Chapters 1-4 Flashcards
Key components of the ITIL 4 framework
ITIL service value system (SVS) and the four dimensions model
Core components of ITIL SVS
•the ITIL service value chain
•the ITIL practices
•the ITIL guiding principles
•governance
•continual improvement.
The ITIL service value chain provides an operating model for the …
creation, delivery, and continual improvement of services
What is the connection between ITIL service value chain and ITIL practices?
Each ITIL practice supports multiple service value chain activities.
Draw the service value system
Opportunity/Demand
- Guiding Principles
- Governance
- Service Value Chain
- Practices
- Continual improvement
Value
What are the guiding principles used for?
The ITIL guiding principles can be used to (1) guide an organization’s decisions and actions and (2) ensure a shared understanding and common approach to service management across the organization.
The ITIL guiding principles create the (3) foundation for an organization’s culture and behaviour from strategic decision-making to day-to-day operations.
Four dimensions model - What are the four dimensions of service management?
•organizations and people
•information and technology
•partners and suppliers
•value streams and processes.
What is service management?
A set of specialized organizational capabilities for enabling value for customers in the form of services.
What is the purpose of an organization?
To create value for stakeholders
What is value?
The perceived benefits, usefulness, and importance of something.
What is an organization?
A person or a group of people that has its own functions with (1) responsibilities, (2) authorities, and (3) relationships to achieve its objectives.
The service provider is external to the customer’s organization or is part of the same organization?
Both are possible
What specific roles exist for service consumers?
What needs to be known for these roles?
Customers, users, and sponsors.
They can be separate or combined.
What are the roles customer, user, and sponsor?
•Customer The role that (1) defines the requirements for a service and (2) takes responsibility for the outcomes of service consumption.
•User The role that uses services.
•Sponsor The role that authorizes budget for service consumption.
AWK has signed a contract with a mobile phone company for services for employees. In the company, who is the customer, user, and sponsor?
Customer: Chief Information Officer: Analyzes the requirements, negotiates the contract, monitor’s the mobile company’s performance against contracted requirements.
Sponsor: Chief Financial Officer: Approved cost of negotiated contract.
User: All employees (including CIO and CFO)
User. sponsor, customer, in the case of an individual who holds a contract with a mobile phone provider, who are the users, sponsor and customer?
The individual is the user, sponsor, and customer.
Stakeholders other than the providers and consumers (5)
Partners and suppliers
Investors and shareholders
Government organizations such as regulators
Social groups
Employees of the company
What are examples of resources of a company?
People
Information and Technology
Value Streams and Processes
Partners and Suppliers
These are (almost) identical to the four dimensions.
What is a product?
A configuration of an organization’s resources designed to offer value for a consumer.
What are services?
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.
What is a service offering?
A formal 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.
What is the connection between service offerings, service and products?
Service providers present their services to consumers in the form of service offerings, which describe one or more services based on one or more products.
Service offering may include goods, access to resources, and and service actions.
Give an example for each.
Goods: Mobile phone
Access to resources: Access to internet, mobile network
Service actions: User support
To create value, an organization must do more than simply provide a service. What else does it need to do?
It must also cooperate with the customers in service relationships.
Service relationships are established between two or more organizations. What for?
To co-create value.
In a service relationship, organizations will take on the roles of…
Service providers and service consumers.
When services are delivered by the provider, what two options exist regarding resources?
Service providers
1) create new resources for service consumers
or
2) They modify existing ones
What is the core statement of the service relationship model?
Service consumers obtain resources from service providers and create its own products to address the needs of another consumer group, thereby becoming a service provider.
What three components includes service relationship?
1) Service provision
2) Service consumption
3) Service relationship management
What is included in service provision? (4)
•management of the provider’s resources, configured to deliver the service
•ensuring access to these resources for users
•fulfilment of the agreed service actions
•service level management and continual improvement.
Service provision may also include the supplying of goods.
What is comprised in service consumption? (3)
•management of the consumer’s resources needed to use the service
•service actions performed by users, including utilizing the provider’s resources, and requesting service actions to be fulfilled.
Service consumption may also include the receiving (acquiring) of goods.
What is service relationship management?
Joint activities performed by a service provider and a service consumer to ensure continual value co-creation based on agreed and available service offerings.
Service providers help their consumers to achieve outcomes, and in doing so, take on some of the associated …
Risks and costs
When are Service relationships are perceived as valuable?
(Supported outcomes + Costs removed + Risks removed) > (Affected outcomes + Costs introduced + Risks introduced)
What is the difference between output and outcome? Elaborate based on an example of a wedding photography service.
One output of a wedding photography service may be an album in which selected photos are artfully arranged.
