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ITIL® 4 Specialist:

Create, Deliver, and Support (CDS)

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.
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Value Streams to Create,
Deliver, and Support
Learning Objectives

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

Define how to use a value stream to design, develop, and


transition new services

Identify how the ITIL practices contribute to a value stream


for a new service

Describe how to use a value stream to provide user support

Define how the ITIL practices contribute to a value stream for


user support
ITIL Value Streams
Introduction to Value Streams

Value streams are simple, but not mere representation of work.

● They can either represent a design or


ideal pattern of activity.

● They can also reflect the actual and


observable patterns of activity.
ITIL Service Value Chain

An operating model for service providers that covers all the key activities required to effectively
manage products and services

Figure 0.2 The ITIL service value chain

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ITIL Service Value Chain

A value chain can:


● Mention one, some, or all value chain
activities, depending on the context
● Repeat value chain activities, depending
on the work in progress

Figure 0.2 The ITIL service value chain

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ITIL Service Value Stream

A sequence of service value chain activities is referred to as an ITIL service value stream.
It is a series of steps an organization undertakes to create and deliver products and services to consumers.

Value streams are simple representations of work.


ITIL Service Value Stream

A value stream is made up of one or more steps. Each step comprises one or more actions that
accomplish a specific objective.

These actions may occur sequentially or in parallel, and they may either be connected to other actions or
independent of each other
ITIL Service Value Stream

The image illustrates the relationship between value chain activities, the value stream, the steps in
a value stream, the actions within a step, and the tasks within an action.

Figure 4.1 Value streams activity hierarchy


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Value Streams and Organizations

An organization can be a single person, a team, an enterprise, or an ecosystem of enterprises working together.

Value streams are defined in the context of a system that is established to create value for the organization, its
customers, and other stakeholders.
Value Streams and Organizations

The overall goals and expectations for a product or service should be described from
end-to-end, that is, from demand to value.

The value stream represents work across different teams, that impacts different stakeholders,
who use different processes, tools and people, and sometimes even different suppliers.
Value Streams and Organizations

Each step in a value stream can be described as a process.

Some steps may represent value streams in a lower-level organization.


Value Streams and Organizations

● The key differences between value streams and


processes relate to their focuses and how they are used.
● Many sets of interrelated activities that transform inputs
into outputs could be considered processes.
● Value streams are focused around the flow of activity
from demand or opportunity to customer value.
● Process taxonomy and management tools and
techniques are applicable to value streams.
Value Streams and Organizations: Example

● Passengers on train journeys are likely to interact with


multiple service providers.
● Some of these service providers are railway companies that:
○ Transport people
○ Manage the stations, sell tickets, ensure security, dispatch
and navigate the trains, etc.

Railway travel is a complex ecosystem with many organizations cooperating and collaborating to
create a seamless and comfortable user journey.
Value Streams and Organizations

Cascading value streams to lower-level value streams or processes allows organizations to:

Focus on value for the higher-level value stream, combining value streams and
processes of participating parties

Progress iteratively with feedback from other organizations and teams


in the value stream
value stream
Collaborate and promote visibility into how work flows across the organizations
and teams

Think and work holistically by understanding how the wider


organization or ecosystem works
Value Stream Considerations
Selecting the Right Perspective

Value stream can either be designed to reflect the aspirations of the service provider or it
can be explored to document the ways work is being done.

Deviations between the design and the observed


behaviors are likely to trigger improvements such as:
● Updating the value stream documentation to reflect
actual work patterns
● Optimizing the workflow by reducing the time taken to
convert demand into value and automating
repeatable work
Start and End Points

A value stream always starts with demand and ends with value being created or restored for
one or more stakeholders.

When documenting the value stream, it is highly important


to maintain an outside-in tone or language by:
● Reflecting business planning milestones and timelines
● Using language relevant to the audience
● Framing outcomes and value from the customer or
user’s point of view
Flexibility

A value stream repeats value chain activities, reflecting the context and the environment in which
work is performed. A value stream can be as flexible as the organization needs it to be.

