The latest version of ITIL, ITIL 4 introduced many new concepts. One of these new concepts is the service value system, Service value chain and value stream. The Service Value Chain (SVC) is the core component of the ITIL® Service Value System (SVS). It is an operating model that is used to represent how all the components and activities of an organization work together to facilitate the creation of value. It uses six key ‘Activities’ that help ITIL professionals to conceptualise, create, review and improve high-quality services that are fully tailored to customer and stakeholder requirements.
The six activities in the Service Value Chain represent the steps that can be taken in value creation. Please note that the activities are not linear. Not all activities will be used for all services, and each service may have different orders and/or combinations of these activities.
Plan – The purpose of the plan service value chain activity is to ensure that all stakeholders and people involved have a shared understanding of the vision. This will focus on the current state and direction of improvement for all four dimensions and all products and services across the organization.
Improve – The Improving Service Value Chain activity focuses on continuous improvement of products, services and practices across all value chain activities and the four dimensions of service management.
Engage – The Engage value chain activity is the most important activity, as this is where you listen to your customer and have a good understanding of their needs. This is where you provide transparency, and with continued commitment, you will foster good relationships with all stakeholders. They will also take stakeholder and customer requirements and turn them into tangible design points, to be used in the fourth Activity.
Design and transition – The Design and Transition value chain activity is where you aim to align your products and services with your customer’s expectations when it comes to design, quality, features, cost, and time to market. The requirements are also translated into specifications that can be used in the procurement/build activity. Finally, Design and Transition delivers new products and services for the sixth Activity, Delivery and Support.
Get/build – This activity ensures that service components meet required specifications, including availability when and where needed. It effectively converts requirements into service components, which can be used in both design and transition activities and delivery and support activities.
Give and support – The Delivery and Support activity provides services and products to the customer, ensuring that such delivery meets agreed specifications and stakeholder expectations.
Benefits of using the service value stream:
IT related benefits of using the ITIL service value stream for value mapping and value stream analysis are part of the broader set of benefits that comes with using ITIL:
- Satisfy the business need for “better, faster and cheaper” operations and results to gain a competitive advantage.
- Optimize the delivery of IT services and support capabilities and their results.
- Enabling digital transformation across the enterprise.
Additionally, available benefits include:
- A focus on value creation or co-creation (and the ability to demonstrate IT value)
- Standardization and consistency, benefiting from proven best practices
- Better meet the growing expectations and demands of customers and employees
- Increased speed and efficiency
- Reduced costs (for a competitive advantage)
- Improved control and governance
- A platform for continuous improvement
He service value chain in ITIL 4 It is essentially an operating model that lists the six key activities required to create value with a product or service: plan, engage, design and transition, source/build, deliver and support, and improve. The important thing to know here is that the service value chain is the operating model through which service value flows. flow from Demand/Opportunity to Value. You can think of the service value chain as the rail network and the service value streams as the trains that run on that network. It is also worth noting that the model can serve as a workflow, but it can also simply be used as a high-level reminder of a sound thought process to ensure value chains are managed correctly.