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ITIL® 4 and IT Service Management
- Introduction
Christian F. Nissen, CFN Consult
RESILIATM, ITIL®, PRINCE2® MSP®, MoP® and MoV® are Registered Trade Marks of AXELOS in the United Kingdom and other countries
COBIT® is a registered trademark of the Information Systems Audit and Control Association (ISACA) and the IT Governance Institute (ITGI)
TOGAFTM and IT4ITTM are trademarks of The Open Group
SIAM® is a registered trademark of EXIN
© 2019 of CFN Consult unless otherwise stated
2
Agenda
1. Service management
2. ITIL and the Service value system
3. ITIL Guiding principles
4. ITIL Service value chain
5. ITIL Four dimensions
6. ITIL Practices
7. ITIL Continual improvement
8. ITIL Certification scheme
9. What’s in it for me?
Agenda
© 2019
3
Assignment
 Group 1: Give a
definition of “Service”.
Give examples of hotel
services based on
your definition
 Group 2: Give
examples of hotel
services. Use the
examples to make a
definition of “Service”
 Time: 10 minutes
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44
Service
Examples:
 An overnight stay
 A meal at the restaurant
 Wireless internet access
Service Science: Service is
the application of resources
(including competences,
skills, and knowledge) to
make changes that have
value for another
ITIL: Service is 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
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Goods and services
5
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Goods Services
Ownership Access
Added value Value co-creation
Feature Utility
Manufacture Co-create
Storable Inseparability
Maintenance Convenience
Risk transfer Risk share
Examples Goods Services
Accommodation House Hotel
Catering Food Restaurant
Transportation Car Train
Sailing Boat Ferry
Music Music CD Music streaming
Literature Book e-Book streaming
Movie Blu-Ray Disc Movie streaming
Information management Application Cloud service
Products, goods and services
6
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© 2019
Goods Services
Products
House Rented apartment / Airbnb Hotel
Food Take-away / Instacart Restaurant
Car Leased car / DriveNow Train
Boat Leased boat Ferry
Music CD iTunes Music streaming
Book eBook e-Book streaming
DVD iTunes Movie streaming
In-house Outsourcing Cloud service
77
Two very different perspectives on Service
Added value:
 A service is an added
value to a good or a
solution
 Examples:
 Service Desk
 After sales services
All included:
 A service includes
the product or
solution
 Examples:
 Payroll service
 Workplace
service
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8
Examples
Services ”Non-services”
Electronic mail communication Laptop
Office Automation MS Office
Electronic payroll management
The Problem Management
process
Web hotel hosting services Service Hours
Back-up service Project resources
Software as a Service A firewall
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Identification of services – service lines
Data Center Services
Integration Services
Server Hosting Services
Storage Services
Backup Services
Network Services
Database Services
Print services
Application Platform Services
Application Services
Desktop Services
BusinessRelationshipServices
ServiceMonitoringServices
SecurityandCompliancyServices
IdentityManagementServices
Sales Finance R&D . . .
EndUserSupportServices
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Identification of services – TBM Taxonomy
© 2019
Source: Technology Business Model (TBM) Council: TBM Model V3.0
ServiceManagement
data requirements, allocation rules, and metrics needed to create transparency and enable the reporting
that is needed for the value conversations of TBM.
The TBM model relies on the TBM taxonomy to bring into agreement often disparate and contentious
definitions of IT cost components and object classes. This creates a common language so that the terms
server and compute for example are understood by everyone (IT and non-IT stakeholders alike) to mean
the same thing and to include the same types of underlying costs calculated using the same methods.
Figure 2: The TBM model translates from a finance view of costs to an IT view of towers, projects, and services and then into a
business view of costs
By using the TBM taxonomy and model, CIOs can illustrate, for example, how user demand shapes the
cost of applications, services, and technology architectures they maintain. And non-IT leaders can use
the same data and insights to guide their consumption (demand).
11
Identification of services – TBM Taxonomy
© 2019
Source: Technology Business Model (TBM) Council: TBM Taxonomy V3.0 (Simple View)
ServiceManagement
describe cost sources, technologies, IT resources (IT towers), applications, and services. The TBM
taxonomy provides the ability to compare technologies, towers, and services to peers and third-party
options (e.g., public cloud). Just as businesses rely on generally accepted accounting principles (or GAAP)
to drive standard practices for financial reporting — and thus comparability between financial
statements — the TBM taxonomy provides a generally accepted way of reporting IT costs and other
metrics. A simple view of the TBM taxonomy is shown below.
Figure 1: The TBM taxonomy provides a standard set of categories for costs and other metrics
The TBM taxonomy is needed in order to support the modeling of costs and other metrics. A TBM model
maps and allocates costs and resource consumption from their sources to their uses, from the hardware,
software, labor, services, and facilities IT leaders procure to the applications and services they develop,
Service value
Value is the perceived benefits, usefulness, and importance of
something (ITIL)
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ServiceManagement
© 2019
Goods-
Dominant
logic
Quality
Lead time Cost
Service-
Dominant
Logic
Outcome
(ITIL: Benefits)
Preference
(ITIL: Importance)
Perception
(ITIL: Usefulness)
13
Service value
Examples:
 Accommodation close
to temporary
workplace
 Kind staff, mountain
view
 Vegetarian food
Value
Per-
cep-
tion
Out-
come
Prefe-
rence
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14
Service value – outcome
Examples:
Access to:
 Bed
 Internet connection
 Food
Examples:
 Room available on the
night needed
 Bandwidth of the
wireless access
 Guest security
Utility
 What the service does
- fit for purpose
 Functionality offered to
meet a need
Warranty
 How the service
performs - fit for use
 Availability, capacity,
reliability, security,
continuity, (usability,
compliance)
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Service value – outcome, cost and risk
Achieving desired outcomes requires resources and is
associated with risk
15
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© 2019
Value co-creation
 Value is co-created between two or more interacting
organizations or service systems
 Service systems interact with other service systems to co-
create value through value propositions. A value
proposition is a set of specific benefits or favourable points
of difference that a service system plans to offer to others.
16 © 2019
Service
system
Service
system
Value
co-creation
ServiceManagement
Stakeholders involved in value co-creation
 Service systems or organizations vary in size and
complexity, and in their relation to legal entities – from a
single person or a team, to a complex network of legal
entities united by common objectives, relationships and
authorities
17 © 2019
ServiceManagement
An organization is a
person or a group of
people that has its
own functions with
responsibilities,
authorities and
relationships to
achieve its objectives
(ITIL)
Stakeholders involved in value co-creation
18 © 2019
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Service
consumer:
An organization
to whom
services are
delivered
Service
provider: An
organization
who deliver
services
Customer
User
Sponsor
Shareholders CommunityEmployees
Service relationships
19 © 2019
ServiceManagement
Service relationships consists of joint activities performed by a
service provider and a service consumer to ensure continual value
co-creation based on agreed and available service offerings (ITIL)
Service systems
 A service system or organization is a dynamic configuration
of resources such as people, process, technology and
information.
 Everything that has a name and is useful can be viewed as
a resource. The properties and behavior of a service
system is more than the properties and behavior of the
individual resources
20 © 2019
ServiceManagement
Resources or
four dimensions (ITIL) Organisations &
people
Partners &
suppliers
Information &
technology
Value streams &
processes
Service systems
 We distinguish between operant and operand resources:
 Operant resources perform actions on other resources to
create change
 Operand resources are resources that are operated on.
 A service system is a configuration of resources, and
therefore also a resource itself. It may then be an operand
resource for another service system.
 Service systems may be dynamic: composing,
recomposing, and decomposing over time. Service
systems that persist in substantially the same form over
long periods are open systems through which operand
resources flow, but in which operant resources are stable.
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Service systems
 Service systems are complex dynamic systems. They are
systemic because they are composed of interacting
elements (i.e., resources) and have emergent properties
(e.g., creation of value). They are dynamic since the
configuration of resources changes over time to
accommodate the needs of other systems and contextual
changes.
 The complexity is due to the nonpredictable behavior
emerging from the interactions, either from formal service
delivery processes or from informal interpersonal
communication and ad-hoc coordination mechanisms,
within and between service systems.
22 © 2019
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Products and service offerings
23 © 2019
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A product is a configuration of an organization’s resources,
designed to offer value for a consumer (ITIL).
A service offering is formal a description of one or more services,
designed to address the needs of a target consumer group. A
service offering may include goods, access to resources, and
service actions (ITIL).
