by engage
• Improvement initiatives and plans provided by improve
• Service performance information provided by deliver and support and improve
• Service components from obtain or build
• Knowledge and information about third-party service components from engage
• Knowledge and information about new and changed products and services from obtain/build
Design and Transition: Output
• Requirements and specifications for obtain or build

• Contract and agreement requirements for engage
• New and changed products and services for deliver and support
• Knowledge and information about new and changed products and services to all value chain
activities
• Performance information and improvement opportunities for improve
Activity 5: Obtain or Build
This activity ensures that the service components are available and meet the agreed specifications.
Obtain or Build: Input
• Architectures and policies provided by plan

• Contracts and agreements with external and internal suppliers and partners provided by engage
• Goods and services provided by external and internal suppliers and partners
• Requirements and specifications provided by design and transition
• Change or project initiation requests provided by engage
• Change requests provided by deliver and support
• Knowledge and information about new and changed products and services from design and
transition
Obtain or Build: Output
• Service components for deliver and support

• Service components for design and transition
• Knowledge and information about new and changed service components to all value chain
activities
• Performance information and improvement opportunities for improve
Activity 6: Deliver and Support
This activity ensures that services are delivered and supported according to the agreed
specifications and stakeholders’ expectations.
Deliver and Support: Input
• New and changed products and services provided by design and transition
• Contracts and agreements with external and internal suppliers and partners provided by engage
• Service components provided by obtain or build
• User support tasks provided by engage
• Knowledge and information about new and changed service components and services
from design and transition and obtain or build
Deliver and Support: Output
• Services delivered to customers and users

• Information on the completion of user support tasks for engage
• Product and service performance information for engage and improve
• Improvement opportunities for improve
• Change requests for obtain or build
• Service performance information for design and transition
Value Streams
Organizations create value streams to carry out a certain task or to respond to a situation.
Value streams are specific combinations of activities and practices. Each value stream is
designed for a particular scenario.
Value stream A ENGAGE ACTIVITY DELIVER AND SUPPORT ACTIVITY
To engage
Step A1 Step A2 Step A3 Step A4 Step A5
To obtain or build
Value stream B
Step B1 Step B2 Step B3 Step B4
Inputs and outputs should be adjusted when organizations design their value streams.
Key Takeaways
The activities of the service value chain are plan, improve,

engage, design and transition, obtain or build, and deliver and
support.
Plan value chain activity ensures a shared understanding of the

vision, current status, and improvement direction for all four
dimensions and all products and services across the
organization.
Improve value chain activity ensures continual improvement of

products, services, and practices across all value chain activities
and the four dimensions of service management.
Engage value chain activity provides a good understanding of

stakeholder needs, transparency, and continual engagement
and promotes good relationships with all stakeholders.
Key Takeaways
Design and transition value chain activity ensures that products

and services continually meet stakeholder expectations of
quality, costs, and time to market.
Obtain or build value chain activity ensures that service

components are available when and where they are needed,
and meet agreed specifications.
Deliver and support value chain activity ensures that services

are delivered and supported according to agreed specifications
and stakeholders’ expectations.
Value streams are specific combinations of activities and

practices, and each one is designed for a particular scenario.
Knowledge Check
Knowledge
Check
What is a service value chain?
1
a. It is a set of interconnected activities that an organization performs to deliver a valuable

product or service.
b. It is a means by which an organization is directed and controlled.
c. It is a set of organizational resources designed for performing work or accomplishing an

objective.
d. None of the above

Knowledge
Check
What is a service value chain?
1
a. It is a set of interconnected activities that an organization performs to deliver a valuable

product or service.
b. It is a means by which an organization is directed and controlled.
c. It is a set of organizational resources designed for performing work or accomplishing an

objective.
d. None of the above
The correct answer is A
Service value chain is the set of interconnected activities that an organization performs in order to deliver
a valuable product or service.
Knowledge
Check Which of the following activity ensures a shared understanding of the vision, current
2 status, and improvement direction?
a. Plan
b. Improve
c. Engage
d. Obtain or build
Knowledge
Check Which of the following activity ensures a shared understanding of the vision, current
2 status, and improvement direction?
a. Plan
b. Improve
c. Engage
d. Obtain or build
The correct answer is A
The purpose of the plan value chain activity is to ensure a shared understanding of the vision, current status, and
improvement direction for all four dimensions and all products and services across the organization.
Knowledge
Check
Which of the following is a key output of Deliver and support activity?
3
a. Consolidated demands and opportunities
b. New and changed products and services
c. Performance information and improvement opportunities
d. Service performance information

Knowledge
Check
Which of the following is a key output of Deliver and support activity?
3
a. Consolidated demands and opportunities
b. New and changed products and services
c. Performance information and improvement opportunities
d. Service performance information
The correct answer is D
The key output of deliver and support activity includes service performance information for design and transition.

Lesson 5 - The Service Value Chain

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Lesson 5 - The Service Value Chain

Uploaded by

Copyright:

Available Formats

ITIL® 4 Foundation

By the end of this lesson, you will be able to:

Describe the interconnected nature of the service value chain

List the value chain activities

Describe the purpose of each value chain activity

Outline the inputs and outputs of value chain activities

Figure 4.1 The ITIL service value system

Figure 4.2 The ITIL service value chain

Figure 4.2 The ITIL service value chain

Figure 4.2 The ITIL service value chain

Plan: Input Plan: Output

• Policies, requirements, and constraints • Strategic, tactical, and operational plans

Figure 4.2 The ITIL service value chain

Improve: Input Improve: Output

Figure 4.2 The ITIL service value chain

• Product and service portfolio provided by plan

• Cooperation opportunities and feedback provided by partners and suppliers

• Consolidated demands and opportunities for plan

Figure 4.2 The ITIL service value chain

Design and Transition: Input

• Portfolio decisions provided by plan

Design and Transition: Output

• Requirements and specifications for obtain or build

Figure 4.2 The ITIL service value chain

Obtain or Build: Input

• Architectures and policies provided by plan

Obtain or Build: Output

• Service components for deliver and support

Figure 4.2 The ITIL service value chain

Deliver and Support: Input

Deliver and Support: Output

• Services delivered to customers and users

Value stream A ENGAGE ACTIVITY DELIVER AND SUPPORT ACTIVITY

Step B1 Step B2 Step B3 Step B4

The activities of the service value chain are plan, improve,

Plan value chain activity ensures a shared understanding of the

Improve value chain activity ensures continual improvement of

Engage value chain activity provides a good understanding of

Design and transition value chain activity ensures that products

Obtain or build value chain activity ensures that service

Deliver and support value chain activity ensures that services

Value streams are specific combinations of activities and

a. It is a set of interconnected activities that an organization performs to deliver a valuable

b. It is a means by which an organization is directed and controlled.

c. It is a set of organizational resources designed for performing work or accomplishing an

d. None of the above

a. It is a set of interconnected activities that an organization performs to deliver a valuable

b. It is a means by which an organization is directed and controlled.

c. It is a set of organizational resources designed for performing work or accomplishing an

d. None of the above

The correct answer is A

The correct answer is A

a. Consolidated demands and opportunities

b. New and changed products and services

c. Performance information and improvement opportunities

d. Service performance information

a. Consolidated demands and opportunities

b. New and changed products and services

c. Performance information and improvement opportunities

d. Service performance information

The correct answer is D

You might also like