ITSM-1

The reading for next week is chapter 1, 2, 3 of ITIL Foundation, ITIL 4 Edition published by Axelos

Submit .1 question about the reading

Produce a RACI chart.

Above the chart add at least 2 sentences describing what the chart is about and any unusual terms, activities or roles that appear in it.

Select a process that you know about, from your work or past experience.

Activities should appear in the left rows and roles in the top column.

There should be at least 5 to 6 rows and at least 5 roles

ITIL® Foundation
ITIL 4 Edition

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1
1.1
1.2
1.3
1.3.1
1.3.2
2
2.1
2.1.1
2.2
2.2.1
2.2.2
2.2.3
2.3
2.3.1
2.3.2
2.4
2.4.1
2.5
2.5.1
2.5.2
2.5.3
2.5.4
2.6
3
3.1
3.2
3.3
3.4
3.4.1
3.4.2
3.5
3.6
4
Contents
List of figures
List of tables
Welcome to ITIL 4
About this publication
Introduction
IT service management in the modern world
About ITIL 4
The structure and benefits of the ITIL 4 framework
The ITIL SVS
The four dimensions model
Key concepts of service management
Value and value co-creation
Value co-creation
Organizations, service providers, service consumers, and other stakeholders
Service providers
Service consumers
Other stakeholders
Products and services
Configuring resources for value creation
Service offerings
Service relationships
The service relationship model
Value: outcomes, costs, and risks
Outcomes
Costs
Risks
Utility and warranty
Summary
The four dimensions of service management
Organizations and people
Information and technology
Partners and suppliers
Value streams and processes
Value streams for service management
Processes
External factors
Summary
The ITIL service value system

4.1
4.2
4.3
4.3.1
4.3.2
4.3.3
4.3.4
4.3.5
4.3.6
4.3.7
4.3.8
4.4
4.4.1
4.4.2
4.5
4.5.1
4.5.2
4.5.3
4.5.4
4.5.5
4.5.6
4.6
4.6.1
4.6.2
4.7
4.8
5
5.1
5.1.1
5.1.2
5.1.3
5.1.4
5.1.5
5.1.6
5.1.7
5.1.8
5.1.9
5.1.10
5.1.11
5.1.12
5.1.13
5.1.14
5.2
5.2.1
5.2.2
5.2.3
Service value system overview
Opportunity, demand, and value
The ITIL guiding principles
Focus on value
Start where you are
Progress iteratively with feedback
Collaborate and promote visibility
Think and work holistically
Keep it simple and practical
Optimize and automate
Principle interaction
Governance
Governing bodies and governance
Governance in the SVS
Service value chain
Plan
Improve
Engage
Design and transition
Obtain/build
Deliver and support
Continual improvement
Steps of the continual improvement model
Continual improvement and the guiding principles
Practices
Summary
ITIL management 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

5.2.4
5.2.5
5.2.6
5.2.7
5.2.8
5.2.9
5.2.10
5.2.11
5.2.12
5.2.13
5.2.14
5.2.15
5.2.16
5.2.17
5.3
5.3.1
5.3.2
5.3.3
Change enablement
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
End note: The ITIL story, one year on
Appendix A: Examples of value streams
Further research
Glossary
Acknowledgements

Figure 1.1
Figure 2.1
Figure 2.2
Figure 3.1
Figure 4.1
Figure 4.2
Figure 4.3
Figure 5.1
Figure 5.2
Figure 5.3
Figure 5.4
Figure 5.5
Figure 5.6
Figure 5.7
Figure 5.8
Figure 5.9
Figure 5.10
Figure 5.11
Figure 5.12
Figure 5.13
Figure 5.14
Figure 5.15
Figure 5.16
Figure 5.17
Figure 5.18
Figure 5.19
Figure 5.20
Figure 5.21
Figure 5.22
Figure 5.23
Figure 5.24
Figure 5.25
Figure 5.26
List of figures
The service value system
The service relationship model
Achieving value: outcomes, costs, and risks
The four dimensions of service management
The ITIL service value system
The ITIL service value chain
The continual improvement model
Heat map of the contribution of architecture management to value chain activities
Heat map of the contribution of continual improvement to value chain activities
Heat map of the contribution of information security management to value chain activities
Heat map of the contribution of knowledge management to value chain activities
Heat map of the contribution of measurement and reporting to value chain activities
Heat map of the contribution of organizational change management to value chain activities
Heat map of the contribution of portfolio management to value chain activities
Heat map of the contribution of project management to value chain activities
Heat map of the contribution of relationship management to value chain activities
Heat map of the contribution of risk management to value chain activities
Heat map of the contribution of service financial management to value chain activities
Heat map of the contribution of strategy management to value chain activities
Heat map of the contribution of supplier management to value chain activities
Workforce and talent management activities
Heat map of the contribution of workforce and talent management to value chain activities
Heat map of the contribution of availability management to value chain activities
Heat map of the contribution of business analysis to value chain activities
Heat map of the contribution of capacity and performance management to value chain
activities
Heat map of the contribution of change enablement to value chain activities
Heat map of the contribution of incident management to value chain activities
Heat map of the contribution of IT asset management to value chain activities
Heat map of the contribution of monitoring and event management to value chain activities
The phases of problem management
Heat map of the contribution of problem management to value chain activities
Release management in a traditional/waterfall environment
Release management in an Agile/DevOps environment

Figure 5.27
Figure 5.28
Figure 5.29
Figure 5.30
Figure 5.31
Figure 5.32
Figure 5.33
Figure 5.34
Figure 5.35
Figure 5.36
Figure 5.37
Figure 5.38
Figure 5.39
Figure 5.40
Heat map of the contribution of release management to value chain activities
Heat map of the contribution of service catalogue management to value chain activities
Simplified service model for a typical IT service
Heat map of the contribution of service configuration management to value chain activities
Heat map of the contribution of service continuity management to value chain activities
Heat map of the contribution of service design to value chain activities
Heat map of the contribution of the service desk to value chain activities
Heat map of the contribution of service level management to value chain activities
Heat map of the contribution of service request management to value chain activities
Heat map of the contribution of service validation and testing to value chain activities
Heat map of the contribution of deployment management to value chain activities
Heat map of the contribution of infrastructure and platform management to value chain
activities
The software lifecycle
Heat map of the contribution of software development and management to value chain
activities

Table 2.1
Table 2.2
Table 3.1
Table 4.1
Table 4.2
Table 5.1
Table 5.2
Table 5.3
Table A.1
Table A.2
Table A.3
Table A.4
List of tables
Examples of value for different types of stakeholder
Components of a service offering
Relationships between organizations
Overview of the guiding principles
The steps of the continual improvement model linked to the most relevant ITIL guiding
principles
The ITIL management practices
Organizational change management activities
Examples of disaster sources, stakeholders involved, and organizational impact
Examples of value streams for incident resolution
Examples of value streams for software issues
Examples of value streams for creation of an IT service
Examples of value streams for new software development

Welcome to ITIL 4
At this new stage in the development of the IT industry, AXELOS is delighted to present ITIL 4, the latest
step in the evolution of IT best practice. By building on our experience and bringing fresh and forward-
looking thinking to the marketplace, ITIL 4 equips your business to deal with the challenges currently
faced by the industry.
The adoption of ITIL as the most widely used guidance in the world on IT service management (ITSM) will
continue with ITIL 4. It ensures continuity with existing ways of working (where service management is
already successful) by integrating modern and emerging practices with established and proven know-
how. ITIL 4 also provides guidance on these new methods to help individuals and organizations to see
their benefits and move towards using them with confidence, focus, and minimal disruption.
ITIL 4’s holistic approach raises the profile of service management in organizations and industries, setting
it within a more strategic context. Its focus tends to be on end-to-end product and service management,
from demand to value.
ITIL 4 is the result of a great amount of global research and development work across the IT and service
management industries; this work has involved active practitioners, trainers, consultants, vendors,
technicians, and business customers. The architect team has collaborated with the wider stakeholders
and users of ITIL to ensure that the content meets the modern requirements of continuity, innovation,
flexibility, and value.
ITIL training provides individuals with a structured approach for developing their competencies in the
current and future workplace. The accompanying guidance also helps organizations to take advantage of
the new and upcoming technologies, succeed in making their digital transformations, and create value as
needed for themselves and their customers.
ITIL Foundation is the beginning of your ITIL 4 journey. It will open your mind to the wider, more
advanced guidance provided in the other ITIL publications and training that will support your growth and
development. Welcome to the new generation of IT best practice!
Mark Basham
CEO
AXELOS Global Best Practice

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About this publication
ITIL Foundation is the first publication of ITIL 4, the latest evolution of the most widely adopted guidance
for ITSM. Its audience ranges from IT and business students taking their first steps in service
management to seasoned professionals familiar with earlier versions of ITIL and other sources of industry
best practice.
ITIL 4 Foundation will:
provide readers with an understanding of the ITIL 4 service management framework and how it has
evolved to adopt modern technologies and ways of working
explain the concepts of the service management framework to support candidates studying for the ITIL
4 Foundation exam
act as a reference guide that practitioners can use in their work, further studies, and professional
development.
We hope you will find it useful.
About the ITIL story
The guidance provided in this publication can be adopted and adapted for all types of organization and
service.
To show how the concepts of ITIL can be practically applied to an organization’s activities, ITIL
Foundation follows the exploits of a fictional company on its ITIL journey.
This company, Axle Car Hire, is undergoing a transformation to modernize its services and improve its
customer satisfaction and retention levels, and is using ITIL to do this. In each chapter of the text, the
employees of Axle will describe how the company is improving its services, and explain how they are
using ITIL best practice to do this.
ITIL storyline sections appear throughout the text, separated by a distinct border.
Axle Car Hire
Axle Car Hire is a global company, with its headquarters based in Seattle. Axle was formed 10 years ago,
and currently employs approximately 400 staff across Europe, the US, and Asia-Pacific.
Initially, the company experienced strong growth and consistently high customer satisfaction ratings. For
the first six years, repeat business accounted for around 30 per cent of all bookings. Shareholders could
expect handsome quarterly dividends. However, over the past four years, the company has experienced
a downturn. Customer satisfaction ratings have consistently declined and repeat bookings are rare.
Competitors are offering new and innovative options to traditional vehicle hire. Car-pooling, ride-share,
and driverless cars are big draws. Customers have also come to expect online and app interfaces as
standard for the company’s services.
In this evolving market, Axle Car Hire faces an uncertain future. The board is keen to improve customer
satisfaction levels. They want to attract and retain customers, and improve the company’s bottom line.
They’ve appointed a new CIO, Henri. Henri was chosen for his experience in digitalized services and his

track record in successful, large-scale IT transformations. He understands the impact of digital service
offerings, not only for customer satisfaction levels, but also for employee retention rates.
Henri’s strong background in ITIL and ITSM means that he values ITIL certification, and his hiring policy
reflects this. Having worked with Design Thinking, DevOps, and Agile methodologies, he believes
sustainable business requires a blended approach to ITSM.
Henri is keen to see how his team can redefine the car-hire experience and ensure that Axle Car Hire is
the first choice for new and existing customers.
Meet the Axle employees
Here are four key employees of Axle Car Hire:
Henri Is the new CIO of Axle Car Hire. He is a successful business executive who’s prepared to shake
things up. He believes in an integrated approach to ITSM.
Su Is the Axle Car Hire product manager for travel experience, and has worked for Axle for the past five
years. Su is smart, meticulous, and passionate about the environment.
Radhika Is the Axle Car Hire IT business analyst, and it is her job to understand the user requirements
of Axle Car Hire staff and customers. She is inquisitive and energetic, and strives to maintain a positive
relationship with all her customers, both internal and external. Radhika works mostly on discovery and
planning activities, rather than in IT operations. She asks a lot of questions and is great at spotting
patterns and trends.
Marco Is the Axle Car Hire IT delivery manager. He is process-driven and continually references the ITIL
framework to help him manage positive service relationships. However, Marco has had little exposure to
a blended or collaborative approach to service management.

CHAPTER 1
INTRODUCTION

1 Introduction
1.1 IT service management in the modern world
According to the World Trade Organization,1 services comprise the largest and most dynamic component
of both developed and developing economies. Services are the main way that organizations create
value for themselves and their customers. Almost all services today are IT-enabled, which means there
is tremendous benefit for organizations in creating, expanding, and improving their IT service
management capability.
Technology is advancing faster today than ever before. Developments such as cloud computing,
infrastructure as a service (IaaS), machine learning, and blockchain have opened fresh opportunities for
value creation, and led to IT becoming an important business driver and source of competitive
advantage. In turn, this positions IT service management as a key strategic capability.
To ensure that they remain relevant and successful, many organizations are embarking on major
transformational programmes to exploit these opportunities. While these transformations are often
referred to as ‘digital’, they are about more than technology. They are an evolution in the way
organizations work, so that they can flourish in the face of significant and ongoing change. Organizations
must balance the need for stability and predictability with the rising need for operational agility and
increased velocity. Information and technology are becoming more thoroughly integrated with other
organizational capabilities, silos are breaking down, and cross-functional teams are being utilized more
widely. Service management is changing to address and support this organizational shift and ensure
opportunities from new technologies, and new ways of working, are maximized.
Service management is evolving, and so is ITIL, the most widely adopted guidance on IT service
management (ITSM) in the world.
1.2 About ITIL 4
ITIL has led the ITSM industry with guidance, training, and certification programmes for more than 30
years. ITIL 4 brings ITIL up to date by re-shaping much of the established ITSM practices in the wider
context of customer experience, value streams, and digital transformation, as well as embracing new
ways of working, such as Lean, Agile, and DevOps.
ITIL 4 provides the guidance organizations need to address new service management challenges and
utilize the potential of modern technology. It is designed to ensure a flexible, coordinated and integrated
system for the effective governance and management of IT-enabled services.
1.3 The structure and benefits of the ITIL 4 framework
The key components of the ITIL 4 framework are the ITIL service value system (SVS) and the four
dimensions model.

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1.3.1 The ITIL SVS
The ITIL SVS represents how the various components and activities of the organization work together to
facilitate value creation through IT-enabled services. These can be combined in a flexible way, which
requires integration and coordination to keep the organization consistent. The ITIL SVS facilitates this
integration and coordination and provides a strong, unified, value-focused direction for the organization.
The structure of the ITIL SVS is shown in Figure 1.1, and is repeated in Chapter 4, where it is described
in more detail.
The core components of the ITIL SVS are:
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. It is a flexible model that defines six key activities that can be combined in many
ways, forming multiple value streams. The service value chain is flexible enough to be adapted to multiple
approaches, including DevOps and centralized IT, to address the need for multimodal service
management. The adaptability of the value chain enables organizations to react to changing demands
from their stakeholders in the most effective and efficient ways.
The flexibility of the service value chain is further enhanced by the ITIL practices. Each ITIL practice
supports multiple service value chain activities, providing a comprehensive and versatile toolset for ITSM
practitioners.
Figure 1.1 The service value system
The ITIL guiding principles can be used to guide an organization’s decisions and actions and ensure a
shared understanding and common approach to service management across the organization. The ITIL
guiding principles create the foundation for an organization’s culture and behaviour from strategic
decision-making to day-to-day operations.
The ITIL SVS also includes governance activities that enable organizations to continually align their
operations with the strategic direction set by the governing body.
Every component of the ITIL SVS is supported by continual improvement. ITIL provides organizations
with a simple and practical improvement model to maintain their resilience and agility in a constantly

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changing environment.
1.3.2 The four dimensions model
To ensure a holistic approach to service management, ITIL 4 outlines four dimensions of service
management, from which each component of the SVS should be considered. The four dimensions are:
organizations and people
information and technology
partners and suppliers
value streams and processes.
By giving each of the four dimensions an appropriate amount of focus, an organization ensures its SVS
remains balanced and effective. The four dimensions are described in Chapter 3.
The ITIL story: The CIO’s vision for Axle
Henri: These days, the pace of industry change is rapid, with the term ‘Fourth Industrial Revolution’ now
widely used. Companies such as Axle are competing with disruptors that include driverless cars and car
share.
Service expectations have changed since Axle was created 10 years ago. Customers want immediate
access to services via apps and online services. Axle’s booking app is out of date, and our technology
isn’t keeping pace with changes in our service offerings.
My vision for Axle is that we become the most recognized car-hire brand in the world. We’ll continue to
offer outstanding customer service while maintaining competitive car-hire rates. After all, Axle is now
about more than just hiring a vehicle. We must focus on our customers’ whole travel experience.I
Footnote:
1 https://www.wto.org/english/tratop_e/serv_e/serv_e.htm [accessed: 22 July 2019].

https://www.wto.org/english/tratop_e/serv_e/serv_e.htm

CHAPTER 2
KEY CONCEPTS OF SERVICE MANAGEMENT

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2 Key concepts of service management
A shared understanding of the key concepts and terminology of ITIL by organizations and individuals is
critical to the effective use of this guidance to address real-world service management challenges. To that
end, this chapter explains some of the most important concepts of service management, including:
the nature of value and value co-creation
organizations, service providers, service consumers, and other stakeholders
products and services
service relationships
value: outcomes, costs, and risks.
These concepts apply to all organizations and services, regardless of their nature and underpinning
technology. But the first thing that must be outlined is the most fundamental question of all: What is
‘service management’?
Definition: Service management
A set of specialized organizational capabilities for enabling value for customers in the form of
services.
Developing the specialized organizational capabilities mentioned in the definition requires an
understanding of:
the nature of value
the nature and scope of the stakeholders involved
how value creation is enabled through services.
The ITIL story: Axle’s services
Su: At Axle, our service is travel experience. We provide this service to our customers to create
value both for them and for Axle. Service management helps us to realize this value.
The ITIL story: Axle’s customers
Here are three of Axle Car Hire’s frequent customers, whom you will meet as the story unfolds:
Ichika Is a university student on holiday with no fixed plans. She hopes to visit music festivals as
part of her travel experience. Apart from that, her travel is flexible. She is tech-savvy and quickly
adapts to new applications and solutions. She is interested in trying new and exciting digital
services.
Faruq Is recently retired and typically holidays alone. He is thoughtful and enjoys learning about

and adopting new technology. Faruq often makes his travel plans on the go, as his needs can
change, based on personal or health considerations.
Amelia Is the facilities manager at an organic food distribution company called Food for Fuel. Their
head office is in central London, but many Food for Fuel consumers are in regional areas. This
means access by public transport is typically infrequent, unreliable, and expensive. Consequently,
Food for Fuel provides its sales staff with vehicles to enable them to conveniently and reliably visit
existing and potential customers.
2.1 Value and value co-creation
Key message
The purpose of an organization is to create value for stakeholders.
The term ‘value’ is used regularly in service management, and it is a key focus of ITIL 4; it must therefore
be clearly defined.
Definition: Value
The perceived benefits, usefulness, and importance of something.
Inherent in this definition is the understanding that value is subject to the perception of the stakeholders,
whether they be the customers or consumers of a service, or part of the service provider organization(s).
Value can be subjective.
2.1.1 Value co-creation
There was a time when organizations self-identifying as ‘service providers’ saw their role as delivering
value to their customers in much the same way that a package is delivered to a building by a delivery
company. This view treated the relationship between the service provider and the service consumer as
mono-directional and distant. The provider delivers the service and the consumer receives value; the
consumer plays no role in the creation of value for themselves. This fails to take into consideration the
highly complex and interdependent service relationships that exist in reality.
Increasingly, organizations recognize that value is co-created through an active collaboration between
providers and consumers, as well as other organizations that are part of the relevant service
relationships. Providers should no longer attempt to work in isolation to define what will be of value to
their customers and users, but actively seek to establish mutually beneficial, interactive relationships with
their consumers, empowering them to be creative collaborators in the service value chain. Stakeholders
across the service value chain contribute to the definition of requirements, the design of service solutions

and even to the service creation and/or provisioning itself (see section 4.5).
The ITIL story: Value
Marco: We’re planning to release a generous new offering, giving an extra day of car hire with
every booking.
Henri: However, we must remember that value means different things for different people. Axle has
a broad range of customers, and each of them has their own requirements for car hire. We need to
make sure that any changes to our services are actually providing some type of value to our
customers.
Ichika: To me, ‘value’ means freedom of movement. I want my travel to be easy, hassle-free, and
flexible. I opt in to mailing lists and subscriptions when it suits me. I take frequent short trips and
rarely visit the same location twice. An extra day of car hire won’t always suit my plans.
Faruq: I don’t travel often, so I don’t have my own car. The value of a car-hire service for me is the
on-demand availability of a car that suits my needs. I spend less money on car hire each year than
it would cost me to maintain and run my own car.
Value means it meets my budget. Being retired means I’m flexible, with very few commitments or
deadlines. When I’m on holiday, I only plan a few days ahead. An extra day of car hire offers real
value to me.
Amelia: The value of car hire for my organization, Food for Fuel, is two-fold. First, we need the
ability to reach our customers. Second, we’re keen to lower our costs and risks by hiring cars
instead of running our own fleet.
As a regular customer who books car hire on behalf of my sales reps and staff, I value a consistent
and reliable standard of service. Travel and car hire at Food for Fuel is pre-planned and typically
only requires daily hire. There’s not much value in an extra day of car hire for my organization.
Henri: We also have to think about how value is created for Axle. The most obvious value we
receive when we hire out our cars is revenue. For our service consumers, value includes easy
access to a vehicle when they need it, without the overall expense of car ownership. In both cases,
we need a combination of the two for the value to be realized. In that way, we co-create value
through our service relationships.
Value will be explored in greater depth later in this chapter. Before that, however, it is important to outline
the various stakeholders who are involved in value co-creation and the language used in ITIL to describe
them.
2.2 Organizations, service providers, service consumers, and
other stakeholders
In service management there are many different kinds of stakeholder, each of which must be understood
in the context of the creation of value in the form of services. First, the term ‘organization’ needs to be
defined.
Definition: Organization
A person or a group of people that has its own functions with responsibilities, authorities, and
relationships to achieve its objectives.

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.
As societies and economies evolve, the relationships between and within organizations become more
complex. Each organization depends on others in its operation and development. Organizations may hold
different roles, depending on the perspective under discussion. For example, an organization that
coordinates adventure vacations can fill the role of a service provider to a travel agent when it sells a
vacation, while simultaneously filling the role of service consumer when it purchases airport transfers to
add to their vacation packages.
2.2.1 Service providers
Key message
When provisioning services, an organization takes on the role of the service provider. The provider
can be external to the consumer’s organization, or they can both be part of the same organization.
In the most traditional views of ITSM, the provider organization is seen as the IT department of a
company, and the other departments or other functional units in the company are regarded as the
consumers. This is, however, only one very simple provider-consumer model. A provider could be selling
services on the open market to other businesses, to individual consumers, or it could be part of a service
alliance, collaborating to provide services to consumer organizations. The key is that the organization in
the provider role has a clear understanding of who its consumers are in a given situation and who the
other stakeholders are in the associated service relationships.
The ITIL story: Service providers
Henri: Axle Car Hire acts as a service provider. We provide cars for hire. At the same time, other
organizations, such as mechanics and the companies that we buy our cars from, act as service
providers for Axle.
2.2.2 Service consumers
Key message
When receiving services, an organization takes on the role of the service consumer.
Service consumer is a generic role that is used to simplify the definition and description of the structure of
service relationships. In practice, there are more specific roles involved in service consumption, such as

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customers, users, and sponsors. These roles can be separate or combined.
Definitions
Customer The role that defines the requirements for a service and takes responsibility for the
outcomes of service consumption.
User The role that uses services.
Sponsor The role that authorizes budget for service consumption.
For example, if a company wishes to purchase mobile phone services for its employees from a wireless
carrier (the service provider), the various consumer roles may be distributed as follows:
The chief information officer (CIO) and key communications team members fill the role of customer
when they analyse the mobile communications requirements of the company’s employees, negotiate
the contract with the wireless carrier and monitor the carrier’s performance against the contracted
requirements.
The chief financial officer (CFO) fills the role of the sponsor when they review the proposed service
arrangement and approve the cost of the contract as negotiated.
The employees (including the CIO, CFO, and communications team members) fill the role of users
when they order, receive, and use the mobile phone services as per the agreed contract.
In another example, an individual private consumer of the same wireless carrier (a person using the
mobile network) simultaneously acts as a user, customer, and sponsor.
The ITIL story: Axle’s service consumers
Su: Our most obvious service consumers are the people and organizations who hire our cars, visit
our offices, and use our website and booking app. For example, Ichika and Faruq are service
consumers, and so is Food for Fuel. They are also our customers.
Radhika: Users are the people who make use of our services. Our car-hire users are the drivers
and passengers in our vehicles.
Marco: Sponsors are the people who authorize budgets. For Axle Car Hire, our sponsors include
Amelia from Food for Fuel, who approves the travel budget even if she doesn’t travel herself.
Henri: Individual service consumers such as Ichika and Faruq approve their own budgets, define
their requirements for car hire, and drive the cars. Therefore, Ichika and Faruq act as sponsors,
customers, and users. Sometimes, though, they may share the trip with fellow drivers (friends or
family members). In this case, their contracts will include other users.
It is important to identify these roles in service relationships to ensure effective communication and
stakeholder management. Each of these roles may have different, and sometimes even conflicting,
expectations from services, and different definitions of value.
2.2.3 Other stakeholders
A key focus of service management, and of ITIL, is the way that organizations co-create value with their

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consumers through service relationships. Beyond the consumer and provider roles, there are usually
many other stakeholders that are important to value creation. Examples include individual employees of
the provider organization, partners and suppliers, investors and shareholders, government organizations
such as regulators, and social groups. For the success, and even the continued existence of an
organization, it is important that relationships with all key stakeholders are understood and managed. If
stakeholders are unhappy with what the organization does or how it does it, the provider’s relationships
with its consumers can be in jeopardy.
Products and services create value for stakeholders in a number of ways. Some are quite direct such as
the generation of revenue, while others are more indirect such as employee experience. Table 2.1
provides examples of value for several different types of stakeholder.
Detailed recommendations on the management of value for different stakeholders can be found in other
ITIL 4 publications and supplementary materials.
Table 2.1 Examples of value for different types of stakeholder
Stakeholder Example of value for stakeholder
Service consumers Benefits achieved; costs and risks optimized
Service provider Funding from the consumer; business development; image improvement
Service provider employees Financial and non-financial incentives; career and professional development; sense of purpose
Society and community Employment; taxes; organizations’ contribution to the development of the community
Charity organizations Financial and non-financial contributions from other organizations
Shareholders Financial benefits, such as dividends; sense of assurance and stability
2.3 Products and services
The central component of service management is, of course, the service. The nature of services will now
be considered, and an outline given of the relationship between a service and a product.
2.3.1 Configuring resources for value creation
Key message
The services that an organization provides are based on one or more of its products. Organizations
own or have access to a variety of resources, including people, information and technology, value
streams and processes, and partners and suppliers. Products are configurations of these
resources, created by the organization, that will potentially be valuable for its customers.
Definitions
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.