• Performed by
the provider to
address a
consumer need
• Performed
according to
agreement with
the consumer
• Ownership is not
transferred to
the consumer
• Access is
granted/licensed
under agreed
terms or
conditions
• Ownership is
transferred to
the consumer
• Consumer takes
responsibility for
future use
Goods
Access to
resources
Service actions
Service management
24 © 2019
Service
Service interaction
Service offering
Goods
Access to
resources
Service actions
Products
Resources or
four dimensions (ITIL) Organisations
& people
Partners &
suppliers
Information &
technology
Value streams
& processes
ServiceManagement
25
Service management
Examples:
 Hotel Management
 The reception
 The booking process
 Knowledge of the needs
of the guests
 Training of staff
“Service management is
a set of specialised
organizational
capabilities for enabling
value for customers in
the form of services”
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2626
Service management ‘on a page’
Service provider
Service consumer
User Sponsor
Utility - Fit for purpose
(Functionality)
Warranty - Fit for use
(Availability, capacity, reliability, security,
continuity, usability, compliance)
Operant resources
Operand resources
SERVICE
OFFERING
Information Technology
Customer
Business case
(ROI / VOI)
Functional
requirements
Goods
Value streams /
Processes
Supporting
services
Organization /
People
Cost and Risk
Valueadded
Servicepotential
Valuerealized
Serviceoutcome
Service targets
and levels
Moneyspent
Serviceresources
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Value co-creation
Service resource dynamics
27 © 2019
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28
Assignment
 Give examples of IT Services from your own
organization
 Give examples of the value added by the identified IT
Services
 Give, if possible, examples of “non-services” from
your existing Service Catalogues or Service Level
Agreements
 Time: 15 minutes
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29
Did we get it?
What is a Service?
The following are examples of service resources:
 Applications
 Organization
 Financial capital
 Infrastructure
 Knowledge
 People
 Processes
 Information
Which of these are examples of operant resources?
Which are examples of operand resources?
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30
Agenda
1. Service management
2. ITIL and the Service value system
3. ITIL Guiding principles
4. ITIL Service value chain
5. ITIL Four dimensions
6. ITIL Practices
7. ITIL Continual improvement
8. ITIL Certification scheme
9. What’s in it for me?
Agenda
© 2019
31
What is ITIL®?
Once: IT Infrastructure Library – Now: ITIL®
 ITIL is a source of good practice in IT Service
Management
 By good practice we mean guidance that is
 validated across a diverse set of environments
 widely distributed.
 ITIL is not a standard
 ITIL is non-prescriptive
ITIL®andtheServicevaluesystem
© 2019
32
Why ITIL®?
To drive:
 Stakeholder value
 Customer expectations, journeys and experience
 Service quality
 Effective value streams and efficient service
 Risk management and regulatory compliance
 Digital transformation
 Service sourcing and integration
 Clear roles, responsibilities
© 2019
ITIL®andtheServicevaluesystem
33
Where does ITIL® come from?
 ITIL Version 1 – 1986
Function-based practice of 40+ books dealing with a variety
of IT practices developed by Central Computer and
Telecommunications Agency (CCTA) in the United Kingdom.
 ITIL Version 2 – 1999
Process-based practice of 10 books and the globally
accepted best practice framework for IT Service
Management. The most popular books were “Service
Support” and “Service Delivery”
 ITIL Version 3 – 2007
Service lifecycle-based practice incorporating five lifecycle
titles forming the core of ITIL practice
 ITIL 2011 – 2011
Updated for consistency and clarity
 ITIL 4 – 2019
Value driven services and capability based practice
© 2019
ITIL®andtheServicevaluesystem
34
How to use ITIL®?
 The guidance in ITIL has to be adopted and adapted
for use in various business environments and
organizational strategies
© 2019
Adopt
AdaptImprove
ITIL®andtheServicevaluesystem
35
The ITIL® Service value system (SVS)
© 2019
ITIL®andtheServicevaluesystem
The purpose of the SVS is to ensure that the organization
continually co-creates value with all stakeholders through
the use and management of products and services.
The ITIL service value
system (SVS) describes
how all the components
and activities of the
organization work
together as a system to
enable value creation.
36
The ITIL® Service value system (SVS)
© 2019
ITIL®andtheServicevaluesystem
37
The ITIL® Service value system (SVS)
© 2019
ITIL®andtheServicevaluesystem
Opportunities represent options
or possibilities to add value for
stakeholders or otherwise improve
the organization. Demand is the
need or desire for products and
services among internal and
external consumers.
38
The ITIL® Service value system (SVS)
© 2019
ITIL®andtheServicevaluesystem
The outcome of the SVS is value.
The SVS can enable the creation
of many different types of value
for a wide group of stakeholders.
39
The ITIL® Service value system (SVS)
© 2019
ITIL®andtheServicevaluesystem
The guiding principles are
recommendations that can guide
an organization in all
circumstances, regardless of
changes in its goals, strategies,
type of work, or management
structure.
40
The ITIL® Service value system (SVS)
© 2019
ITIL®andtheServicevaluesystem
Governance is the means by
which an organization is directed
and controlled. Governance is
realized through the following
activities: Evaluate, Direct and
Monitor
41
The ITIL® Service value system (SVS)
© 2019
ITIL®andtheServicevaluesystem
The service value chain is a set
of interconnected activities that an
organization performs in order to
deliver a valuable product or
service to its consumers and to
facilitate value realization.
42
The ITIL® Service value system (SVS)
© 2019
ITIL®andtheServicevaluesystem
The ITIL practices are sets of
organizational resources designed
for performing work or
accomplishing an objective.
43
The ITIL® Service value system (SVS)
© 2019
ITIL®andtheServicevaluesystem
Continual improvement is a
recurring organizational activity
performed at all levels to ensure
that organization’s performance
continually meets stakeholders’
expectations.
44
Agenda
1. Service management
2. ITIL and the Service value system
3. ITIL Guiding principles
4. ITIL Service value chain
5. ITIL Four dimensions
6. ITIL Practices
7. ITIL Continual improvement
8. ITIL Certification scheme
9. What’s in it for me?
Agenda
© 2019
45
ITIL® Guiding principles
The guiding principles can be used to guide
organizations in their work as they adopt a service
management approach and adapt ITIL guidance to their
own specific needs and circumstances.
ITIL®Guidingprinciples
© 2019
A guiding principle is a recommendation that guides an
organization in all circumstances.
46
ITIL® Guiding principles
ITIL®Guidingprinciples
© 2019
1. Focus on value
2. Start where
you are
3. Progress
iteratively with
feedback
4. Collaborate
and promote
visibility
5. Think and work
holistically
6. Keep it simple
and practical
7. Optimize and
automate
47
1. Focus on value
 Understand and identify the service consumer
 Understand the consumer’s perspective of value
 Map value to intended outcomes, which change over time
 Understand the customer experience (CX) and/or user experience
(UX)
ITIL®Guidingprinciples
Everything that the organization does needs to map, directly or indirectly, to value for
the stakeholders. The focus on value principle encompasses many perspectives,
including the experience of customers and users.
Application
Know how consumers use each
service.
Encourage a focus on value among
all staff.
Focus on value during operational
activity as well as during
improvement initiatives.
Include a focus on value in every
step of any improvement initiative.
48
2. Start where you are
 Decisions on how to proceed should be based on accurate
information obtained through direct observation supported by
appropriate and effective measurement.
 Measurement should be used to support the analysis of what has
been observed rather than to replace it. Over-reliance on data
analytics and reporting can introduce biases and risks in decision-
making.
ITIL®Guidingprinciples
Do not start from scratch and build something new without considering what is
already available to be leveraged. There is likely to be a great deal in the current
services, processes, program, projects, and people that can be used to create the
desired outcome. The current state should be investigated and observed directly to
make sure it is fully understood.
Application
Look at what exists as objectively
as possible.
Determine if successful practices or
services can be replicated or
expanded.
Apply your risk management skills
in the decision-making process.
Recognize that sometimes nothing
from the current state can be
reused.
49
3. Progress iteratively with feedback
 Working in a time-boxed, iterative manner with feedback loops
embedded into the process allows for greater flexibility, faster
responses to customer and business needs, the ability to discover
and respond to failure earlier, and an overall improvement in quality.
 The initiative and its component iterations, must be continually re-
evaluated to reflect changes in circumstances.
 Seek and use feedback before, throughout, and after each iteration.
ITIL®Guidingprinciples
Do not attempt to do everything at once. Even huge initiatives must be accomplished
iteratively. By organizing work into smaller, manageable sections that can be
executed and completed in a timely manner, it is easier to maintain a sharper focus
on each effort. Using feedback before, throughout, and after each iteration will
ensure that actions are focused and appropriate, even if circumstances change.
Application
Comprehend the whole but do
something.
The ecosystem is constantly
changing, so feedback is essential.
Fast does not mean incomplete.
50
4. Collaborate and promote visibility
 When initiatives involve the right people in the correct roles, efforts
benefit from better buy-in, more relevance and increased likelihood
of long-term success.
 People and perspectives for successful collaboration can be found
in all stakeholder groups
 Visibility of work is important to understand the flow of work, identify
bottlenecks and excess capacity and uncover waste.
ITIL®Guidingprinciples
Working together across boundaries produces results that have greater buy-in, more
relevance to objectives, and increased likelihood of long-term success.