Example:
● An organization can add another stage during the
work, similar to a waterfall approach, or create iterative
loops between value chain activities.
Granularity

Value streams are a representation of work as viewed at a certain level of granularity.

Example:
● A value stream that has agile software development
activities can exhibit multiple iterations of work,
reflecting the exploratory nature of that approach.
● Alternatively, the value stream can have a higher-level
perspective that allows the work to be represented by
a single step.
Identifying Steps

When deciding what constitutes a separate step in a value stream, and what should be included within an
existing step, it is necessary to consider:

● The level of detail represented in the value stream


● The impact of handoffs between individuals and teams
on the value stream
● The inclusion of multiple value chain activities
Identifying Steps

Inclusion of multiple value chain activities

If a step includes both engage and plan activities, it may be reasonable to split it into two separate steps.

A single step to determine customer A single step to implement a hotfix from vendor
requirements can be split into: website can be split into:
● Working with the customer to define ● Downloading the hotfix from the
their requirements website
● Assessing the customer requirements ● Deploying the hotfix
Step Order

Although streams often start with the engage activity, other activities can also be the first step.

Example:
If an engineer notices an incident raised by a monitoring
tool, the first step will be to begin investigation. It is
unlikely that the engineer will contact potentially impacted
customers.
Mapping to the Service Value Chain

A step of the value stream can be described as mapping the bulk of its activities to one value chain
activity, while the underlying actions and tasks are mapped to other value chain activities.
Mapping to the Service Value Chain: Examples

A step to assess customer requirements can be A step to download hotfix from the vendor website
mapped to the plan value chain activity. This may can be mapped to the obtain or build value chain
have an action or task called refine requirements activity. This may have an action or task called the
with the customer that maps to the engage update workaround that maps to the improve
value chain activity. value chain activity.
Mapping to Practices

The steps, actions, or tasks within a value stream can be mapped to a process or procedure within a
practice, depending on the level of granularity.

A step to develop deployable code may be composed


of actions and tasks that map to:
● Procedures to execute automated tests
● Procedures for running manual tests
Designing a Service Value Stream
Designing a Service Value Stream

Define the use case by describing the demand, the trigger created by the demand, value
stream outcomes, and value.

Document the steps required to traverse the service value chain from demand to value.

Map the steps to the service value chain.

Decompose steps into actions and tasks if necessary.

Identify the practices and associated resources that contribute to the successful completion of
each step.
Designing a Service Value Stream

When a baseline has been established, the value stream can be further explored and optimized by:

Creating simple simulations to test the flow of work

Eliminating work that does not create meaningful outputs, outcomes, or benefits

Shifting work left

Delaying work that can introduce variance in quality, cost, or timeliness

Introducing feedback loops and escalation mechanisms to improve the quality of the
outputs and benefits

Identifying opportunities to automate steps, actions, or tasks that will accelerate the flow of work

Identifying and managing bottlenecks and constraints

Introducing triggerstriggers
Introducing to review and, if and
to review necessary,
improveimprove the stream
the value value stream.
Describing a Step of the Value Stream
Describing a Step of the Value Stream

Questions to be answered while describing a step:

Name of the step • What are we calling the step?


• Can the step avoid acronyms and jargons?

The input triggers • What will cause the step to start, or when will the step start?
• How will the value stream be recognized and classified?

Information • What information is required to create the defined outputs or outcomes?


• When will the information be available?

Practice contributions • What organizational practices contribute to ensure the successful


completion of the step?
Describing a Step of the Value Stream

Questions to be answered while describing a step:

Actions and tasks • What should be done to act on the incoming trigger and achieve the
required output?
• What can be executed in parallel and what would be the prerequisites?

Constraints • What policies does the step have to comply with?


• What resource constraints does the organization face?

Outputs • Why does the step exist?


• What outputs should the step provide?
• What value does the output create for the service provider, its
consumers, or other stakeholders?

Estimated or Target • How long should a unit of work take to complete the step, including time
Lead Time spent waiting in a queue?
Value Stream Description: Template

The service value stream description template provides a summary for the value stream.