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Product A configuration of an organization’s resources designed to offer value for a consumer.
Each product that an organization offers is created with a number of target consumer groups in mind, and
the products will be tailored to appeal to, and meet the needs of, these groups. A product is not exclusive
to one consumer group, and can be used to address the needs of several different groups. For example,
a software service can be offered as a ‘lite’ version, for individual users, or as a more comprehensive
corporate version.
Products are typically complex and are not fully visible to the consumer. The portion of a product that the
consumer actually sees does not always represent all of the components that comprise the product and
support its delivery. Organizations define which product components their consumers see, and tailor them
to suit their target consumer groups.
2.3.2 Service offerings
Key message
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.
Definition: 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.
Service offerings may include:
goods to be supplied to a consumer (for example, a mobile phone). Goods are supposed to be
transferred from the provider to the consumer, with the consumer taking the responsibility for their
future use
access to resources granted or licensed to a consumer under agreed terms and conditions (for
example, to the mobile network, or to the network storage). The resources remain under the provider’s
control and can be accessed by the consumer only during the agreed service consumption period
service actions performed to address a consumer’s needs (for example, user support). These actions
are performed by the service provider according to the agreement with the consumer.
Examples of different types of service offering are shown in Table 2.2.
Services are offered to target consumer groups, and those groups may be either internal or external to
the service provider organization. Different offerings can be created based on the same product, which
allows it to be used in multiple ways to address the needs of different consumer groups. For example, a

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software service can be offered as a limited free version, or as a comprehensive paid-for version, based
on one product of the service provider.
Table 2.2 Components of a service offering
Component Description Examples
Goods
Supplied to the consumer Ownership is transferred to
the consumer Consumer takes responsibility for future
use
A mobile phone A physical server
Access to resources
Ownership is not transferred to the consumer Access
is granted or licensed to the consumer under agreed
terms and conditions The consumer can only access
the resources during the agreed consumption period
and according to other agreed service terms
Access to the mobile network, or to network storage
Service actions
Performed by the service provider to address a
consumer’s needs Performed according to an
agreement with the consumer
User support Replacement of a piece of equipment
The ITIL story: Axle’s service offerings
Su: Axle’s service offerings include car hire and the various options we provide to address different
travel needs. These offerings include discounted insurance, a loyalty programme, and
complimentary travel products which include bottled water, tissues, badge holders for parking
permits, and baby seats.
Our consumers are a diverse group and expect different travel experiences. For example, our
corporate consumers don’t usually need baby seats or weekend rates. At the same time, some
individual customers aren’t interested in free airport car collection if they’re only travelling locally.
All our service offerings include access to our website and booking app.
2.4 Service relationships
To create value, an organization must do more than simply provide a service. It must also cooperate with
the consumers in service relationships.
Key message
Service relationships are established between two or more organizations to co-create value. In a
service relationship, organizations will take on the roles of service providers or service consumers.
The two roles are not mutually exclusive, and organizations typically both provide and consume a
number of services at any given time.
2.4.1 The service relationship model
When services are delivered by the provider, they create new resources for service consumers, or modify
their existing ones. For example:
a training service improves the skills of the consumer’s employees
a broadband service allows the consumer’s computers to communicate

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a car-hire service enables the consumer’s staff to visit clients
a software development service creates a new application for the service consumer.
Figure 2.1 The service relationship model
The service consumer can use its new or modified resources to create its own products to address the
needs of another target consumer group, thus becoming a service provider. These interactions are shown
in Figure 2.1.
Definitions
Service relationship A cooperation between a service provider and service consumer. Service
relationships include service provision, service consumption, and service relationship
management.
Service provision Activities performed by an organization to provide services. Service provision
includes:
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.
Service consumption Activities performed by an organization to consume services. Service
consumption includes:
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.
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.
The ITIL story: Axle’s service relationships
Henri: Axle has service relationships with many service providers and consumers, both internal
and external. Some services provided to Axle create new resources for the business, such as car
manufacturers selling cars to us. Other services, such as the work done for us by our internal car
cleaning team, and mechanics outside of Axle, change our existing resources by ensuring that our
cars are clean and functional.
Axle can use these resources in other relationships to provide its own services, in the form of car
hire, to consumers, i.e. our customers.

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These are just a few examples of the service relationships that Axle has. The organization as a
whole has many more.
2.5 Value: outcomes, costs, and risks
This section will focus on how an organization in the role of service provider should evaluate what its
services should do and how its services should be provided to meet the needs of consumers.
Key message
Achieving desired outcomes requires resources (and therefore costs) and is often associated with
risks. Service providers help their consumers to achieve outcomes, and in doing so, take on some of
the associated risks and costs (see the definition of service in section 2.3.1). On the other hand,
service relationships can introduce new risks and costs, and in some cases, can negatively affect
some of the intended outcomes, while supporting others.
Service relationships are perceived as valuable only when they have more positive effects than negative,
as depicted in Figure 2.2. Outcomes, and how they influence and are influenced by the other elements,
will now be discussed.
2.5.1 Outcomes
Acting as a service provider, an organization produces outputs that help its consumers to achieve certain
outcomes.
Definitions
Output A tangible or intangible deliverable of an activity.
Outcome A result for a stakeholder enabled by one or more outputs.

Figure 2.2 Achieving value: outcomes, costs, and risks
It is important to be clear about the difference between outputs and outcomes. For example, 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.
Depending on the relationship between the provider and the consumer, it can be difficult for the provider
to fully understand the outcomes that the consumer wants to achieve. In some cases they will work
together to define the desired outcomes. For example, business relationship managers (BRMs) in
internal IT or HR departments may regularly talk with customers and discuss their needs and
expectations. In other cases, the consumers articulate their expectations quite clearly, and the provider
expects them to do so, such as when standardized services are offered to a wide consumer group. This is
how mobile operators, broadband service providers, and transport companies usually operate. Finally,
some service providers predict or even create demand for certain outcomes, forming a target group for
their services. This may happen with innovative services addressing needs that consumers were not even
aware of before. Examples of this include social networks or smart home solutions.
The ITIL story: Outputs and outcomes
Henri: At Axle, our key output is a car that is clean, roadworthy, and well maintained.
Su: For our service consumers, outcomes include travel that is convenient and affordable, and
meets a range of needs. This includes self-drive holidays, client site visits, and travel to see family
and friends.
2.5.2 Costs

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Definition: Cost
The amount of money spent on a specific activity or resource.
From the service consumer’s perspective, there are two types of cost involved in service relationships:
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.
Both types of cost are considered when the consumer assesses the value which they expect the service
to create. To ensure that the correct decisions are made about the service relationship, it is important that
both types of cost are fully understood.
From the provider’s perspective, a full and correct understanding of the cost of service provision is
essential. Providers need to ensure that services are delivered within budget constraints and meet the
financial expectations of the organization (see section 5.1.11).
2.5.3 Risks
Definition: Risk
A possible event that could cause harm or loss, or make it more difficult to achieve objectives. Can
also be defined as uncertainty of outcome, and can be used in the context of measuring the
probability of positive outcomes as well as negative outcomes.
As with costs, there are two types of risk that are of concern to service consumers:
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.
It is the duty of the provider to manage the detailed level of risk on behalf of the consumer (see section
5.1.10). This should be handled based on a balance of what matters most to the consumer and to the
provider. The consumer contributes to the reduction of risk through:
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.

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2.5.4 Utility and warranty
To evaluate whether a service or service offering will facilitate the outcomes desired by the consumers
and therefore create value for them, the overall utility and warranty of the service should be assessed.
Definitions
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, a service must either support the performance of the consumer or
remove constraints from the consumer. Many services do both.
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’. Warranty often relates to service levels aligned with the needs of service consumers.
This may be based on a formal agreement, or it may be a marketing message or brand image.
Warranty typically addresses such areas as the availability of the service, its capacity, levels of
security and continuity. A service may 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 the impact of costs and risks on utility and
warranty to generate a complete picture of the viability of a service.
Both utility and warranty are essential for a service to facilitate its desired outcomes and therefore help
create value. For example, a recreational theme park may offer many exciting rides designed to deliver
thrilling experiences for park visitors (utility), but if a significant number of the rides are frequently
unavailable due to mechanical difficulties, the park is not fulfilling the warranty (it is not fit for use) and the
consumers will not receive their expected value. Likewise, if the rides are always up and running during
advertised hours, but they do not have features that provide the levels of excitement expected by visitors,
the utility is not fulfilled, even though the warranty is sufficient. Again, consumers would not receive the
expected value.
The ITIL story: A new supplier (Craig’s Cleaning)
Su: Axle’s recent customer satisfaction surveys consistently revealed low ratings for car
cleanliness. This hampered our customers’ travel experience and was a contributing factor for
low repeat bookings.
Henri: Axle Car Hire made the decision to outsource the cleaning of all vehicles to a service
provider. Previously, cleaning of our vehicle fleet was performed by an internal department.
The cost and effort to maintain equipment, update rosters, and manage an inflexible workforce
were unsustainable.
It is important to understand that the risk of outsourcing any task or service is that an
organization loses skills and capabilities. However, car cleaning is a service requiring
specialized equipment as well as a flexible and motivated workforce. Continual investment in
this service is something that is not beneficial for Axle.
At face value, outsourcing may appear to cost an organization more than using internal
resources. Initially this may be true; however, over time and correctly managed, outsourcing
services should be beneficial to both the organization and supplier. The benefit for Axle is that

we can concentrate on our core business. After all, we’re not a cleaning company.
Marco: There are always pros and cons to outsourcing. Let’s have a look at the outcomes,
costs, and risks that are introduced and removed.
Pros Cons
Users will be happy with our cars’
cleanliness
Axle will lose an opportunity to offer car cleaning as a service
Axle will no longer need to maintain
its own cleaning facilities
Axle will need to pay the cleaning company
The risk of cars being damaged
during cleaning will be removed
from Axle. This risk will now be with
the supplier and their insurance
company
Axle will have a heavy dependency on the external cleaning company, and their staff
will have wide access to our premises
Su: By partnering with a specialist cleaning organization, Axle can focus its resources on
providing a better service for our users. It will also help to optimize our costs, increasing value
for the organization.
Craig is the owner of Craig’s Cleaning. Craig is methodical, reliable, and well respected by his
staff. With his team, Craig is keen to contribute to the Axle vision of offering a high-standard
travel experience.
Craig: Axle Car Hire decided to outsource its car cleaning service, and Craig’s Cleaning was
chosen to take this on. My organization is now responsible for the cleanliness of the entire
Axle vehicle fleet.
Henri: The service Craig’s Cleaning is providing is only one component of the Axle customer
experience. Clean cars are one output of our overall service, and they contribute directly to the
customers’ travel experience. This helps Axle’s clients to achieve their outcomes.
Su: Craig’s Cleaning is doing a great job! The cars have never been cleaner, and our
customer satisfaction ratings for car cleanliness are steadily on the increase.
Axle and Craig’s Cleaning have worked on a cleaning schedule together, with focus on car
cleaning turnaround times during peak hours. Axle is responsible for providing Craig and his
team with timely notice of any changes that can impact this schedule. For example, Axle may
need to expand its cleaning requirements in the light of new service offerings, such as the one
Marco is developing.
Marco: Axle has a goal to become a greener company and help the environment. We would
like Craig’s Cleaning to support us in this goal and aim for the same sustainable growth as us.
2.6 Summary
This chapter has covered the key concepts in service management, in particular the nature of value and
value co-creation, organizations, products, and services. It has explored the often complex relationships
between service providers and consumers, and the various stakeholders involved. The chapter has also
covered the key components of consumer value: benefits, costs, and risks, and how important it is to
understand the needs of the customer when designing and delivering services. These concepts will be
built upon over the next few chapters, and guidance provided on applying them in practical and flexible
ways.

CHAPTER 3
THE FOUR DIMENSIONS OF SERVICE
MANAGEMENT

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3 The four dimensions of service management
The previous chapter outlined the concepts that are key to service management. The objective of an
organization is to create value for its stakeholders, and this is achieved through the provision and
consumption of services. The ways in which the various components and activities of an organization
work together to create this value is described by the ITIL SVS. However, before this is explored further,
the four dimensions of service management must be introduced. These dimensions are relevant to, and
impact upon, all elements of the SVS.
To achieve their desired outcomes and work as effectively as possible, organizations should consider all
aspects of their behaviour. In practice, however, organizations often become too focused on one area of
their initiatives and neglect the others. For example, process improvements may be planned without
proper consideration for the people, partners, and technology involved, or technology solutions can be
implemented without due care for the processes or people they are supposed to support. There are
multiple aspects to service management, and none of these are sufficient to produce the required
outcomes when considered in isolation.
Key message
To support a holistic approach to service management, ITIL defines four dimensions that collectively
are critical to the effective and efficient facilitation of value for customers and other stakeholders in
the form of products and services. These are:
organizations and people
information and technology
partners and suppliers
value streams and processes.
These four dimensions represent perspectives which are relevant to the whole SVS, including the
entirety of the service value chain and all ITIL practices. The four dimensions are constrained or
influenced by several external factors that are often beyond the control of the SVS.
The four dimensions, and the relationships between them, are represented in Figure 3.1.
Failing to address all four dimensions properly may result in services becoming undeliverable, or not
meeting expectations of quality or efficiency. For example, failing to consider the value streams and
processes dimension holistically can lead to wasteful work, duplication of efforts, or worse, work that
conflicts with what is being done elsewhere in the organization. Equally, ignoring the partners and
suppliers dimension could mean that outsourced services are misaligned with the needs of the
organization. The four dimensions do not have sharp boundaries and may overlap. They will sometimes
interact in unpredictable ways, depending on the level of complexity and uncertainty in which an
organization operates.

Figure 3.1 The four dimensions of service management
It is important to note that the four dimensions of service management apply to all services being
managed, as well as to the SVS in general. It is therefore essential that these perspectives should be
considered for every service, and that each one should be addressed when managing and improving the
SVS at all levels.
An overview of the four dimensions is provided below, and more detailed guidance on addressing the
dimensions in practice can be found in other ITIL 4 publications.
The ITIL story: The four dimensions of service management
Henri: As an IT team, we are responsible for the information and technology at Axle Car Hire.
However, effective IT management is much more than just managing technology. We must also
consider the wider organization and people involved in Axle’s car-hire service, our relationships
with partners and suppliers, and the value streams, processes, and technologies that we use.
3.1 Organizations and people
The first dimension of service management is organizations and people.
The effectiveness of an organization cannot be assured by a formally established structure or system of
authority alone. The organization also needs a culture that supports its objectives, and the right level of
capacity and competency among its workforce. It is vital that the leaders of the organization champion
and advocate values which motivate people to work in desirable ways. Ultimately, however, it is the way
in which an organization carries out its work that creates shared values and attitudes, which over time are
considered the organization’s culture.
Key message
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.
As an example, it is useful to promote a culture of trust and transparency in an organization that
encourages its members to raise and escalate issues and facilitates corrective actions before any issues
have an impact on customers. Adopting the ITIL guiding principles can be a good starting point for
establishing a healthy organizational culture (see section 4.3).
People (whether customers, employees of suppliers, employees of the service provider, or any other
stakeholder in the service relationship) are a key element in this dimension. Attention should be paid not
only to the skills and competencies of teams or individual members, but also to management and
leadership styles, and to communication and collaboration skills. As practices evolve, people also need to
update their skills and competencies. It is becoming increasingly important for people to understand the
interfaces between their specializations and roles and those of others in the organization, to ensure
proper levels of collaboration and coordination. For example, in some areas of IT (such as software
development or user support), there is a growing acknowledgement that everyone should have a broad
general knowledge of the other areas of the organization, combined with a deep specialization in certain
fields.
Every person in the organization should have a clear understanding of their contribution towards creating
value for the organization, its customers, and other stakeholders. Promoting a focus on value creation is
an effective method of breaking down organizational silos.
The organizations and people dimension of a service covers roles and responsibilities, formal
organizational structures, culture, and required staffing and competencies, all of which are related to the
creation, delivery, and improvement of a service.
The ITIL story: Axle’s organization and people
Henri: The organizations and people dimension of Axle’s car-hire services includes my IT team and
other teams within the organization, such as procurement, HR, and facilities.
3.2 Information and technology
The second dimension of service management is information and technology. As with the other three
dimensions, information and technology applies both to service management and to the services being
managed.
Detailed guidance on the role of information and technology in service management can be found in other
ITIL publications.
Key message
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.

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The technologies that support service management include, but are not limited to, workflow management
systems, knowledge bases, inventory systems, communication systems, and analytical tools. Service
management increasingly benefits from developments in technology. Artificial intelligence, machine
learning, and other cognitive computing solutions are used at all levels, from strategic planning and
portfolio optimization to system monitoring and user support. The use of mobile platforms, cloud
solutions, remote collaboration tools, automated testing, and deployment solutions has become common
practice among service providers.
In the context of a specific IT service, this dimension includes the information created, managed, and
used in the course of service provision and consumption, and the technologies that support and enable
that service. The specific information and technologies depend on the nature of the services being
provided and usually cover all levels of IT architecture, including applications, databases, communication
systems, and their integrations. In many areas, IT services use the latest technology developments, such
as blockchain, artificial intelligence, and cognitive computing. These services provide a business
differentiation potential to early adopters, especially in highly competitive industries. Other technology
solutions, such as cloud computing or mobile apps, have become common practice across many
industries globally.
In relation to the information component of this dimension, organizations should consider the following
questions:
What information is managed by the services?
What supporting information and knowledge are needed to deliver and manage the services?
How will the information and knowledge assets be protected, managed, archived, and disposed of?
For many services, information management is the primary means of enabling customer value. For
example, an HR service facilitates value creation for its customers by enabling the organization to access
and maintain accurate information about its employees, their employment, and their benefits, without
exposure of private information to unauthorized parties. A network management service facilitates value
creation for its users by maintaining and providing accurate information about an organization’s active
network connections and utilization, allowing it to adjust its network bandwidth capacity. Information is
generally the key output of the majority of IT services which are consumed by business customers.
Another key consideration in this dimension is how information is exchanged between different services
and service components. The information architecture of the various services needs to be well
understood and continually optimized, taking into account such criteria as the availability, reliability,
accessibility, timeliness, accuracy, and relevance of the information provided to users and exchanged
between services.
The challenges of information management, such as those presented by security and regulatory
compliance requirements, are also a focus of this dimension. For example, an organization may be
subject to the European Union’s General Data Protection Regulation (GDPR), which influences its
information management policies and practices. Other industries or countries may have regulations that
impose constraints on the collection and management of data of multinational corporations. For example,
in the US the Health Insurance Portability and Accountability Act of 1996 provides data privacy and
security provisions for safeguarding medical information.
Most services nowadays are based on IT, and are heavily dependent on it. When considering a
technology for use in the planning, design, transition, or operation of a product or service, questions an
organization may ask include:
Is this technology compatible with the current architecture of the organization and its customers? Do
the different technology products used by the organization and its stakeholders work together? How

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are emerging technologies (such as machine learning, artificial intelligence, and Internet of Things)
likely to disrupt the service or the organization?
Does this technology raise any regulatory or other compliance issues with the organization’s policies
and information security controls, or those of its customers?
Is this a technology that will continue to be viable in the foreseeable future? Is the organization willing
to accept the risk of using aging technology, or of embracing emerging or unproven technology?
Does this technology align with the strategy of the service provider, or its service consumers?
Does the organization have the right skills across its staff and suppliers to support and maintain the
technology?
Does this technology have sufficient automation capabilities to ensure it can be efficiently developed,
deployed, and operated?
Does this technology offer additional capabilities that might be leveraged for other products or
services?
Does this technology introduce new risks or constraints to the organization (for example, locking it into
a specific vendor)?
The culture of an organization may have a significant impact on the technologies it chooses to use. Some
organizations may have more of an interest in being at the cutting edge of technological advances than
others. Equally the culture of some organizations may be more traditional. One company may be keen to
take advantage of artificial intelligence, while another may barely be ready for advanced data analysis
tools.
The nature of the business will also affect the technology it makes use of. For example, a company that
does significant business with government clients may have restrictions on the use of some technologies,
or have significantly higher security concerns that must be addressed. Other industries, such as finance
or life sciences, are also subject to restrictions around their use of technology. For example, they usually
cannot use open source and public services when dealing with sensitive data.
The ITIL story: Axle’s information and technology
Henri: The information and technology dimension of Axle Car Hire represents the information
created and managed by teams. It also includes the technologies that support and enable our
services. Applications and databases such as our booking app and financial system are part of the
information and technology dimension as well.
Definition: Cloud computing
A model for enabling on-demand network access to a shared pool of configurable computing
resources that can be rapidly provided with minimal management effort or provider interaction.
ITSM in the modern world: cloud computing
ITSM has been focusing on value for users and customers for years, and this focus is usually
technology-agnostic: what matters is not the technology, but the opportunities it creates for the
customers. Although for the most part this is a perfectly acceptable approach, organizations cannot

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ignore new architectural solutions and the evolution of technology in general. Cloud computing has
become an architectural shift in IT, introducing new opportunities and risks, and organizations have
had to react to it in ways that are most beneficial for themselves, their customers, and other
stakeholders.
Key characteristics of cloud computing include:
on-demand availability (often self-service)
network access (often internet access)
resource pooling (often among multiple organizations)
rapid elasticity (often automatic)
measured service (often from service consumer’s perspective).
In the context of ITSM, cloud computing changes service architecture and the distribution of
responsibilities between service consumers, service providers, and their partners. It especially
applies to in-house service providers, i.e. the organization’s internal IT departments. In a typical
situation, adoption of the cloud computing model:
replaces some infrastructure, previously managed by the service provider, with a partner’s cloud
service
decreases or removes the need for infrastructure management expertise and the resources of the
service provider
shifts the focus of service monitoring and control from the in-house infrastructure to a partner’s
services
changes the cost structure of the service provider, removing specific capital expenditures and
introducing new operating expenditures and the need to manage them appropriately
introduces higher requirements for network availability and security
introduces new security and compliance risks and requirements, applicable to both the service
provider and its partner providing the cloud service
provides users with opportunities to scale service consumption using self-service via simple
standard requests, or even without any requests.
All these affect multiple service providers’ practices, including, but not limited to:
service level management
measurement and reporting
information security management
service continuity management
supplier management
incident management
problem management
service request management
service configuration management.
Another important effect of cloud computing, resulting from the computing resources’ elasticity, is
that the cloud infrastructure may enable significantly faster deployment of new and changed
services, thus supporting high-velocity service delivery. The ability to configure and deploy
computing resources with the same speed as new applications is an important prerequisite for the
success of DevOps and similar initiatives. This supports modern organizations in their need for faster
time to market and digitalization of their services.

Considering the influence of cloud computing on organizations, it is important to make decisions
about the use of this model at the strategic level of the organization, involving all levels of
stakeholders, from governance to operations.
3.3 Partners and suppliers
The third dimension of service management is partners and suppliers. Every organization and every
service depend to some extent on services provided by other organizations.
Key message
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.
Relationships between organizations may involve various levels of integration and formality. This ranges
from formal contracts with clear separation of responsibilities, to flexible partnerships where parties
share common goals and risks, and collaborate to achieve desired outcomes. Some relationship
examples are shown in Table 3.1. Note that the forms of cooperation described are not fixed but exist as
a spectrum. An organization acting as a service provider will have a position on this spectrum, which will
vary depending on its strategy and objectives for customer relationships. Likewise, when an organization
acts as a service consumer, the role it takes on will depend on its strategy and objectives for sourcing
and supplier management. When it comes to using partners and suppliers, an organization’s strategy
should be based on its goals, culture, and business environment. For example, some organizations may
believe that they will be best served by focusing their attention on developing certain core competencies,
using partners and suppliers to provide other needs. Other organizations may choose to rely as much as
possible on their own resources, using partners and suppliers as little as possible. There are, of course,
many variations between these two opposite approaches.
Table 3.1 Relationships between organizations
One method an organization may use to address the partners and suppliers dimension is service
integration and management. This involves the use of a specially established integrator to ensure that
service relationships are properly coordinated. Service integration and management may be kept within
the organization, but can also be delegated to a trusted partner.

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Factors that may influence an organization’s strategy when using suppliers include:
Strategic focus Some organizations may prefer to focus on their core competency and to outsource
non-core supporting functions to third parties; others may prefer to stay as self-sufficient as possible,
retaining full control over all important functions.
Corporate culture Some organizations have a historical preference for one approach over another.
Longstanding cultural bias is difficult to change without compelling reasons.
Resource scarcity If a required resource or skillset is in short supply, it may be difficult for the service
provider to acquire what is needed without engaging a supplier.
Cost concerns A decision may be influenced by whether the service provider believes that it is more
economical to source a particular requirement from a supplier.
Subject matter expertise The service provider may believe that it is less risky to use a supplier that
already has expertise in a required area, rather than trying to develop and maintain the subject matter
expertise in house.
External constraints Government regulation or policy, industry codes of conduct, and social, political
or legal constraints may impact an organization’s supplier strategy.
Demand patterns Customer activity or demand for services may be seasonal or demonstrate high
degrees of variability. These patterns may impact the extent to which organizations use external
service providers to cope with variable demand.
The last decade has seen an explosion in companies that offer technical resources (infrastructure) or
capabilities (platforms, software) ‘as a service’. These companies bundle goods and services into a single
product offering that can be consumed as a utility, and is typically accounted for as operating expenditure.
This frees companies from investing in costly infrastructure and software assets that need to be
accounted for as capital expenditure.
The ITIL story: Axle’s partners and suppliers
Henri: The partners and suppliers dimension for Axle includes suppliers such as Go Go Gas and
Craig’s Cleaning, as well as internet service providers and developers.
3.4 Value streams and processes
The fourth dimension of service management is value streams and processes. Like the other dimensions,
this dimension is applicable to both the SVS in general, and to specific products and services. In both
contexts it defines the activities, workflows, controls, and procedures needed to achieve agreed
objectives.
Key message
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. The dimension focuses on what activities the
organization undertakes and how they are organized, as well as how the organization ensures that it
is enabling value creation for all stakeholders efficiently and effectively.

ITIL gives organizations acting as service providers an operating model that covers all the key activities
required to manage products and services effectively. This is referred to as the ITIL service value chain
(see section 4.5).
The service value chain operating model is generic and in practice it can follow different patterns. These
patterns within the value chain operation are called value streams.
3.4.1 Value streams for service management
Key message
A value stream is a series of steps that an organization uses to create and deliver products and
services to a service consumer. A value stream is a combination of the organization’s value chain
activities (see section 4.5 for more details on value chain activities and Appendix A for examples of
value streams).
Definition: Value stream
A series of steps an organization undertakes to create and deliver products and services to
consumers.
Identifying and understanding the various value streams an organization has is critical to improving its
overall performance. Structuring the organization’s activities in the form of value streams allows it to have
a clear picture of what it delivers and how, and to make continual improvements to its services.
Organizations should examine how they perform work and map all the value streams they can identify.
This will enable them to analyse their current state and identify any barriers to workflow and non-value-
adding activities, i.e. waste. Wasteful activities should be eliminated to increase productivity.
Opportunities to increase value-adding activities can be found across the service value chain. These may
be new activities or modifications to existing ones, which can make the organization more productive.
Value stream optimization may include process automation or adoption of emerging technologies and
ways of working to gain efficiencies or enhance user experience.
Value streams should be defined by organizations for each of their products and services. Depending on
the organization’s strategy, value streams can be redefined to react to changing demand and other
circumstances, or remain stable for a significant amount of time. In any case, they should be continually
improved to ensure that the organization achieves its objectives in an optimal way. Value stream mapping
is described in more detail in other ITIL 4 publications.

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3.4.2 Processes
Key message
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.
Definition: Process
A set of interrelated or interacting activities that transform inputs into outputs. A process takes one or
more defined inputs and turns them into defined outputs. Processes define the sequence of actions
and their dependencies.
When applied to products and services, this dimension helps to answer the following questions, critical to
service design, delivery, and improvement:
What is the generic delivery model for the service, and how does the service work?
What are the value streams involved in delivering the agreed outputs of the service?
Who, or what, performs the required service actions?
Specific answers to these questions will vary depending on the nature and architecture of the service.
The ITIL story: Axle’s value streams and processes
Radhika: The value streams and processes dimension represents the series of activities that are
carried out within Axle. Value streams help Axle to identify wasteful activity and remove obstacles
that hinder the organization’s productivity.
3.5 External factors
Service providers do not operate in isolation. They are affected by many external factors, and work in
dynamic and complex environments that can exhibit high degrees of volatility and uncertainty and impose
constraints on how the service provider can work. To analyse these external factors, frameworks such as
the PESTLE (or PESTEL) model are used. PESTLE is an acronym for the political, economic, social,
technological, legal, and environmental factors that constrain or influence how a service provider
operates.
Collectively, these factors influence how organizations configure their resources and address the four

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dimensions of service management. For example:
Government and societal attitudes towards environmentally friendly products and services may result
in the organization investing more in tools and technologies that meet external expectations. An
organization may choose to partner with other organizations (or source services from external
providers) who can demonstrate environmentally friendly credentials. For example, some companies
publish product environmental reports that describe their products’ performance against their policies
around climate change, safer materials, and other resources.
Economic and societal factors may influence organizations to create several versions of the same
product to address various consumer groups that show different buying patterns. One example is
music and video streaming services, many of which have a free tier (with advertising), a premium tier
(without advertising), and in some cases a ‘family plan’ that allows multiple individual profiles under
one paid-for account.
Data protection laws or regulations (like GDPR) have changed how companies must collect, process,
access, and store customer data, as well as how they work with external partners and suppliers.
3.6 Summary
The four dimensions represent a holistic approach to service management, and organizations should
ensure that there is a balance of focus between each dimension. The impact of external factors on the
four dimensions should also be considered. All four dimensions and the external factors that affect them
should be addressed as they evolve, considering emerging trends and opportunities. It is essential that an
organization’s SVS is considered from all four dimensions, as the failure to adequately address or
account for one dimension, or an external factor, can lead to sub-optimal products and services.
The ITIL story: Balancing the four dimensions
Marco: To make Axle’s services as effective as possible, we use the best combination of our
people, our teams, our value streams, and our ways of working. We now engage a blended
approach to service management, incorporating DevOps, Design Thinking, and Agile into product
development. We also use new technologies such as robotics, AI, and machine learning, striving to
be efficient and Lean, and to automate wherever possible.