Achieving objectives requires information, understanding, and trust. Work and
consequences should be made visible, hidden agendas avoided, and information
shared to the greatest degree possible.
Application
Collaboration does not mean
consensus.
Communicate in a way the
audience can hear.
Decisions can only be made on
visible data.
51
5. Think and work holistically
 A holistic approach to service management requires an
understanding of how all the parts of an organization work together
in an integrated way.
ITIL®Guidingprinciples
No service, or element used to provide a service, stands alone. The outcomes
achieved by the service provider and consumer will suffer unless the organization
works on the service as a whole, not just on its parts. Results are delivered through
the effective and efficient management, coordination and dynamic integration of
information, technology, organization, people, practices, partners, and agreements.
Application
Recognize the complexity of the
systems.
Collaboration is key to thinking and
working holistically.
Where possible, look for patterns of
interactions between system
elements
Automation can facilitate working
holistically.
52
6. Keep it simple and practical
 Outcome-based thinking should be used to produce practical
solutions which deliver valuable outcomes while using the minimum
number of steps needed.
 Establish a holistic view of the organization’s work.
 Start with an uncomplicated approach, add later.
 Do not try to produce a solution for every exception.
 Be mindful of competing objectives.
ITIL®Guidingprinciples
If a process, service, action or metric fails to provide value or produce a useful
outcome, eliminate it. In a process or procedure, use the minimum number of steps
necessary to accomplish the objective(s). Always use outcome-based thinking to
produce practical solutions that deliver results.
Application
Ensure value.
Simplicity is the ultimate
sophistication.
Do fewer things, but do them better.
Simplicity is the best route to
achieving quick wins.
Respect the time
of the people involved.
Easier to understand, more likely to
adopt.
53
7. Optimize and automate
 Optimization means to make something as effective and useful as
makes sense. Before an activity can be effectively automated, it
should be optimized to whatever degree is possible and reasonable.
 Automation is the use of technology to perform a step or series of
steps correctly and consistently with limited or no human intervention.
 Automating frequent and repetitive tasks helps organizations scale up
and allows humans to be used for more complex decision-making.
ITIL®Guidingprinciples
Resources of all types, particularly HR, should be used to their best effect. Eliminate
anything that is truly wasteful and use technology to achieve whatever it is capable
of. Human intervention should only happen where it really contributes value.
Application
Simplify and/or optimize before
automating.
Define your metrics.
Use the other guiding principles
when applying this one.
54
Agenda
1. Service management
2. ITIL and the Service value system
3. ITIL Guiding principles
4. ITIL Service value chain
5. ITIL Four dimensions
6. ITIL Practices
7. ITIL Continual improvement
8. ITIL Certification scheme
9. What’s in it for me?
Agenda
© 2019
55
The ITIL® Service value chain
© 2019
ITIL®Servicevaluechain
The central element of the SVS is the service value chain, an operating model
which outlines the key activities required to respond to demand and facilitate
value creation through the creation and management of products and services.
56
The ITIL® Service value chain
© 2019
ITIL®Servicevaluechain
ValueUse
57
Value chain activities
© 2019
ITIL®Servicevaluechain
Inputs from
within and
outside of the
value chain
Outputs
Resources of
the practices
Service value chain activities represent the steps an organization takes in the
creation of value. Each activity contributes to the value chain by transforming
specific inputs into outputs.
To convert inputs into outputs, the value chain activities use different combinations
of ITIL practices. Each activity may draw upon internal or third party resources,
processes, skills and competencies from one or more practices.
ValueUse
58
Value chain activities
 All incoming and outcoming interactions with parties
external to the service provider are performed via engage
value chain activity
 All new resources are obtained through the obtain/build
activity
 Planning at all levels is performed via plan activity
 Improvements at all levels are initiated and managed via
improve activity
 Creation, modification, delivery, maintenance and support
of component, products and services are performed in
integrated and coordinated way between design &
transition, obtain/build and deliver & support activities
 Products & services, Demand, Use and Value are NOT
value chain activities; they are SVS components
© 2019
ITIL®Servicevaluechain
ValueUse
59
Value chain activities
© 2019
ITIL®Servicevaluechain
Activity Purpose
Plan 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
Improve To ensure continual improvement of products, services and
practices across all value chain activities and the four dimensions
of service management.
Engage To provide a good understanding of stakeholder needs, continual
engagement with all stakeholders, transparency and good
relationships with all stakeholders.
Design &
transition
To ensure that products and services continually meet stakeholder
expectations for quality, costs and time to market.
Obtain/Build To ensure that service components are available when and where
they are needed, and meet agreed specifications.
Deliver &
support
To ensure that services are delivered and supported according to
agreed specifications and stakeholders’ expectations.
ValueUse
60
The ITIL® modules and the Service value chain
© 2019
ITIL®Servicevaluechain
ValueUse
• Key concepts of service
management
• The guiding principles
• The four dimensions
• Concepts from key ITIL
practices relevant to entry-level
professionals
61
The ITIL® modules and the Service value chain
© 2019
ITIL®Servicevaluechain
ValueUse
• Integration of value streams
and activities to design &
transition, obtain/build and
deliver & support products and
services and components
• Measuring service
performance
• Key practices
62
The ITIL® modules and the Service value chain
© 2019
ITIL®Servicevaluechain
ValueUse
• Managing engagement and
interactions between the
service provider, customers,
users and partners & suppliers
• Measurement and
management of value
• Key practices
63
The ITIL® modules and the Service value chain
© 2019
ITIL®Servicevaluechain
ValueUse
• Differences between traditional
and digital operating models
• How to adapt and adopt ITIL 4
concepts to a
• Lean/Agile environment
• highly automated
environment
• Key practices
64
The ITIL® modules and the Service value chain
© 2019
ITIL®Servicevaluechain
ValueUse
• Creating a “learning and
improving” organization
• Influence of Lean/ Agile ways
of working on ITSM
• Managing the interface with the
governing body
• Key practices
65
The ITIL® modules and the Service value chain
© 2019
ITIL®Servicevaluechain
ValueUse
• Aligning digital business
strategy with IT strategy
• New ways of working in
complex business conditions
• Key practices
66
Agenda
1. Service management
2. ITIL and the Service value system
3. ITIL Guiding principles
4. ITIL Service value chain
5. ITIL Four dimensions
6. ITIL Practices
7. ITIL Continual improvement
8. ITIL Certification scheme
9. What’s in it for me?
Agenda
© 2019
67
The four dimensions of service management
Services, products, service systems, practices and the service
value system all rely on dynamic configurations of resources.
In ITIL these resources are grouped into four dimensions (formerly
people, process, products and partners):
ITIL®Fourdimensions
© 2019
(PESTLE)
68
Dimension 1: Organizations and people
ITIL®Fourdimensions
© 2019
The complexity of organizations is growing, and it is important to ensure
that the way an organization is structured and managed, as well as its
roles, responsibilities, and systems of authority and communication, is
well defined and supports its overall strategy and operating model.
Formal
organizational
structures
Culture
Required staffing
and
competencies
Roles
and
respon-
sibilities
69
Dimension 2: Information and technology
ITIL®Fourdimensions
© 2019
When applied to the SVS, the information and technology dimension
includes the information and knowledge necessary for the management of
services, as well as the technologies required. It also incorporates the
relationships between different components of the SVS, such as the
inputs and outputs of activities and practices.
Information and
knowledge
Technologies
Relationships
between
components
70
Dimension 3: Partners and suppliers
ITIL®Fourdimensions
© 2019
The partners and suppliers dimension encompasses an organization’s
relationships with other organizations that are involved in the design,
development, deployment, delivery, support, and/or continual
improvement of services. It also incorporates contracts and other
agreements between the organization and its partners or suppliers.
Provider /
consumer
relationships
Partner
and
supplier
strate-
gy
Service
integration and
management
Factors
influen-
cing
supplier
strate-
gies
71
Dimension 4: Value streams and processes
ITIL®Fourdimensions
© 2019
Applied to the organization and its SVS, the value streams and processes
dimension is concerned with how the various parts of the organization
work in an integrated and coordinated way to enable value creation
through products and services.
Activities
undertaken
Organization
of activities
Value creation
enabled
72
Service value streams
ITIL®Fourdimensions
© 2019
A value stream is a series of steps that an organization uses to create and
deliver products and services to a service consumer. Service value
streams are specific combinations of activities and practices, and each
one is designed for a particular scenario.
ENGAGE ACTIVITY
Step A1 Step A2 Step A3
DELIVER & SUPPORT ACTIVITY
Step A4 Step A5
Step B1 Step B2 Step B3 Step B4
ValuestreamAValuestreamB
ToENGAGEToOBTAIN/BUILD
As each value stream is made up of a different combination of value chain activities
and practices, inputs and outputs must be understood as specific to particular value
streams.
