5. Understand the activities of the service value chain, and how they interconnect 5.1 Describe the interconnected nature of the service value chain and how this supports value streams Flashcards
service value chain
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.
Nature of the service value chain
o Doesn’t introduce a linear sequence of actions
o Usually starts with Engage but not always
o Central activities depicted in the cube can interact in any order between each other and with other activities
o Overlaps between Improve and Engage, Improve and central cube, Improve and Products & services illustrate the feedback loops that should be present between
each part of the service value chain via the improvement cycle
o Perceived value drives the demand for the next order, service, product, and iteration of service relationships
o Perceived value should also be managed and understood
Service Value Chain Interactions with Practices
o 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.
o 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 of more practices.
Service Value Chain Activities
o All incoming and outcoming interactions with parties external to the service provider are performed via engage value chain activity
o All new resources are obtained through the obtain/build activity
o Planning at all levels is performed via plan activity
o Improvements at all levels are initiated and managed via improve activity
o Creation, modification, delivery, maintenance and support of component, products and services are performed in integrated and coordinated way between design and transition, obtain/build and delivery and support activities
o Products and services, Demand and Value are NOT value chain activities; they are SVS components