CHAPTER 4
THE ITIL SERVICE VALUE SYSTEM

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4 The ITIL service value system
4.1 Service value system overview
For service management to function properly, it needs to work as a system. The ITIL SVS describes the
inputs to this system (opportunity and demand), the elements of this system (organizational governance,
service management, continual improvement, and the organization’s capabilities and resources), and the
outputs (achievement of organizational objectives and value for the organization, its customers, and other
stakeholders).
Key message
The ITIL SVS describes how all the components and activities of the organization work together as a
system to enable value creation. Each organization’s SVS has interfaces with other organizations,
forming an ecosystem that can in turn facilitate value for those organizations, their customers, and
other stakeholders.
The key inputs to the SVS are opportunity and demand. 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. The outcome of the SVS is value, that is,
the perceived benefits, usefulness, and importance of something. The ITIL SVS can enable the creation
of many different types of value for a wide group of stakeholders.
The ITIL SVS includes the following components:
Guiding principles Recommendations that can guide an organization in all circumstances, regardless
of changes in its goals, strategies, type of work, or management structure.
Governance The means by which an organization is directed and controlled.
Service value chain A set of interconnected activities that an organization performs to deliver a
valuable product or service to its consumers and to facilitate value realization.
Practices Sets of organizational resources designed for performing work or accomplishing an
objective.
Continual improvement A recurring organizational activity performed at all levels to ensure that an
organization’s performance continually meets stakeholders’ expectations. ITIL 4 supports continual
improvement with the ITIL continual improvement model.
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 structure of the SVS is
shown in Figure 4.1. The left side of the figure shows opportunity and demand feeding into the SVS from
both internal and external sources. The right side shows value created for the organization, its customers,
and other stakeholders.

Figure 4.1 The ITIL service value system
The ITIL SVS describes how all the components and activities of the organization work together as a
system to enable value creation. These components and activities, together with the organization’s
resources, can be configured and reconfigured in multiple combinations in a flexible way as
circumstances change, but this requires the integration and coordination of activities, practices, teams,
authorities and responsibilities, and all parties to be truly effective.
One of the biggest challenges an organization can face when trying to work effectively and efficiently with
a shared vision, or to become more Agile and resilient, is the presence of organizational silos.
Organizational silos can form in many ways and for many different reasons. Silos can be resistant to
change and can prevent easy access to the information and specialized expertise that exists across the
organization, which can in turn reduce efficiency and increase both cost and risk. Silos also make it more
difficult for communication or collaboration to occur across different groups.
A siloed organization cannot act quickly to take advantage of opportunities or to optimize the use of
resources across the organization. It is often unable to make effective decisions about changes, due to
limited visibility and many hidden agendas. Practices can also become silos. Many organizations have
implemented practices such as organizational change management or incident management without clear
interfaces with other practices. All practices should have multiple interfaces with one another. The
exchange of information between practices should be triggered at key points in the workflow, and is
essential to the proper functioning of the organization.
The architecture of the ITIL SVS specifically enables flexibility and discourages siloed working. The
service value chain activities and the practices in the SVS do not form a fixed, rigid structure. Rather, they
can be combined in multiple value streams to address the needs of the organization in a variety of
scenarios. This publication provides examples of service value streams, but none of them are definite or
prescriptive. Organizations should be able to define and redefine their value streams in a flexible, yet safe
and efficient manner. This requires continual improvement activity to be carried out at all levels of the
organization; the ITIL continual improvement model helps to structure this activity. Finally, the continual
improvement and overall operation of an organization are shaped by the ITIL guiding principles. The
guiding principles create a foundation for a shared culture across the organization, thus supporting
collaboration and cooperation within and between the teams, and removing the need for constraints and
controls previously provided by silos.
With these components, the ITIL SVS supports many work approaches, such as Agile, DevOps and Lean
(see Glossary), as well as traditional process and project management, with a flexible value-oriented
operating model.
An organization can take any number of forms, including, but not limited to, sole trader, company,
corporation, firm, enterprise, authority, partnership, charity or institution, or any part or combination
thereof, whether incorporated or not, and be either public or private. This means that the scope of the

SVS can be a whole organization or a smaller subset of that organization. To achieve the maximum value
from the SVS and to properly address the issue of organizational silos, it is preferable to include the
whole organization in the scope rather than a subset.
The rest of this chapter will explore each element of the SVS.
Organizational agility and organizational resilience
For an organization to be successful, it must achieve organizational agility to support internal
changes, and organizational resilience to withstand and even thrive in changing external
circumstances. The organization must also be considered as part of a larger ecosystem of
organizations, all delivering, coordinating, and consuming products and services.
Organizational agility is the ability of an organization to move and adapt quickly, flexibly, and
decisively to support internal changes. These might include changes to the scope of the
organization, mergers and acquisitions, changing organizational practices, or technologies requiring
different skills or organizational structure and changes to relationships with partners and suppliers.
Organizational resilience is the ability of an organization to anticipate, prepare for, respond to, and
adapt to both incremental changes and sudden disruptions from an external perspective. External
influences could be political, economic, social, technological, legal or environmental. Resilience
cannot be achieved without a common understanding of the organization’s priorities and objectives,
which sets the direction and promotes alignment even as external circumstances change.
The ITIL SVS provides the means to achieve organizational agility and resilience and to facilitate the
adoption of a strong unified direction, focused on value and understood by everyone in the
organization. It also enables continual improvement throughout the organization.
4.2 Opportunity, demand, and value
Key message
Opportunity and demand trigger activities within the ITIL SVS, and these activities lead to the
creation of value. Opportunity and demand are always entering into the system, but the organization
does not automatically accept all opportunities or satisfy all demand.
Opportunity represents options or possibilities to add value for stakeholders or otherwise improve the
organization. There may not be demand for these opportunities yet, but they can still trigger work within
the system. Organizations should prioritize new or changed services with opportunities for improvement
to ensure their resources are correctly allocated.
Demand represents the need or desire for products and services from internal and external customers.
A definition of value, and what constitutes value for different stakeholders, can be found in Chapter 2.

4.3 The ITIL guiding principles
Key message
A guiding principle is a recommendation that guides an organization in all circumstances, regardless
of changes in its goals, strategies, type of work, or management structure. A guiding principle is
universal and enduring.
Table 4.1 Overview of the guiding principles
Guiding principle Description
Focus on value
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.
Start where you are
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, programmes, 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.
Progress iteratively with feedback
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.
Collaborate and promote visibility
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.
Think and work holistically
No service, or element used to provide a service, stands alone. The outcomes achieved by the service provider
and service consumer will suffer unless the organization works on the service as a whole, not just on its parts.
Results are delivered to internal and external customers through the effective and efficient management and
dynamic integration of information, technology, organization, people, practices, partners, and agreements, which
should all be coordinated to provide a defined value.
Keep it simple and practical
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.
Optimize and automate
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.
The guiding principles defined here embody the core messages of ITIL and of service management in
general, supporting successful actions and good decisions of all types and at all levels. They 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. The guiding principles encourage and support
organizations in continual improvement at all levels.
These principles are also reflected in many other frameworks, methods, standards, philosophies, and/or
bodies of knowledge, such as Lean, Agile, DevOps, and COBIT. This allows organizations to effectively
integrate the use of multiple methods into an overall approach to service management.
The guiding principles are applicable to practically any initiative and to all relationships with stakeholder
groups. For example, the first principle, focus on value, can (and should) be applied not only to service
consumers, but to all relevant stakeholders and their respective definitions of value.
Table 4.1 provides a high-level introduction to the guiding principles. Additional details for each principle
are presented later in this chapter.

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ITIL, Agile, and DevOps
Agile methods, when applied to software development, focus on the delivery of incremental changes
to software products while responding to the changing (or evolving) needs of users. They foster a
culture of continual learning, flexibility, and willingness to try new approaches and adapt to rapidly
changing needs. Agile ways of working include techniques such as timeboxing work, self-organizing
and cross-functional teams, and ongoing collaboration and communication with customers and
users.
Agile software development teams often focus on the rapid delivery of product increments at the
expense of a more holistic view that considers the operability, reliability, and maintainability of
these products in a live environment. Similarly, continual learning and improvement initiatives can
focus on bettering the articulation and prioritization of user needs, or streamlining the procedures to
develop, test, and deploy working software. While these initiatives can provide valuable outcomes,
they also run the risk of being out of sync with other initiatives at a service level.
Just as Agile techniques provide service organizations with a flow of product and software
increments, ITIL can also provide software development organizations with a wider perspective and
language with which to engage other service teams. Adopting Agile without ITIL can lead to higher
costs over time, such as the costs of adopting different technologies and architectures, and costs to
release, operate, and maintain software increments. Similarly, implementing ITIL without Agile
techniques can risk losing focus on value for customers and users, creating slow-moving and highly
centralized bureaucracies.
When Agile and ITIL are adopted together, software development and service management can
progress at a similar cadence, share a common terminology, and ensure that the organization
continues to co-create value with all its stakeholders. Some of the ways in which ITIL and Agile can
work together include:
streamlining practices such as change enablement
establishing procedures to incorporate and prioritize the management of unplanned interruptions
(incidents), and to investigate the causes of failure
separating interactions, if necessary, between ‘systems of record’ (e.g. the configuration
management database) needed to manage services from ‘systems of engagement’ (e.g.
collaboration tools) used by software development teams.
DevOps methods build on Agile software development and service management techniques by
emphasizing close collaboration between the roles of software development and technical
operations. Using high degrees of automation to free up the time of skilled professionals so that they
can focus on value-adding activities, DevOps is able to shine a light on aspects such as operability,
reliability, and maintainability of software products that can assist in the management of services.
Cultural aspects that DevOps practitioners advocate can, and should, be extended across the value
stream and all service value chain activities so that product and service teams are aligned with the
same goals and use the same methods.
It is often said that DevOps combines software development techniques (Agile), good governance
and a holistic approach to value co-creation (ITIL), and an obsession with learning about and
improving the way in which value is generated (Lean). As such, the adoption of DevOps methods
presents further opportunities to improve the way in which software products are developed and
managed, such as:
creating fast feedback loops from delivery and support to software development and technology
operations
streamlining value chain activities and value streams so that demand for work can be quickly

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converted to value for multiple stakeholders
differentiating deployment management from release management
advocating a ‘systems view’ that emphasizes close collaboration between enterprise governance,
service teams, software development, and technology operations.
4.3.1 Focus on value
Key message
All activities conducted by the organization should link back, directly or indirectly, to value for itself,
its customers, and other stakeholders.
This section is mostly focused on the creation of value for service consumers. However, a service also
contributes to value for the organization and other stakeholders. This value may come in various forms,
such as revenue, customer loyalty, lower cost, or growth opportunities. The following recommendations
can be adapted to address various stakeholder groups and the value that is created for them by the
organization.
4.3.1.1 Who is the service consumer?
When focusing on value, the first step is to know who is being served. In each situation the service
provider must, therefore, determine who the service consumer is and who the key stakeholders are (for
example, customers, users, or sponsors; see section 2.2 for more details). In doing this, the service
provider should consider who will receive value from what is being delivered or improved.
The ITIL story: Axle’s new technology
Axle is considering introducing several pieces of new technology into their cars. In the following
sections the Axle team looks at what new technology could be introduced and uses the ITIL guiding
principles to help decide on the best course of action.
Su: One aspect of our service we are considering is the collection and return of vehicles. This
process remains very manual. Some of our regional depots continue to use paper-based forms to
register customers. Customers don’t want to waste time completing forms for identification when
this information has already been provided during the online booking process.
To improve the customer identification process, Axle could use biometric technology to identify our
customers.
Marco: Biometric technology uses scanned graphical data for personal identification. It’s fast and
reliable, and widely used in other industries. For example, the airline industry is using it for security
screening, check-in, and even for aircraft boarding. We could use fingerprint or facial recognition
scans to quickly identify our customers, and automate the car collection and return process.
Radhika: We need to be mindful of regulations such as GDPR and the possible risks to data
security this technology could bring.
Marco: Axle also wants to trial automated identification of damage to returned vehicles, including

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scratches, dents, and broken lights. Potentially the technology could even identify fuel levels. This
would automate the calculation of any fuel charges incurred by our customers, which is also a
manual process.
Su: Our customers want simplicity and speed while maintaining comfort and safety on the road.
Biometric technology and car scanning would be a source of opportunity to meet evolving customer
demands.
Marco: Our services already rely on technology, and the intelligence of smartphones and personal
devices to meet customer needs and expectations. The adoption of biometric technology is a
natural progression. Anyone who can access their phone with a thumbprint or facial recognition will
be comfortable and confident using the same technology to collect or return a car.
Henri: We can’t make the mistake of trying to implement every innovation at once, even if they all
sound like the ideal solution for Axle Car Hire. We need a framework in place to make sure value is
realized, and to govern our decisions. It’s also important that none of our existing customers are
disadvantaged, even as we venture into new surroundings. For example, not all our customers are
tech-savvy. This is especially true for our elderly customers, who represent a large percentage of
our customer base for leisure travel. We also need to balance innovation with existing operational
demands.
4.3.1.2 The consumer’s perspectives of value
Next the service provider must understand what is truly of value to the service consumer. The service
provider needs to know:
why the consumer uses the services
what the services help them to do
how the services help them achieve their goals
the role of cost/financial consequences for the service consumer
the risks involved for the service consumer.
Value can come in many forms, such as increased productivity, reduced negative impact, reduced costs,
the ability to pursue new markets, or a better competitive position. Value for the service consumer:
is defined by their own needs
is achieved through the support of intended outcomes and optimization of the service consumer’s
costs and risks
changes over time and in different circumstances.
4.3.1.3 The customer experience
An important element of value is the experience that service consumers have when they interact with the
service and the service provider. This is frequently called customer experience (CX) or user experience
(UX) depending on the adopted definitions, and it must be actively managed.
CX can be defined as the entirety of the interactions a customer has with an organization and its
products. This experience can determine how the customer feels about the organization and its products
and services.
CX is both objective and subjective. For example, when a customer orders a product and receives what
they ordered at the promised price and in the promised delivery time, the success of this aspect of their
experience is objectively measurable. On the other hand, if they don’t like the style or layout of the
website they are ordering from, this is subjective. Another customer might really enjoy the design.
4.3.1.4 Applying the principle

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To apply this principle successfully, consider this advice:
Know how service consumers use each service Understand their expected outcomes, how each
service contributes to these, and how the service consumers perceive the service provider. Collect
feedback on value on an ongoing basis, not just at the beginning of the service relationship.
Encourage a focus on value among all staff Teach staff to be aware of who their customers are and
to understand CX.
Focus on value during normal operational activity as well as during improvement initiatives The
organization as a whole contributes to the value that the customer perceives, and so everybody within
the organization must maximize the value they create. The creation of value should not be left only to
the people working on exciting projects and new things.
Include focus on value in every step of any improvement initiative Everybody involved in an
improvement initiative needs to understand what outcomes the initiative is trying to facilitate, how its
value will be measured, and how they should be contributing to the co-creation of that value.
The ITIL story: Focus on value
Radhika: When Axle expanded to the Asia-Pacific region, we undertook research focused on
customers travelling outside their native countries. The results found that American and European
customers travelling to these areas had concerns around unfamiliar road rules and safety.
Marco: Axle is introducing a certified, third-party driver assistance system called Axle Aware. The
system checks external surroundings and internal conditions in the car. It includes cameras to
monitor the area around the car, and an artificial intelligence program with local road rules. It can
even let the driver know when fatigue is starting to set in.
The system will alert the driver to approaching dangers and potential road rule breaches. For
example, in Australia, local road rules dictate that drivers are required to give a minimum of 1 metre
when passing cyclists at a speed of 60 km/h or less, or 1.5 metres when the speed is more than 60
km/h.
Su: Many visiting tourists will be mostly focused on driving on the correct side of the road and won’t
know about this rule, but the Axle Aware system does!
Marco: Studies have shown that systems such as this significantly decrease accident rates and
serious injuries.
Su: This means that the value to our consumers is a safer travel experience. It will be cheaper too,
as they will have fewer penalties for breaking rules they are not familiar with!
Henri: The value for Axle Car Hire is improved customer satisfaction, reduced repair costs and
lower insurance premiums.
Marco: This type of innovation will also provide additional value for some of our partners and
suppliers.
Radhika: For example, we’ve updated our contract with our fleet maintenance partner.
Maintenance will now include Axle Aware. The value to our maintenance partner is the additional
revenue.
4.3.2 Start where you are

Key message
In the process of eliminating old, unsuccessful methods or services and creating something better,
there can be great temptation to remove what has been done in the past and build something
completely new. This is rarely necessary, or a wise decision. This approach can be extremely
wasteful, not only in terms of time, but also in terms of the loss of existing services, processes,
people, and tools that could have significant value in the improvement effort. Do not start over
without first considering what is already available to be leveraged.
The ITIL story: Axle’s booking app
Marco: The Axle booking app was first developed two years ago. The app is no longer meeting
business requirements. It can’t cater for the advances in technology we’re using now, such as the
biometric system and the driver assistance system.
For example, we need our app to have the capability to scan and validate our customers’
fingerprints and facial images. The current coding simply can’t support that. We need a new app!
4.3.2.1 Assess where you are
Services and methods already in place should be measured and/or observed directly to properly
understand their current state and what can be re-used from them. Decisions on how to proceed should
be based on information that is as accurate as possible. Within organizations there is frequently a
discrepancy between reports and reality. This is due to the difficulty of accurately measuring certain data,
or the unintentional bias or distortion of data that is produced through reports. Getting data from the
source helps to avoid assumptions which, if proven to be unfounded, can be disastrous to timelines,
budgets, and the quality of results.
Those observing an activity should not be afraid to ask what may seem to be stupid questions. It can
sometimes be beneficial for a person with little or no prior knowledge of the service to be part of the
observation, as they have no preconceptions of the service, and may spot things that those more closely
involved with it would miss.
The ITIL story: Assessing the current state
Henri: Everyone likes the idea of a new app, and IT is keen to start gathering user requirements so
that we can start development. However, before we develop an entirely new app, let’s assess the
current state of the app we have to see if there’s any functionality we can re-use.
The current process for booking a car meets basic requirements, and doesn’t need to change. We
just need additional functionality. For example, the process for recording, storing, and calculating
points for our loyalty programme won’t change.
We should also consider the limits of the technology that our customers use. If we want to introduce
biometric data recognition, users will need to have modern devices. I am not sure they all do, so we
should investigate constraints and opportunities here.
Marco: Our current booking app is working well. Incident data indicates that customers make very
few calls to the service desk. This indicates that the current functionality is fit for use and meets
customer requirements.
Henri: However, our focus groups indicate that customers avoid using the app because it’s slow
and difficult to use. Previously, upgrades focused on technology, not the requirements of our
customers. We didn’t have the flexibility to easily configure functionality to match new and changing
service offerings. So the reliability and usability of the booking app can’t be assessed solely using
the data from incidents logged.

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We need to confirm these findings with other research.
4.3.2.2 The role of measurement
The use of measurement is important to this principle. It should, however, support but not replace what is
observed, as over-reliance on data analytics and reporting can unintentionally introduce biases and risks
in decision-making. Organizations should consider a variety of techniques to develop knowledge of the
environments in which they work. Although it is true that some things can only be understood through
measuring their effect (for example, natural phenomena such as the wind), direct observation should
always be the preferred option. Too often existing data is used with no consideration of direct personal
investigation.
It should be noted that the act of measuring can sometimes affect the results, making them inaccurate.
For example, if a service desk knows it is being monitored on length of time spent on the phone, it might
focus too much on minimizing customer engagement (thus leading to good reports), rather than actually
helping users resolve issues to their satisfaction. People are very creative in finding ways to meet the
metrics they are measured against. Therefore, metrics need to be meaningful and directly relate to the
desired outcome.
‘When a measure becomes a target, it ceases to be a good measure Goodhart’s Law’
4.3.2.3 Applying the principle
Having a proper understanding of the current state of services and methods is important to selecting
which elements to re-use, alter, or build upon. To apply this principle successfully, consider this advice:
Look at what exists as objectively as possible, using the customer or the desired outcome as the
starting point. Are the elements of the current state fit for purpose and fit for use? There are likely to be
many elements of the current services, practices, projects, and skills that can be used to create the
desired future state, provided the people making this judgement are objective.
When examples of successful practices or services are found in the current state, determine if and how
these can be replicated or expanded upon to achieve the desired state. In many, if not most, cases,
leveraging what already exists will reduce the amount of work needed to transition from the current
state to the desired state. There should be a focus on learning and improvement, not just replication
and expansion.
Apply your risk management skills. There are risks associated with re-using existing practices and
processes, such as the continuation of old behaviours that are damaging to the service. There are also
risks associated with putting something new in place, such as new procedures not being performed
correctly. These should be considered as part of the decision-making process, and the risks of making
or not making a change evaluated to decide on the best course of action.
Recognize that sometimes nothing from the current state can be re-used. Regardless of how desirable
it may be to re-use, repurpose and recycle, or even upcycle, there will be times when the only way to
achieve the desired result is to start over entirely. It should be noted, however, that these situations are
very rare.
4.3.3 Progress iteratively with feedback

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Key message
Resist the temptation 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, the focus on each effort will be sharper and easier to maintain.
Improvement iterations can be sequential or simultaneous, based on the requirements of the
improvement and what resources are available. Each individual iteration should be both manageable and
managed, ensuring that tangible results are returned in a timely manner and built upon to create further
improvement.
A major improvement initiative or programme may be organized into several significant improvement
initiatives, and each of these may, in turn, comprise smaller improvement efforts. The overall initiative or
programme, as well as its component iterations, must be continually re-evaluated and potentially revised
to reflect any changes in circumstances and ensure that the focus on value has not been lost. This re-
evaluation should make use of a wide range of feedback channels and methods to ensure that the status
of the initiative and its progress are properly understood.
4.3.3.1 The role of feedback
Whether working to improve a service, group of services, practice, process, technical environment, or
other service management element, no improvement iteration occurs in a vacuum. While the iteration is
being undertaken, circumstances can change and new priorities can arise, and the need for the iteration
may be altered or even eliminated. Seeking and using feedback before, throughout, and after each
iteration will ensure that actions are focused and appropriate, even in changing circumstances.
A feedback loop is a term commonly used to refer to a situation where part of the output of an activity is
used for new input. In a well-functioning organization, feedback is actively collected and processed along
the value chain. Well-constructed feedback mechanisms facilitate understanding of:
end user and customer perception of the value created
the efficiency and effectiveness of value chain activities
the effectiveness of service governance as well as management controls
the interfaces between the organization and its partner and supplier network
the demand for products and services.
Once received, feedback can be analysed to identify improvement opportunities, risks, and issues.
4.3.3.2 Iteration and feedback together
Working in a timeboxed, 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
an overall improvement in quality.

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Having appropriate feedback loops between the participants of an activity gives them a better
understanding of where their work comes from, where their outputs go, and how their actions and outputs
affect the outcomes, which in turn enables them to make better decisions.
The ITIL story: Progress iteratively
Marco: It’s now been three months since Axle released the first iteration of its new app. We began
by making it available solely to trusted VIP customers. We worked with their feedback to refine the
booking process.
Radhika: We learned that the app needed to be flexible so we could make changes easily based
on rapidly evolving customer requirements. For example, our business customers wanted the app
to automatically record distance travelled. Working with our product team, we were easily able to
add this functionality.
Su: The app is now easily configurable, allowing Axle to quickly add new functions and features
based on customer feedback.
4.3.3.3 Applying the principle
To apply this principle successfully, consider this advice:
Comprehend the whole, but do something Sometimes the greatest enemy to progressing iteratively
is the desire to understand and account for everything. This can lead to what is sometimes called
‘analysis paralysis’, in which so much time is spent analysing the situation that nothing ever gets done
about it. Understanding the big picture is important, but so is making progress.
The ecosystem is constantly changing, so feedback is essential Change is happening constantly,
so it is very important to seek and use feedback at all times and at all levels.
Fast does not mean incomplete Just because an iteration is small enough to be done quickly does
not mean that it should not include all the elements necessary for success. Any iteration should be
produced in line with the concept of the minimum viable product. A minimum viable product is a
version of the final product which allows the maximum amount of validated learning with the least
effort.
4.3.4 Collaborate and promote visibility
Key message
When initiatives involve the right people in the correct roles, efforts benefit from better buy-in, more
relevance (because better information is available for decision-making) and increased likelihood of
long-term success.
Creative solutions, enthusiastic contributions, and important perspectives can be obtained from
unexpected sources, so inclusion is generally a better policy than exclusion. Cooperation and
collaboration are better than isolated work, which is frequently referred to as ‘silo activity’. Silos can occur
through the behaviour of individuals and teams, but also through structural causes. This typically happens
where functions or business units in an organization are impeded or unable to collaborate, because their

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processes, systems, documentation, and communications are designed to fulfil the needs of only a
specific part of the organization. Applying the guiding principle of think and work holistically (see section
4.3.5) can help organizations to break down barriers between silos of work.
Recognition of the need for genuine collaboration has been one of the driving factors in the evolution of
what is now known as DevOps. Without effective collaboration, neither Agile, Lean, nor any other ITSM
framework or method will work.
Working together in a way that leads to real accomplishment requires information, understanding, and
trust. Work and its results should be made visible, hidden agendas should be avoided, and information
should be shared to the greatest degree possible. The more people are aware of what is happening and
why, the more they will be willing to help.
When improvement activity occurs in relative silence, or with only a small group being aware of the
details, assumptions and rumours can prevail. Resistance to change will often arise as staff members
speculate about what is changing and how it might impact them.
4.3.4.1 Whom to collaborate with
Identifying and managing all the stakeholder groups that an organization deals with is important, as the
people and perspectives necessary for successful collaboration can be sourced within these stakeholder
groups. As the name suggests, a stakeholder is anyone who has a stake in the activities of the
organization, including the organization itself, its customers and/or users, and many others. The scope of
stakeholders can be extensive.
The first and most obvious stakeholder group is the customers. The main goal of a service provider is to
facilitate outcomes that its customers are interested in, so the customers have a large stake in the service
provider’s ability to manage services effectively. Some organizations, however, do a poor job of
interacting with customers. A service provider may feel that it is too difficult to get input or feedback from
the customer, and that the resulting delays are a waste of time. Equally, customers may feel that, after
they have defined their requirements, the service provider can be left to deliver the service with no further
contact needed. When it comes to the improvement of a service provider’s practices, the customer may
not see any need to be involved at all. In the end, however, the right level of collaboration with customers
will lead to better outcomes for the organization, its customers, and other stakeholders.
Other examples of stakeholder collaboration include:
developers working with other internal teams to ensure that what is being developed can be operated
efficiently and effectively. Developers should collaborate with technical and non-technical operational
teams to make sure that they are ready, willing, and able to transition the new or changed service into
operation, perhaps even participating in testing. Developers can also work with operations teams to
investigate defects (problems) and to develop workarounds or permanent fixes to resolve these
defects
suppliers collaborating with the organization to define its requirements and brainstorm solutions to
customer problems
relationship managers collaborating with service consumers to achieve a comprehensive
understanding of service consumer needs and priorities
customers collaborating with each other to create a shared understanding of their business issues
internal and external suppliers collaborating with each other to review shared processes and identify
opportunities for optimization and potential automation.
4.3.4.2 Communication for improvement