73
Example: New or changed service offering
ITIL®Fourdimensions
© 2019
ValueUse
1
2
3
4
5
74
Example: New customer for existing service
ITIL®Fourdimensions
© 2019
ValueUse1
2
3
4 5
75
Example: Resolve issue and improve
ITIL®Fourdimensions
© 2019
ValueUse
1
2
3
4
5 6
7
8
9
76
Example: Resolve issue and improve
© 2019
Release
Request Incident
Service
request
Problem
Major
incident
Known
error
Request for
change
Configuration items (CMS)
Handle
requests
Restore
service
Identify
root cause
Provide
solution
Implement
solution
Disaster
ITIL®Fourdimensions
77
Processes
ITIL®Fourdimensions
© 2019
A process is a set of activities that transform inputs to outputs. Processes
describe what is done to accomplish an objective, and well-defined
processes can improve productivity within and across organizations. They
are usually detailed in procedures, which outline who is involved in the
process, and work instructions, which explain how they are carried out.
INPUT OUTPUTACTIVITIES
78
Process
Processes
?
Activity
Activity
Activity
Input Output
Input Output
Input Output
Data,
information and
knowledge
Desired
outcome
Suppliers Customer
Feedback
Trigger
© 2019
ITIL®Fourdimensions
79
Agenda
1. Service management
2. ITIL and the Service value system
3. ITIL Guiding principles
4. ITIL Service value chain
5. ITIL Four dimensions
6. ITIL Practices
7. ITIL Continual improvement
8. ITIL Certification scheme
9. What’s in it for me?
Agenda
© 2019
ITIL® Practices
Each practice:
 supports multiple
service value chain
activities
 includes resources
based on the four
dimensions of
service
management
80
A practice is a set of
organizational
resources designed for
performing work or
accomplishing an
objective.
ITIL®Practices
ITIL® Practices
81
ITIL®Practices
General management practices
• Architecture management
• Continual improvement
• Information security
management
• Knowledge management
• Measurement and reporting
• Organizational change
management
• Portfolio management
• Project management
• Relationship management
• Risk management
• Service financial management
• Strategy management
• Supplier management
• Workforce and talent
management
Service management practices
• Availability management
• Business analysis
• Capacity and performance
management
• Change control
• Incident management
• IT asset management
• Monitoring and event
management
• Problem management
• Release management
• Service catalogue management
• Service configuration
management
• Service continuity management
• Service design
• Service desk
• Service level management
• Service request management
• Service validation and testing
Technical management practices
• Deployment management
• Infrastructure and platform
management
• Software development and
management
82
Heat map of practices with value chain activities
© 2019
ITIL®Practices
General management practices (14) Plan Improve Engage
Design
& Trans.
Obtain /
Build
Deliver
& Sup.
Architecture management H H M H M M
Continual improvement H H H H H H
Information security management H H H H H H
Knowledge management M H M M M H
Measurement and reporting H H M H H M
Organizational change management M H M M L L
Portfolio management H M M M M L
Project management M M M H H M
Relationship management H H H H M M
Risk management H H H H H H
Service financial management H M M M M M
Strategy management H M M M M M
Supplier management H M H H H H
Workforce and talent management H H M M M M
83
Heat map of practices with value chain activities
© 2019
ITIL®Practices
Service management practices (17) Plan Improve Engage
Design
& Trans.
Obtain /
Build
Deliver
& Sup.
Availability management H M L M M M
Business analysis H M H H H M
Capacity and performance management M H L M M M
Change control L H L H H H
Incident management M H M M H
IT asset management M L L H H M
Monitoring and event management M L M L H
Problem management H M L L H
Release management M L L H M M
Service catalogue management L L H M L M
Service configuration management L M L H H M
Service continuity management M M L M M M
Service design M M L H H L
Service desk M H M L H
Service level management H M H M M M
Service request management L H M M H
Service validation and testing M L H H L
84
Heat map of practices with value chain activities
© 2019
ITIL®Practices
Technical management practices (3) Plan Improve Engage
Design
& Trans.
Obtain /
Build
Deliver
& Sup.
Deployment management L H H
Infrastructure and platform management M L H H M
Software development & management L M M H L
85
Agenda
1. Service management
2. ITIL and the Service value system
3. ITIL Guiding principles
4. ITIL Service value chain
5. ITIL Four dimensions
6. ITIL Practices
7. ITIL Continual improvement
8. ITIL Certification scheme
9. What’s in it for me?
Agenda
© 2019
86
Continual improvement
ITIL®Continualimprovement
© 2019
What is the
vision?
Where are we
now?
Where do we
want to be?
How do we get
there?
Take action
Did we get there?
How do we keep
the momentum
going?
Business vision, mission,
goals and objectives
Perform baseline
assessments
Define measurable
targets
Define the improvement
plan
Execute improvement
actions
Evaluate metrics and
KPIs
87
Improvement approaches
 Design and implement
 Belief: Service provision capabilities can be designed,
implemented and managed
 The role of ITIL®: An ideal model for service management
 Incrementally improve
 Belief: Service provision can be managed and improved
through continuous incremental improvement cycles
 The role of ITIL®: A set of best practices used as inspiration
 Emerge
 Belief: Service provision can not really be managed – it
emerges over time through complex responsive processes
 The role of ITIL®: Narrative or propositional themes that
organize experience – a myth, ideology or the like
© 2019
ITIL®Continualimprovement
88
Improvement – the Cynefin framework
http://youtu.be/Miwb92eZaJg
David Snowden, 2002, 2007, 2014
Disorder_
Complex
Probe
Sense
Respond
Emergent Practice _
Complicated
Sense
Analyze
Respond
Good Practice
Chaotic
Act
Sense
Respond
Novel Practice
Simple/obvious
Sense
Categorize
Respond
Best Practice
Complacency
© 2019
Relationship between
cause and effect is
obvious.
Predictability, routine,
established practice,
entrained thinking.
Encourage
simplification.
Relationship between
cause and effect
requires investigation
and analysis.
Unique, non-repeated,
multiple right answers,
experience/expertise.
Encourage analysis.
Relationship between
cause and effect is
impossible to
determine.
Unpredictability,
turbulence, trial and
error, responsiveness.
Encourage action
Relationship between
cause and effect can
only be perceived in
retrospect.
Unpredictability, flux,
emergence, creativity.
Encourage
experimentation
ITIL®Continualimprovement
89
Agenda
1. Service management
2. ITIL and the Service value system
3. ITIL Guiding principles
4. ITIL Service value chain
5. ITIL Four dimensions
6. ITIL Practices
7. ITIL Continual improvement
8. ITIL Certification scheme
9. What’s in it for me?
Agenda
© 2019
The ITIL® Certification Scheme
ITIL®Certificationscheme
90 © 2019
91
Agenda
1. Service management
2. ITIL and the Service value system
3. ITIL Guiding principles
4. ITIL Service value chain
5. ITIL Four dimensions
6. ITIL Practices
7. ITIL Continual improvement
8. ITIL Certification scheme
9. What’s in it for me?
Agenda
© 2019
92
What’s in it for me?
ITIL® 4 – I couldn’t care less, or?
 Value is something we co-create – take the
customer journey
 Map and improve your value streams across
practices (e.g. the three delivery streams)
 Improve capabilities (ITIL: Practices) – not only
processes
What’sinitforme?
© 2019
93
Take the customer journey
What’sinitforme?
© 2019
Explore
Initially
engage
Require /
Offer
Agree
Onboard /
Offboard
Consume
/ Provide
Realise
valueStages
Understand
needs and
identify
service
providers
Build
relationships
Specify
requirements
Negotiate
and agree
service utility
and warranty
Procure and
perform
customer
transition
activities
Consume
service and
engage in the
service
interaction
Realise, track
and monitor
value.
Evaluate
journey
Steps
Touchpoints
Teams
Team 1
Team 2
Team 3
Role 1
94
Take the customer journey
Introduce 5S to make the service act flow:
 Serve and support
 Smile
 Seize the “moment of truth”
 Save time for the unexpected
 Say sorry
What’sinitforme?
© 2019
ValueUse
95
Map and improve value streams
What’sinitforme?
© 2019
Request service Use service
Resolve issue
Create, change or retire service or related CI
Subscribe / unsubscribe
service
New customer
Agile delivery model
Plan driven delivery model
Service integration delivery model
96
Map and improve value streams
What’sinitforme?
© 2019
Step Step Step
Customer: Customer: Customer:
Team / Role:
Partner / supplier:
Activities:
Technology/Information:
Team / Role:
Partner / supplier:
Activities:
Technology/Information:
Team / Role:
Partner / supplier:
Activities:
Technology/Information:
Value added:
Value destroyed:
Feedback:
Value added:
Value destroyed:
Feedback:
Value added:
Value destroyed:
Feedback:
Cycle time:
Waiting time:
First time quality:
Work in progress:
Cycle time:
Waiting time:
First time quality:
Work in progress:
Cycle time:
Waiting time:
First time quality:
Work in progress:
Lead time minutes minutes
Processing time minutes minutes minutes
I I
97
Improve capabilities – not only processes
Services are produced while consumed:
 If you stop the production, the service stops
 The capability must be there when the customer
needs it
ITIL 4 Practices will be continuously released the
coming year – use the guidance to improve your
service management capabilities
What’sinitforme?
