Service Value Chain Flashcards
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.
Service Value Chain
o Doesn’t introduce a linear sequence of actions
o Usually starts with Engage
o Central activities 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
Key Factors Service Value Chain
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.
Key Factors Service Value Chain Activities
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
Value Chain Activity: 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.
Inputs:
▪ Policies, requirements and constraints provided by the organization’s governing body
▪ Consolidated demands and opportunities provided by engage
▪ Value chain performance information, improvement initiatives and plans
provided by improve
▪ Improvement status reports from improve
▪ Knowledge and information about new and changed products and services
from design and transition and obtain/build
▪ Knowledge and information about third party service components from
engage
o Outputs:
▪ Strategic, tactical and operational plans
▪ Portfolio decisions, Architectures and policies for design and transition
▪ Improvement opportunities for improve
▪ Product and service portfolio, and Contract and agreement requirements for engage
Value Chain Activity: Improve
The purpose of the improve value chain activity is to ensure continual improvement
of products, services and practices across all value chain activities and the four
dimensions of service management.
o Inputs:
▪ Product and service performance information provided by deliver and support
▪ Stakeholders’ feedback provided by engage
▪ Performance information and improvement opportunities provided by all
value chain activities
▪ Knowledge and information about new and changed products and services
from design and transition and obtain/build
▪ Knowledge and information about third party service components from
engage
o Outputs:
▪ Improvement initiatives and plans for all value chain activities
▪ Value chain performance information for plan and the governing body
▪ Improvement status reports for all value chain activities
▪ Contract and agreement requirements for engage
▪ Service performance information for design and transition
Value Chain Activity: Engage
The purpose of the engage value chain activity is to provide a good understanding of
stakeholder needs, continual engagement with all stakeholders, transparency and
good relationships with all stakeholders.
o Inputs:
▪ Product and service portfolio provided by plan
▪ High level demand for services and products provided by customers
▪ Requests and feedback from customers
▪ Incidents, service requests and feedback from users
▪ Information on the completion of user support tasks from deliver and
support
▪ Market opportunities from current and potential customers and users
▪ Cooperation opportunities and feedback provided by partners and suppliers
▪ Contract and agreement requirements from all value chain activities
▪ Knowledge and information about new and changed products and services
from design and transition and obtain/build
▪ Knowledge and information about third party service components from
suppliers and partners
▪ Product and service performance information from deliver and support
▪ Improvements initiatives and plans from improve
▪ Improvement status reports from improve
o Outputs:
▪ Consolidated demands and opportunities for plan
▪ Product and service requirements for design and transition
▪ User support tasks for deliver and support
▪ Improvement opportunities and stakeholders’ feedback for improve
▪ Change or project initiation requests for obtain/build
▪ Contracts and agreements with external and internal suppliers and partners
for obtain/build and design and transition
▪ Knowledge and information about third party service components for all
value chain activities
▪ Service performance reports for customers
Value Chain Activity: Design & Transition
The purpose of the design and transition value chain activity is to ensure that
products and services continually meet stakeholder expectations for quality, costs
and time to market.
o Inputs:
▪ Portfolio decisions, Architectures and policies provided by plan
▪ Product and service requirements provided by engage
▪ Improvement initiatives and plans provided by improve
▪ Improvement status reports from improve
▪ Service performance information provided by deliver and support and
improve
● Are certain targets met?
● Was transition successful?
▪ Service components from obtain/build
▪ Knowledge and information about third party service components from
engage
▪ Knowledge and information about new and changed products and services
from obtain/build
Outputs: ▪ Requirements and specifications for obtain/build
▪ Contract and agreement requirements for engage
▪ New and changed products and services to deliver and support
▪ Knowledge and information about new and changed products and services
to all value chain activities
▪ Performance information and improvement opportunities for improve
Value Chain Activity: Obtain/Build
The purpose of the obtain/build value chain activity is to ensure that service
components are available when and where they are needed, and meet agreed
specifications.
o Inputs:
▪ Architectures and policies provided by plan
▪ Contracts and agreements with external and internal suppliers and partners
provided by engage
▪ Goods and services provided by external and internal suppliers and partners
● Engage – Information, interaction, and engagement
● Obtain/Build – components, goods, and services
▪ Requirements and specifications provided by design and transition
▪ Improvement initiatives and plans provided by improve
▪ Improvement status reports from improve
▪ Change or project initiation requests provided by engage
▪ Change requests provided by deliver and support
▪ Knowledge and information about new and changed products and services
from design and transition
▪ Knowledge and information about third party service components from
engage
o Outputs:
▪ Service components for deliver and support ● Examples:
o Spare parts, consumables (no need for design and transition)
▪ Service components for design and transition
▪ Knowledge and information about new and changed service components to all value chain activities
▪ Contract and agreement requirements for engage
▪ Performance information and improvement opportunities for improve
Value Chain Activity: Deliver & Support
The purpose of the deliver and support value chain activity is to ensure that services
are delivered and supported according to agreed specifications and stakeholders’ expectations.
o Inputs:
▪ New and changed products and services provided by design and transition
▪ Contracts and agreements with external and internal suppliers and partners
provided by engage
▪ Service components provided by obtain/build
▪ Improvement initiatives and plans provided by improve
▪ Improvement status reports from improve
▪ User support tasks provided by engage
▪ Knowledge and information about new and changed service components
and services from design and transition and obtain/build
▪ Knowledge and information about third party service components from
engage
o Outputs:
▪ Services delivered to customers and users
▪ Information on the completion of user support tasks for engage
▪ Product and service performance information for engage and improve
▪ Improvement opportunities for improve
▪ Contract and agreement requirements for engage
▪ Change requests for obtain/build
▪ Service performance information for design and transition
Why Create Service Value Streams?
In order to carry out a certain task, or respond to a particular situation, organizations
create service value streams.
are specific combinations of activities and practices, and each one is designed for a particular scenario.
(made up of a different combination of value chain activities and practices,)
Service value streams
The purpose of the continual improvement practice
is to align the organization’s practices and services with changing business needs through the ongoing identification and improvement of services, service components, practices or any element involved in the efficient and effective management of products and services.
