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Lesson 3 - Value Streams To Create, Deliver, and Support Services
Lesson 3 - Value Streams To Create, Deliver, and Support Services
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Value Streams to Create,
Deliver, and Support
Learning Objectives
An operating model for service providers that covers all the key activities required to effectively
manage products and services
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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.
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.
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
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
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.
A value stream always starts with demand and ends with value being created or restored for
one or more stakeholders.
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
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:
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.
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.
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:
Eliminating work that does not create meaningful outputs, outcomes, or benefits
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
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
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?
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?
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.
Owned by
Demand
Trigger
Outcomes
Value created
The service value stream description template provides a structure to describe each step of the value stream.
Step name
Desired Outcomes
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).
It is a method of visualizing the flow from demand and planning how the flow can be
improved.
The goal is to provide perfect value to the service consumer through a perfect value
creation process with zero waste.
Value Stream Mapping
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.
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.
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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.
Little’s Law leads to the following considerations when designing a value stream, step, or action:
Throughput, especially in the context of external events and triggers, is often not in control of
the service provider.
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:
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:
01 Determine how the work will be managed. 02 Establish the correct level of oversight.
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.
This value stream is triggered by a demand to create a new service. It may be originated by:
Any request for a new product or service feature starts by acknowledging and
documenting the demand.
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Step 1: Acknowledge and Document the Service Requirements
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.
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Step 2: Decide Whether to Invest in the New Service
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
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
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
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
Incident management
Project management
Relationship management
Release management
Service desk
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
Defining first the scope of the value stream and 04 Highlighting activities performed by partners and
03
then defining a single value stream. suppliers.
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
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)
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.
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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.
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Step 1: Acknowledge and Register the User Query
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
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
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
Service configuration
Knowledge management management Service desk
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
Many organizations ask for feedback from users after incidents have been resolved in order to identify
opportunities to improve the service.
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Step 6: Request Feedback from the User
Continual improvement
Service desk
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.
Service configuration
Problem management Risk management
management
The value stream design and documentation techniques help the service provider to understand the nature
and flow of work.
Minimum Viable Practice Contributions
Practice name
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Minimum Viable Practice Contributions
The contributions can be consolidated as required by service configuration management, as shown in the table.
Table 4.5 Example of minimum viable practice contributions for service configuration management
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Minimum Viable Practice Contributions
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.
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.
b. Value stream
c. Organization
d. Granularity
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
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
d. Constraints
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
a. Business analysis
b. Portfolio management
c. Relationship management
Portfolio management provides information on current, retired, and future (planned) services.
Key Takeaways