© 2019
Questions and comments
98
Conclusion
© 2019
Contact
99
Christian F. Nissen
cfn@cfnconsult.dk
+45 40 19 41 45
CFN Consult ApS
Nysøvang 15A
DK-2750 Ballerup
CVR: 39 36 47 86
© 2019

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Introduction to ITIL 4 and IT service management

  • 1. ITIL® 4 and IT Service Management - Introduction Christian F. Nissen, CFN Consult RESILIATM, ITIL®, PRINCE2® MSP®, MoP® and MoV® are Registered Trade Marks of AXELOS in the United Kingdom and other countries COBIT® is a registered trademark of the Information Systems Audit and Control Association (ISACA) and the IT Governance Institute (ITGI) TOGAFTM and IT4ITTM are trademarks of The Open Group SIAM® is a registered trademark of EXIN © 2019 of CFN Consult unless otherwise stated
  • 2. 2 Agenda 1. Service management 2. ITIL and the Service value system 3. ITIL Guiding principles 4. ITIL Service value chain 5. ITIL Four dimensions 6. ITIL Practices 7. ITIL Continual improvement 8. ITIL Certification scheme 9. What’s in it for me? Agenda © 2019
  • 3. 3 Assignment  Group 1: Give a definition of “Service”. Give examples of hotel services based on your definition  Group 2: Give examples of hotel services. Use the examples to make a definition of “Service”  Time: 10 minutes © 2019 ServiceManagement
  • 4. 44 Service Examples:  An overnight stay  A meal at the restaurant  Wireless internet access Service Science: Service is the application of resources (including competences, skills, and knowledge) to make changes that have value for another ITIL: Service is 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 © 2019 ServiceManagement
  • 5. Goods and services 5 ServiceManagement © 2019 Goods Services Ownership Access Added value Value co-creation Feature Utility Manufacture Co-create Storable Inseparability Maintenance Convenience Risk transfer Risk share Examples Goods Services Accommodation House Hotel Catering Food Restaurant Transportation Car Train Sailing Boat Ferry Music Music CD Music streaming Literature Book e-Book streaming Movie Blu-Ray Disc Movie streaming Information management Application Cloud service
  • 6. Products, goods and services 6 ServiceManagement © 2019 Goods Services Products House Rented apartment / Airbnb Hotel Food Take-away / Instacart Restaurant Car Leased car / DriveNow Train Boat Leased boat Ferry Music CD iTunes Music streaming Book eBook e-Book streaming DVD iTunes Movie streaming In-house Outsourcing Cloud service
  • 7. 77 Two very different perspectives on Service Added value:  A service is an added value to a good or a solution  Examples:  Service Desk  After sales services All included:  A service includes the product or solution  Examples:  Payroll service  Workplace service © 2019 ServiceManagement
  • 8. 8 Examples Services ”Non-services” Electronic mail communication Laptop Office Automation MS Office Electronic payroll management The Problem Management process Web hotel hosting services Service Hours Back-up service Project resources Software as a Service A firewall © 2019 ServiceManagement
  • 9. 9 Identification of services – service lines Data Center Services Integration Services Server Hosting Services Storage Services Backup Services Network Services Database Services Print services Application Platform Services Application Services Desktop Services BusinessRelationshipServices ServiceMonitoringServices SecurityandCompliancyServices IdentityManagementServices Sales Finance R&D . . . EndUserSupportServices © 2019 ServiceManagement
  • 10. 10 Identification of services – TBM Taxonomy © 2019 Source: Technology Business Model (TBM) Council: TBM Model V3.0 ServiceManagement data requirements, allocation rules, and metrics needed to create transparency and enable the reporting that is needed for the value conversations of TBM. The TBM model relies on the TBM taxonomy to bring into agreement often disparate and contentious definitions of IT cost components and object classes. This creates a common language so that the terms server and compute for example are understood by everyone (IT and non-IT stakeholders alike) to mean the same thing and to include the same types of underlying costs calculated using the same methods. Figure 2: The TBM model translates from a finance view of costs to an IT view of towers, projects, and services and then into a business view of costs By using the TBM taxonomy and model, CIOs can illustrate, for example, how user demand shapes the cost of applications, services, and technology architectures they maintain. And non-IT leaders can use the same data and insights to guide their consumption (demand).
  • 11. 11 Identification of services – TBM Taxonomy © 2019 Source: Technology Business Model (TBM) Council: TBM Taxonomy V3.0 (Simple View) ServiceManagement describe cost sources, technologies, IT resources (IT towers), applications, and services. The TBM taxonomy provides the ability to compare technologies, towers, and services to peers and third-party options (e.g., public cloud). Just as businesses rely on generally accepted accounting principles (or GAAP) to drive standard practices for financial reporting — and thus comparability between financial statements — the TBM taxonomy provides a generally accepted way of reporting IT costs and other metrics. A simple view of the TBM taxonomy is shown below. Figure 1: The TBM taxonomy provides a standard set of categories for costs and other metrics The TBM taxonomy is needed in order to support the modeling of costs and other metrics. A TBM model maps and allocates costs and resource consumption from their sources to their uses, from the hardware, software, labor, services, and facilities IT leaders procure to the applications and services they develop,
  • 12. Service value Value is the perceived benefits, usefulness, and importance of something (ITIL) 12 ServiceManagement © 2019 Goods- Dominant logic Quality Lead time Cost Service- Dominant Logic Outcome (ITIL: Benefits) Preference (ITIL: Importance) Perception (ITIL: Usefulness)
  • 13. 13 Service value Examples:  Accommodation close to temporary workplace  Kind staff, mountain view  Vegetarian food Value Per- cep- tion Out- come Prefe- rence © 2019 ServiceManagement
  • 14. 14 Service value – outcome Examples: Access to:  Bed  Internet connection  Food Examples:  Room available on the night needed  Bandwidth of the wireless access  Guest security Utility  What the service does - fit for purpose  Functionality offered to meet a need Warranty  How the service performs - fit for use  Availability, capacity, reliability, security, continuity, (usability, compliance) © 2019 ServiceManagement
  • 15. Service value – outcome, cost and risk Achieving desired outcomes requires resources and is associated with risk 15 ServiceManagement © 2019
  • 16. Value co-creation  Value is co-created between two or more interacting organizations or service systems  Service systems interact with other service systems to co- create value through value propositions. A value proposition is a set of specific benefits or favourable points of difference that a service system plans to offer to others. 16 © 2019 Service system Service system Value co-creation ServiceManagement
  • 17. Stakeholders involved in value co-creation  Service systems or organizations vary in size and complexity, and in their relation to legal entities – from a single person or a team, to a complex network of legal entities united by common objectives, relationships and authorities 17 © 2019 ServiceManagement An organization is a person or a group of people that has its own functions with responsibilities, authorities and relationships to achieve its objectives (ITIL)
  • 18. Stakeholders involved in value co-creation 18 © 2019 ServiceManagement Service consumer: An organization to whom services are delivered Service provider: An organization who deliver services Customer User Sponsor Shareholders CommunityEmployees
  • 19. Service relationships 19 © 2019 ServiceManagement Service relationships consists of joint activities performed by a service provider and a service consumer to ensure continual value co-creation based on agreed and available service offerings (ITIL)
  • 20. Service systems  A service system or organization is a dynamic configuration of resources such as people, process, technology and information.  Everything that has a name and is useful can be viewed as a resource. The properties and behavior of a service system is more than the properties and behavior of the individual resources 20 © 2019 ServiceManagement Resources or four dimensions (ITIL) Organisations & people Partners & suppliers Information & technology Value streams & processes
  • 21. Service systems  We distinguish between operant and operand resources:  Operant resources perform actions on other resources to create change  Operand resources are resources that are operated on.  A service system is a configuration of resources, and therefore also a resource itself. It may then be an operand resource for another service system.  Service systems may be dynamic: composing, recomposing, and decomposing over time. Service systems that persist in substantially the same form over long periods are open systems through which operand resources flow, but in which operant resources are stable. 21 © 2019 ServiceManagement
  • 22. Service systems  Service systems are complex dynamic systems. They are systemic because they are composed of interacting elements (i.e., resources) and have emergent properties (e.g., creation of value). They are dynamic since the configuration of resources changes over time to accommodate the needs of other systems and contextual changes.  The complexity is due to the nonpredictable behavior emerging from the interactions, either from formal service delivery processes or from informal interpersonal communication and ad-hoc coordination mechanisms, within and between service systems. 22 © 2019 ServiceManagement