Value stream name

Owned by

Description of the value stream and its use case

Demand

Trigger

Outcomes

Value created

Estimated or target lead time

Table 4.1 Service value stream description template


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Value Stream Description: Template

The service value stream description template provides a structure to describe each step of the value stream.

Value stream name


Step number

Step name

Value chain activity Engage


Plan
Improve
Design and transaction
Obtain or Build
Deliver and support

Inputs Triggers and information

Outputs Triggers and information

Desired Outcomes

Estimated or target lead time

Table 4.2 Service value stream description template


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Value Stream Description: Template

Supporting practices
Practice name Description of how the practice contributes to this
step
Roles and responsibilities
Accountable
Responsible
Consulted
Informed

Note: The practice contributions should be described in a holistic way, avoiding technical jargon
(if practicable).

Table 4.2 Service value stream description template


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Value Stream Mapping
Value Stream Mapping

It is a method of visualizing the flow from demand and planning how the flow can be
improved.

• Gains insight into an organization’s workflow


• Includes assessment and planning

The goal is to provide perfect value to the service consumer through a perfect value
creation process with zero waste.
Value Stream Mapping

Value stream mapping helps organizations by:

• Visualizing more than just the single-process level


• Making the sources of waste in each value stream more visible
• Providing a common language for talking about value streams and processes
• Making decisions about the flow apparent
• Tying together Lean concepts and techniques
• Forming the basis of an implementation or improvement plan
• Demonstrating the linkage between the information flow and the material flow
Key Metrics for Analyzing a Value Stream
Metrics for Analyzing a Value Stream

A few important metrics that can be defined for any workflow and activity:

Term Description
The amount of time required to complete a discrete unit of work,
Cycle time converting input(s) into output(s). For example, if it takes five minutes to fill in a new
incident form, the cycle time is five minutes.
The amount of time a discrete unit of work waits in a queue before
Wait time work begins. For example, if an incident ticket waits (on average) four hours before
work on it begins, the wait time is four hours.
The sum of the cycle time and wait time. Lead time represents the
Lead time total time required to complete a discrete unit of work, from when it
enters the process queue to when the process ends.

Process queue The number of discrete units of work waiting to be operated upon by a process.

Work in progress The number of discrete units of work being operated on, but which are not yet
(WIP) completed.

Throughput The rate at which work enters or exits the system.

Table 4.3 Workflow metrics


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Metrics for Analyzing a Value Stream

The image represents the terms originated from Little’s Law.:

Figure 4.2 Process Timing


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Metrics for Analyzing a Value Stream

The metrics originate from Little’s Law. Little’s Law can be represented as

Little’s Law:
Work In Progress = Throughput x Lead Time
OR
Work In Progress = Throughput x (Cycle Time + Wait Time)
Simple Representation of a Value Stream

The image simplistically represents a value stream for a new service at a very high level.

Figure 4.3 Simple representation of a value stream

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Complex Representation of a Value Stream

This diagram represents the same value stream with greater accuracy
and with a significantly higher complexity at a more granular level.

Figure 4.4 Complex representation of a value stream


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Designing a Value Stream using Little’s Law

Little’s Law leads to the following considerations when designing a value stream, step, or action:

It is advisable to minimize the number of times work is transferred between resources


implementing the various steps/actions/tasks, especially if these resources are individuals.

Throughput, especially in the context of external events and triggers, is often not in control of
the service provider.

In simple systems, wait time can be expressed as a function of cycle time.

Depending on the level of granularity and the nature of the work, cycle time can be assumed to
be fixed and predictable.