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The contribution to improvement of each stakeholder group at each level should be understood; it is also
important to define the most effective methods to engage with them. For example, the contribution to
improvement from customers of a public cloud service may be through a survey or checklist of options for
different functionalities. For an internal customer group, the contribution to improvement may come from
feedback solicited via a workshop or a collaboration tool on the organization’s intranet.
Some contributors may need to be involved at a very detailed level, while others can simply be involved
as reviewers or approvers. Depending on the service and the relationship between the service provider
and the service consumer, the expectations about the level and type of collaboration can vary
significantly.
4.3.4.3 Increasing urgency through visibility
When stakeholders (whether internal or external) have poor visibility of the workload and progression of
work, there is a risk of creating the impression that the work is not a priority. If an initiative is
communicated to a team, department, or another organization and then is never, or rarely, mentioned
again, the perception will be that the change is not important. Equally, when staff members attempt to
prioritize improvement work versus other tasks that have daily urgency, improvement work may seem to
be a low-priority activity unless its importance has been made transparent and it is supported by the
organization’s management.
Insufficient visibility of work leads to poor decision-making, which in turn impacts the organization’s ability
to improve internal capabilities. It will then become difficult to drive improvements as it will not be clear
which ones are likely to have the greatest positive impact on results. To avoid this, the organization needs
to perform such critical analysis activities as:
understanding the flow of work in progress
identifying bottlenecks, as well as excess capacity
uncovering waste.
It is important to involve and address the needs of stakeholders at all levels. Leaders at various levels
should also provide appropriate information relating to the improvement work in their own
communications to others. Together, these actions will serve to reinforce what is being done, why it is
being done, and how it relates to the stated vision, mission, goals, and objectives of the organization.
Determining the type, method, and frequency of such messaging is one of the central activities related to
communication.
The ITIL story: Working collaboratively
Henri: As well as being iterative, our work on the new Axle booking app is also collaborative. We
include many of our teams, such as developers, testers, and support staff, and of course, our
customers and users. This approach enables us to improve our services in a more responsive and
targeted manner, based on feedback.
4.3.4.4 Applying the principle
To apply this principle successfully, consider this advice:
Collaboration does not mean consensus It is not necessary, or even always wise, to get consensus
from everyone involved in an initiative before proceeding. Some organizations are so concerned with
getting consensus that they try to make everyone happy and end up either doing nothing or producing
something that does not properly suit anyone’s needs.
Communicate in a way the audience can hear In an attempt to bring different stakeholders into the

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loop, many organizations use very traditional methods of communication, or they use the same method
for all communication. Selecting the right method and message for each audience is critical for
success.
Decisions can only be made on visible data Making decisions in the absence of data is risky.
Decisions should be made about what data is needed, and therefore what work needs to be made
visible. There may be a cost to collecting data, and the organization must balance that cost against the
benefit and intended usage of the data.
4.3.5 Think and work holistically
Key message
No service, practice, process, department, or supplier stands alone. The outputs that the
organization delivers to itself, its customers, and other stakeholders will suffer unless it works in an
integrated way to handle its activities as a whole, rather than as separate parts. All the organization’s
activities should be focused on the delivery of value.
Services are delivered to internal and external service consumers through the coordination and
integration of the four dimensions of service management (see Chapter 3).
Taking a holistic approach to service management includes establishing an understanding of how all the
parts of an organization work together in an integrated way. It requires end-to-end visibility of how
demand is captured and translated into outcomes. In a complex system, the alteration of one element can
impact others and, where possible, these impacts need to be identified, analysed and planned for.
The ITIL story: Think and work holistically
Su: Currently, Axle is working on many initiatives. We have a schedule of iterative releases of our
new booking app, as well as our Axle Aware advanced driver assistance system, and the new
biometric scanning for collection and return of vehicles.
Henri: With so much activity, we need to understand the impacts both upstream and downstream.
For example, a decision to expand our booking app with a new functionality would need to consider
any resource constraints for our support teams.
4.3.5.1 Applying the principle
To apply this principle successfully, consider this advice:
Recognize the complexity of the systems Different levels of complexity require different heuristics
for decision-making. Applying methods and rules designed for a simple system can be ineffective or
even harmful in a complex system, where relationships between components are complicated and
change more frequently.
Collaboration is key to thinking and working holistically If the right mechanisms are put in place
for all relevant stakeholders to collaborate in a timely manner, it will be possible to address any issue
holistically without being unduly delayed.
Where possible, look for patterns in the needs of and interactions between system elements

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Draw on knowledge in each area to identify what is essential for success, and which relationships
between elements influence the outcomes. With this information, needs can be anticipated, standards
can be set, and a holistic view point can be achieved.
Automation can facilitate working holistically Where the opportunity and sufficient resources are
available, automation can support end-to-end visibility for the organization and provide an efficient
means of integrated management.
4.3.6 Keep it simple and practical
Key message
Always use the minimum number of steps to accomplish an objective. Outcome-based thinking
should be used to produce practical solutions that deliver valuable outcomes. If a process, service,
action, or metric fails to provide value or produce a useful outcome, then eliminate it. Although this
principle may seem obvious, it is frequently ignored, resulting in overly complex methods of work that
rarely maximize outcomes or minimize cost.
Trying to provide a solution for every exception will often lead to over-complication. When creating a
process or a service, designers need to think about exceptions, but they cannot cover them all. Instead,
rules should be designed that can be used to handle exceptions generally.
The ITIL story: Keep it simple and practical
Su: Axle’s marketing department has indicated they would like to launch a new end-of-year
promotion. The promotion would include a free upgrade to a luxury vehicle during February and the
chance to win an overseas holiday.
To enter, customers will submit an article titled ‘My Best Driving Holiday Adventure’. The marketing
team will then collect and analyse the customer data and create an app that targets their travel
preferences.
Henri: Our developers are already busy with an implementation schedule for biometric services.
We need speed to market for this functionality. We must prioritize our work based on the expected
value.
4.3.6.1 Judging what to keep
When analysing a practice, process, service, metric, or other improvement target, always ask whether it
contributes to value creation.
When designing or improving service management, it is better to start with an uncomplicated approach
and then carefully add controls, activities, or metrics when it is seen that they are truly needed.
Critical to keeping service management simple and practical is understanding exactly how something
contributes to value creation. For example, a step in a process may be perceived by the operational staff
involved as a waste of time. However, from a corporate perspective, the same step may be important for
regulatory compliance and therefore valuable in an indirect, but nevertheless important, way. It is
necessary to establish and communicate a holistic view of the organization’s work so that individual

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teams or groups can think holistically about how their work is being influenced by, and in turn influences,
others.
The ITIL story: Judging what to keep
Marco: Our original booking app captured a lot of data, such as how long it took a customer to
complete each form in the booking app. But we discovered that the data provided little value for
decision-making. The true value lay in how long the overall booking process took. We refined the
booking app fields and improved its overall speed by removing this data capture function.
4.3.6.2 Conflicting objectives
When designing, managing, or operating practices, be mindful of conflicting objectives. For example, the
management of an organization may want to collect a large amount of data to make decisions, whereas
the people who must do the record-keeping may want a simpler process that does not require as much
data entry. Through the application of this and the other guiding principles, the organization should agree
on a balance between its competing objectives. In this example, this could mean that services should only
generate data that will truly provide value to the decision-making process, and record-keeping should be
simplified and automated where possible to maximize value and reduce non-value-adding work.
4.3.6.3 Applying the principle
To apply this principle successfully, consider this advice:
Ensure value Every activity should contribute to the creation of value.
Simplicity is the ultimate sophistication It may seem harder to simplify, but it is often more effective.
Do fewer things, but do them better Minimizing activities to include only those with value for one or
more stakeholders will allow more focus on the quality of those actions.
Respect the time of the people involved A process that is too complicated and bureaucratic is a
poor use of the time of the people involved.
Easier to understand, more likely to adopt To embed a practice, make sure it is easy to follow.
Simplicity is the best route to achieving quick wins Whether in a project, or when improving daily
operations activities, quick wins allow organizations to demonstrate progress and manage
stakeholder expectations. Working in an iterative way with feedback will quickly deliver incremental
value at regular intervals.
4.3.7 Optimize and automate
Key message
Organizations must maximize the value of the work carried out by their human and technical
resources. The four dimensions model (outlined in Chapter 3) provides a holistic view of the various
constraints, resource types, and other areas that should be considered when designing, managing,
or operating an organization. Technology can help organizations to scale up and take on frequent
and repetitive tasks, allowing human resources to be used for more complex decision-making.

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However, technology should not always be relied upon without the capability of human intervention,
as automation for automation’s sake can increase costs and reduce organizational robustness and
resilience.
Optimization means to make something as effective and useful as it needs to be. Before an activity can
be effectively automated, it should be optimized to whatever degree is possible and reasonable. It is
essential that limits are set on the optimization of services and practices, as they exist within a set of
constraints which may include financial limitations, compliance requirements, time constraints, and
resource availability.
4.3.7.1 The road to optimization
There are many ways in which practices and services can be optimized. The concepts and practices
described in ITIL, particularly the practices of continual improvement, and measurement and reporting
(see sections 5.1.2 and 5.1.5), are essential to this effort. The specific practices an organization uses to
improve and optimize performance may draw upon guidance from ITIL, Lean, DevOps, Kanban, and
other sources. Regardless of the specific techniques, the path to optimization follows these high-level
steps:
Understand and agree the context in which the proposed optimization exists This includes
agreeing the overall vision and objectives of the organization.
Assess the current state of the proposed optimization This will help to understand where it can be
improved and which improvement opportunities are likely to produce the biggest positive impact.
Agree what the future state and priorities of the organization should be, focusing on
simplification and value This typically also includes standardization of practices and services, which
will make it easier to automate or optimize further at a later point.
Ensure the optimization has the appropriate level of stakeholder engagement and commitment
Execute the improvements in an iterative way Use metrics and other feedback to check progress,
stay on track, and adjust the approach to the optimization as needed.
Continually monitor the impact of optimization This will help to identify opportunities to improve
methods of working.
4.3.7.2 Using automation
Automation typically refers to the use of technology to perform a step or series of steps correctly and
consistently with limited or no human intervention. For example, in organizations adopting continuous
deployment, it refers to the automatic and continuous release of code from development through to live,
and often automatic testing occurring in each environment. In its simplest form, however, automation
could also mean the standardization and streamlining of manual tasks, such as defining the rules of part
of a process to allow decisions to be made ‘automatically’. Efficiency can be greatly increased by
reducing the need for human involvement to stop and evaluate each part of a process.
Opportunities for automation can be found across the entire organization. Looking for opportunities to
automate standard and repeating tasks can help save the organization costs, reduce human error, and
improve employee experience.
The ITIL story: Optimize and automate
Marco: Axle has started to trial the new biometric technology, and the tests are going well. We’re
keen to implement this technology in all our depots.

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Radhika: Before Axle introduced biometrics, there were many manual, paper-based processes.
Axle staff used paper checklists to carry out vehicle damage checks. Their notes then had to be
entered in a database, which was only available on desktop computers. It was not real time or
accessible across other systems.
Su: This work was usually put aside until the end of the day, and details were often lost. We had to
improve the process of data capture before automating.
Radhika: We can automate almost anything. But let’s get the business rules and processes right
first.
4.3.7.3 Applying the principle
To apply this principle successfully, consider this advice:
Simplify and/or optimize before automating Attempting to automate something that is complex or
suboptimal is unlikely to achieve the desired outcome. Take time to map out the standard and
repeating processes as far as possible, and streamline where you can (optimize). From there you can
start to automate.
Define your metrics The intended and actual result of the optimization should be evaluated using an
appropriate set of metrics. Use the same metrics to define the baseline and measure the
achievements. Make sure that the metrics are outcome-based and focused on value.
Use the other guiding principles when applying this one When optimizing and automating, it is
smart to follow the other principles as well:
Progress iteratively with feedback Iterative optimization and automation will make progress
visible and increase stakeholder buy-in for future iterations.
Keep it simple and practical It is possible for something to be simple, but not optimized, so use
these two principles together when selecting improvements.
Focus on value Selecting what to optimize and automate and how to do so should be based on
what will create the best value for the organization.
Start where you are The technology already available in the organization may have features and
functionalities that are currently untapped or under-utilized. Make use of what is already there to
implement opportunities for optimization and automation quickly and economically.
4.3.8 Principle interaction
As well as being aware of the ITIL guiding principles, it is also important to recognize that they interact
with and depend upon each other. For example, if an organization is committed to progressing iteratively
with feedback, it should also think and work holistically to ensure that each iteration of an improvement
includes all the elements necessary to deliver real results. Similarly, making use of appropriate feedback
is key to collaboration, and focusing on what will truly be valuable to the customer makes it easier to keep
things simple and practical.
Organizations should not use just one or two of the principles, but should consider the relevance of each
of them and how they apply together. Not all principles will be critical in every situation, but they should all
be reviewed on each occasion to determine how appropriate they are.
4.4 Governance

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4.4.1 Governing bodies and governance
Key message
Every organization is directed by a governing body, i.e. a person or group of people who are
accountable at the highest level for the performance and compliance of the organization. All sizes
and types of organization perform governance activities; the governing body may be a board of
directors or executive managers who take on a separate governance role when they are performing
governance activities. The governing body is accountable for the organization’s compliance with
policies and any external regulations.
Organizational governance is a system by which an organization is directed and controlled. Governance
is realized through the following activities:
Evaluate The evaluation of the organization, its strategy, portfolios, and relationships with other
parties. The governing body evaluates the organization on a regular basis as stakeholders’ needs and
external circumstances evolve.
Direct The governing body assigns responsibility for, and directs the preparation and implementation
of, organizational strategy and policies. Strategies set the direction and prioritization for organizational
activity, future investment, etc. Policies establish the requirements for behaviour across the
organization and, where relevant, suppliers, partners, and other stakeholders.
Monitor The governing body monitors the performance of the organization and its practices, products,
and services. The purpose of this is to ensure that performance is in accordance with policies and
direction.
Organizational governance evaluates, directs, and monitors all the organization’s activities, including
those of service management.
4.4.2 Governance in the SVS
The role and position of governance in the ITIL SVS depends on how the SVS is applied in an
organization. The SVS is a universal model that can be applied to an organization as a whole, or to one or
more of its units or products. In the latter case, some organizations delegate authority to perform
governance activities at different levels. The governing body of the organization should retain oversight of
this to ensure alignment with the objectives and priorities of the organization.
In ITIL 4, the guiding principles and continual improvement apply to all components of the SVS, including
governance. In an organization, the governing body can adopt the ITIL guiding principles and adapt them,
or define its own specific set of principles and communicate them across the organization. The governing
body should also have visibility of the outcomes of continual improvement activities and the measurement
of value for the organization and its stakeholders.
Regardless of the scope of the SVS and the positioning of the components, it is crucial to make sure that:
the service value chain and the organization’s practices work in line with the direction given by the
governing body

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the governing body of the organization, either directly or through delegation of authority, maintains
oversight of the SVS
both the governing body and management at all levels maintain alignment through a clear set of
shared principles and objectives
the governance and management at all levels are continually improved to meet expectations of the
stakeholders.
4.5 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 realization through the creation and
management of products and services.
As shown in Figure 4.2, the ITIL service value chain includes six value chain activities which lead to the
creation of products and services and, in turn, value.
Figure 4.2 The ITIL service value chain
Key message
The six value chain activities are:
plan
improve
engage
design and transition
obtain/build
deliver and support.
These activities represent the steps an organization takes in the creation of value. Each activity
transforms inputs into outputs. These inputs can be demand from outside the value chain or outputs
of other activities. All the activities are interconnected, with each activity receiving and providing

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triggers for further action.
To convert inputs into outputs, the value chain activities use different combinations of ITIL practices (sets
of resources for performing certain types of work), drawing on internal or third-party resources,
processes, skills, and competencies as required. For example, the engage activity might draw on supplier
management, service desk management, relationship management, and service request management to
respond to new demands for products and services, or information from various stakeholders (see
Chapter 5 for more information on practices).
Regardless of which practices are deployed, there are some common rules when using the service value
chain:
All incoming and outgoing interactions with parties external to the value chain are performed via
engage
All new resources are obtained through obtain/build
Planning at all levels is performed via plan
Improvements at all levels are initiated and managed via improve.
To carry out a certain task or respond to a particular situation, organizations create service value streams.
These are specific combinations of activities and practices, and each one is designed for a particular
scenario. Once designed, value streams should be subject to continual improvement.
A value stream might, for example, be created for a situation where a user of a service needs an incident
to be resolved. The value stream will be designed specifically to resolve this issue, and will provide a
complete guide to the activities, practices, and roles involved. A more detailed outline of this and other
examples of value streams can be found in Appendix A.
Example of a service value chain, its practices, and value streams
A mobile application development company has a value chain, enabling the full cycle of application
development and management, from business analysis to development, release, and support. The
company has developed a number of practices, supported with specialized resources and
techniques:
business analysis
development
testing
release and deployment
support.
Although the high-level steps are universal, different products and clients need different streams of
work. For example:
The development of a new application for a new client starts with initial engagement (pre-sale),
then proceeds to business analysis, prototyping, the drawing up of agreements, development,
testing, and eventually to release and support.
Changing an existing application to meet new requirements of existing clients does not include
pre-sale and involves business analysis, development, testing, and support in a different way.
Fixing an error in a live application may be initiated in support, proceed with rolling back to a
previous stable version (release), then moves to development, testing, and release of a fix.
Experiments with new or existing applications to expand the target audience may start with

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innovation planning and prototyping, then proceed to development, and eventually to a pilot
release for a limited group of users to test their perception of the changes made.
These are examples of value streams: they combine practices and value chain activities in various
ways to improve products and services and increase potential value for the consumers and the
organization.
ITSM in the modern world: Agile ITSM
For an organization to be successful, it must be able to adapt to changing circumstances while
remaining functional and effective. This might include changes to the products and services it
provides and consumes, as well as changes to its structure and practices. In the modern world,
where IT is essential for all organizations, IT and IT management are expected to be Agile.
For many IT professionals, agility refers to software development and is associated with the Agile
Manifesto, proclaimed in 2001. The manifesto promoted new approaches to software development,
and valued customer experience, collaboration, and rapid changes over detailed planning and
documentation, controls, and requirements. Agile software development methods have been
adopted by many companies and software teams since then, and in many cases have proven to be
effective.
Agile software development usually includes:
continually evolving requirements, collected through feedback analysis and direct observation
breaking development work into small increments and iterations
establishing product-based cross-functional teams
visually presenting (Kanban) and regularly discussing (daily stand-ups) work progress
presenting a working (at least, the minimum viable) software to the stakeholders at the end of
each iteration.
If applied successfully, Agile software development enables fast responses to the evolving needs of
service consumers. However, in many organizations, Agile software development has not provided
the expected benefits, often due to lack of Agile methods in the other phases of the service
lifecycle. This fragmented agility makes little sense for the organization, as the overall performance
of the value chain is defined by that of the slowest part. A holistic approach to the service value
chain should be adopted to make sure that the service provider is Agile throughout the service
lifecycle. This means that agility should become a quality of all service management dimensions and
all service value chain activities.
One of the greatest obstacles to service value chain agility used to be the rigidity of infrastructure
solutions. It could take months to deploy the necessary infrastructure for a new software program,
which made all development agility invisible and irrelevant for the service consumer. This problem
has, to a great extent, been solved as technology has evolved. Virtualization, fast broadband and
mobile connections, and cloud computing have allowed organizations to treat their IT infrastructure
as a service or as a code, thus providing infrastructure changes with a velocity that was previously
only possible for software. Once the technical problem was resolved, Agile methods could be applied
to infrastructure configuration and deployment. This stimulated integration between software and
infrastructure teams, and consequently between development and operations.
Many principles of Agile development can and should be applied to service operations and support.
Operational changes and service requests can be handled in small iterations by dedicated product
or service-focused teams, with constant feedback and high visibility. Daily operational activities can

and should be visible and prioritized together with other tasks. All service management activities can
and should continually provide, collect, and process feedback.
Agility is not a software development feature; it is an important quality of organizations in their
entirety. Agile activities require Agile funding and adjusted financial and compliance controls, Agile
resourcing, Agile contracting, Agile procurement, etc. If being Agile is adopted as a key principle, an
organization should be able to survive and prosper in a constantly changing environment. Applied in
a fragmented way, Agile methods can become a costly and wasteful complication.
The ITIL story: Value chains and value streams
Henri: At Axle Car Hire, the value chain is the way that our company operates. It has multiple value
streams. Each value stream adopts and adapts the activities of the value chain for carrying out
particular tasks. For example, there is one value stream for innovation, and another for providing
standard services to existing customers.
The value stream for providing standard services to existing customers represents the activities that
are carried out when a customer hires a car. This starts with engagement, when a customer
contacts Axle, and then proceeds to delivery, when they receive a car (although engagement can
still happen at this stage).
Some value chain activities may be ongoing throughout a particular value stream, or may not be
involved at all. In this stream, planning activity is continuous, but design and procurement activities
will typically not be involved. The stream ends with more engagement activities, when cars are
returned by customers, feedback is given, and orders are closed.
Marco: Value chain activities do not have to happen in a particular order. Axle’s innovation value
stream is triggered by opportunity, and then goes to planning, designing, building or obtaining,
transitioning, and finally to delivering. This stream often includes procurement activities. For
example, we procure software and hardware for our biometric solutions.
Henri: We manage value streams for different objectives, combining the value chain activities and
supporting them with practices. Every value stream should be effective and efficient, and subject to
continual improvement.
The following sections outline the value chain activities and define the purpose, inputs, and outputs for
each. As each value stream is made up of a different combination of activities and practices, the inputs
and outputs listed will not always apply, as they are specific to particular value streams. For example, the
‘strategic, tactical, and operational plans’ output of the plan value chain activity is formed as a result of
strategic, tactical, and operational planning respectively. Each of these levels is likely to involve different
resources, have a different planning cycle, and be triggered by different events. The lists of inputs and
outputs given are not prescriptive, and they can and should be adjusted when organizations design their
value streams.
4.5.1 Plan
Key message
The purpose of the plan value chain activity is 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.

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The key inputs to this activity are:
policies, requirements, and constraints provided by the organization’s governing body
consolidated demands and opportunities provided by engage
value chain performance information, improvement status reports, and improvement initiatives 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.
The key outputs of this activity are:
strategic, tactical, and operational plans
portfolio decisions for design and transition
architectures and policies for design and transition
improvement opportunities for improve
a product and service portfolio for engage
contract and agreement requirements for engage.
4.5.2 Improve
Key message
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.
The key inputs to this value chain activity are:
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.
The key outputs of this value chain activity are:
improvement initiatives 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.

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4.5.3 Engage
Key message
The purpose of the engage value chain activity is to provide a good understanding of stakeholder
needs, transparency, and continual engagement and good relationships with all stakeholders.
The key inputs to this value chain activity are:
a product and service portfolio provided by plan
high-level demand for services and products provided by internal and external customers
detailed requirements 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
marketing 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
improvement initiatives from improve
improvement status reports from improve.
The key outputs of this value chain activity are:
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 design and transition,
and obtain/build
knowledge and information about third-party service components for all value chain activities
service performance reports for customers.
4.5.4 Design and transition

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Key message
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.
The key inputs to this activity are:
portfolio decisions provided by plan
architectures and policies provided by plan
product and service requirements provided by engage
improvement initiatives provided by improve
improvement status reports from improve
service performance information provided by deliver and support, and improve
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
contracts and agreements with external and internal suppliers and partners provided by engage.
The key outputs of this activity are:
requirements and specifications for obtain/build
contract and agreement requirements for engage
new and changed products and services for 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.
4.5.5 Obtain/build
Key message
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.
The key inputs to this activity are:
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
requirements and specifications provided by design and transition

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improvement initiatives 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.
The key outputs of this activity are:
service components for deliver and support
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.
4.5.6 Deliver and support
Key message
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.
The key inputs to this activity are:
new and changed products and services provided by design and transition
service components provided by obtain/build
improvement initiatives 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.
The key outputs of this activity are:
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.

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Further details on the service value chain activities can be found in other ITIL 4 publications and
supplementary materials.
4.6 Continual improvement
Continual improvement takes place in all areas of the organization and at all levels, from strategic to
operational. To maximize the effectiveness of services, each person who contributes to the provision of a
service should keep continual improvement in mind, and should always be looking for opportunities to
improve.
The continual improvement model applies to the SVS in its entirety, as well as to all of the organization’s
products, services, service components, and relationships. To support continual improvement at all levels,
the ITIL SVS includes:
the ITIL continual improvement model, which provides organizations with a structured approach to
implementing improvements
the improve service value chain activity, which embeds continual improvement into the value chain
the continual improvement practice, supporting organizations in their day-to-day improvement
efforts.
The ITIL continual improvement model can be used as a high-level guide to support improvement
initiatives. Use of the model increases the likelihood that ITSM initiatives will be successful, puts a strong
focus on customer value, and ensures that improvement efforts can be linked back to the organization’s
vision. The model supports an iterative approach to improvement, dividing work into manageable pieces
with separate goals that can be achieved incrementally.
Figure 4.3 provides a high-level overview of the ITIL continual improvement model.
Figure 4.3 The continual improvement model
The ITIL story: Improving Axle

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Henri would like Axle to become a greener company and introduce more environmentally friendly
practices into its work. Over the following sections the Axle team uses the steps of the continual
improvement model to implement changes to the organization.
Henri: At Axle we strive for continual improvement at all levels. One of our objectives is to be a
greener business and incorporate sustainable principles into every business decision. My team is
committed to this initiative. As part of our service relationship model, our partners and suppliers are
also involved in this.
It is important to remember that the scope and details of each step of the model will vary significantly
based on the subject and the type of improvement. It should be recognized that this model can serve as a
workflow, but it can also be used simply as a high-level reminder of a sound thought process to ensure
improvements are properly managed. The flow seeks to ensure that improvements are linked to the
organization’s goals and are properly prioritized, and that improvement actions produce sustainable
results.
Logic and common sense should always prevail when using the continual improvement model. The steps
of this model do not need to be carried out in a linear fashion, and it may be necessary to re-evaluate and
return to a previous step at some point. Critical judgement should always be applied when using this
model.
4.6.1 Steps of the continual improvement model
This section provides more detail on each step of the continual improvement model. An organization can
adjust these steps to its culture and goals. The model is simple and flexible, and can just as easily be
used in an Agile culture as in a more traditional waterfall culture.
4.6.1.1 Step 1: What is the vision?
Key message
Each improvement initiative should support the organization’s goals and objectives. The first step of
the continual improvement model is to define the vision of the initiative. This provides context for all
subsequent decisions and links individual actions to the organization’s vision for the future.
This step focuses on two key areas:
The organization’s vision and objectives need to be translated for the specific business unit,
department, team, and/or individual, so that the context, objectives, and boundaries for any
improvement initiative are understood.
A high-level vision for the planned improvement needs to be created.
The work within this step should ensure that:
the high-level direction has been understood
the planned improvement initiative is described and understood in that context
the stakeholders and their roles have been understood

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the expected value to be realized is understood and agreed
the role of the person or team responsible for carrying out the improvement is clear in relation to
achieving the organization’s vision.
If this step is skipped, improvements might only be optimized for the people or teams involved rather than
the whole organization, or non-value-adding activities might become the sole focus of improvements.
The ITIL story: What is the vision?
Henri: Axle’s vision is for the business to become one of the top three green car-hire companies
globally. A continual improvement initiative called Axle Green was created for this purpose.
Craig: As a supplier of cleaning services to Axle, I’ll support them in this improvement initiative.
4.6.1.2 Step 2: Where are we now?
Key message
The success of an improvement initiative depends on a clear and accurate understanding of the
starting point and the impact of the initiative. An improvement can be thought of as a journey from
Point A to Point B, and this step clearly defines what Point A looks like. A journey cannot be mapped
out if the starting point is not known.
A key element in this step is a current state assessment. This is an assessment of existing services,
including the users’ perception of value received, people’s competencies and skills, the processes and
procedures involved, and/or the capabilities of the available technological solutions. The organization’s
culture, i.e. the prevailing values and attitudes across all stakeholder groups, also needs to be understood
to decide what level of organizational change management is required.
Current state assessments should be done through objective measurement whenever possible. This will
allow for an accurate understanding of the issues associated with the current state and, once the initiative
is implemented, enable proper measurement of the level of improvement achieved by comparison with
the initial state. If a good measurement system is in place, the information to fulfil this step may already
have been provided when the proposed improvement was initially documented.
If this step is skipped, the current state will not be understood and there will not be an objective baseline
measurement. It will therefore be difficult to track and measure the effectiveness of the improvement
activities, as the new state cannot be compared with a previous state at a later point.
The ITIL story: Where are we now?
Su: We need to understand the baseline. How do we know if we’ve improved, if we don’t know
where we started? Currently, only 5 per cent of the vehicles in our fleet are electric.