  • 23. Products and service offerings 23 © 2019 ServiceManagement A product is a configuration of an organization’s resources, designed to offer value for a consumer (ITIL). A service offering is formal a description of one or more services, designed to address the needs of a target consumer group. A service offering may include goods, access to resources, and service actions (ITIL). • Performed by the provider to address a consumer need • Performed according to agreement with the consumer • Ownership is not transferred to the consumer • Access is granted/licensed under agreed terms or conditions • Ownership is transferred to the consumer • Consumer takes responsibility for future use Goods Access to resources Service actions
  • 24. Service management 24 © 2019 Service Service interaction Service offering Goods Access to resources Service actions Products Resources or four dimensions (ITIL) Organisations & people Partners & suppliers Information & technology Value streams & processes ServiceManagement
  • 25. 25 Service management Examples:  Hotel Management  The reception  The booking process  Knowledge of the needs of the guests  Training of staff “Service management is a set of specialised organizational capabilities for enabling value for customers in the form of services” © 2019 ServiceManagement
  • 26. 2626 Service management ‘on a page’ Service provider Service consumer User Sponsor Utility - Fit for purpose (Functionality) Warranty - Fit for use (Availability, capacity, reliability, security, continuity, usability, compliance) Operant resources Operand resources SERVICE OFFERING Information Technology Customer Business case (ROI / VOI) Functional requirements Goods Value streams / Processes Supporting services Organization / People Cost and Risk Valueadded Servicepotential Valuerealized Serviceoutcome Service targets and levels Moneyspent Serviceresources © 2019 ServiceManagement Value co-creation
  • 27. Service resource dynamics 27 © 2019 ServiceManagement
  • 28. 28 Assignment  Give examples of IT Services from your own organization  Give examples of the value added by the identified IT Services  Give, if possible, examples of “non-services” from your existing Service Catalogues or Service Level Agreements  Time: 15 minutes © 2019 ServiceManagement
  • 29. 29 Did we get it? What is a Service? The following are examples of service resources:  Applications  Organization  Financial capital  Infrastructure  Knowledge  People  Processes  Information Which of these are examples of operant resources? Which are examples of operand resources? © 2019 ServiceManagement
  • 30. 30 Agenda 1. Service management 2. ITIL and the Service value system 3. ITIL Guiding principles 4. ITIL Service value chain 5. ITIL Four dimensions 6. ITIL Practices 7. ITIL Continual improvement 8. ITIL Certification scheme 9. What’s in it for me? Agenda © 2019
  • 31. 31 What is ITIL®? Once: IT Infrastructure Library – Now: ITIL®  ITIL is a source of good practice in IT Service Management  By good practice we mean guidance that is  validated across a diverse set of environments  widely distributed.  ITIL is not a standard  ITIL is non-prescriptive ITIL®andtheServicevaluesystem © 2019
  • 32. 32 Why ITIL®? To drive:  Stakeholder value  Customer expectations, journeys and experience  Service quality  Effective value streams and efficient service  Risk management and regulatory compliance  Digital transformation  Service sourcing and integration  Clear roles, responsibilities © 2019 ITIL®andtheServicevaluesystem
  • 33. 33 Where does ITIL® come from?  ITIL Version 1 – 1986 Function-based practice of 40+ books dealing with a variety of IT practices developed by Central Computer and Telecommunications Agency (CCTA) in the United Kingdom.  ITIL Version 2 – 1999 Process-based practice of 10 books and the globally accepted best practice framework for IT Service Management. The most popular books were “Service Support” and “Service Delivery”  ITIL Version 3 – 2007 Service lifecycle-based practice incorporating five lifecycle titles forming the core of ITIL practice  ITIL 2011 – 2011 Updated for consistency and clarity  ITIL 4 – 2019 Value driven services and capability based practice © 2019 ITIL®andtheServicevaluesystem
  • 34. 34 How to use ITIL®?  The guidance in ITIL has to be adopted and adapted for use in various business environments and organizational strategies © 2019 Adopt AdaptImprove ITIL®andtheServicevaluesystem
  • 35. 35 The ITIL® Service value system (SVS) © 2019 ITIL®andtheServicevaluesystem The purpose of the SVS is to ensure that the organization continually co-creates value with all stakeholders through the use and management of products and services. The ITIL service value system (SVS) describes how all the components and activities of the organization work together as a system to enable value creation.
  • 36. 36 The ITIL® Service value system (SVS) © 2019 ITIL®andtheServicevaluesystem
  • 37. 37 The ITIL® Service value system (SVS) © 2019 ITIL®andtheServicevaluesystem Opportunities represent options or possibilities to add value for stakeholders or otherwise improve the organization. Demand is the need or desire for products and services among internal and external consumers.
  • 38. 38 The ITIL® Service value system (SVS) © 2019 ITIL®andtheServicevaluesystem The outcome of the SVS is value. The SVS can enable the creation of many different types of value for a wide group of stakeholders.
  • 39. 39 The ITIL® Service value system (SVS) © 2019 ITIL®andtheServicevaluesystem The guiding principles are recommendations that can guide an organization in all circumstances, regardless of changes in its goals, strategies, type of work, or management structure.
  • 40. 40 The ITIL® Service value system (SVS) © 2019 ITIL®andtheServicevaluesystem Governance is the means by which an organization is directed and controlled. Governance is realized through the following activities: Evaluate, Direct and Monitor
  • 41. 41 The ITIL® Service value system (SVS) © 2019 ITIL®andtheServicevaluesystem The service value chain is a set of interconnected activities that an organization performs in order to deliver a valuable product or service to its consumers and to facilitate value realization.
  • 42. 42 The ITIL® Service value system (SVS) © 2019 ITIL®andtheServicevaluesystem The ITIL practices are sets of organizational resources designed for performing work or accomplishing an objective.
  • 43. 43 The ITIL® Service value system (SVS) © 2019 ITIL®andtheServicevaluesystem Continual improvement is a recurring organizational activity performed at all levels to ensure that organization’s performance continually meets stakeholders’ expectations.
  • 44. 44 Agenda 1. Service management 2. ITIL and the Service value system 3. ITIL Guiding principles 4. ITIL Service value chain 5. ITIL Four dimensions 6. ITIL Practices 7. ITIL Continual improvement 8. ITIL Certification scheme 9. What’s in it for me? Agenda © 2019
  • 45. 45 ITIL® Guiding principles The guiding principles can be used to guide organizations in their work as they adopt a service management approach and adapt ITIL guidance to their own specific needs and circumstances. ITIL®Guidingprinciples © 2019 A guiding principle is a recommendation that guides an organization in all circumstances.
  • 46. 46 ITIL® Guiding principles ITIL®Guidingprinciples © 2019 1. Focus on value 2. Start where you are 3. Progress iteratively with feedback 4. Collaborate and promote visibility 5. Think and work holistically 6. Keep it simple and practical 7. Optimize and automate
  • 47. 47 1. Focus on value  Understand and identify the service consumer  Understand the consumer’s perspective of value  Map value to intended outcomes, which change over time  Understand the customer experience (CX) and/or user experience (UX) ITIL®Guidingprinciples Everything that the organization does needs to map, directly or indirectly, to value for the stakeholders. The focus on value principle encompasses many perspectives, including the experience of customers and users. Application Know how consumers use each service. Encourage a focus on value among all staff. Focus on value during operational activity as well as during improvement initiatives. Include a focus on value in every step of any improvement initiative.
  • 48. 48 2. Start where you are  Decisions on how to proceed should be based on accurate information obtained through direct observation supported by appropriate and effective measurement.  Measurement should be used to support the analysis of what has been observed rather than to replace it. Over-reliance on data analytics and reporting can introduce biases and risks in decision- making. ITIL®Guidingprinciples Do not start from scratch and build something new without considering what is already available to be leveraged. There is likely to be a great deal in the current services, processes, program, projects, and people that can be used to create the desired outcome. The current state should be investigated and observed directly to make sure it is fully understood. Application Look at what exists as objectively as possible. Determine if successful practices or services can be replicated or expanded. Apply your risk management skills in the decision-making process. Recognize that sometimes nothing from the current state can be reused.
  • 49. 49 3. Progress iteratively with feedback  Working in a time-boxed, iterative manner with feedback loops embedded into the process allows for greater flexibility, faster responses to customer and business needs, the ability to discover and respond to failure earlier, and an overall improvement in quality.  The initiative and its component iterations, must be continually re- evaluated to reflect changes in circumstances.  Seek and use feedback before, throughout, and after each iteration. ITIL®Guidingprinciples Do not attempt to do everything at once. Even huge initiatives must be accomplished iteratively. By organizing work into smaller, manageable sections that can be executed and completed in a timely manner, it is easier to maintain a sharper focus on each effort. Using feedback before, throughout, and after each iteration will ensure that actions are focused and appropriate, even if circumstances change. Application Comprehend the whole but do something. The ecosystem is constantly changing, so feedback is essential. Fast does not mean incomplete.