To create a more predictable cycle time, it may be necessary to limit the work in progress.
Model Value Streams for Creation, Delivery, and Support
Value Stream Models

Two common value stream models that can be found in nearly all organizations:

Development of a new service Restoration of a live service

These value stream models should be adapted to the needs of each organization.
Value Stream Models

Resources in the context of practice contributions include any or all of the four dimensions of service
management:

Organizations and people Information and technology

Partners and suppliers


Value streams and processes
Development of a New Service
Design Considerations

Typical considerations when designing this value stream include:

01 Determine how the work will be managed. 02 Establish the correct level of oversight.

04 Join all of the activities from all of the


03 Establish the correct level of bureaucracy. required practices.

Ensure that the organization has a clear Understand the customer’s journey from
05 understanding of the customer’s intended 06 demand to value and define
goals and expectations. requirements from the customer’s point
of view
The Journey from Demand to Value

The value stream describes the journey from demand in six key steps:

Acknowledge and document service the 02 Decide whether to invest in the new service
01
service requirements (engage) (plan)

03 Design and architect the new service to meet 04 Build, configure, or buy service components
customer requirements (design and transition) (obtain or build)

Deploy service components in preparation for 06 Release new service to customers and users
05
launch (design and transition) (deliver and support)
The Journey from Demand to Value

The image describes the journey from demand in six key steps.

Figure 4.5 Development of a new service


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Demand and Value

This value stream is triggered by a demand to create a new service. It may be originated by:

A service consumer: a sponsor, customer, or user

An external stakeholder other than the service consumer

A staff member of one of the service provider’s business functions

Members of the organization’s governing body


Step 1: Acknowledge and Document the Service Requirements

Any request for a new product or service feature starts by acknowledging and
documenting the demand.

Figure 4.6 Step 1 Engage within the service value chain

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Step 1: Acknowledge and Document the Service Requirements

Practices that commonly contribute to this step include:

Business analysis Portfolio management Relationship management

Service configuration Service level management


Step 2: Decide Whether to Invest in the New Service

When the request is refined and documented in the business case, it might be necessary to clarify the initial cost,
benefit, and risk assessments so that the organization can plan the work.

Figure 4.7 Step 2 Plan within the service value chain

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Step 2: Decide Whether to Invest in the New Service

Practices that commonly contribute to this step include:

Business analysis Infrastructure and Portfolio management


platform management

Problem management Project management Risk management

Service configuration Service design Service desk


management

Service financial Service level Software development


management management and management
Step 3: Design and Architect the New Service to Meet Customer Requirements

When the decision is made to modify the existing service, it will be necessary to review it and modify the
design to accommodate the new features.

Figure 4.8 Step 3 Design and transition within the service value chain

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Step 3: Design and Architect the New Service to Meet Customer Requirements

Practices that commonly contribute to this step include:

Architecture management Service configuration management

Availability management Service continuity management

Business analysis Service design

Capacity and performance management Service level management

Information security management Software development and management

Infrastructure and platform management Supplier management

Project management
Step 4: Obtain or Build within the Service Value Chain

When the design package has been baselined, work to obtain or build service components will begin.

Figure 4.9 Step 4 Obtain or build within the service value chain

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Step 4: Obtain or Build within the Service Value Chain

Practices that commonly contribute to this step include:

Infrastructure and platform


Portfolio management Project management
management

Risk management Service configuration


Release management
management

Software development and


Service validation and testing management Supplier management
Step 5: Deploy Service Components in Preparation for Launch

When service components are built, work to modify the live products and services will begin.

Figure 4.10 Step 5 Design and transition within the service value chain

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Step 5: Deploy Service Components in Preparation for Launch

Practices that commonly contribute to this step include:

Change enablement Deployment Incident management


management

Knowledge Problem management Project management


management

Release management Service configuration Service desk


management

Supplier management
Step 6: Release New Service to Customers and Users

When all of the service components are deployed, the organization is ready to make them
available to end users.

Figure 4.11 Step 6 Deliver and support within the service value chain
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Step 6: Release New Service to Customers and Users

Practices that commonly contribute to this step include:

Incident management

Infrastructure and platform management

Project management

Relationship management

Release management

Service configuration management

Service desk

Software development and management

Supplier management
Restoration of a Live Service
Upgrade and Restore a Live Service

This value stream model examines the typical activities that organizations undertake to support an
existing service.
Design Considerations

Typical considerations when designing this value stream include:

Taking an outside-in approach to understanding the


Identifying stakeholders and what the creation 02
01 impact of incidents and connecting these assessments
or restoration of value means to them.
to descriptions of value for various stakeholders.