Craig: Only 20 per cent of my cleaning products are biodegradable.
4.6.1.3 Step 3: Where do we want to be?
Key message
Just as the previous step (Step 2) describes Point A on the improvement journey, Step 3 outlines
what Point B, the target state for the next step of the journey, should look like. A journey cannot be
mapped out if the destination is not clear.
Based on the results of the first two steps, a gap analysis can be performed, which evaluates the scope
and nature of the distance to be travelled from the starting point to the achievement of the initiative’s
vision. It is important to note that the initial vision of the initiative is aspirational and may never be
achieved in full. Improvement is the goal, not perfection. This step should define one or more prioritized
actions along the way to completing the vision for the improvement, based on what is known at the
starting point. Improvement opportunities can be identified and prioritized based on the gap analysis, and
improvement objectives can be set, along with critical success factors (CSFs) and key performance
indicators (KPIs).
The agreed objectives, CSFs, and KPIs need to follow what is known as the SMART principle. They
should be specific, measurable, achievable, relevant, and time-bound. It is much easier to define the
route of the improvement journey if the exact destination is known. It is important to note that the target
state represents progress towards the vision, not the achievement of the entire vision.
If this step is skipped, the target state will remain unclear. It will be difficult to prepare a satisfactory
explanation of what key stakeholders stand to gain from the improvement initiative, which may result in
low support or even pushback.
The ITIL story: Where do we want to be?
Su: Within five years, we want 50 per cent of our fleet to consist of electric vehicles. The other half
should comply with the strictest ecological requirements for petrol and diesel cars.
Craig: One of my targets is that 90 per cent of my cleaning products will be biodegradable within
the next two years.
Radhika: This is a great initiative. In our IT team, we want to use biodegradable cups. We would
also like Axle to use environmentally friendly light bulbs in all our offices.
4.6.1.4 Step 4: How do we get there?
Now that the start and end points of the improvement journey have been defined, a specific route can be
agreed. Based on the understanding of the vision of the improvement and the current and target states,
and combining that knowledge with subject matter expertise, a plan for addressing the challenges of the
initiative can be created.

Key message
The plan for Step 4 can be a straightforward and direct route to completing a single simple
improvement, or it may be more involved. The most effective approach to executing the
improvement may not be clear, and it will sometimes be necessary to design experiments that will
test which options have the most potential.
Even if the path to follow is clear, it may be most effective to carry out the work in a series of iterations,
each of which will move the improvement forward part of the way. With each iteration, there is an
opportunity to check progress, re-evaluate the approach, and change direction if appropriate.
If this step is skipped, the execution of the improvement is likely to flounder and fail to achieve what is
required of it. Failed improvements erode confidence and can make it difficult to get support for future
improvements.
The ITIL story: How do we get there?
Craig: My plan is to replace our current stocks of cleaning products with biodegradable options as
we run out. Meanwhile, we’ll test new products to find the optimal balance of price and quality.
Su: Sometimes knowing how you get there is easy, but replacing half of our fleet with electric cars
is a bigger challenge. We don’t want excess cars in our car lots if they’re not being used. We must
also consider specifics and infrastructure in different countries, as well as local regulations.
Radhika: We’re encouraging the use of ceramic cups over plastic ones. We’re discontinuing the
purchase of plastic cups, and we are buying ceramic cups for all our offices.
4.6.1.5 Step 5: Take action
Key message
In Step 5 the plan for the improvement is acted upon. This could involve a traditional waterfall-style
approach, but it could be more appropriate to follow an Agile approach by experimenting, iterating,
changing directions, or even going back to previous steps.
Some improvements take place as part of a big initiative that makes a lot of change, whereas other
improvements are small but significant. In some cases, a larger change is effected through the
implementation of multiple smaller improvement iterations. Even if the path to complete the improvement
seemed clear when it was planned, it is important to remain open to change throughout the approach.
Achieving the desired results is the objective, not rigid adherence to one view of how to proceed.
During the improvement, there needs to be continual focus on measuring progress towards the vision and
managing risks, as well as ensuring visibility and overall awareness of the initiative. ITIL practices such as

organizational change management (section 5.1.6), measurement and reporting (section 5.1.5), risk
management (section 5.1.10) and, of course, continual improvement (section 5.1.2) are important factors
in achieving success in this step.
Once this step is completed, the work will be at the end point of the journey, resulting in a new current
state.
The ITIL story: Take action
Craig: We have started to replace our stocks of cleaning products with biodegradable options.
We’ve found some great new products to use, and even managed to save money by using cheaper
alternatives that don’t compromise on quality.
Su: We have started to phase out some of our older petrol and diesel cars and replace them with
new electric models. We have carried out a thorough check of the petrol and diesel cars we are
keeping to ensure they meet ecological requirements, and will take action to fix this where they do
not.
Radhika: We have brought the new biodegradable cups and environmentally friendly light bulbs
into our offices and started to remove the plastic cups.
4.6.1.6 Step 6: Did we get there?
This step involves checking the destination of the journey to be sure that the desired point has been
reached.
Key message
Too often, once an improvement plan is set in motion, it is assumed that the expected benefits have
been achieved, and that attention can be redirected to the next initiative. In reality, the path to
improvement is filled with various obstacles, so success must be validated.
For each iteration of the improvement initiative, both the progress (have the original objectives been
achieved?) and the value (are those objectives still relevant?) need to be checked and confirmed. If the
desired result has not been achieved, additional actions to complete the work are selected and
undertaken, commonly resulting in a new iteration.
If this step is skipped, it is hard to be sure whether the desired or promised outcomes were actually
achieved, and any lessons from this iteration, which would support a course correction if needed, will be
lost.
The ITIL story: Did we get there?
Craig: After a few months we managed to hit our target of having 90 per cent of our products being
biodegradable.
Su: The electric cars are being introduced, but for logistical reasons it is proving more difficult to
replace the petrol and diesel cars than we had anticipated. We will need to do this at a faster pace
if we want to hit our five-year target. We may now have to reconsider our target, and decide
whether we should do more to support it, or if it needs to be revised.

Radhika: Our offices now have biodegradable cups and environmentally friendly light bulbs. Some
of the old plastic cups are still being used, but we have stopped purchasing more, so once they run
out they’ll be gone.
4.6.1.7 Step 7: How do we keep the momentum going?
Key message
If the improvement has delivered the expected value, the focus of the initiative should shift to
marketing these successes and reinforcing any new methods introduced. This is to ensure that the
progress made will not be lost and to build support and momentum for the next improvements.
The organizational change management and knowledge management practices should be used to
embed the changes in the organization and ensure that the improvements and changed behaviours are
not at risk of reversion. Leaders and managers should help their teams to truly integrate new work
methods into their daily work and institutionalize new behaviours.
If the expected results of the improvement were not achieved, stakeholders need to be informed of the
reasons for the failure of the initiative. This requires a thorough analysis of the improvement, documenting
and communicating the lessons learned. This should include a description of what can be done differently
in the next iteration, based on the experience gathered. Transparency is important for future efforts,
regardless of the results of the current iteration.
If this step is skipped, then it is likely that improvements will remain isolated and independent initiatives,
and any progress made may be lost over time. It may also be difficult to get support for future
improvements, and embed continual improvement in the organization’s culture.
The ITIL story: How do we keep the momentum going?
Craig: Now that we have hit our target we will monitor any new products we buy to ensure that they
meet our standards of being biodegradable. We will also be on the lookout for any opportunities to
replace our remaining non-biodegradable products with more environmentally friendly alternatives.
Su: We’ve made a great start on adding new electric vehicles to the Axle fleet, but haven’t hit our
targets yet. Now we need to analyse what has prevented us from reaching our objectives, record
what lessons we have learned, and decide what can be done differently in the future to make the
introduction of electric cars more effective.
Radhika: We will continue to buy ceramic cups and environmentally friendly light bulbs for our
offices. We will also consider further ways to make our offices greener, and run campaigns with
staff members to encourage them to become more environmentally aware.
4.6.2 Continual improvement and the guiding principles
Following the continual improvement model, an organization may significantly benefit from applying the
ITIL guiding principles. All the principles are applicable and relevant at every step of an improvement
initiative. However, some of the guiding principles are especially relevant to specific steps of the continual
improvement model. Following these principles at every step of an improvement increases the chances

for success of the steps and the overall improvement initiative. Table 4.2 outlines to which steps of the
continual improvement model each of the guiding principles is particularly relevant, although all principles
are applicable to all steps at some level.
Continual improvement is not only an integral part of Lean, but also Agile (retrospectives), DevOps
(continual experimentation and learning, and mastery), and other frameworks. It is one of the key
components of the ITIL SVS, providing, along with the guiding principles, a solid platform for successful
service management.
Table 4.2 The steps of the continual improvement model linked to the most relevant ITIL guiding principles
Continual improvement and the theory of constraints
In an increasingly dynamic business environment, an enterprise’s ability to change quickly, whether
in response to external factors or to disrupt the market, can make the difference between failure and
success.
When planning improvements, it is crucial to focus on the work that is the highest priority. According
to the theory of constraints (ToC), the weakest link in the value chain determines the flow and
throughput of the system. The weakest link must be elevated as much as possible (sometimes
revealing a new weakest link), and all the other steps in the value chain must be organized around it.
The weakest link of a value stream can be determined with value stream mapping. This is a Lean
practice that examines the stream, quantifies its waste (for example, a delay), and in so doing,
identifies its weakest link. If the weakest link is the development of information systems, then the
application of Agile principles and practices can improve the quality of, and the speed with which,
functionality is developed. This includes the critical interaction between business and IT in which the
required functionality is defined alongside the non-functional requirements. The ITIL 4 practices that
help with this include, among others, software development and management, business analysis,
and relationship management.
If the weakest link is the speed and reliability of deployment, then using DevOps principles, technical
practices and tools can make a significant difference. The ITIL 4 practices that are relevant to this
include deployment management, release management, and organizational change management.
Finally, if the weakest link is the delivery and support of IT services, then IT operations practices and
tools can be used, such as the ITIL 4 practices of incident management, problem management,
service desk, and infrastructure and platform management.
4.7 Practices
A practice is a set of organizational resources designed for performing work or accomplishing an
objective. These resources are grouped into the four dimensions of service management (see Chapter 3).

The ITIL SVS includes general management, service management, and technical management practices,
as described in Chapter 5.
4.8 Summary
The ITIL SVS describes how all the components and activities of the organization work together as a
system to enable value creation. Each organization’s SVS has interfaces with other organizations,
forming an ecosystem that facilitates value creation for the organizations, their customers, and other
stakeholders.
The ITIL SVS is a powerful holistic construct for the governance and management of modern products
and services that enables organizations to co-create value with consumers. The SVS includes the service
value chain activities supported by universal and holistic practices that allow the organization to manage
demands of all types. These range from strategic demands that enable the organization to thrive in a
competitive landscape, to operational requests for information, services, or support. Every organization
participates in some form of the value chain activities described here, even when many of them are
performed by suppliers and partners. ITIL 4 guidance can be adapted and adopted to facilitate value,
feedback, and continual improvement across the SVS.

CHAPTER 5
ITIL MANAGEMENT PRACTICES

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5 ITIL management practices
The ITIL SVS includes 14 general management practices, 17 service management practices, and three
technical management practices, all of which are subject to the four dimensions of service management
(see Chapter 3).
Key message
In ITIL, a management practice is a set of organizational resources designed for performing work or
accomplishing an objective. The origins of the practices are as follows:
General management practices have been adopted and adapted for service management from
general business management domains.
Service management practices have been developed in service management and ITSM
industries.
Technical management practices have been adapted from technology management domains for
service management purposes by expanding or shifting their focus from technology solutions to
IT services.
The 34 ITIL management practices are listed in Table 5.1.
Table 5.1 The ITIL management practices
General management practices Service management practices Technical management practices
Architecture management Availability management Deployment management
Continual improvement Business analysis Infrastructure and platform management
Information security management Capacity and performance management Software development and management
Knowledge management Change enablement
Measurement and reporting Incident management
Organizational change management IT asset management
Portfolio management Monitoring and event management
Project management Problem management
Relationship management Release management
Risk management Service catalogue management
Service financial management Service configuration management
Strategy management Service continuity management
Supplier management Service design
Workforce and talent management Service desk
Service level management
Service request management
Service validation and testing
ITSM in the modern world: high-velocity service delivery
In business innovation and differentiation, speed to market is a key success factor. If an organization
takes too long to implement a new business idea, it is likely to be done faster by someone else.
Because of this, organizations have started demanding shorter time to market from their IT service

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providers.
For service providers that have always used modern technology, this has not been a big challenge.
They have adopted modern ways of scaling their resources and established appropriate practices for
project and product management, testing, integration, deployment, release, delivery, and support of
IT services. These practices have been documented and have triggered the development of new IT
management movements and practices, such as DevOps. However, for organizations bearing a
legacy of old IT architectures and IT management practices focused on control and cost efficiency,
the new business demand has introduced a greater challenge.
The high-velocity service delivery paradigm includes:
focus on fast delivery of new and changed IT services to users
continual analysis of feedback provided for IT services at every stage of their lifecycle
agility in processing the feedback, giving rise to continual and fast improvement of IT services
an end-to-end approach to the service lifecycle, from ideation, through creation and delivery, to
consumption of services
integration of product and service management practices
digitalization of IT infrastructure and adoption of cloud computing
extensive automation of the service delivery chain.
High-velocity service delivery influences all the practices of a service provider, including general
management practices, service management practices, and technical management practices. For
example, an organization aiming to deliver and improve its services faster than others needs to
consider:
Agile project management
Agile financial management
product-based organizational structure
adaptive risk management, and audit and compliance management
flexible architecture management
specific architecture technology solutions, such as microservices
complex partner and supplier environments
continual monitoring of technology innovations and experimenting
human-centred design
infrastructure management focused on cloud computing.
Even if only some of the services in a provider’s portfolio need high-velocity delivery, organizational
changes of a significant scale are required to enable this, especially if the organization has a legacy
of low-velocity services, practices, and habits. Moreover, bi-modal IT, where high-velocity service
management is combined with traditional practices, introduces even more complexity and greater
challenges. However, for many modern organizations, high-velocity service delivery is no longer an
option but a necessity, and they must improve their service management practices to respond to this
challenge.
5.1 General management practices

5.1.1 Architecture management
Key message
The purpose of the architecture management practice is to provide an understanding of all the
different elements that make up an organization and how those elements interrelate, enabling the
organization to effectively achieve its current and future objectives. It provides the principles,
standards, and tools that enable an organization to manage complex change in a structured and
Agile way.
Just as the modern organization’s environment and ecosystem have become more complex, so have its
challenges. These include not only how to increase efficiency and automation, but also how to better
manage the complexity of the environment and how to achieve organizational agility and resilience.
Without the visibility and coordination made possible by a proper architecture management practice, an
organization can become a labyrinth of third-party contracts, variant processes across different
organizational silos, various products and services that have been needlessly customized for different
customers, and a legacy infrastructure. The result is a complex landscape where any change becomes
far more difficult to implement and introduces a much higher risk.
A complete architecture management practice should address all architecture domains: business, service,
information, technology, and environment. For a smaller and less complex organization, the architect can
develop a single integrated architecture.
Architecture types
Business architecture
The business architecture allows the organization to look at its capabilities in terms of how they align
with all the detailed activities required to create value for the organization and its customers. These
are then compared with the organization’s strategy and a gap analysis of the target state against
current capabilities is performed. Identified gaps between the baseline and target state are prioritized
and these capability gaps are addressed incrementally. A ‘roadmap’ describes the transformation
from current to future state to achieve the organization’s strategy.
Service architecture
Service architecture gives the organization a view of all the services it provides, including
interactions between the services and service models that describe the structure (how the service
components fit together) and the dynamics (activities, flow of resources, and interactions) of each
service. A service model can be used as a template or blueprint for multiple services.
Information systems architecture, including data and applications architectures
The information architecture describes the logical and physical data assets of the organization and
the data management resources. It shows how the information resources are managed and shared
for the benefit of the organization.

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Information is a valuable asset for the organization, with actual and measurable value. Information is
the basis for decision-making, so it must always be complete, accurate, and accessible to those who
are authorized to access it. Information systems must therefore be designed and managed with
these concepts in mind.
Technology architecture
The technology architecture defines the software and hardware infrastructure needed to support the
portfolio of products and services.
Environmental architecture
The environmental architecture describes the external factors impacting the organization and the
drivers for change, as well as all aspects, types, and levels of environmental control and their
management. The environment includes developmental, technological, business, operational,
organizational, political, economic, legal, regulatory, ecological, and social influences.
Figure 5.1 shows the contribution of architecture management to the service value chain, with the practice
being involved in all value chain activities; however, it is most instrumental in the plan, improve, and
design and transition value chain activities:
Plan The architecture management practice is responsible for developing and maintaining a reference
architecture that describes the current and target architectures for the business, information, data,
application, technology, and environment perspectives. This is used as a basis for all the plan value
chain activity.
Improve Many opportunities for improvement are identified through review of the business, service,
information, technical, and environment architectures.
Engage The architecture management practice facilitates the ability to understand the organization’s
readiness to address new or under-served markets and a wider variety of products and services, and
more quickly respond to changing circumstances. The architecture management practice is
responsible for assessing the organization’s capabilities in terms of how they align with all the detailed
activities required to co-create value for the organization and its customers.
Design and transition Once a new or changed product or service is approved to be developed, the
architecture, design, and build teams will continually evaluate whether the product/service meets the
investment objectives. The architecture management practice is responsible for the service
architecture, which describes the structure (how the service components fit together) and the dynamics
(activities, flow of resources, and interactions) of the service. A service model can be used as a
template or blueprint for multiple services and is essential to the design and transition activity.
Obtain/build The reference architectures (business, service, information, technical, and
environmental) facilitate identification of what products, services, or service components need to be
obtained or built.
Deliver and support The reference architectures are used continually as part of the operation,
restoration, and maintenance of products and services.

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Figure 5.1 Heat map of the contribution of architecture management to value chain activities
5.1.2 Continual improvement
Key message
The purpose of the continual improvement practice is to align the organization’s practices and
services with changing business needs through the ongoing improvement of products, services, and
practices, or any element involved in the management of products and services.
Included in the scope of the continual improvement practice is the development of improvement-related
methods and techniques and the propagation of a continual improvement culture across the organization,
in alignment with the organization’s overall strategy. The commitment to and practice of continual
improvement must be embedded into every fibre of the organization. If it is not, there is a real risk that
daily operational concerns and major project work will eclipse continual improvement efforts.
Key activities that are part of continual improvement practices include:
encouraging continual improvement across the organization
securing time and budget for continual improvement
identifying and logging improvement opportunities
assessing and prioritizing improvement opportunities
making business cases for improvement action
planning and implementing improvements
measuring and evaluating improvement results
coordinating improvement activities across the organization.
There are many methods, models, and techniques that can be employed for making improvements.
Different types of improvement may call for different improvement methods. For example, some

improvements may be best organized into a multi-phase project, while others may be more appropriate as
a single quick effort.
The ITIL SVS includes the continual improvement model (see Figure 4.3), which can be applied to any
type of improvement, from high-level organizational changes to individual services and configuration
items (CIs). The model is described in section 4.6.
When assessing the current state, there are many techniques that can be employed, such as a strength,
weakness, opportunity, and threat (SWOT) analysis, a balanced scorecard review, internal and external
assessments and audits, or perhaps even a combination of several techniques. Organizations should
develop competencies in methodologies and techniques that will meet their needs.
Approaches to continual improvement can be found in many places. Lean methods provide perspectives
on the elimination of waste. Agile methods focus on making improvements incrementally at a cadence.
DevOps methods work holistically and ensure that improvements are not only designed well, but applied
effectively. Although there are a number of methods available, organizations should not try to formally
commit to too many different approaches. It is a good idea to select a few key methods that are
appropriate to the types of improvement the organization typically handles and to cultivate those methods.
In this way, teams will have a shared understanding of how to work together on improvements to facilitate
a greater amount of change at a quicker rate.
This does not mean, however, that the organization should not try new approaches or allow for
innovation. Those in the organization with skills in alternative methods should be encouraged to apply
them when it makes sense, and if this effort is successful, the alternative method may be added to the
organization’s repertoire. Older methods may gradually be retired in favour of new ones if better results
are achieved.
Continual improvement is everyone’s responsibility. Although there may be a group of staff members who
focus on this work full-time, it is critical that everyone in the organization understands that active
participation in continual improvement activities is a core part of their job. To ensure that this is more than
a good intention, it is wise to include contribution to continual improvement in all job descriptions and
every employee’s objectives, as well as in contracts with external suppliers and contractors.
The highest levels of the organization need to take responsibility for embedding continual improvement
into the way that people think and work. Without their leadership and visible commitment to continual
improvement, attitudes, behaviour, and culture will not evolve to a point where improvements are
considered in everything that is done, at all levels.
Training and other enablement assistance should be provided to staff members to help them feel
prepared to contribute to continual improvement. Although everyone should contribute in some way, there
should at least be a small team dedicated full-time to leading continual improvement efforts and
advocating the practice across the organization. This team can serve as coordinators, guides, and
mentors, helping others in the organization to develop the skills they need and navigating any difficulties
that may be encountered.
When third-party suppliers form part of the service landscape, they should also be part of the
improvement effort. When contracting for a supplier’s service, the contract should include details of how
they will measure, report on, and improve their services over the life of the contract. If data will be
required from suppliers to operate internal improvements, that should be specified in the contract as well.
Accurate data, carefully analysed and understood, is the foundation of fact-based decision-making for
improvement. The continual improvement practice should be supported by relevant data sources and
data analysis to ensure that each potential improvement is sufficiently understood and prioritized.
To track and manage improvement ideas from identification through to final action, organizations use a
database or structured document called a continual improvement register (CIR). There can be more than

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one CIR in an organization, as multiple CIRs can be maintained on individual, team, departmental,
business unit, and organizational levels. Some organizations maintain a single master CIR, but segment
how it is used and by whom at a more granular level.
Improvement ideas can also initially be captured in other places and through other practices, such as
during project execution or software development activities. In this case, it is important to document for
attention the improvement ideas that come up as part of ongoing continual improvement. As new ideas
are documented, CIRs are used to constantly reprioritize improvement opportunities. The use of CIRs
provides additional value because they help to make things visible. This is not limited to what is currently
being done, but also to what is already complete and what has been set aside for further consideration at
a later date.
It does not matter exactly how the information in a CIR is structured, or what the collections of
improvement ideas are called in any given organization. What is important is that improvement ideas are
captured, documented, assessed, prioritized, and appropriately acted upon to ensure that the
organization and its services are always being improved.
The continual improvement practice is integral to the development and maintenance of every other
practice as well as to the complete lifecycle of all services and indeed the SVS itself. That said, there are
some practices that make a special contribution to continual improvement. For example, the
organization’s problem management practice can uncover issues that will be managed through
continual improvement. The changes initiated through continual improvement may fail without the critical
contributions of organizational change management. And many improvement initiatives will use project
management practices to organize and manage their execution.
Figure 5.2 Heat map of the contribution of continual improvement to value chain activities
Figure 5.2 shows the contribution of continual improvement to the service value chain, with the practice
being involved in all value chain activities:
Plan The continual improvement practice is applied to planning activities, methods, and techniques to
make sure they are relevant to the organization’s current objectives and context.
Improve The continual improvement practice is key to this value chain activity. It structures resources
and activities, enabling improvement at all levels of the organization and the SVS.
Engage, design and transition, obtain/build, and deliver and support Each of these value chain
activities is subject to continual improvement, and the continual improvement practice is applied to all
of them.

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5.1.3 Information security management
Key message
The purpose of the information security management practice is to protect the information
needed by the organization to conduct its business. This includes understanding and managing risks
to the confidentiality, integrity, and availability of information, as well as other aspects of
information security such as authentication (ensuring someone is who they claim to be) and non-
repudiation (ensuring that someone can’t deny that they took an action).
The required security is established by means of policies, processes, behaviours, risk management, and
controls, which must maintain a balance between:
Prevention Ensuring that security incidents don’t occur
Detection Rapidly and reliably detecting incidents that can’t be prevented
Correction Recovering from incidents after they are detected.
It is also important to achieve a balance between protecting the organization from harm and allowing it to
innovate. Information security controls that are too restrictive may do more harm than good, or may be
circumvented by people trying to do work more easily. Information security controls should consider all
aspects of the organization and align with its risk appetite.
Information security management interacts with every other practice. It creates controls that each practice
must consider when planning how work will be done. It also depends on other practices to help protect
information.
Information security management must be driven from the most senior level in the organization, based on
clearly understood governance requirements and organizational policies. Most organizations have a
dedicated information security team, which carries out risk assessments and defines policies,
procedures, and controls. In high-velocity environments, information security is integrated as much as
possible into the daily work of development and operations, shifting the reliance on control of process
towards verification of preconditions such as expertise and integrity.
Information security is critically dependent on the behaviour of people throughout the organization. Staff
who have been trained well and pay attention to information security policies and other controls can help
to detect, prevent, and correct information security incidents. Poorly trained or insufficiently motivated
staff can be a major vulnerability.
Many processes and procedures are required to support information security management. These
include:
an information security incident management process
a risk management process
a control review and audit process
an identity and access management process
event management
procedures for penetration testing, vulnerability scanning, etc.