  • 50. 50 4. Collaborate and promote visibility  When initiatives involve the right people in the correct roles, efforts benefit from better buy-in, more relevance and increased likelihood of long-term success.  People and perspectives for successful collaboration can be found in all stakeholder groups  Visibility of work is important to understand the flow of work, identify bottlenecks and excess capacity and uncover waste. ITIL®Guidingprinciples Working together across boundaries produces results that have greater buy-in, more relevance to objectives, and increased likelihood of long-term success. Achieving objectives requires information, understanding, and trust. Work and consequences should be made visible, hidden agendas avoided, and information shared to the greatest degree possible. Application Collaboration does not mean consensus. Communicate in a way the audience can hear. Decisions can only be made on visible data.
  • 51. 51 5. Think and work holistically  A holistic approach to service management requires an understanding of how all the parts of an organization work together in an integrated way. ITIL®Guidingprinciples No service, or element used to provide a service, stands alone. The outcomes achieved by the service provider and consumer will suffer unless the organization works on the service as a whole, not just on its parts. Results are delivered through the effective and efficient management, coordination and dynamic integration of information, technology, organization, people, practices, partners, and agreements. Application Recognize the complexity of the systems. Collaboration is key to thinking and working holistically. Where possible, look for patterns of interactions between system elements Automation can facilitate working holistically.
  • 52. 52 6. Keep it simple and practical  Outcome-based thinking should be used to produce practical solutions which deliver valuable outcomes while using the minimum number of steps needed.  Establish a holistic view of the organization’s work.  Start with an uncomplicated approach, add later.  Do not try to produce a solution for every exception.  Be mindful of competing objectives. ITIL®Guidingprinciples If a process, service, action or metric fails to provide value or produce a useful outcome, eliminate it. In a process or procedure, use the minimum number of steps necessary to accomplish the objective(s). Always use outcome-based thinking to produce practical solutions that deliver results. Application Ensure value. Simplicity is the ultimate sophistication. Do fewer things, but do them better. Simplicity is the best route to achieving quick wins. Respect the time of the people involved. Easier to understand, more likely to adopt.
  • 53. 53 7. Optimize and automate  Optimization means to make something as effective and useful as makes sense. Before an activity can be effectively automated, it should be optimized to whatever degree is possible and reasonable.  Automation is the use of technology to perform a step or series of steps correctly and consistently with limited or no human intervention.  Automating frequent and repetitive tasks helps organizations scale up and allows humans to be used for more complex decision-making. ITIL®Guidingprinciples Resources of all types, particularly HR, should be used to their best effect. Eliminate anything that is truly wasteful and use technology to achieve whatever it is capable of. Human intervention should only happen where it really contributes value. Application Simplify and/or optimize before automating. Define your metrics. Use the other guiding principles when applying this one.
  • 54. 54 Agenda 1. Service management 2. ITIL and the Service value system 3. ITIL Guiding principles 4. ITIL Service value chain 5. ITIL Four dimensions 6. ITIL Practices 7. ITIL Continual improvement 8. ITIL Certification scheme 9. What’s in it for me? Agenda © 2019
  • 55. 55 The ITIL® Service value chain © 2019 ITIL®Servicevaluechain The central element of the SVS is the service value chain, an operating model which outlines the key activities required to respond to demand and facilitate value creation through the creation and management of products and services.
  • 56. 56 The ITIL® Service value chain © 2019 ITIL®Servicevaluechain ValueUse
  • 57. 57 Value chain activities © 2019 ITIL®Servicevaluechain Inputs from within and outside of the value chain Outputs Resources of the practices Service value chain activities represent the steps an organization takes in the creation of value. Each activity contributes to the value chain by transforming specific inputs into outputs. To convert inputs into outputs, the value chain activities use different combinations of ITIL practices. Each activity may draw upon internal or third party resources, processes, skills and competencies from one or more practices. ValueUse
  • 58. 58 Value chain activities  All incoming and outcoming interactions with parties external to the service provider are performed via engage value chain activity  All new resources are obtained through the obtain/build activity  Planning at all levels is performed via plan activity  Improvements at all levels are initiated and managed via improve activity  Creation, modification, delivery, maintenance and support of component, products and services are performed in integrated and coordinated way between design & transition, obtain/build and deliver & support activities  Products & services, Demand, Use and Value are NOT value chain activities; they are SVS components © 2019 ITIL®Servicevaluechain ValueUse
  • 59. 59 Value chain activities © 2019 ITIL®Servicevaluechain Activity Purpose Plan 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 Improve To ensure continual improvement of products, services and practices across all value chain activities and the four dimensions of service management. Engage To provide a good understanding of stakeholder needs, continual engagement with all stakeholders, transparency and good relationships with all stakeholders. Design & transition To ensure that products and services continually meet stakeholder expectations for quality, costs and time to market. Obtain/Build To ensure that service components are available when and where they are needed, and meet agreed specifications. Deliver & support To ensure that services are delivered and supported according to agreed specifications and stakeholders’ expectations. ValueUse
  • 60. 60 The ITIL® modules and the Service value chain © 2019 ITIL®Servicevaluechain ValueUse • Key concepts of service management • The guiding principles • The four dimensions • Concepts from key ITIL practices relevant to entry-level professionals
  • 61. 61 The ITIL® modules and the Service value chain © 2019 ITIL®Servicevaluechain ValueUse • Integration of value streams and activities to design & transition, obtain/build and deliver & support products and services and components • Measuring service performance • Key practices
  • 62. 62 The ITIL® modules and the Service value chain © 2019 ITIL®Servicevaluechain ValueUse • Managing engagement and interactions between the service provider, customers, users and partners & suppliers • Measurement and management of value • Key practices
  • 63. 63 The ITIL® modules and the Service value chain © 2019 ITIL®Servicevaluechain ValueUse • Differences between traditional and digital operating models • How to adapt and adopt ITIL 4 concepts to a • Lean/Agile environment • highly automated environment • Key practices
  • 64. 64 The ITIL® modules and the Service value chain © 2019 ITIL®Servicevaluechain ValueUse • Creating a “learning and improving” organization • Influence of Lean/ Agile ways of working on ITSM • Managing the interface with the governing body • Key practices
  • 65. 65 The ITIL® modules and the Service value chain © 2019 ITIL®Servicevaluechain ValueUse • Aligning digital business strategy with IT strategy • New ways of working in complex business conditions • Key practices
  • 66. 66 Agenda 1. Service management 2. ITIL and the Service value system 3. ITIL Guiding principles 4. ITIL Service value chain 5. ITIL Four dimensions 6. ITIL Practices 7. ITIL Continual improvement 8. ITIL Certification scheme 9. What’s in it for me? Agenda © 2019
  • 67. 67 The four dimensions of service management Services, products, service systems, practices and the service value system all rely on dynamic configurations of resources. In ITIL these resources are grouped into four dimensions (formerly people, process, products and partners): ITIL®Fourdimensions © 2019 (PESTLE)
  • 68. 68 Dimension 1: Organizations and people ITIL®Fourdimensions © 2019 The complexity of organizations is growing, and it is important to ensure that the way an organization is structured and managed, as well as its roles, responsibilities, and systems of authority and communication, is well defined and supports its overall strategy and operating model. Formal organizational structures Culture Required staffing and competencies Roles and respon- sibilities
  • 69. 69 Dimension 2: Information and technology ITIL®Fourdimensions © 2019 When applied to the SVS, the information and technology dimension includes the information and knowledge necessary for the management of services, as well as the technologies required. It also incorporates the relationships between different components of the SVS, such as the inputs and outputs of activities and practices. Information and knowledge Technologies Relationships between components
  • 70. 70 Dimension 3: Partners and suppliers ITIL®Fourdimensions © 2019 The partners and suppliers dimension encompasses an organization’s relationships with other organizations that are involved in the design, development, deployment, delivery, support, and/or continual improvement of services. It also incorporates contracts and other agreements between the organization and its partners or suppliers. Provider / consumer relationships Partner and supplier strate- gy Service integration and management Factors influen- cing supplier strate- gies
  • 71. 71 Dimension 4: Value streams and processes ITIL®Fourdimensions © 2019 Applied to the organization and its SVS, the value streams and processes dimension is concerned with how the various parts of the organization work in an integrated and coordinated way to enable value creation through products and services. Activities undertaken Organization of activities Value creation enabled
  • 72. 72 Service value streams ITIL®Fourdimensions © 2019 A value stream is a series of steps that an organization uses to create and deliver products and services to a service consumer. Service value streams are specific combinations of activities and practices, and each one is designed for a particular scenario. ENGAGE ACTIVITY Step A1 Step A2 Step A3 DELIVER & SUPPORT ACTIVITY Step A4 Step A5 Step B1 Step B2 Step B3 Step B4 ValuestreamAValuestreamB ToENGAGEToOBTAIN/BUILD As each value stream is made up of a different combination of value chain activities and practices, inputs and outputs must be understood as specific to particular value streams.
