1️⃣Chapter 1: Introduction
💮The ITIL SVS
The ITIL SVS (service value system) represents how the various components and activities of the organization work together to facilitate value creation through IT-enabled services.
Core Components of ITIL SVS:
The ITIL service value chain The ITIL guiding principles. To ensure a holistic approach to service management, ITIL 4 outlines four dimensions of service management, from which each component of the SVS should be considered.
The four dimensions are:
• organizations and people
• information and technology
•partners and suppliers
• value streams and processes.
2️⃣Chapter 2: Key Concepts of Service Management
👩🏾💼Service Management
Service Management is a set of specialized organizational capabilities for enabling value for customers in the form of services.
The purpose of an organization is to create value for stakeholders.
Value is the perceived benefits, usefulness, and importance of something.
Organization
An Organization is a person or a group of people that has its own functions with responsibilities, authorities, and relationships to achieve its objectives.
Service Provider
When provisioning services, an organization takes on the role of the Service Provider. The provider can be external to the consumer’s organization, or they can both be part of the same organization.
Service Consumer
When receiving services, an organization takes on the role of the Service Consumer.
Customers define the requirements for a service and takes responsibility for the outcomes of service consumption.
User use the service.
Sponsor is the role that authorizes budget for service consumption.
Example:
CIO and Communications Team as Customers: Analyze mobile communications requirements. Negotiate contract terms with the wireless carrier. Monitor the carrier's performance against agreed standards. Review and assess proposed service arrangements. Approve contract costs post-negotiation. Engage with mobile phone services. Adhere to the terms of the agreed contract.
Stakeholder Value Examples
Value received: Benefits realized, costs and risks optimized. Value received: Consumer funding, business development, image enhancement. Service Provider Employees Value received: Financial and non-financial incentives, career growth, sense of purpose. Value received: Job creation, tax contributions, organizational impact on community development. Value received: Financial and non-financial support from external organizations. Value received: Financial returns such as dividends, assurance of stability. Each stakeholder group derives unique value from their engagement with the organization, highlighting the multifaceted impact of business operations.
Services are a means of enabling value co-creation by facilitating outcomes that customers want to achieve, without the customer having to manage specific costs and risks.
Product is a configuration of an organization’s resources designed to offer value for a consumer.
Service Offering
Essence: A Service Offering is a comprehensive package that details one or more services provided to meet the specific demands of a designated consumer group. Goods: Tangible products included as part of the service. Access to Resources: Availability of tools, facilities, or capabilities necessary for the service. Service Actions: Specific activities or tasks performed to deliver the service. Purpose: The primary aim is to fulfill the requirements and expectations of the target consumer group effectively and efficiently. Customization: Tailored to fit the unique needs of consumers, enhancing satisfaction and usability. Integration: Combines various elements such as goods and actions to provide a holistic solution. Convenience: Streamlines consumer access to a range of resources and capabilities through a single offering. A service offering is designed with the end-user in mind, ensuring that all aspects of the service—from the physical products to the intangible interactions—are orchestrated to deliver value and address the specific needs of the consumer group.
Service Relationships
Service Relationships Explained
Foundation: Service relationships are collaborative partnerships formed between organizations with the objective of co-creating value. Service Providers: Organizations that offer services, bringing expertise, capabilities, or resources to the relationship. Service Consumers: Organizations that utilize these services to fulfill their own business needs or to serve their customers. Dual Nature: Entities often simultaneously embody both roles, acting as providers for some services while consuming others. Synergy: Through the interplay of providing and consuming, both parties contribute to and derive benefits from the service, leading to a synergy that enhances value for each. Dynamic Interaction: The relationship is dynamic, with ongoing negotiations, feedback, and adaptations to service delivery and usage. Shared Goals: Aligning the objectives of both providers and consumers ensures that the service delivers maximum utility and satisfaction. Multiplicity of Services: Diverse Portfolio: Organizations engage in multiple service relationships concurrently, managing a portfolio of services that they provide and consume. Adaptability: Flexibility to switch roles or adjust the scope of services is integral to responding to changing market demands or organizational strategies. Service Relationships are fundamental to the modern business ecosystem, facilitating the flow of services between organizations, enabling them to specialize, innovate, and enhance their offerings in the pursuit of shared success and customer satisfaction.
Value: outcomes, costs, and risks
Output is a tangible or intangible deliverable of an activity.
In the context of wedding photography, an output is the physical album with artfully arranged photographs. Outcome is a result for a stakeholder enabled by one or more outputs.
For wedding photography, the outcome is the intangible benefit of preserving memories and enabling the couple, family, and friends to revisit those memories through the album. Outcomes are often emotional or experiential and are oriented towards the end-user's satisfaction and goals.
Utility and Warranty
Utility:
Definition: It is the measure of how well a product or service meets a specific need. Summary: Utility is essentially 'what the service does' and confirms if a service is 'fit for purpose.' Functional Support: To possess utility, a service must enhance the consumer's performance or alleviate their constraints, and many services are designed to do both. Warranty:
Definition: It is the assurance that a product or service will meet the prescribed requirements. Summary: Warranty is concerned with 'how the service performs' and determines if a service is 'fit for use.' Service Level Alignment: Warranty is often connected to service levels that are designed to meet the needs of service consumers and may be underpinned by a formal agreement or implied through marketing or brand reputation. Availability: The service is accessible when required. Capacity: The service can accommodate the required volume of use. Security: The service provides adequate protection of data and operations. Continuity: The service is reliable and consistent over time. Acceptable Assurance: A service is considered to offer satisfactory warranty when it meets all defined and agreed-upon conditions. Both utility and warranty are integral to a service's value proposition and are used to assess its overall effectiveness and reliability from the consumer's perspective.
A service that is both fit for purpose (utility) and fit for use (warranty) is likely to meet consumer expectations and achieve high levels of customer satisfaction.
Section 2: Key Concepts of Service Management