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procedures for managing information security related changes, such as firewall configuration changes.
Figure 5.3 shows the contribution of information security management to the service value chain, with the
practice being involved in all value chain activities:
Plan Information security must be considered in all planning activity and must be built into every
practice and service.
Improve Information security must be considered in all improvement value chain activity to ensure that
vulnerabilities are not introduced when making improvements.
Engage Information security requirements for new and changed services must be understood and
captured. All levels of engagement, from operational to strategic, must support information security and
encourage the behaviours needed. All stakeholders must contribute to information security, including
customers, users, suppliers, etc.
Figure 5.3 Heat map of the contribution of information security management to value chain activities
Design and transition Information security must be considered throughout this value chain activity,
with effective controls being designed and transitioned into operation. The design and transition of all
services must consider information security aspects as well as all other utility and warranty
requirements.
Obtain/build Information security must be built into all components, based on the risk analysis,
policies, procedures, and controls defined by information security management. This applies whether
the components are built internally or procured from suppliers.
Deliver and support Detection and correction of information security incidents must be an integral
part of this value chain activity.
The ITIL story: Axle’s information security management
Su: Our travel app stores a lot of sensitive data, including customer and credit card details. Our role
is to make sure this data is secure.
Marco: Some of the data is also stored and processed by our partners, who helped us to develop
the app and continue to support the app on our behalf.
Radhika: We use the data to analyse customer demand and the use of our fleet, track the
conditions of our cars, and analyse our customers’ preferences to create tailored offerings.
Su: Our consumers need to know that their data is safe and will not be misused. We regularly

undergo external audits to provide assurance for our stakeholders and to confirm compliance with
national and international regulations.
Henri: As CIO, I make sure everyone who works in and with Axle is aware of the importance of
information security, and follows Axle policies and procedures concerning information security
management.
5.1.4 Knowledge management
Key message
The purpose of the knowledge management practice is to maintain and improve the effective,
efficient, and convenient use of information and knowledge across the organization.
Knowledge is one of the most valuable assets of an organization. The knowledge management practice
provides a structured approach to defining, building, re-using, and sharing knowledge (i.e. information,
skills, practices, solutions, and problems) in various forms. As methods of capturing and sharing
knowledge move more towards digital solutions, the practice of knowledge management becomes even
more valuable.
Figure 5.4 Heat map of the contribution of knowledge management to value chain activities
It is important to understand that ‘knowledge’ is not simply information. Knowledge is the use of
information in a particular context. This needs to be understood with both the user of the knowledge and
the relevant situation in mind. For example, information presented in the form of a 300-page manual is not
useful for a service desk analyst who needs to find a fast solution. A better example of knowledge that is
fit for purpose might be a simplified set of instructions or reference points that allow the analyst to find the
relevant content quickly.
Knowledge management aims to ensure that stakeholders get the right information, in the proper format,
at the right level, and at the correct time, according to their access level and other relevant policies. This

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requires a procedure for the acquisition of knowledge, including the development, capturing, and
harvesting of unstructured knowledge, whether it is formal and documented or informal and tacit
knowledge.
Figure 5.4 shows the contribution of knowledge management to the service value chain, with the practice
being involved in all value chain activities:
Plan Knowledge management helps the organization to make sound portfolio decisions and to define
its strategy and other plans, and supports financial management.
Improve This value chain activity is based on an understanding of the current situation and trends,
supported by historical information. Knowledge management provides context for the assessment of
achievements and improvement planning.
Engage Relationships at all levels, from strategic to operational, are based on an understanding of the
context and history of those relationships. Knowledge management helps to better understand
stakeholders.
Design and transition As with the obtain/build value chain activity, knowledge of the solutions and
technologies available, and the re-use of information, can make this value chain activity more effective.
Obtain/build The efficiency of this value chain activity can be significantly improved with sufficient
knowledge of the solutions and technologies available, and through the re-use of information.
Deliver and support Ongoing value chain activity in this area benefits from knowledge management
through re-use of solutions in standard situations and a better understanding of the context of non-
standard situations that require analysis.
The ITIL story: Axle’s knowledge management
Radhika: Because we’re using an Agile deployment for our app development, we need to make
sure our staff have up-to-date knowledge on new features. Just as importantly, knowledge needs to
be retired when it’s out of date. For example, we recently discovered the printing feature of our app
was not being used by our customers. We removed printing and replaced it with a new function to
send information from the app by email instead. As part of release management, we’ve already
provided updated knowledge articles to our service desk to reflect the change.
Su: Knowledge management is more than just data collection. At Axle, we focus on open
communication and the sharing of knowledge. To promote collaboration and visibility, we make
sure that information, problems, and concerns are openly shared between our teams and branches.
Henri: But we also need to follow information security policies and make sure that openness does
not mean carelessness.
Marco: We’re testing new systems based on AI to improve our forecasting and decision-making at
all levels, from strategic planning to user support.
5.1.5 Measurement and reporting
Key message
The purpose of the measurement and reporting practice is to support good decision-making and
continual improvement by decreasing the levels of uncertainty. This is achieved through the
collection of relevant data on various managed objects and the valid assessment of this data in an

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appropriate context. Managed objects include, but are not limited to, products and services,
practices and value chain activities, teams and individuals, suppliers and partners, and the
organization as a whole.
Many of these managed objects are connected, and so are their respective metrics and indicators. For
example, to set clear objectives for measurement and reporting, there is a need to understand
organizational goals. These can be based on a number of areas: profit, growth, competitive advantage,
customer retention, operational/public service, etc. (see the focus on value guiding principle in section
4.3.1). In such cases, it is important to establish a clear relationship between high-level and subordinate
goals and the objectives that relate to them.
For the set goals, operational critical success factors (CSFs) can be defined. Based on these CSFs, a set
of related key performance indicators (KPIs) can then be agreed upon, against which success can be
measured.
Definitions
Critical success factor (CSF) A necessary precondition for the achievement of intended results.
Key performance indicator (KPI) An important metric used to evaluate the success in meeting
an objective.
5.1.5.1 KPIs and behaviour
KPIs for individuals can work as a competitive motivator, and this will drive positive results if the KPIs are
set to meet clear business goals. However, target-setting for individuals can also have a negative side,
driving inappropriate or unsuitable behaviours. This typically happens if there is too much focus placed on
individual KPIs. For example, service desk staff might be heavily driven to keep calls short, but this can
negatively impact on customer satisfaction, and even resolution times, if issues are not properly dealt
with.
Operational KPIs should ideally be set for teams rather than focusing too closely on individuals. This
means that there can be some flexibility in the targets and behaviours allowed by the team as a whole.
Individuals will, of course, still need some specific guidelines for their performance, but this should be
clearly within the goals of the team and organization, and all targets should be set in the context of
providing value for the organization.
5.1.5.2 Reporting
Data collected as metrics is usually presented in the form of reports or dashboards. It is important to
remember that reports are intended to support good decision-making, so their content should be relevant
to the recipients of the information and related to the required topic. Reports and dashboards should
make it easy for the recipient to see what needs to be done and then take action. As such, a good report
or dashboard should answer two main questions: how far are we from our targets and what bottlenecks
prevent us from achieving better results?
Figure 5.5 shows the contribution of measurement and reporting to the service value chain, with the
practice being involved in all value chain activities:

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Plan Measurement and reporting enables strategy and service portfolio decisions by providing details
on current performance of products and services.
Improve Performance is constantly monitored and evaluated to support continual improvement,
alignment, and value creation.
Engage Engagement with stakeholders is based on correct, up-to-date, and sufficient information
provided in the form of dashboards and reports.
Design and transition Measurement and reporting provides information for management decisions at
every stage before going live.
Obtain/build The practice ensures transparency of all development and procurement activities,
enabling effective management and integration with all other value chain activities.
Deliver and support Ongoing management of products and services is based on correct, up-to-date,
and sufficient performance information.
Figure 5.5 Heat map of the contribution of measurement and reporting to value chain activities
5.1.6 Organizational change management
Key message
The purpose of the organizational change management practice is to ensure that changes in an
organization are smoothly and successfully implemented, and that lasting benefits are achieved by
managing the human aspects of the changes.
Improvements invariably require people to change the way they work, their behaviour, and sometimes
their role. Regardless of whether the change is to a practice, the structure of the organization, related to
technology, or is the introduction of a new or changed service, people are essential to the success of the
change. The organizational change management practice aims to ensure that everyone affected by the
change accepts and supports it. This is achieved by removing or reducing resistance to the change,
eliminating or addressing adverse impacts, and providing training, awareness, and other means of

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ensuring a successful transition to the changed state.
Organizational change management contributes to every part of the SVS, wherever the cooperation,
participation, and enthusiasm of the people involved are required. For an improvement initiative to be
successful, no matter what the level or scope of the change is, there are certain elements that are
essential to addressing the human factor. Organizational change management must ensure that the
following are established and maintained throughout the change:
Clear and relevant objectives To gain support, the objectives of the change must be clear and make
sense to the stakeholders, based on the context of the organization. The change must be seen to be of
real value.
Strong and committed leadership It is critical that the change has the active support of sponsors and
day-to-day leaders within the organization. A sponsor is a manager or business leader who will
advocate, and can authorize, the change. Leaders should visibly support and consistently
communicate their commitment to the change.
Willing and prepared participants To be successful, a change needs to be made by willing
participants. In part, this willingness will come from the participants being convinced of the importance
of the change. In addition, the more prepared participants feel they are to make the changes asked of
them through relevant training, awareness, and regular communications, the keener they will be to go
forward.
Sustained improvement Many changes fail because, after some time has passed, people revert to
old ways of working. Organizational change management seeks to continually reinforce the value of
the change through regular communication, addressing any impacts and consequences of the change,
and the support of sponsors and leaders. The communication of value will be stronger when metrics
are used to validate the message.
5.1.6.1 Activities of organizational change management
The key activities of effective organizational change management are outlined in Table 5.2.
Table 5.2 Organizational change management activities
Activity Helps to deliver
Creation of a sense of urgency Clear and relevant objectives, willing participants
Stakeholder management Strong and committed participants
Sponsor management Strong and committed leadership
Communication Willing and prepared participants
Empowerment Prepared participants
Resistance management Willing participants
Reinforcement Sustained improvement
The activities of organizational change management interact with those of many other practices,
particularly continual improvement and project management. Other practices with important links to
organizational change management include measurement and reporting, workforce and talent
management, and relationship management.
The various audiences affected by the change must be identified and their characteristics defined. Not all
people will respond to the same messaging or be motivated by the same drivers. It is particularly
important in organizational change management to take cultural differences into consideration, whether
they are based on geography, nationality, corporate history, or other factors.
Unlike other practices, accountability for organizational change management cannot be transferred to an
external supplier. Someone within the organization itself must be accountable for organizational change
management, even if the execution of some or most of the organizational change management activities
is delegated to other people or groups including suppliers. External expertise may, however, be sought to
supplement the organizational change management capabilities of an organization. Sometimes

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organizations struggle with the key skillsets needed for organizational change management and can
benefit from the support and guidance of an external supplier. Even if external help is used, the overall
leadership support must still come from the organization itself.
Figure 5.6 shows the contribution of organizational change management to the service value chain, with
the practice being involved in all value chain activities:
Figure 5.6 Heat map of the contribution of organizational change management to value chain activities
Plan Decisions regarding change at the portfolio level cause the initiation of organizational change
management to support an approved initiative.
Improve Without proper organizational change management, improvement cannot be sustained.
Engage The organizational change management practice actively engages with stakeholders at all
stages of a change.
Design and transition Organizational change management is essential for the deployment of a new
service or a significant change to an existing one.
Obtain/build Organizational change management ensures engagement and cooperation within and
across projects.
Deliver and support Organizational change management continues during live operations and
support to ensure that the change has been adopted and is sustained.
5.1.7 Portfolio management
Key message
The purpose of the portfolio management practice is to ensure that the organization has the right
mix of programmes, projects, products, and services to execute the organization’s strategy within its
funding and resource constraints.

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Portfolio management is a coordinated collection of strategic decisions that together enable the most
effective balance of organizational change and business as usual. Portfolio management achieves this
through the following activities:
Developing and applying a systematic framework to define and deliver a portfolio of products, services,
programmes, and projects in support of specific strategies and objectives.
Clearly defining products and services and linking them to the achievement of agreed outcomes, thus
ensuring that all activities in the service value chain are aligned with value definition and the related
CSFs.
Evaluating and prioritizing incoming product, service, or project proposals and other change initiatives,
based on resource constraints, existing commitments, and the organization’s strategy and objectives.
Implementing a strategic investment appraisal and decision-making process based on an
understanding of the value, costs, risks, resource constraints, inter-dependencies, and impact on
existing business activities.
Analysing and tracking investments based on the value of products, services, programmes, and
projects to the organization and its customers.
Monitoring the performance of the overall portfolio and proposing adjustments in response to any
changes in organizational priorities.
Reviewing the portfolios in terms of progress, outcomes, costs, risk, benefits, and strategic
contribution.
Portfolio management plays an important role in how resources are allocated, deployed, and managed
across the organization. This facilitates the alignment of resources and capabilities with customer
outcomes as part of the strategy execution within the ITIL SVS.
Portfolio management encompasses a number of different portfolios, including the following:
Product/service portfolio The product/service portfolio is the complete set of products and/or
services that are managed by the organization, and it represents the organization’s commitments and
investments across all its customers and market spaces. It also represents current contractual
commitments, new product and service development, and ongoing improvement plans initiated as a
result of continual improvement. The portfolio may also include third-party products and services,
which are an integral part of offerings to internal and external customers.
Project portfolio The project portfolio is used to manage and coordinate projects that have been
authorized, ensuring objectives are met within time and cost constraints and to specification. The
project portfolio also ensures that projects are not duplicated, that they stay within the agreed scope,
and that resources are available for each project. It is the tool used to manage single projects as well
as large-scale programmes consisting of multiple projects.
Customer portfolio The customer portfolio is maintained by the organization’s relationship
management practice, which provides important input to the portfolio management practice. The
customer portfolio is used to record all the organization’s customers and is the relationship manager’s
view of the internal and external customers who receive products and/or services from the
organization.
Portfolio management uses the customer portfolio to ensure that the relationship between business
outcomes, customers, and services is well understood. It documents these linkages and is validated
with customers through the relationship management practice.
Agile portfolio management
The success of programmes and projects has historically been gauged by the extent to which
implementation has been completed on time and within budget, and has delivered the required
outputs, outcomes, and benefits. In many cases, however, organizations have struggled to

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demonstrate a return on their investment from change, and there is an increasing recognition that
true success is only possible if the programme or project was the ‘right’ initiative to implement in the
first place. Agile portfolio management takes this further, with an increased focus on visualizing
strategic themes and the ability to reprioritize the portfolio swiftly, increase workflow, reduce batch
sizes of work, and control the length of longer-term development queues.
Traditional portfolio management is focused on top-down planning with work laid out over longer
time periods, but Agile portfolio management takes the concept of build–measure–learn cycles used
by individual Agile teams and applies it on an organization-wide basis. Teams work together, use
modular design, and share findings. This results in tremendous flexibility, which shifts the focus from
continuing to execute an inflexible plan to delivering value and making tangible progress according
to business strategy and goals.
Organizations practising Agile portfolio management communicate as much as possible across the
business. They share knowledge and break barriers between organizational silos.
Figure 5.7 Heat map of the contribution of portfolio management to value chain activities
Figure 5.7 shows the contribution of portfolio management to the service value chain, with the practice
being involved in all value chain activities:
Plan Portfolio management provides important information about the status of projects, products, and
services currently in the pipeline or catalogue and what strategic objectives they have been designed
to meet, which is essential for planning. Portfolio management also includes reviewing the portfolios in
terms of progress, value creation, costs, risk, benefits, and strategic contribution.
Improve Portfolio management identifies opportunities to improve efficiency and increase
collaboration, eliminate duplication between projects, and identify and mitigate risks. Improvement
initiatives are prioritized and if approved may be added to the relevant portfolio.
Engage When opportunities or demand are identified by the organization, the decisions on how to
prioritize these are made based upon the organization’s strategy plus the risk assessment and
resource availability.
Design and transition, obtain/build, and deliver and support Portfolio management is responsible
for ensuring that products and services are clearly defined and linked to the achievement of business
outcomes, so that these value chain activities are aligned with value.

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5.1.8 Project management
Key message
The purpose of the project management practice is to ensure that all projects in the organization
are successfully delivered. This is achieved by planning, delegating, monitoring, and maintaining
control of all aspects of a project, and keeping the motivation of the people involved.
Projects are one of the means by which significant changes are introduced to an organization, and they
can be defined as temporary structures that are created for the purpose of delivering one or more outputs
(or products) according to an agreed business case. They may be a stand-alone initiative or part of a
larger programme, together with other interrelated projects, for more complex pieces of transformation.
However, even stand-alone projects should be considered in the context of the organization’s project
portfolio.
There are different approaches to the way in which projects are delivered, with the waterfall and Agile
methods being the most common:
The waterfall method works well in environments where the requirements are known upfront (and
unlikely to significantly change), and where definition of the work is more important than the speed of
delivery.
The Agile method works best where requirements are uncertain and likely to evolve rapidly over time
(for example, as business needs and priorities change), and where speed of delivery is often prioritized
over the definition of precise requirements.
Successful project management is important as the organization must balance its need to:
maintain current business operations effectively and efficiently
transform those business operations to change, survive, and compete in the market place
continually improve its products and services.
This balance between projects and ‘business as usual’ can potentially impact a number of areas,
including resources (people, assets, finances), service levels, customer relationships, and productivity,
and so the organization’s capacity and capability must be considered as part of its project management
approach.
Projects depend on the behaviour of people both within the project team and the wider organization. The
best project plan amounts to very little if the right people are not involved at the right time. The
relationship between the project and the organization also needs to be considered, as many project team
members will be seconded from business operations on a full- or part-time basis.
Figure 5.8 shows the contribution of project management to the service value chain, with the practice
being involved in all value chain activities:
Plan Project management supports strategic and tactical planning with methods and tools.
Improve Many improvement initiatives are large and complex, so project management is the relevant
practice to manage them.
Engage Stakeholder engagement is a key element in the successful delivery of any project. Project

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management provides the organization with stakeholder management tools and techniques.
Design and transition Design of a practice or service can be managed as a project or an iteration in a
larger project; the same applies to some transitions.
Obtain/build Obtaining new resources as well as development and integration is usually performed as
a project. Various project management techniques are applicable to this activity.
Deliver and support The design, transition, and handover to internal or external service consumers
for operational management needs to be well planned and executed to ensure that business as usual
is not compromised. The project management practice ensures this happens.
Figure 5.8 Heat map of the contribution of project management to value chain activities
5.1.9 Relationship management
Key message
The purpose of the relationship management practice is to establish and nurture the links between
the organization and its stakeholders at strategic and tactical levels. It includes the identification,
analysis, monitoring, and continual improvement of relationships with and between stakeholders.
The relationship management practice ensures that:
stakeholders’ needs and drivers are understood, and products and services are prioritized
appropriately
stakeholders’ satisfaction is high and a constructive relationship between the organization and
stakeholders is established and maintained
customers’ priorities for new or changed products and services, in alignment with desired business
outcomes, are effectively established and articulated
any stakeholders’ complaints and escalations are handled well through a sympathetic (yet formal)
process

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products and services facilitate value creation for the service consumers as well as for the organization
the organization facilitates value creation for all stakeholders, in line with its strategy and priorities
conflicting stakeholder requirements are mediated appropriately.
Service providers quite naturally focus most of their efforts on their relationships with service consumers
(sponsors, customers, and users). It is a very important stakeholder group; however, organizations should
ensure that they understand and manage their relationships with various stakeholders, both internal and
external. The relationship management practice should apply to all relevant parties. This means that the
practice contributes to all service value chain activities and multiple value streams.
Figure 5.9 shows the contribution of relationship management to the service value chain, with the practice
being involved in all value chain activities:
Plan Relationship management provides information on the requirements and expectations of internal
and external customers. It also assists with strategic assessment and prioritization across portfolios as
well as evaluating current and future market spaces, which are essential aspects of planning.
Improve Relationship management seeks to harmonize and synergize different organizational
relationships with internal and external customers to realize targeted benefits through continual
improvement.
Engage Relationship management is the practice responsible for engaging with internal and external
customers to understand their requirements and priorities.
Design and transition Relationship management plays a key role in coordinating feedback from
internal and external customers as part of design. It also ensures that inconvenience and adverse
impacts to customers during transition are prevented or minimized.
Obtain/build Relationship management provides the customer requirements and priorities to help
select products, services or service components to be obtained or built.
Deliver and support Relationship management is responsible for ensuring that a high level of
customer satisfaction and a constructive relationship between the organization and its customers are
established and maintained.
Figure 5.9 Heat map of the contribution of relationship management to value chain activities
5.1.10 Risk management

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Key message
The purpose of the risk management practice is to ensure that the organization understands and
effectively handles risks. Managing risk is essential to ensuring the ongoing sustainability of an
organization and creating value for its customers. Risk management is an integral part of all
organizational activities and therefore central to the organization’s SVS (see section 2.5.3 for a
definition of risk).
Risk is normally perceived as something to be avoided because of its association with threats, and
although this is generally true, risk is also associated with opportunity. Failure to take opportunities can be
a risk in itself. The opportunity costs of under-served market spaces and unfulfilled demand is a risk to be
avoided.
The organization’s portfolio can be mapped to an underlying portfolio of risks to be managed. When
service management is effective, products and services in the service catalogue and pipeline represent
opportunities to create and capture value for customers, the organization, and other stakeholders.
Otherwise, those products and services can represent threats due to the possibility of failure associated
with the demand patterns they attract, the commitments they require, and the costs they generate.
Implementing strategy often requires changes to the product and service portfolio, which means
managing associated risks.
Decisions about risk need to be balanced so that the potential benefits are worth more to the organization
than the cost to address the risk. For example, innovation is inherently risky but could provide major
benefits in improving products and services, achieving competitive advantage, and increasing agility and
resilience. The ability of the organization to limit its exposure to risk will also be of relevance. The aim
should be to make an accurate assessment of the risks in a given situation, and analyse the potential
benefits. The risks and opportunities presented by each course of action should be defined to identify
appropriate responses.
For risk management to be effective, risks need to be:
Identified Uncertainties that would affect the achievement of objectives within the context of a
particular organizational activity. These uncertainties must be considered and then described to ensure
that there is common understanding.
Assessed The probability, impact, and proximity of individual risks must be estimated so they can be
prioritized and the overall level of risk (risk exposure) associated with the organizational activity
understood.
Treated Appropriate responses to risks must be planned, assigning owners and actionees, and then
implemented, monitored, and controlled.
The following principles apply specifically to the risk management practice:
Risk is part of business The organization should ensure that risks are appropriately managed. This
does not mean that all risks are to be avoided. On the contrary, risk-taking is required to ensure long-
term sustainability. However, risks need to be identified, understood, and assessed against the levels
of risk the organization is willing to take (i.e. the risk appetite), and appropriately managed and
monitored.
Risk management must be consistent across the organization It is vital that the risk management
practice is managed holistically to achieve consistency across the whole organization. To ensure

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effectiveness, there should be ongoing consultation with stakeholders and appropriate flexibility for
different parts of the organization. This flexibility will allow tailored risk management procedures to be
developed so that organizational units and/or customer-specific circumstances are addressed.
Risk management culture and behaviours are important The appropriate culture and behaviours
demonstrated by all levels of the organization’s personnel are critical and must be embedded as part of
the ‘way we do things’. This will be demonstrated by behaviours and beliefs such as:
understanding that effective risk management is vital for the sustainability of the organization and
supports the achievement of business goals
using proactive risk management behaviours
ensuring transparency and clarity of risk management procedures, roles, responsibilities, and
accountabilities
actively encouraging and following up the reporting of risks, incidents, and opportunities
ensuring remuneration structures support desired behaviours (i.e. this should not discourage the
reporting of incidents nor encourage over-reporting)
actively encouraging learning and growth in maturity from the organization’s experiences and the
experiences of other organizations.
ISO 31000:2018 Risk management
These guidelines provide an overall and general perspective of the purpose and principles of risk
management. They are applicable at all levels in any type of organization. ISO 31000 states that ‘the
purpose of risk management is the creation and protection of value’ and that risk management
‘improves performance, encourages innovation and supports the achievement of objectives’.
Figure 5.10 Heat map of the contribution of risk management to value chain activities
Figure 5.10 shows the contribution of risk management to the service value chain, with the practice being
involved in all value chain activities:
Plan Risk management provides essential inputs to the organization’s strategy and planning, with a
focus on risks that can drive variability of outcomes. These include:
shifts in customer demand and priorities
legal and regulatory changes
competitors

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dependencies on suppliers and partners
technological changes
conflicting stakeholder requirements.
Improve All improvement initiatives should be assessed and continually controlled by risk
management. The practice establishes an important perspective for improvement prioritization,
planning, and review.
Engage The risk management practice helps to identify key stakeholders and optimize engagement
based on such information as risk appetite and risk profiles.
Design and transition Products and services should be designed to address prioritized risks. For
example, they should be scalable to support changes in demand over time. For the organization, new
or changed services carry varying levels of risk which should be identified and assessed before the
change is approved. If approved, the risks should be managed as part of the change, including
releases, deployments, and projects.
Obtain/build Risk management should inform decisions about the obtaining or building of products,
services, or service components.
Deliver and support Risk management helps to ensure that the ongoing delivery of products and
services is maintained at the agreed level and that all events are managed according to the risks that
they introduce.
5.1.11 Service financial management
Key message
The purpose of the service financial management practice is to support the organization’s
strategies and plans for service management by ensuring that the organization’s financial resources
and investments are being used effectively.
Service financial management supports decision-making by the governing body and management of the
organization regarding where to best allocate financial resources. It provides visibility into the budgeting,
costing, and accounting activities related to the products and services. To be effective in the context of
the SVS, this practice needs to be aligned with the organization’s policies and practices for portfolio
management, project management, and relationship management.
Finance is the common language which allows the organization to communicate effectively with its
stakeholders. Service financial management is responsible for managing the budgeting, costing,
accounting, and charging for the activities of an organization, acting as both service provider and service
consumer:
Budgeting/costing This is an activity focused on predicting and controlling the income and
expenditure of money within the organization. Budgeting consists of a periodic negotiation cycle to set
budgets and ongoing monitoring of the current budgets. To accomplish this objective, it focuses on
capturing forecasted and actual service demand. It translates this demand into anticipated operating
and project costs used for setting budgets and rates to ensure adequate funding for products and
services. Service-based budgeting seeks to understand the budget and establish funding models
based on the full cost of providing or consuming a service.

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Accounting This activity enables the organization to account fully for the way its money is spent,
allowing it to compare forecast vs actual costs and expenditures (particularly the ability to identify
usage and costs by customer, service, and activity/cost centre). It usually involves accounting
systems, including ledgers, charts of accounts, and journals.
Charging This activity is required to formally invoice service consumers (usually external) for the
services provided to them. It is important to note that while charging is an optional practice, all services
require a funding model, because all costs need to be adequately funded by an agreed method.
Figure 5.11 shows the contribution of service financial management to the service value chain, with the
practice being involved in all value chain activities:
Plan Plans at all levels need funding based on information, including financial. Service financial
management supports planning with budgets, reports, forecasts, and other relevant information.
Improve All improvements should be prioritized with return on investment in mind. Service financial
management provides tools and information for improvements evaluation and prioritization.
Engage Financial considerations are important for establishing and maintaining service relationships
with service consumers, suppliers, and partners. For some stakeholders (investors, sponsors) the
financial aspect of the relationship is the most important. The practice supports this value chain activity
by providing financial information.
Figure 5.11 Heat map of the contribution of service financial management to value chain activities
Design and transition Service financial management helps to keep this activity cost-effective by
providing the means for financial planning and control. It also ensures transparency of costs for
products and services for the service provider, accounting for design and transition expenditures.
Obtain/build Obtaining resources of all types is supported by budgeting (to ensure sufficient funding)
and accounting (to ensure transparency and evaluation).
Deliver and support Ongoing operational costs are a significant part of the organization’s
expenditures. For commercial organizations, ongoing service delivery activities are also the source of
income. Service financial management helps to ensure sufficient understanding of both. Charging (if
applicable) supports the service provider and the service consumer in their relationships with billing
and reporting.
Evolution of financial management with new technology
Financial management refers to the efficient and effective management of money in the most

appropriate manner to accomplish the financial objectives of the organization. Since its inception, the
financial management discipline has gone through various degrees of change, improvement, and
innovation. A key component of this change has been the emergence of new technology. Many
technological developments have impacted upon financial management, but the three key
innovations are the introduction of a greater number of digital technologies, blockchain, and IT
budgets and payment models.
Digital technologies
Major financial institutions are now analysing and using the latest technologies such as the cloud,
big data, analytics, and artificial intelligence (AI) to gain, or even just to maintain, competitive
advantage in the market place. However, new financial organizations are also using these
technologies and starting operations without any legacy IT, technical debt, or bureaucratic
processes, which means they tend to be more Agile.
Big data and analytics are being used by financial organizations to gain deeper insight into, and
understanding of, their customers. The amount of data being captured is phenomenal and requires
scalable computing power to process the data efficiently and cost-effectively. In return, this deeper
customer understanding is causing financial organizations to develop new and innovative products
and services. Data is now being referred to as the ‘new oil’, as organizations are scrambling to
capture, analyse, and exploit it.
Blockchain
Another evolution in financial management is happening through a specific innovation called
blockchain, again enabled only through cloud-based services. Initially blockchain was developed to
enable the de-centralized management of crypto-currencies, allowing transactions to be audited
and verified automatically and inexpensively.
Blockchain technologies are used to manage public digital ledgers. These digital ledgers record
transactions across many globally distributed computers. The distribution of records ensures that
each record cannot be changed without the alteration of all subsequent records (also known as
blocks) and without the consensus of the entire distributed ledger (also called the network).
Global financial institutions are researching how this blockchain technology can provide them with
competitive advantage by streamlining back-office functions and reducing settlement rates for
banking transactions. New financial organizations are investigating blockchain to deliver alternative
banking functions at a fraction of the cost and overheads of traditional banks.
IT budgets and payment models
The emergence of new technology has not just affected financial organizations, but also the way that
every organization manages its IT services from a financial perspective. Much of the current wave of
technological evolution has been enabled by cloud computing, and this seems likely to continue for
the foreseeable future. This has led to a major change in how IT services are obtained, funded, and
paid for by organizations.
Traditionally, IT resources were obtained using upfront capital expenditure (CAPEX). However,
under the cloud model, the provision of IT infrastructure, platforms, and software is provided ‘as a
service’. This model generally uses subscription-based or pay-as-you-use charging mechanisms
which are paid for out of operational expenditure (OPEX).
Another area that has seen change is the organization’s approach to setting and managing IT
budgets. Flexible IT budgets are required to meet the costs of scaling cloud-based services in an
Agile and on-demand way. Fixed IT budgets, often forecast months in advance, struggle to account

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for the scaling of IT resources in this way.
Procurement rules within organizations are also having to change. There remains a place for fixed-
price IT projects and services; however, cloud-based digital services are generally sold under a
variable-price model, i.e. the more you use and consume, the more you pay, and vice versa.
Therefore, those organizations that have not updated their procurement rules to allow them to buy
variable-priced IT resources will face a large self-made barrier preventing them from using cloud-
based digital services. To be as effective as possible, organizations must update their policies and
educate their staff to ensure that they can purchase IT under a variable-priced model.
5.1.12 Strategy management
Key message
The purpose of the strategy management practice is to formulate the goals of the organization and
adopt the courses of action and allocation of resources necessary for achieving those goals.
Strategy management establishes the organization’s direction, focuses effort, defines or clarifies the
organization’s priorities, and provides consistency or guidance in response to the environment.
The starting point for strategy management is to understand the context of the organization and define the
desired outcomes. The strategy of the organization establishes criteria and mechanisms that help to
decide how to best prioritize resources, capabilities, and investment to achieve those outcomes, while the
practice ensures that the strategy is defined, agreed, maintained, and achieved.
The objectives of strategy management are to:
analyse the environment in which the organization exists to identify opportunities that will benefit the
organization
identify constraints that might prevent the achievement of business outcomes and define how those
constraints could be removed or their effects reduced
decide and agree the organization’s perspective and direction with relevant stakeholders, including its
vision, mission, and principles
establish the perspective and position of the organization relative to its customers and competitors.
This includes defining which services and products will be delivered to which market spaces and how
to maintain competitive advantage
ensure that the strategy has been translated into tactical and operational plans for each organizational
unit that is expected to deliver on the strategy
ensure the strategy is implemented through execution of the strategic plans and coordination of efforts
at the strategic, tactical, and operational levels
manage changes to the strategies and related documents, ensuring that strategies keep pace with
changes to internal and external environments and other relevant factors.
Strategy management is often seen as the responsibility of the senior management and governing body
of an organization. It enables them to set the objectives of the organization, to specify how the
organization will meet those objectives, and to prioritize the investments that are required to meet them.