  • 73. 73 Example: New or changed service offering ITIL®Fourdimensions © 2019 ValueUse 1 2 3 4 5
  • 74. 74 Example: New customer for existing service ITIL®Fourdimensions © 2019 ValueUse1 2 3 4 5
  • 75. 75 Example: Resolve issue and improve ITIL®Fourdimensions © 2019 ValueUse 1 2 3 4 5 6 7 8 9
  • 76. 76 Example: Resolve issue and improve © 2019 Release Request Incident Service request Problem Major incident Known error Request for change Configuration items (CMS) Handle requests Restore service Identify root cause Provide solution Implement solution Disaster ITIL®Fourdimensions
  • 77. 77 Processes ITIL®Fourdimensions © 2019 A process is a set of activities that transform inputs to outputs. Processes describe what is done to accomplish an objective, and well-defined processes can improve productivity within and across organizations. They are usually detailed in procedures, which outline who is involved in the process, and work instructions, which explain how they are carried out. INPUT OUTPUTACTIVITIES
  • 78. 78 Process Processes ? Activity Activity Activity Input Output Input Output Input Output Data, information and knowledge Desired outcome Suppliers Customer Feedback Trigger © 2019 ITIL®Fourdimensions
  • 79. 79 Agenda 1. Service management 2. ITIL and the Service value system 3. ITIL Guiding principles 4. ITIL Service value chain 5. ITIL Four dimensions 6. ITIL Practices 7. ITIL Continual improvement 8. ITIL Certification scheme 9. What’s in it for me? Agenda © 2019
  • 80. ITIL® Practices Each practice:  supports multiple service value chain activities  includes resources based on the four dimensions of service management 80 A practice is a set of organizational resources designed for performing work or accomplishing an objective. ITIL®Practices
  • 81. ITIL® Practices 81 ITIL®Practices General management practices • Architecture management • Continual improvement • Information security management • Knowledge management • Measurement and reporting • Organizational change management • Portfolio management • Project management • Relationship management • Risk management • Service financial management • Strategy management • Supplier management • Workforce and talent management Service management practices • Availability management • Business analysis • Capacity and performance management • Change control • Incident management • IT asset management • Monitoring and event management • Problem management • Release management • Service catalogue management • Service configuration management • Service continuity management • Service design • Service desk • Service level management • Service request management • Service validation and testing Technical management practices • Deployment management • Infrastructure and platform management • Software development and management
  • 82. 82 Heat map of practices with value chain activities © 2019 ITIL®Practices General management practices (14) Plan Improve Engage Design & Trans. Obtain / Build Deliver & Sup. Architecture management H H M H M M Continual improvement H H H H H H Information security management H H H H H H Knowledge management M H M M M H Measurement and reporting H H M H H M Organizational change management M H M M L L Portfolio management H M M M M L Project management M M M H H M Relationship management H H H H M M Risk management H H H H H H Service financial management H M M M M M Strategy management H M M M M M Supplier management H M H H H H Workforce and talent management H H M M M M
  • 83. 83 Heat map of practices with value chain activities © 2019 ITIL®Practices Service management practices (17) Plan Improve Engage Design & Trans. Obtain / Build Deliver & Sup. Availability management H M L M M M Business analysis H M H H H M Capacity and performance management M H L M M M Change control L H L H H H Incident management M H M M H IT asset management M L L H H M Monitoring and event management M L M L H Problem management H M L L H Release management M L L H M M Service catalogue management L L H M L M Service configuration management L M L H H M Service continuity management M M L M M M Service design M M L H H L Service desk M H M L H Service level management H M H M M M Service request management L H M M H Service validation and testing M L H H L
  • 84. 84 Heat map of practices with value chain activities © 2019 ITIL®Practices Technical management practices (3) Plan Improve Engage Design & Trans. Obtain / Build Deliver & Sup. Deployment management L H H Infrastructure and platform management M L H H M Software development & management L M M H L
  • 85. 85 Agenda 1. Service management 2. ITIL and the Service value system 3. ITIL Guiding principles 4. ITIL Service value chain 5. ITIL Four dimensions 6. ITIL Practices 7. ITIL Continual improvement 8. ITIL Certification scheme 9. What’s in it for me? Agenda © 2019
  • 86. 86 Continual improvement ITIL®Continualimprovement © 2019 What is the vision? Where are we now? Where do we want to be? How do we get there? Take action Did we get there? How do we keep the momentum going? Business vision, mission, goals and objectives Perform baseline assessments Define measurable targets Define the improvement plan Execute improvement actions Evaluate metrics and KPIs
  • 87. 87 Improvement approaches  Design and implement  Belief: Service provision capabilities can be designed, implemented and managed  The role of ITIL®: An ideal model for service management  Incrementally improve  Belief: Service provision can be managed and improved through continuous incremental improvement cycles  The role of ITIL®: A set of best practices used as inspiration  Emerge  Belief: Service provision can not really be managed – it emerges over time through complex responsive processes  The role of ITIL®: Narrative or propositional themes that organize experience – a myth, ideology or the like © 2019 ITIL®Continualimprovement
  • 88. 88 Improvement – the Cynefin framework http://youtu.be/Miwb92eZaJg David Snowden, 2002, 2007, 2014 Disorder_ Complex Probe Sense Respond Emergent Practice _ Complicated Sense Analyze Respond Good Practice Chaotic Act Sense Respond Novel Practice Simple/obvious Sense Categorize Respond Best Practice Complacency © 2019 Relationship between cause and effect is obvious. Predictability, routine, established practice, entrained thinking. Encourage simplification. Relationship between cause and effect requires investigation and analysis. Unique, non-repeated, multiple right answers, experience/expertise. Encourage analysis. Relationship between cause and effect is impossible to determine. Unpredictability, turbulence, trial and error, responsiveness. Encourage action Relationship between cause and effect can only be perceived in retrospect. Unpredictability, flux, emergence, creativity. Encourage experimentation ITIL®Continualimprovement
  • 89. 89 Agenda 1. Service management 2. ITIL and the Service value system 3. ITIL Guiding principles 4. ITIL Service value chain 5. ITIL Four dimensions 6. ITIL Practices 7. ITIL Continual improvement 8. ITIL Certification scheme 9. What’s in it for me? Agenda © 2019
  • 90. The ITIL® Certification Scheme ITIL®Certificationscheme 90 © 2019
  • 91. 91 Agenda 1. Service management 2. ITIL and the Service value system 3. ITIL Guiding principles 4. ITIL Service value chain 5. ITIL Four dimensions 6. ITIL Practices 7. ITIL Continual improvement 8. ITIL Certification scheme 9. What’s in it for me? Agenda © 2019
  • 92. 92 What’s in it for me? ITIL® 4 – I couldn’t care less, or?  Value is something we co-create – take the customer journey  Map and improve your value streams across practices (e.g. the three delivery streams)  Improve capabilities (ITIL: Practices) – not only processes What’sinitforme? © 2019
  • 93. 93 Take the customer journey What’sinitforme? © 2019 Explore Initially engage Require / Offer Agree Onboard / Offboard Consume / Provide Realise valueStages Understand needs and identify service providers Build relationships Specify requirements Negotiate and agree service utility and warranty Procure and perform customer transition activities Consume service and engage in the service interaction Realise, track and monitor value. Evaluate journey Steps Touchpoints Teams Team 1 Team 2 Team 3 Role 1
  • 94. 94 Take the customer journey Introduce 5S to make the service act flow:  Serve and support  Smile  Seize the “moment of truth”  Save time for the unexpected  Say sorry What’sinitforme? © 2019
  • 95. ValueUse 95 Map and improve value streams What’sinitforme? © 2019 Request service Use service Resolve issue Create, change or retire service or related CI Subscribe / unsubscribe service New customer Agile delivery model Plan driven delivery model Service integration delivery model
  • 96. 96 Map and improve value streams What’sinitforme? © 2019 Step Step Step Customer: Customer: Customer: Team / Role: Partner / supplier: Activities: Technology/Information: Team / Role: Partner / supplier: Activities: Technology/Information: Team / Role: Partner / supplier: Activities: Technology/Information: Value added: Value destroyed: Feedback: Value added: Value destroyed: Feedback: Value added: Value destroyed: Feedback: Cycle time: Waiting time: First time quality: Work in progress: Cycle time: Waiting time: First time quality: Work in progress: Cycle time: Waiting time: First time quality: Work in progress: Lead time minutes minutes Processing time minutes minutes minutes I I
  • 97. 97 Improve capabilities – not only processes Services are produced while consumed:  If you stop the production, the service stops  The capability must be there when the customer needs it ITIL 4 Practices will be continuously released the coming year – use the guidance to improve your service management capabilities What’sinitforme? © 2019
  • 99. Contact 99 Christian F. Nissen cfn@cfnconsult.dk +45 40 19 41 45 CFN Consult ApS Nysøvang 15A DK-2750 Ballerup CVR: 39 36 47 86 © 2019