Defining first the scope of the value stream and 04 Highlighting activities performed by partners and
03
then defining a single value stream. suppliers.

05 Understanding what (or how) systems should be integrated


and data shared across multiple centers of activities.
Demand and Value

This value stream is triggered by a user who is unable to use a live product or service.

This loss of productivity leads to value leakage, that is, the service consumer is unable to derive
maximum value from the sub-optimal product or service.
The Journey from Demand to Value

This value stream describes seven key steps:

Acknowledge and register the user query Investigate the query, reclassify it as an
01 02 incident, and attempt to fix it (deliver and
(engage)
support)

03 Obtain a fix from the specialist team 04 Deploy the fix (design and transition)
(obtain/build)

05 Verify that the incident has been resolved 06 Request feedback from the user (engage)
(deliver and support)

07 Identify opportunities to improve the


overall system (improve)
The Journey from Demand to Value

This value stream branches at Step two. If the initial attempt to fix the incident is successful, then value is
restored without any further activity.

Figure 4.6 Restoration of a live service

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Step 1: Acknowledge and Register the User Query

The first step in the value stream is to engage with the customer or user to recognize and acknowledge the
demand and to record details about the query.

Figure 4.6 Step 1 engage within a live service value chain

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Step 1: Acknowledge and Register the User Query

Practices that commonly contribute to this step include:

Service catalog management

Service desk
Step 2: Investigate the Query, Reclassify It as an Incident, and Attempt to Fix It

When a query is recorded, a trained support agent or equivalent automation can recognize and recategorize the
query as an incident. Thus, a script or standard procedure is initiated for classification of the record.

Figure 4.6 Step 2 Deliver and support within a live service value chain

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Step 2: Investigate the Query, Reclassify It as an Incident, and Attempt to Fix It

Practices that commonly contribute to this step include:

Incident management Knowledge management Monitoring and event


management

Service configuration Service level


Service desk
management management
Step 3: Obtain a Fix from the Specialist Team

In this step, the incident is escalated to a specialist team because initial attempts to restore
the service were unsuccessful.

Figure 4.6 Step 3 Obtain or build within a live service value chain

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Step 3: Obtain a Fix from the Specialist Team

Practices that commonly contribute to this step include:

Incident management Service financial management

Infrastructure and platform management Service validation and testing

Knowledge management Software development and management

Service configuration management Supplier management

Service desk
Step 4: Deploy the Fix

When the fix has been obtained, tested, and validated, it can be deployed to the user or to a
production environment.

Figure 4.6 Step 4 Design and transition within a live service value chain

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Step 4: Deploy the Fix

Practices that commonly contribute to this step include:

Infrastructure and platform


Deployment management Incident management
management

Service configuration
Knowledge management management Service desk

Software development and


Service financial management management Supplier management
Step 5: Verify That the Incident Has Been Resolved

Once the fix is deployed, the next step is to verify that the incident has been resolved.

Figure 4.6 Step 5 Deliver and support within a live service value chain

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Step 5: Verify That the Incident Has Been Resolved

Practices that commonly contribute to this step include:

Incident management Knowledge Service configuration


management management

Service desk Service level


management
Step 6: Request Feedback from the User

Many organizations ask for feedback from users after incidents have been resolved in order to identify
opportunities to improve the service.

Figure 4.6 Step 6 Engage within a live service value chain

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Step 6: Request Feedback from the User

Practices that commonly contribute to this step include:

Continual improvement

Infrastructure and platform management

Service desk

Software development and management

Supplier management
Step 7: Identify Opportunities to Improve the Overall System

When feedback is collected from all relevant stakeholders, it can be analysed in isolation or in
conjunction with other information such as historical data about the service, the service provider, the
service consumer organization, and external constraints.