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However, in today’s complex, fast-changing environment, traditional strategy practices, based on careful
deliberation, extensive research, and scenario planning, are also evolving. Strategy is becoming more
fluid and there is an increased focus on establishing the essential purpose and principles of an
organization, which can serve as the guiding direction for all its actions, even as circumstances change.
For example, a Lean strategy process can be used to balance the extremes of rigid planning and
uncontrolled experimentation. The strategy provides the overall direction and alignment of the
organization, serving as both a screen that innovative ideas must pass and a basis for evaluating the
success of the SVS. It encourages employees to be creative, while ensuring that they are in harmony with
the organization and pursue only valuable opportunities.
Strategy must enable value creation for the organization. A good business model describes the means of
fulfilling an organization’s objectives. The strategy of the organization should include some way to make
its services and products uniquely valuable to its customers; it must therefore define the organization’s
approach for delivering better value. The need for a strategy is not limited to larger organizations; it is just
as important for smaller ones, allowing them to have a clear perspective, positioning, and plans to ensure
that they remain relevant to their customers.
Customers want solutions that break through performance barriers and achieve higher-quality outcomes
with little or no increase in cost. Such solutions are usually made available through innovative products
and services. The strategy should balance the organization’s need to deliver both efficient and effective
operations with innovation and future-focused activities.
The value of products and services from either the customer’s or the organization’s perspective may alter
over time due to changing conditions, events, or other factors outside an organization’s control. Strategy
management ensures a carefully considered approach to the organization’s relationships with customers,
as well as both agility and resilience in dealing with the variations in value that define those relationships.
A high-performance strategy is one that enables an organization to consistently outperform competing
alternatives over time, across business cycles, during industry disruptions, and when changes in
leadership occur. It should be focused on what needs to be done across the organization to facilitate
value creation.
Figure 5.12 shows the contribution of strategy management to the service value chain, with the practice
being involved in all value chain activities:
Plan Strategy management ensures that the organization’s strategy has been translated into tactical
and operational plans for each organizational unit that is expected to deliver on the strategy.
Figure 5.12 Heat map of the contribution of strategy management to value chain activities

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Improve Strategy management provides strategy and objectives to be used to prioritize and evaluate
improvements.
Engage When opportunities or demand are identified by the organization, the decisions about how to
prioritize these are based upon the organization’s strategy plus the risk assessment and resource
availability.
Design and transition, obtain/build, and deliver and support Strategy management ensures the
strategy is implemented through execution of the strategic plans in coordination with these activities. It
also provides feedback to enable the measurement and evaluation of products and services during
design and transition.
5.1.13 Supplier management
Key message
The purpose of the supplier management practice is to ensure that the organization’s suppliers
and their performances are managed appropriately to support the seamless provision of quality
products and services. This includes creating closer, more collaborative relationships with key
suppliers to uncover and realize new value and reduce the risk of failure.
Activities that are central to the practice include:
Creating a single point of visibility and control to ensure consistency This should be across all
products, services, service components, and procedures provided or operated by internal and external
suppliers, including customers acting as suppliers.
Maintaining a supplier strategy, policy, and contract management information
Negotiating and agreeing contracts and arrangements Agreements need to be aligned with
business needs and service targets. Contracts with external suppliers might need to be negotiated or
agreed through the legal, procurement, commercial, or contracts functions of the organization. For an
internal supplier there will need to be an internal agreement.
Managing relationships and contracts with internal and external suppliers This should be done
when planning, designing, building, orchestrating, transitioning, and operating products and services,
working closely with procurement and performance management.
Managing supplier performance Supplier performance should be monitored to ensure that they meet
the terms, conditions, and targets of their contracts and agreements, while aiming to increase the value
for money obtained from suppliers and the products/services they provide.
5.1.13.1 Sourcing, supplier strategy, and relationships
The supplier strategy, sometimes called the sourcing strategy, defines the organization’s plan for how it
will leverage the contribution of suppliers in the achievement of its overall service management strategy.
Some organizations may adopt a strategy that dictates the use of suppliers only in very specific and
limited circumstances, while another organization may choose to make extensive use of suppliers in
product and service provision. A successful sourcing strategy requires a thorough understanding of an
organization’s objectives, the resources required to deliver that strategy, the environmental (e.g. market)

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factors, and the risks associated with implementing specific approaches.
There are different types of supplier relationship between an organization and its suppliers that need to be
considered as part of the organization’s sourcing strategy. These include:
Insourcing The products or services are developed and/or delivered internally by the organization.
Outsourcing The process of having external suppliers provide products and services that were
previously provided internally. Outsourcing involves substitution, i.e. the replacement of internal
capability by that of the supplier.
Single source or partnership Procurement of a product or service from one supplier. This can either
be a single supplier who supplies all services directly or an external service integrator who manages
the relationships with all suppliers and integrates their services on behalf of the organization. These
close relationships (and the mutual interdependence they create) foster high quality, reliability, short
lead times, and cooperative action.
Multi-sourcing Procurement of a product or service from more than one independent supplier. These
products and services can be combined to form new services which the organization can provide to
internal and external customers. As organizations place more focus on increased specialization and
compartmentalization of capabilities to increase agility, multi-sourcing is increasingly a preferred
option. Traditionally organizations have managed these suppliers separately across different parts of
the organization, but there is a move towards developing an internal service integration capability or
selecting an external service integrator.
Individual suppliers can provide support services and products that independently have a relatively minor
and fairly indirect role in value generation, but collectively make a much more direct and important
contribution to this and the implementation of the organization’s strategy.
5.1.13.2 Evaluation and selection of suppliers
The organization should evaluate and select suppliers based on:
Importance and impact The value of the service to the business, provided by the supplier
Risk The risks associated with using the service
Costs The cost of the service and its provision.
Other important factors in evaluating and selecting suppliers include the willingness or feasibility of a
supplier to customize its offerings or work cooperatively in a multi-supplier environment; the level of
influence of the organization or service integrator on the supplier’s performance; and the degree of
dependence of one supplier on other suppliers.
5.1.13.3 Activities
Activities of the supplier management practice include:
Supplier planning The purpose of this activity is to understand new or changed service requirements
and review relevant enterprise documentation to develop a sourcing strategy and supplier
management plan, working in conjunction with other practices such as business analysis, portfolio
management, service design, and service level management.
Evaluation of suppliers and contracts The purpose of this activity is to identify, evaluate, and select
suppliers for the delivery of new or changed business services.
Supplier and contract negotiation The purpose of this activity is to develop, negotiate, review,
update, finalize, and award supplier contracts. The failure of negotiations will trigger a new contract, an
updated contract, or a contract termination.
Supplier categorization This procedure aims to categorize suppliers on a periodic basis and after the

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awarding of new or updated contracts. Commonly used categories include strategic, tactical, and
commodity suppliers.
Supplier and contract management The purpose of this activity is to ensure that the organization
obtains value for money and the delivery of the agreed performance of the supplier against the
contract and targets.
Warranty management The purpose of this activity is to manage warranty requirements or clauses
and make warranty claims when a warranty issue arises, in conjunction with performance
management.
Performance management This activity includes the setup and continuous tracking of operational
measures that have been mutually agreed with internal and external suppliers. It focuses on the key
measures, which can then be consolidated on a supplier scorecard. Monitoring will allow for the
identification of systemic problems and improvement opportunities and provide a basis for reporting.
Contract renewal or termination This procedure aims to manage contract renewals and terminations,
which are triggered by either specific or periodic reviews of supplier performance.
5.1.13.4 Service integration
Service integration is responsible for coordinating or orchestrating all the suppliers involved in the
development and delivery of products and services. It focuses on the end-to-end provision of service,
ensuring control of all interfaces and outcomes from suppliers, and facilitating collaboration between
suppliers. An organization can either perform the role of service integrator itself, or use a third-party
service integrator. It is possible to develop a hybrid model, where the organization is responsible for some
of the service integration function and augments that capability with that of an external service integrator.
The service integration function can also be operated by a lead supplier. The service integrator is also
responsible for assurance; this includes performance management and reporting, defining roles and
responsibilities, maintaining relationships across all parties, and heading regular forums and steering
committees to address issues, agree priorities, and make decisions.
Figure 5.13 Heat map of the contribution of supplier management to value chain activities
Figure 5.13 shows the contribution of supplier management to the service value chain, with the practice
being involved in all value chain activities:
Plan Supplier management provides the organization’s approved sourcing strategy and plan.
Improve The practice identifies opportunities for improvement with existing suppliers, is involved in the
selection of new suppliers, and provides ongoing supplier performance management.

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Engage Supplier management is responsible for engaging with all suppliers and for the evaluation and
selection of suppliers; for negotiating and agreeing contracts and agreements; and for ongoing
management of supplier relationships.
Design and transition Supplier management is responsible for defining requirements for contracts
and agreements related to new or changed products or services, in alignment with the organization’s
needs and service targets.
Obtain/build Supplier management supports the procurement or obtaining of products, services, and
service components from third parties.
Deliver and support Supplier performance for live services is managed by this practice to ensure that
suppliers meet the terms, conditions, and targets of their contracts and agreements.
The ITIL story: Axle’s supplier management
Marco: I’ve been assigned to the supplier management role at Axle. This means I’ll be managing
the monthly governance forums with our suppliers to track their service performance as outlined in
their service level agreements. I’ll make sure the contractual obligations of our suppliers are in
line with Axle Car Hire business outcomes.
Radhika: For example, we promise our customers that the cars will always be clean. We used to
have our cars cleaned weekly, but to meet the new service promise, Craig’s Cleaning will clean the
cars each time they’re returned to the lot.
Henri: Axle’s services depend on multiple partners and suppliers. We work with car dealers and
manufacturers, tyre manufacturers, cleaners, and roadside assistance providers. We also have
Axle agents who promote our offerings, and partners in a loyalty programme who provide their
services to our clients on special terms.
Radhika: We use many partners’ and suppliers’ services for our IT systems as well. This supports
Axle’s work on many levels, from internet access to software development.
Marco: Greater digitalization at Axle means more opportunity to build IT into our service offerings.
The Axle app makes it possible to book and pay for car hire via personal devices. The Axle Aware
system is installed in every car and is supported by IT and our partners. Fleet maintenance is
planned based on the hire history of our vehicles, and controlled by our IT systems.
Henri: Because of this, Axle’s business is now heavily dependent on IT and non-IT suppliers.
Integrating and coordinating these services is part of supplier management. We expect our
suppliers to provide a consistent level of quality for Axle and our customers.
5.1.14 Workforce and talent management
Key message
The purpose of the workforce and talent management practice is to ensure that the organization
has the right people with the appropriate skills and knowledge and in the correct roles to support its
business objectives. The practice covers a broad set of activities focused on successfully engaging
with the organization’s employees and people resources, including planning, recruitment,
onboarding, learning and development, performance measurement, and succession planning.
Workforce and talent management plays a critical role in establishing organizational velocity by helping
organizations to proactively understand and forecast future demand for services. It also ensures that the

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right people with the necessary competencies are available at the right time to deliver the services
required.
Achieving this objective reduces backlogs, improves quality, avoids rework caused by defects, and
reduces wait time while also closing knowledge and skills gaps. As organizations transform their practices
and automation and organizational capabilities to support the digital economy and improve speed to
market, having the right talent becomes critical.
Workforce and talent management enables organizations, leaders, and managers to focus on creating an
effective and actionable people strategy, and to execute that strategy at various levels within the
organization. A good strategy should support the identification of roles and associated knowledge, as well
as the skills and attitudes needed to keep an organization running day to day. It should also address the
emerging technologies and leadership and organizational change capabilities required to position the
organization for future growth.
The idea of managing and developing an organization’s workforce and talent is not new. However, with
the increased use of third-party suppliers and the rapid adoption of automation for repeatable work,
traditional roles are changing dramatically. Because of this, workforce and talent management should be
the responsibility of leaders and managers at every level throughout the organization.
Definitions
Organizational velocity The speed, effectiveness, and efficiency with which an organization
operates. Organizational velocity influences time to market, quality, safety, costs, and risks.
Competencies The combination of observable and measurable knowledge, skills, abilities, and
attitudes that contribute to enhanced employee performance and ultimately result in
organizational success.
Skills A developed proficiency or dexterity in thought, verbal communication, or physical action.
Ability The power or aptitude to perform physical or mental activities related to a profession or
trade.
Knowledge The understanding of facts or information acquired by a person through experience
or education; the theoretical or practical understanding of a subject.
Attitude A set of emotions, beliefs, and behaviours towards a particular object, person, thing, or
event.
5.1.14.1 Workforce and talent management activities
The activities of this practice cover a broad range of areas and are performed by a variety of roles for
specific purposes, including:
Workforce planning Translating the organization’s strategy and objectives into desired organizational
capabilities, and then into competencies and roles.
Recruitment The acquisition of new employees and contractors to fill identified gaps related to desired
capabilities.
Performance measurement The delivery of regular performance measurement and assessments
against established job roles based on pre-defined competencies.
Personal development An employee’s use of published job roles and competency frameworks to

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proactively plan personal growth and advancement.
Learning and development Targeted education and experiential learning opportunities using various
formal and non-formal methods.
Mentoring and succession planning Formal mentoring, engagement, and succession planning
activities provided by leadership.
Figure 5.14 presents the activities of workforce and talent management.
Figure 5.14 Workforce and talent management activities
Figure 5.15 shows the contribution of workforce and talent management to the service value chain, with
the practice being involved in all value chain activities; however, it is a primary focus of plan and improve
activities:
Plan Workforce planning is a specific output of this value chain activity, as leadership and
management evaluate their current organizational capabilities in relation to future requirements for the
organization’s resources, as well as the products and services defined within the service portfolio.
Improve All improvements require sufficiently skilled and motivated people. The workforce and talent
management practice ensures understanding and fulfilment of these requirements.
Engage Workforce and talent management is closely linked to this value chain activity. It works with
practices such as relationship management, service request management, and service desk to
understand and forecast changing service demand requirements, and how this will impact and direct
workforce planning and talent management activities.
Design and transition Talent management is important to this value chain activity. Specific focus is
given to knowledge, skills, and abilities related to systems and design thinking.
Obtain/build Talent management focuses specifically on knowledge, skills, and abilities related to
collaboration, customer focus, quality, speed, and cost management.
Deliver and support Specific focus by talent management is given to knowledge, skills, and abilities
related to customer service, performance management, and customer interactions and relationships.

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Figure 5.15 Heat map of the contribution of workforce and talent management to value chain activities
5.2 Service management practices
5.2.1 Availability management
Key message
The purpose of the availability management practice is to ensure that services deliver agreed
levels of availability to meet the needs of customers and users.
Definition: Availability
The ability of an IT service or other configuration item to perform its agreed function when required.
Availability management activities include:
negotiating and agreeing achievable targets for availability
designing infrastructure and applications that can deliver required availability levels
ensuring that services and components are able to collect the data required to measure availability
monitoring, analysing, and reporting on availability
planning improvements to availability.

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In the simplest terms, the availability of a service depends on how frequently the service fails, and how
quickly it recovers after a failure. These are often expressed as mean time between failures (MTBF)
and mean time to restore service (MTRS):
MTBF measures how frequently the service fails. For example, a service with a MTBF of four weeks
fails, on average, 13 times each year.
MTRS measures how quickly service is restored after a failure. For example, a service with a MTRS of
four hours will, on average, fully recover from failure in four hours. This does not mean that service will
always be restored in four hours, as MTRS is an average over many incidents.
Older services were often designed with very high MTBF, so that they would fail infrequently. More
recently there has been a shift towards optimizing service design to minimize MTRS, so that services can
be recovered very quickly. The most effective way to do this is to design anti-fragile solutions, which
recover automatically and very quickly, with virtually no business impact. For some services, even a very
short failure can be catastrophic, and for these it is more important to focus on increasing MTBF.
The way that availability is defined must be appropriate for each service. It is important to understand
users’ and customers’ views on availability and to define appropriate metrics, reports, and dashboards.
Many organizations calculate percentage availability based on MTBF and MTRS, but these percentage
figures rarely match customers’ experience, and are not appropriate for most services. Other things that
should be considered include:
which vital business functions are affected by different application failures
at what point is slow performance so bad that the service is effectively unusable
when does the service need to be available, and when can the service provider carry out maintenance
activities.
Measurements that work well for some services include:
User outage minutes Calculated by multiplying incident duration by the number of users impacted, or
by adding up the number of minutes each user is affected. This works well for services that directly
support user productivity; for example, an email service.
Number of lost transactions Calculated by subtracting the number of transactions from the number
expected to have happened during the time period. This works well for services that support
transaction-based business processes, such as manufacturing support.
Lost business value Calculated by measuring how business productivity was impacted by the failures
of supporting services. This is easily understood by customers and can be useful for planning
investment in improved availability. However, it can be difficult to identify which lost business value
was caused by IT service failures and which had other causes.
User satisfaction Service availability is one of the most important and visible characteristics of
services, and has a great influence on user satisfaction. It is important to make sure that users are
satisfied with service availability in addition to meeting formally agreed availability targets.

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Figure 5.16 Heat map of the contribution of availability management to value chain activities
Most organizations do not have dedicated availability management staff. The activities needed are often
distributed around the organization. Some organizations include availability management activities as part
of risk management, while others combine it with service continuity management or with capacity and
performance management. Some organizations have site reliability engineers (SREs) who manage and
improve the availability of specific products or services.
A process is needed for the regular testing of failover and recovery mechanisms. Many organizations also
have a process for calculating and reporting availability metrics; however, availability management is
driven as much by culture, experience, and knowledge as by following procedures.
Figure 5.16 shows the contribution of availability management to the service value chain, with the practice
being involved in all value chain activities:
Plan Availability management must be considered in service portfolio decisions and when setting goals
and direction for services and practices.
Improve When planning and making improvements, availability management ensures that services
are not degraded.
Engage Availability requirements for new and changed services must be understood and captured.
Design and transition New and changed services must be designed to meet availability targets and
testing of availability controls is needed during transition.
Obtain/build Availability is a consideration when building components or obtaining them from third
parties.
Deliver and support This activity includes measurement of availability and reacting to events which
might affect the ability to meet availability targets.
5.2.2 Business analysis
Key message

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The purpose of the business analysis practice is to analyse a business or some element of it,
define its associated needs, and recommend solutions to address these needs and/or solve a
business problem, which must facilitate value creation for stakeholders. Business analysis enables
an organization to communicate its needs in a meaningful way, express the rationale for change,
and design and describe solutions that enable value creation in alignment with the organization’s
objectives.
Analysis and solutions should be approached in a holistic way that includes consideration of processes,
organizational change, technology, information, policies, and strategic planning. The work of business
analysis is performed primarily by business analysts (BAs), although others may contribute.
In IT, business analysis practices are frequently applied in software development projects, but they are
also appropriate to higher-level architectures, services, and the organization’s service value system (SVS)
in general. To restrict the application of business analysis to software development alone is to run the risk
of developing incomplete solutions.
The key activities associated with business analysis are:
analysing business systems, business processes, services, or architectures in the changing internal
and external context
identifying and prioritizing parts of the SVS, and products and services that require improvement, as
well as opportunities for innovation
evaluating and proposing actions that can be taken to create the desired improvement. Actions may
include not only IT system changes, but also process changes, alterations to organizational structure,
and staff development
documenting the business requirements for the supporting services to enable the desired
improvements
recommending solutions following analysis of the gathered requirements and validating these with
stakeholders.
Business requirements can be utility-focused or warranty-focused.
Definitions
Warranty requirements Typically non-functional requirements captured as inputs from key
stakeholders and other practices. Organizations should aim to manage a library of pre-defined
warranty acceptance criteria for use in practices such as project management and software
development and management.
Utility requirements Functional requirements which have been defined by the customer and are
unique to a specific product.
Business analysis should ensure the most efficient and comprehensive achievement of these activities,
but not make the error of analysis without intent of subsequent action. An organization should not attempt
to analyse an issue so deeply or for so long that a timely solution cannot be achieved, or try to solve
every problem with a single, massive initiative that fails to facilitate value creation in enough time to be of
practical use. The processes associated with this practice should guard against these mistakes.

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The scope of work for the business analysis practice includes using and evaluating information from
operations and support to build knowledge of how the services and practices are performing in the live
environment. This knowledge will not only help to identify areas for improvement in the current service
design, but also reveal lessons learned that will improve future designs.
The role of business analysis may be defined differently from organization to organization, but it is a
recognized discipline with a specific set of skills. Business analysis requires not only critical thinking and
evaluation, but also listening, communication, and facilitation skills, the ability to analyse and document
business processes and use cases, and perform data analysis and modelling.
When the system or service being analysed crosses many organizational boundaries, it is important that
the various business units involved adopt a partner relationship to ensure a holistic analysis and
comprehensive solution proposal. If compromises are needed from one or more of these units, a
collaborative, partner-like relationship will facilitate a solution that will provide value for all the parties.
Without the right information, business analysis cannot be successful, and to be effective, it needs access
to all information related to the area under analysis. For business processes, for example, business
analysts will need access to all process documentation, including process flows, procedures and work
instructions, policies, and process metrics. They may need to interview not only the person responsible
for the business process, but also those who participate in each part of the process to compile a clear
view of the process and the related issues.
The technologies deployed usually include whatever system the organization uses to gather and
document requirements, as well as project management systems and reporting tools for gathering and
processing data and information for analysis. Other technologies that can be of assistance when
presenting the results of analysis are visual modelling and mapping tools and features of many of the
typical office productivity suites such as spreadsheets, presentation software, and word processing.
As with all practices, business analysis cannot ensure successful solutions in isolation. For example,
strategy management practices provide high-level guidance to business analysis, which then directs
analysis and solution recommendations. In turn, the recommendations from business analysis can
influence technical and other strategies. To ensure the participation of the right parties, business analysis
relies on relationship management. Furthermore, the natural progression through the service value chain
requires interaction between business analysis activities and those from service design, software
development and management, measurement and reporting, and many others.
Figure 5.17 shows the contribution of business analysis to the service value chain, with the practice being
involved in all value chain activities:
Plan Business analysis contributes to strategic decision-making on what will be done and how.
Improve All levels of evaluation and improvement benefit from business analysis, which is particularly
applicable at strategic and tactical levels.
Engage Business analysis is key to the gathering of requirements during this value chain activity.
Design and transition Gathering, prioritization, and analysis of accurate requirements can help
ensure that a high-quality solution is designed and progressed to operation.
Obtain/build Business analysis skills are integral to the definition of an agreed solution.
Deliver and support Data from the ongoing delivery of a service can be part of business analysis
activities when designing changes to the service, as well as when looking for opportunities for
continual improvement.

Figure 5.17 Heat map of the contribution of business analysis to value chain activities
5.2.3 Capacity and performance management
Key message
The purpose of the capacity and performance management practice is to ensure that services
achieve agreed and expected performance, satisfying current and future demand in a cost-effective
way.
Definition: Performance
A measure of what is achieved or delivered by a system, person, team, practice, or service.
Service performance is usually associated with the number of service actions performed in a timeframe
and the time required to fulfil a service action at a given level of demand. Service performance depends
on service capacity, which is defined as the maximum throughput that a CI or service can deliver. Specific
metrics for capacity and performance depend on the technology and business nature of the service or CI.
The capacity and performance management practice usually deals with service performance and the
performance of the supporting resources on which it depends, such as infrastructure, applications, and
third-party services. In many organizations, the capacity and performance management practice also
covers the capacity and performance of the personnel.
The capacity and performance management practice includes the following activities:

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service performance and capacity analysis:
research and monitoring of the current service performance
capacity and performance modelling
service performance and capacity planning:
capacity requirements analysis
demand forecasting and resource planning
performance improvement planning.
Service performance is an important aspect of the expectations and requirements of customers and
users, and therefore significantly contributes to their satisfaction with the services they use and the value
they perceive. Capacity and performance analysis and planning contributes to service planning and
building, as well as to ongoing service delivery, evaluation, and improvement. An understanding of
capacity and performance models and patterns helps to forecast demand and to deal with incidents and
defects.
Figure 5.18 shows the contribution of capacity and performance management to the service value chain,
with the practice being involved in all service value chain activities:
Plan Capacity and performance management supports tactical and operational planning with
information about actual demand and performance, and with modelling and forecasting tools and
methods.
Improve Improvements are identified and driven by performance information provided by this practice.
Engage Customers’ and users’ expectations are managed and supported by information about
performance and capacity constraints and capabilities.
Design and transition Capacity and performance management is essential for product and service
design: it helps to ensure that new and changed services are designed for optimum performance,
capacity, and scalability.
Obtain/build Capacity and performance management helps to ensure that components and services
being obtained or built meet performance needs of the organization.
Deliver and support Services and service components are supported and tested by performance and
capacity targets, metrics and measurement, and reporting targets and tools.
Figure 5.18 Heat map of the contribution of capacity and performance management to value chain
activities

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5.2.4 Change enablement
Key message
The purpose of the change enablement practice is to maximize the number of successful service
and product changes by ensuring that risks have been properly assessed, authorizing changes to
proceed, and managing the change schedule.
Definition: Change
The addition, modification, or removal of anything that could have a direct or indirect effect on
services.
The scope of change enablement is defined by each organization. It will typically include all IT
infrastructure, applications, documentation, processes, supplier relationships, and anything else that
might directly or indirectly impact a product or service.
It is important to distinguish change enablement from organizational change management. Organizational
change management manages the people aspects of changes to ensure that improvements and
organizational transformation initiatives are implemented successfully. Change enablement is usually
focused on changes in products and services.
Change enablement must balance the need to make beneficial changes that will deliver additional value
with the need to protect customers and users from the adverse effect of changes. All changes should be
assessed by people who are able to understand the risks and the expected benefits; the changes must
then be authorized before they are deployed. This assessment, however, should not introduce
unnecessary delay.
The person or group who authorizes a change is known as a change authority. It is essential that the
correct change authority is assigned to each type of change to ensure that change enablement is both
efficient and effective. In high-velocity organizations, it is a common practice to decentralize change
approval, making the peer review a top predictor of high performance.
There are three types of change that are each managed in different ways:
Standard changes These are low-risk, pre-authorized changes that are well understood and fully
documented, and can be implemented without needing additional authorization. They are often
initiated as service requests, but may also be operational changes. When the procedure for a
standard change is created or modified, there should be a full risk assessment and authorization as
for any other change. This risk assessment does not need to be repeated each time the standard
change is implemented; it only needs to be done if there is a modification to the way it is carried out.
Normal changes These are changes that need to be scheduled, assessed, and authorized following a
process. Change models based on the type of change determine the roles for assessment and

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authorization. Some normal changes are low risk, and the change authority for these is usually
someone who can make rapid decisions, often using automation to speed up the change. Other
normal changes are very major and the change authority could be as high as the management board
(or equivalent). Initiation of a normal change is triggered by the creation of a change request. This may
be created manually, but organizations that have an automated pipeline for continuous integration
and continuous deployment often automate most steps of the change enablement process.
Emergency changes These are changes that must be implemented as soon as possible; for example,
to resolve an incident or implement a security patch. Emergency changes are not typically included in
a change schedule, and the process for assessment and authorization is expedited to ensure they can
be implemented quickly. As far as possible, emergency changes should be subject to the same testing,
assessment, and authorization as normal changes, but it may be acceptable to defer some
documentation until after the change has been implemented, and sometimes it will be necessary to
implement the change with less testing due to time constraints. There may also be a separate change
authority for emergency changes, typically including a small number of senior managers who
understand the business risks involved.
The change schedule is used to help plan changes, assist in communication, avoid conflicts, and assign
resources. It can also be used after changes have been deployed to provide information needed for
incident management, problem management, and improvement planning. Regardless of who the change
authority is, they may need to communicate widely across the organization. Risk assessment, for
instance, may require them to gather input from many people with specialist knowledge. Additionally,
there is usually a need to communicate information about the change to ensure people are fully prepared
before the change is deployed.
Figure 5.19 shows the contribution of change enablement to the service value chain, with the practice
being involved in all value chain activities:
Plan Changes to product and service portfolios, policies, and practices all require a certain level of
control, and the change enablement practice is used to provide it.
Improve Many improvements will require changes to be made, and these should be assessed and
authorized in the same way as all other changes.
Engage Customers and users may need to be consulted or informed about changes, depending on
the nature of the change.
Design and transition Many changes are initiated as a result of new or changed services. Change
enablement activity is a major contributor to transition.
Obtain/build Changes to components are subject to change enablement, whether they are built in
house or obtained from suppliers.
Deliver and support Changes may have an impact on delivery and support, and information about
changes must be communicated to personnel who carry out this value chain activity. These people
may also play a part in assessing and authorizing changes.

