The Service Value System is one of the foundational components and the core of ITIL 4. Axelos, the creator of the ITIL framework states “The Service Value System describes how all components and activities of the organisation work together as a system to enable value creation.”
The IITL 4 Service Value System is a combination of elements that pave the way for any organisationto co-create valuable services for customers and stakeholder to achieve their business goals. Due to its loose coupling to other frameworks, methodologies and mindsets, it provides efficiency and effectiveness, while allowing to leverage modern and agile ways of working. The ITIL 4 Service Value System is the result of an evolution that finally arrived at a stage where agility, flexibility and efficiency needed to be delivered.
Opportunity, demand and value
The main inputs to the service value system are demand and opportunity. Demand is the specific requirement or need of a customer for services or products. Opportunities are the ones which exist in the market and indicate the available options or the various possibilities allowing the service provider to add value to all the stakeholders, or focus on their capability to provide services.
As for the outcome of the service value system or value, it is theachievement of the organisation’s objectives and goals, and achieving valuefor the organisation,its customersand other stakeholders.
The apparent benefits the consumers of the services gain and the usefulness of the services are what can be termed as value. To create value on a continuous basis, the service management system has to function as a whole.
Understanding the Service Value System
The Service Value System is a map of the main elements or the capabilities required in order to run a highly efficient, effective, and agile service management organisation.
It defines everything needed to turn opportunities/demand into value as quickly as possible, whether it’s creating new services in the service portfolio or simply getting end users back online when there's an issue. The components of the Service Value System that help to create value are:
The 7 Guiding Principles The guiding principles are crucial to an organisation’s decision making as they ensure there is a shared understanding and common approach to service management across the organisation. Each guiding principle can help to evaluate if a decision or approach is in tune with the fundamentals of the organisations goals and can help to streamline the organisation’sculture.
Governance Governance ensures that the organisation’s actions are aligned with the strategic goals of the sponsor groups or governing bodies. It ensures that value is actually achieved, after making it a target.
The Service Value Chain The Service Value Chain serves as a model for creating, delivering, and improving servicescontinuously. It represents a set of key activities leveraging different practices to form various value streams. These value streams can be adapted by organisations, including those with distributed IT or a centralized IT.
Practices Practices are evolved processes and functions from earlier versions of ITIL. They refer to a set of organisational resources, based on the elements of the four dimensions of service management, designed for achieving an objective.
Continual ImprovementContinual Improvement refers to an ongoing set of organisational activities at all levels which take care of the organisation’s performance always meeting the evolving objectives of its key stakeholders.
Why a Service Value System is crucial
Success cannot be achieved without a system. A cohesive system will help an organisation achieve great heights. The specific goals of all service organisations change over time and only a mature system, that have built-in flexibility, will help achieve these goals. Today, success is not achieved by accident but by design.
Opportunities anddemands are the inputs to the Service Value System that trigger activities within the system to create and output value, either fulfilling a demand or capitalising on an opportunity.
Demands are where customers have a need for something specificbut opportunities are the possibilities. Possibilities for which an organisation creates new products or services, transforms the way work happens, or improves something that already exists. Demands can be handled by the current capabilities of the organisationbut opportunities require innovation and change, and also creates new revenue streams for the organisation, improves the customer experience, makes employees more productive, and even reduces costs or risks.An opportunity can bring in a project, involving business analysis, engagement with multiple stakeholders, and an organisational change management plan to succeed in creating new value.
Irrespective of a project triggered by an opportunity or a demand, the IITL 4 Service Value Systemsupports both, with the end result being value delivered to the customer.
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