The outcome of the service, however, is the preservation of memories and the ability of the couple and their family and friends to easily recall those memories by looking at the album.
From the service consumer’s perspective, there are two types of cost involved in service relationships. Which?
•costs removed from the consumer by the service (a part of the value proposition). This may include costs of staff, technology, and other resources, which the consumer does not need to provide
•costs imposed on the consumer by the service (the costs of service consumption). The total cost of consuming a service includes the price charged by the service provider (if applicable), plus other costs such as staff training, costs of network utilization, procurement, etc. Some consumers describe this as what they have to ‘invest’ to consume the service.
Definition of risk
A possible event that could cause harm or loss, or make it more difficult to achieve objectives.
As with costs, there are two types of risk that are of concern to service consumers. Which are these?
•risks removed from a consumer by the service (part of the value proposition). These may include failure of the consumer’s server hardware or lack of staff availability. In some cases, a service may only reduce a consumer’s risks, but the consumer may determine that this reduction is sufficient to support the value proposition
•risks imposed on a consumer by the service (risks of service consumption). An example of this would be a service provider ceasing to trade, or experiencing a security breach.
How can the consumer contribute to risk reduction? (3)
•actively participating in the definition of the requirements of the service and the clarification of its required outcomes
•clearly communicating the critical success factors (CSFs) and constraints that apply to the service
•ensuring the provider has access to the necessary resources of the consumer throughout the service relationship.
What is a critical success factor?
A necessary precondition for the achievement of intended results.
What is assessed to evaluate whether a service or service offering will facilitate the outcomes desired by the consumers and therefore create value for them?
Utility and warranty.
Definition of utility
The functionality offered by a product or service to meet a particular need. Utility can be summarized as ‘what the service does’ and can be used to determine whether a service is ‘fit for purpose’.
To have utility, what must a service do?
To have utility, a service must either support the performance of the consumer or remove constraints from the consumer. Many services do both.
Definition of warranty
Assurance that a product or service will meet agreed requirements. Warranty can be summarized as ‘how the service performs’ and can be used to determine whether a service is ‘fit for use’.
What is a service level?
One or more metrics that define expected or achieved service quality
What term is warranty often related to?
Warranty often relates to service levels aligned with the needs of service consumers
What areas does warranty typically address?
Warranty typically addresses such areas as the (1) availability of the service, its (2) capacity, (3) levels of security and continuity.
When is a service to be said to provide acceptable assurance, or ‘warranty’?
If all defined and agreed conditions are met.
The assessment of a service must take into consideration what to generate a complete picture of the viability of the service?
Impact of costs and risks on utility and warranty
Explain warranty and utility using the example of a theme park
A theme park may have many rides (utlity), but when they are constantly being repaired (warranty), customers do not get their expected value.
Similarly, the rides might be running constantly (warranty), but they might not be exciting at all (utility), leaving customers not getting the expected value.
What is the objective of an organization?
How is it achieved?
To create value for stakeholders.
Through the provision and consumption of services.
What are the four dimensions of service management?
•organizations and people
•information and technology
•partners and suppliers
•value streams and processes.
What are the six external factors that are often beyond the control of the SVS?
Political
Economic
Social
Environmental
Legal
Technological
What happens if the four dimensions of service management are not addressed?
Services become undeliverable
Services do not meet expectations
Services do not meet efficiency
To what do the four dimensions of service management apply?
To all services being managed
To the Service Value System
In the organizations and people dimension, who are the people?
Customers
Employees of suppliers
Employees of the service provider
Any other stakeholder
Key message for organizations and people
It is important to ensure that the way an organization is (1) structured and managed, as well as (2) its roles, responsibilities, and systems of authority and communication, is well defined and (3) supports its overall strategy and operating model.
Key message for information and technology dimension
The dimension includes the (1) information and knowledge necessary for the management of services, as well as the technologies required. It also incorporates the (2) relationships between different components of the SVS, such as the inputs and outputs of activities and practices.
The information architecture of the various services needs to be well understood and continually optimized.
What criteria have to be considered?
Availability
Reliability
Accessibility
Timeliness
Accurancy
Relevance
Of information
Key message for partners and suppliers
The partners and suppliers dimension encompasses an (A) organization’s relationships with other organizations that are involved in (6) 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.
What relationships between organizations exist?
1) Goods supply
2) Service delivery
3) Service partnership
What is the main difference between goods supply, service delivery, and service partnership in terms of responsibility for the outputs and for the achievements of the outcomes?
For goods supply and service delivery, the responsibility for the outputs lies with the supplier/provider. The responsibility for the achievement of the outcomes lies with the customer.
For service partnerships, the responsibility for the outputs and for the achievements of the outcomes are shared between the supplier/provider and the customer.