Figure 4.6 Step 7 Improve with a live service value chain


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Step 7: Identify Opportunities to Improve the Overall System

Practices that commonly contribute to this step include:

Continual improvement Deployment management Incident management

Infrastructure and platform Knowledge management Monitoring and event


management management

Service configuration
Problem management Risk management
management

Service desk Service financial management Service validation and testing

Software development and


Service level management Supplier management
management
Using Value Streams to Define a Minimum Viable Practice
Minimum Viable Practice Contributions

The value stream design and documentation techniques help the service provider to understand the nature
and flow of work.
Minimum Viable Practice Contributions

The practice contributions can be consolidated using the template:

Practice name

Contribution Purpose (value stream step)

Table 4.4 Minimum viable practice contributions

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Minimum Viable Practice Contributions

The contributions can be consolidated as required by service configuration management, as shown in the table.

Service configuration management practice


Contribution Purpose (step in value stream 1 or 2)
Provides information on currently operational services and
configuration items as well as the skills, tools, and other Build, configure, or buy service components (Step 4 in value
resources to update service configuration records as service stream 1)
components are built
Provides information on currently operational services and Decide whether to invest in the new service (Step 2 in value
associated configuration items stream 1)
Provides information on currently operational services and
configuration items as well as the skills, tools, and other Deploy service components in preparation for launch (Step
resources to update service configuration records as service 5 in value stream 1)
components are built
Provides skills, tools, and other resources to update service
Deploy the fix (Step 4 in value stream 2)
configuration records as the fix is deployed

Table 4.5 Example of minimum viable practice contributions for service configuration management
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Minimum Viable Practice Contributions

Service configuration management practice


Contribution Purpose (step in value stream 1 or 2)
Provides information on currently operational services and Design and architect the new service to meet customer
associated configuration items requirements (Step 3 in value stream 1)
Provides the skills, tools, and other resources needed to
Identify opportunities to improve the overall system (Step 7
identify opportunities to improve the practice and record
in value stream 2)
them in the continual improvement register
Assists the investigation and diagnosis of the incident by Investigate the query, reclassify it as an incident, and attempt
providing information on relevant configuration items to fix it (Step 2 in value stream 2)
Provides information on currently operational services and
Understand and document service requirements
associated configuration items.
Acknowledge and document the service requirements (Step
Provides information on current live services and service
1 in value stream 1)
components to provide context when describing the demand
Provides the skills, tools, and other resources to update Verify that the incident has been resolved (Step 5 in value
service configuration records as the incident is resolved stream 2)

Table 4.5 Example of minimum viable practice contributions for service configuration management
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Knowledge Check
Knowledge
Check ________________ is a series of steps an organization undertakes to create and deliver
1 products and services to consumers.

a. ITIL service value chain

b. Value stream

c. Organization

d. Granularity
Knowledge
Check ________________ is a series of steps an organization undertakes to create and deliver
1 products and services to consumers.

a. ITIL service value chain

b. Value stream

c. Organization

d. Granularity

The correct answer is B

Value stream is a series of steps an organization undertakes to create and deliver products and services to
consumers.
Knowledge
Check When describing a step in a value stream, _______________ are the policies that the steps
2 need to comply with.

a. Information

b. Practice contributions

c. Actions and tasks

d. Constraints
Knowledge
Check When describing a step in a value stream, _______________ are the policies that the steps
2 need to comply with.

a. Information

b. Practice contributions

c. Actions and tasks

d. Constraints

The correct answer is D

When describing a step in a value stream, constraints are the policies that the steps need to comply with.
Knowledge
Check Which of the following provides information on current, retired, and future (planned)
3 services?

a. Business analysis

b. Portfolio management

c. Relationship management

d. Service level management


Knowledge
Check Which of the following provides information on current, retired, and future (planned)
3 services?

a. Business analysis

b. Portfolio management

c. Relationship management

d. Service level management

The correct answer is B

Portfolio management provides information on current, retired, and future (planned) services.
Key Takeaways

Value stream is a series of steps an organization undertakes to


create and deliver products and services to consumers.

Value stream and organization, involves directly linking pairs of


systems and is suitable for simple services with a small number of
integrated systems.

Portfolio management provides information on current,


retired, and future services.

Project management provides administrative and technical


resources to complete the business case assessment.

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