Figure 5.19 Heat map of the contribution of change enablement to value chain activities
The ITIL story: Change enablement
Henri: The car hire market is developing faster than ever. To make sure that Axle meets customer
demands and capitalizes on opportunities, we need to have speed-to-market and to experiment
with new ideas. Our new service offerings will see a lot of change at Axle. Some teams will need to
double, while others may reduce. We need to bring everyone at Axle on board.
Radhika: The change enablement practice at Axle makes sure that our services achieve the right
balance of flexibility and reliability.
Marco: Some of our processes are highly automated and designed for the fast deployment of
changes. These are perfect for changes to our booking app and some of our IT systems.
Su: In other cases, such as when we update our vehicles, we use a mix of manual and automated
testing. For example, the Axle Aware road monitoring and safety system requires consultation and
approval before we can update it.
Marco: Systems such as Axle Aware can’t be altered like the booking app. The priority for those
changes is that we act safely and comply with appropriate regulations. That’s more important than
time to market.
5.2.5 Incident management
Key message
The purpose of the incident management practice is to minimize the negative impact of incidents by
restoring normal service operation as quickly as possible.

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Definition: Incident
An unplanned interruption to a service or reduction in the quality of a service.
Incident management can have an enormous impact on customer and user satisfaction, and on how
customers and users perceive the service provider. Every incident should be logged and managed to
ensure that it is resolved in a time that meets the expectations of the customer and user. Target resolution
times are agreed, documented, and communicated to ensure that expectations are realistic. Incidents are
prioritized based on an agreed classification to ensure that incidents with the highest business impact are
resolved first.
Organizations should design their incident management practice to provide appropriate management and
resource allocation to different types of incident. Incidents with a low impact must be managed efficiently
to ensure that they do not consume too many resources. Incidents with a larger impact may require more
resources and more complex management. There are usually separate processes for managing major
incidents, and for managing information security incidents.
Information about incidents should be stored in incident records in a suitable tool. Ideally, this tool should
also provide links to related CIs, changes, problems, known errors, and other knowledge to enable quick
and efficient diagnosis and recovery. Modern IT service management tools can provide automated
matching of incidents to other incidents, problems, or known errors, and can even provide intelligent
analysis of incident data to generate recommendations for helping with future incidents.
It is important that people working on an incident provide good-quality updates in a timely fashion. These
updates should include information about symptoms, business impact, CIs affected, actions completed,
and actions planned. Each of these should have a timestamp and information about the people involved,
so that the people involved or interested can be kept informed. There may also be a need for good
collaboration tools so that people working on an incident can collaborate effectively.
Incidents may be diagnosed and resolved by people in many different groups, depending on the
complexity of the issue or the incident type. All of these groups need to understand the incident
management process, and how their contribution to this helps to manage the value, outcomes, costs, and
risks of the services provided:
Some incidents will be resolved by the users themselves, using self-help. Use of specific self-help
records should be captured for use in measurement and improvement activities.
Some incidents will be resolved by the service desk.
More complex incidents will usually be escalated to a support team for resolution. Typically, the
routing is based on the incident category, which should help to identify the correct team.
Incidents can be escalated to suppliers or partners, who offer support for their products and services.
The most complex incidents, and all major incidents, often require a temporary team to work together
to identify the resolution. This team may include representatives of many stakeholders, including the
service provider, suppliers, users, etc.
In some extreme cases, disaster recovery plans may be invoked to resolve an incident. Disaster
recovery is described in the service continuity management practice (section 5.2.12).
Effective incident management often requires a high level of collaboration within and between teams.
These teams may include the service desk, technical support, application support, and vendors.

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Collaboration can facilitate information-sharing and learning, as well as helping to solve the incident more
efficiently and effectively.
Tip
Some organizations use a technique called swarming to help manage incidents. This involves many
different stakeholders working together initially, until it becomes clear which of them is best placed to
continue and which can move on to other tasks.
Third-party products and services that are used as components of a service require support agreements
which align the obligations of the supplier with the commitments made by the service provider to
customers. Incident management may require frequent interaction with these suppliers, and routine
management of this aspect of supplier contracts is often part of the incident management practice. A
supplier can also act as a service desk, logging and managing all incidents and escalating them to subject
matter experts or other parties as required.
There should be a formal process for logging and managing incidents. This process does not usually
include detailed procedures for how to diagnose, investigate, and resolve incidents, but can provide
techniques for making investigation and diagnosis more efficient. There may be scripts for collecting
information from users during initial contact, and this may lead directly to diagnosis and resolution of
simple incidents. Investigation of more complicated incidents often requires knowledge and expertise,
rather than procedural steps.
Dealing with incidents is possible in every value chain activity, though the most visible (due to effect on
users) are incidents in an operational environment.
Figure 5.20 shows the contribution of incident management to the service value chain, with the practice
being applied mainly to the engage, and deliver and support value chain activities. Except for plan, other
activities may use information about incidents to help set priorities:
Plan Incident records are a key input to planning activities at a tactical and operational level.
Improve Incident records are a key input to improvement activities, and are prioritized both in terms of
incident frequency and severity.
Engage Incidents are visible to users, and significant incidents are also visible to customers. Good
incident management requires regular communication to understand the issues, set expectations,
provide status updates, and agree that the issue has been resolved so the incident can be closed.
Design and transition Incidents may occur in test environments, as well as during service release
and deployment. The practice ensures these incidents are resolved in a timely and controlled manner.
Obtain/build Incidents may occur in development environments. Incident management practice
ensures these incidents are resolved in a timely and controlled manner.
Deliver and support Incident management makes a significant contribution to support. This value
chain activity includes resolving incidents and problems.

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Figure 5.20 Heat map of the contribution of incident management to value chain activities
The ITIL story: Axle’s incident management
Radhika: Axle faces many potential IT and non-IT incidents. Cars can break down, road accidents
might occur, or our customers might face challenges with unfamiliar road rules.
Marco: A car booking can be affected by an error in our app, or by a user getting lost due to a
navigation error with our software. When incidents occur, we have to be ready to restore normal
services as soon as possible. We also have to make sure our team knows how and when to switch
from pre-defined recovery procedures to swarming and collective analysis.
Radhika: We also make sure that such cases are followed by investigation and improvements.
Henri: Axle has developed clear processes for all types of incidents, with workarounds available for
cases that happen frequently, such as a tyre puncture or loss of internet connectivity.
Radhika: Our teams work together with our suppliers and partners to ensure fast and effective
incident response. We develop and test recovery procedures together with the partners involved in
any incidents we experience.
5.2.6 IT asset management
Key message
The purpose of the IT asset management practice is to plan and manage the full lifecycle of all IT
assets, to help the organization:
maximize value
control costs
manage risks
support decision-making about purchase, re-use, retirement, and disposal of assets

• meet regulatory and contractual requirements.
Definition: IT asset
Any financially valuable component that can contribute to the delivery of an IT product or service.
The scope of IT asset management typically includes all software, hardware, networking, cloud services,
and client devices. In some cases, it may also include non-IT assets such as buildings or information
where these have a financial value and are required to deliver an IT service. IT asset management can
include operational technology (OT), including devices that are part of the Internet of Things. These are
typically devices that were not traditionally thought of as IT assets, but that now include embedded
computing capability and network connectivity.
Types of asset management
Asset management is a well-established practice that includes the acquisition, operation, care, and
disposal of organizational assets, particularly critical infrastructure.
IT asset management (ITAM) is a sub-practice of asset management that is specifically aimed at
managing the lifecycles and total costs of IT equipment and infrastructure.
Software asset management (SAM) is the infrastructure and process necessary for the effective
management, control, and protection of the software assets within an organization, throughout all
stages of their lifecycles.
Understanding the cost and value of assets is essential to also comprehending the cost and value of
products and services, and is therefore an important underpinning factor in everything the service
provider does. IT asset management contributes to the visibility of assets and their value, which is a key
element to successful service management as well as being useful to other practices.
IT asset management requires accurate inventory information, which it keeps in an asset register. This
information can be gathered in an audit, but it is much better to capture it as part of the processes that
change the status of assets, for example, when new hardware is delivered, or when a new instance of a
cloud service is requested. If IT asset management has good interfaces with other practices, including
service configuration management, incident management, change enablement, and deployment
management, then the asset status information can be maintained with less effort. Audits are still needed,
but these can be less frequent, and may be easier to do when there is already an accurate asset register.
IT asset management helps to optimize the use of valuable resources. For example, the number of spare
computers an organization requires can be calculated based on service level agreement commitments,
the measured performance of service requests, and demand predictions from capacity and performance
management.
Some organizations discover a need for IT asset management after a software vendor requests an audit
of licence use. This can be very stressful if the required information has not been maintained, and can
lead to significant costs, both in carrying out the audit and then paying any additional licence costs that
are identified. It is much cheaper and easier to simply maintain information about software licence use as

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part of normal IT asset management activity, and to provide this in response to any vendor requests.
Software runs on hardware, so the management of software and hardware assets should be combined to
ensure that all licences are properly managed. For the same reason, the management of cloud-based
assets should also be included.
The cost of cloud services can easily get out of control if the organization does not manage these in the
same way as other IT assets. Each individual use of a cloud service may be relatively cheap, but by
spending in small amounts it is easy to consume much more resource than was planned, leaving the
organization with a correspondingly large bill. Again, good IT asset management can help to control this.
The activities and requirements of IT asset management will vary for different types of asset:
Hardware assets must be labelled for clear identification. It is important to know where they are and to
help protect them from theft, damage, and data leakage. They may need special handling when they
are re-used or decommissioned; for example, erasure or shredding of disk drives depends on
information security requirements. Hardware assets may also be subject to regulatory requirements,
such as the EU Waste Electrical and Electronic Equipment Directive.
Software assets must be protected from unlawful copying, which could result in unlicensed use. The
organization must ensure that licence terms are adhered to and that licences are only re-used in ways
that are allowed under the contract. It is important to retain verified proof of purchase and entitlement
to run the software. It is very easy to lose software licences when equipment is decommissioned, so it
is important that the IT asset management process recovers these licences and makes them available
for re-use where appropriate.
Cloud-based assets must be assigned to specific products or groups so that costs can be managed.
Funding must be managed so that the organization has the flexibility to invoke new instances of cloud
use when needed, and to remove instances that are not needed, without the risk of uncontrolled costs.
Contractual arrangements must be understood and adhered to, in the same way as for software
licences.
Client assets must be assigned to individuals who take responsibility for their care. Processes are
needed to manage lost or stolen devices, and tools may be needed to erase sensitive data from them
or otherwise ensure that this data is not lost or stolen with the device.
In all cases, the organization needs to ensure that the full lifecycle of each asset is managed. This
includes managing asset provisioning; receiving, decommissioning, and return; hardware disposal;
software re-use; leasing management; and potentially many other activities.
IT asset management maintains information about the assets, their costs, and related contracts.
Therefore, the IT asset register is often combined (or federated) with the information stored in a
configuration management system (CMS). If the two are separate then it is important that assets can
be mapped between them, usually by use of a standard naming convention. It may also be necessary to
combine (or federate) the IT asset register with systems used to manage other financial assets, or with
systems used to manage suppliers.
In some organizations there is a centralized team responsible for IT asset management. This team may
also be responsible for configuration management. In other organizations, each technical team may be
responsible for management of the IT assets they support; for example, the storage team could manage
storage assets while the networking team manages network assets. Each organization must consider its
own context and culture to choose the appropriate level of centralization. However, having some central
roles helps to ensure asset data quality and the development of expertise on specific aspects such as
software licensing and inventory systems.
IT asset management typically includes the following activities:
Define, populate, and maintain the asset register in terms of structure and content, and the storage
facilities for assets and related media

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Control the asset lifecycle in collaboration with other practices (for example, upgrading obsolete
software or onboarding new staff members with a laptop and mobile phone) and record all changes to
assets (status, location, characteristics, assignment, etc.)
Provide current and historical data, reports, and support to other practices about IT assets
Audit assets, related media, and conformity (particularly with regulations, and licence terms and
conditions) and drive corrective and preventive improvements to deal with detected issues.
Figure 5.21 shows the contribution of IT asset management to the service value chain, with the practice
being applied mainly to the design and transition, and obtain/build value chain activities:
Plan Most policies and guidance for IT asset management comes from the service financial
management practice. Some asset management policies are driven by governance and some are
driven by other practices, such as information security management. IT asset management can be
considered a strategic practice that helps the organization to understand and manage cost and value.
Improve This value chain activity must consider the impact on IT assets, and some improvements will
directly involve IT asset management in helping to understand and manage costs.
Engage There may be some demand for IT asset management from stakeholders. For example, a
user may report a lost or stolen mobile phone, or a customer may require reports on the value of IT
assets.
Design and transition This value chain activity changes the status of IT assets, and so drives most IT
asset management activity.
Obtain/build IT asset management supports asset procurement to ensure that assets are traceable
from the beginning of their lifecycle.
Deliver and support IT asset management helps to locate IT assets, trace their movements, and
control their status in the organization.
Figure 5.21 Heat map of the contribution of IT asset management to value chain activities
5.2.7 Monitoring and event management

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Key message
The purpose of the monitoring and event management practice is to systematically observe
services and service components, and record and report selected changes of state identified as
events. This practice identifies and prioritizes infrastructure, services, business processes, and
information security events; it also establishes the appropriate response to those events, and
conditions that indicate potential faults or incidents.
Definition: Event
Any change of state that has significance for the management of a service or other configuration
item (CI). Events are typically recognized through notifications created by an IT service, CI, or
monitoring tool.
The monitoring and event management practice manages events throughout their lifecycle to prevent,
minimize, or eliminate their negative impact on the business.
The monitoring part of the practice focuses on the systematic observation of services and the CIs that
underpin services to detect conditions of potential significance. Monitoring should be performed in a
highly automated manner, and can be done actively or passively. The event management part focuses on
recording and managing those monitored changes of state that are defined by the organization as an
event, determining their significance, and identifying and initiating the correct control action to manage
them. Frequently the correct control action will be to initiate another practice, but sometimes it will be to
take no action other than to continue monitoring the situation. Monitoring is necessary for event
management to take place, but not all monitoring results in the detection of an event.
Not all events have the same significance or require the same response. Events are often classified as
informational, warning, and exceptions. Informational events do not require action at the time they are
identified, but analysing the data gathered from them at a later date may uncover desirable, proactive
steps that can be beneficial to the service. Warning events allow action to be taken before any negative
impact is actually experienced by the business, whereas exception events indicate that a breach to an
established norm has been identified (for example, to a service level agreement). Exception events
require action, even though business impact may not yet have been experienced.
The processes and procedures needed in the monitoring and event management practice must address
these key activities and more:
identifying what services, systems, CIs, or other service components should be monitored, and
establishing the monitoring strategy
implementing and maintaining monitoring, leveraging both the native monitoring features of the
elements being observed as well as the use of designed-for-purpose monitoring tools
establishing and maintaining thresholds and other criteria for determining which changes of state will
be treated as events, and choosing criteria to define each type of event (informational, warning, or
exception)
establishing and maintaining policies for how each type of detected event should be handled to ensure
proper management
implementing processes and automations required to operationalize the defined thresholds, criteria,

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and policies.
This practice is highly interactive with other practices participating in the service value chain. For
example, some events will indicate a current issue that qualifies as an incident. In this case, the correct
control action will be to initiate activity in the incident management practice. Repeated events showing
performance outside of desired levels may be evidence of a potential problem, which would initiate
activity in the problem management practice. For some events, the correct response is to initiate a
change, engaging the change enablement practice.
Although the work of this practice, once put in place, is highly automated, human intervention is still
required, and is in fact essential. For the definition of monitoring strategies and specific thresholds and
assessment criteria, it can help to bring in a broad range of perspectives, including infrastructure,
applications, service owners, service level management, and representation from the warranty-related
practices. Remember that the starting point for this practice is likely to be simple, setting the stage for a
later increase in complexity, so it is important that the expectations of participants are managed.
Organizations and people are also critical to providing an appropriate response to monitored data and
events, in alignment with policies and organizational priorities. Roles and responsibilities must be clearly
defined, and each person or group must have easy, timely access to the information needed to perform
their role.
Automation is key to successful monitoring and event management. Some service components come
equipped with built-in monitoring and reporting capabilities that can be configured to meet the needs of
the practice, but sometimes it is necessary to implement and configure purpose-built monitoring tools.
The monitoring itself can be either active or passive. In active monitoring, tools will poll key CIs, looking at
their status to generate alerts when an exception condition is identified. In passive monitoring, the CI itself
generates the operational alerts.
Automated tools should also be used for the correlation of events. These features may be provided by
monitoring tools or other tools such as ITSM workflow systems. There can be a huge volume of data
generated by this practice, but without clear policies and strategies on how to limit, filter, and use this
data, it will be of no value.
If third parties are providing products or services in the overall service architecture, they should also
supply expertise in the monitoring and reporting capabilities of their offerings. Leveraging this expertise
can save time when trying to operationalize monitoring and event management strategies and workflows.
If some IT functions, such as infrastructure management, are partially or wholly outsourced to a supplier,
they may be reluctant to expose monitoring or event data related to the elements they manage. Don’t ask
for data that is not truly needed, but if data is required, make sure that the provision of that data is
explicitly part of the contract for the supplier’s services.
Figure 5.22 shows the contribution of monitoring and event management to the service value chain, with
the practice being involved in all value chain activities except plan:
Improve The monitoring and event management practice is essential to the close observation of the
environment to evaluate and proactively improve its health and stability.
Engage Monitoring and event management may be the source of internal engagement for action.
Design and transition Monitoring data informs design decisions. Monitoring is an essential
component of transition: it provides information about the transition success in all environments.
Obtain/build Monitoring and event management supports development environments, ensuring their
transparency and manageability.
Deliver and support The practice guides how the organization manages internal support of identified
events, initiating other practices as appropriate.

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Figure 5.22 Heat map of the contribution of monitoring and event management to value chain activities
5.2.8 Problem management
Key message
The purpose of the problem management practice is to reduce the likelihood and impact of incidents
by identifying actual and potential causes of incidents, and managing workarounds and known
errors.
Definitions
Problem A cause, or potential cause, of one or more incidents.
Known error A problem that has been analysed but has not been resolved.
Figure 5.23 The phases of problem management
Every service has errors, flaws, or vulnerabilities that may cause incidents. They may include errors in
any of the four dimensions of service management. Many errors are identified and resolved before a
service goes live. However, some remain unidentified or unresolved, and may be a risk to live services. In
ITIL, these errors are called problems and they are addressed by the problem management practice.

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Problems are related to incidents, but should be distinguished as they are managed in different ways:
Incidents have an impact on users or business processes, and must be resolved so that normal
business activity can take place.
Problems are the causes of incidents. They require investigation and analysis to identify the causes,
develop workarounds, and recommend longer-term resolution. This reduces the number and impact of
future incidents.
Problem management involves three distinct phases, as shown in Figure 5.23.
Problem identification activities identify and log problems. These include:
performing trend analysis of incident records
detection of duplicate and recurring issues by users, service desk, and technical support staff
during major incident management, identifying a risk that an incident could recur
analysing information received from suppliers and partners
analysing information received from internal software developers, test teams, and project teams.
Other sources of information can also lead to problems being identified.
Problem control activities include problem analysis, and documenting workarounds and known errors.
Problems are prioritized for analysis based on the risk that they pose, and are managed as risks based on
their potential impact and probability. It is not essential to analyse every problem; it can be more valuable
to make significant progress on the highest-priority problems than to investigate every minor problem that
the organization is aware of.
Incidents typically have many interrelated causes, and the relationships between them can be complex.
Problem control should consider all contributory causes, including causes that contributed to the duration
and impact of incidents, as well as those that led to the incidents happening. It is important to analyse
problems from the perspective of all four dimensions of service management. For example, an incident
that was caused by inaccurate documentation may require not only a correction to that documentation but
also training and awareness for support personnel, suppliers, and users.
When a problem cannot be resolved quickly, it is often useful to find and document a workaround for
future incidents, based on an understanding of the problem. Workarounds are documented in problem
records. This can be done at any stage; it doesn’t need to wait for analysis to be complete. If a
workaround has been documented early in problem control, then this should be reviewed and improved
after problem analysis has been completed.
Definition: Workaround
A solution that reduces or eliminates the impact of an incident or problem for which a full resolution is
not yet available. Some workarounds reduce the likelihood of incidents.
An effective incident workaround can become a permanent way of dealing with some problems when
resolving the problem is not viable or cost-effective. In this case, the problem remains in the known error
status, and the documented workaround is applied should related incidents occur. Every documented
workaround should include a clear definition of the symptoms to which it applies. In some cases,

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workaround application can be automated.
For other problems, a way to fix the error should be found. This is a part of error control. Error control
activities manage known errors, which are problems where initial analysis has been completed; it usually
means that faulty components have been identified. Error control also includes identification of potential
permanent solutions which may result in a change request for implementation of a solution, but only if this
can be justified in terms of cost, risks, and benefits.
Error control regularly re-assesses the status of known errors that have not been resolved, including
overall impact on customers, availability and cost of permanent resolutions, and effectiveness of
workarounds. The effectiveness of workarounds should be evaluated each time a workaround is used, as
the workaround may be improved based on the assessment.
Problem management activities are very closely related to incident management. The practices need to
be designed to work together within the value chain. Activities from these two practices may complement
each other (for example, identifying the causes of an incident is a problem management activity that may
lead to incident resolution), but they may also conflict (for example, investigating the cause of an incident
may delay actions needed to restore service).
Examples of interfaces between problem management, risk management, change enablement,
knowledge management, and continual improvement are as follows:
Problem management activities can be organized as a specific case of risk management: they aim to
identify, assess, and control risks in any of the four dimensions of service management. It is useful to
adopt risk management tools and techniques for problem management.
Implementation of problem resolution is often outside the scope of problem management. Problem
management typically initiates resolution via change enablement and participates in the post-
implementation review; however, approving and implementing changes is out of scope for the
problem management practice.
Output from the problem management practice includes information and documentation concerning
workarounds and known errors. In addition, problem management may utilize information in a
knowledge management system to investigate, diagnose, and resolve problems.
Problem management activities can identify improvement opportunities in all four dimensions of
service management. Solutions can in some cases be treated as improvement opportunities, so they
are included in a continual improvement register (CIR), and continual improvement techniques are
used to prioritize and manage them, sometimes as part of a product backlog.
Many problem management activities rely on the knowledge and experience of staff, rather than on
following detailed procedures. People responsible for diagnosing problems often need the ability to
understand complex systems, and to think about how different failures might have occurred. Developing
this combination of analytical and creative ability requires mentoring and time, as well as suitable training.
The ITIL story: Axle’s problem management
Henri: Axle participates in feedback programmes with all our car manufacturers. We share
maintenance and repair data with them to help them to continually improve their services. In return,
they alert us to any potential problems in our vehicles.
Radhika: Recently, we were alerted to a potential problem in our fleet. A car manufacturer had
recalled a popular model in our fleet to fix an error found in the airbag activation system.
Su: Fortunately it was found before Axle experienced any incidents, but there was still the potential
for issues to occur, which meant it was a problem we had to deal with.
Marco: We follow a similar practice for our other systems and services, including all of the IT

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components we use.
Radhika: Axle’s incident management practice is one of our most important sources of information
on errors in our systems. Any major incident we experience is followed by an investigation into the
possible causes. Sometimes this will lead us to find and fix errors in the systems, and we often
identify ways to decrease the number of incidents Axle will have in the future.
Figure 5.24 Heat map of the contribution of problem management to value chain activities
Problem management is usually focused on errors in operational environments. Figure 5.24 shows the
contribution of problem management to the service value chain, with the practice being applied mainly to
the improve, and deliver and support value chain activities:
Improve This is the main focus area for problem management. Effective problem management
provides the understanding needed to reduce the number of incidents and the impact of incidents that
can’t be prevented.
Engage Problems that have a significant impact on services will be visible to customers and users. In
some cases, customers may wish to be involved in problem prioritization, and the status and plans for
managing problems should be communicated. Workarounds are often presented to users via a service
portal.
Design and transition Problem management provides information that helps to improve testing and
knowledge transfer.
Obtain/build Product defects may be identified by problem management; these are then managed as
part of this value chain activity.
Deliver and support Problem management makes a significant contribution by preventing incident
repetition and supporting timely incident resolution.
5.2.9 Release management
Key message

The purpose of the release management practice is to make new and changed services and
features available for use.
Definition: Release
A version of a service or other configuration item, or a collection of configuration items, that is made
available for use.
A release may comprise many different infrastructure and application components that work together to
deliver new or changed functionality. It may also include documentation, training (for users or IT staff),
updated processes or tools, and any other components that are required. Each component of a release
may be developed by the service provider or procured from a third party and integrated by the service
provider.
Releases can range in size from the very small, involving just one minor changed feature, to the very
large, involving many components that deliver a completely new service. In either case, a release plan will
specify the exact combination of new and changed components to be made available, and the timing for
their release.
A release schedule is used to document the timing for releases. This schedule should be negotiated and
agreed with customers and other stakeholders. A release post-implementation review enables learning
and improvement, and helps to ensure that customers are satisfied.
In some environments, almost all of the release management work takes place before deployment, with
plans in place as to exactly which components will be deployed in a particular release. The deployment
then makes the new functionality available.
Figure 5.25 Release management in a traditional/waterfall environment

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Figure 5.26 Release management in an Agile/DevOps environment
Figure 5.25 shows how release management is handled in a traditional/waterfall environment. In these
environments release management and deployment may be combined and executed as a single process.
In an Agile/DevOps environment there can be significant release management activity after deployment.
In these cases, software and infrastructure are typically deployed in many small increments, and release
management activity enables the new functionality at a later point. This may be done as a very small
change. Figure 5.26 shows how release management is handled in such an environment.
Release management is often staged, with pilot releases being made available to a small number of
users to ensure that everything is working correctly before the release is given to additional groups. This
staged approach can work with either of the two sequences shown in Figures 5.25 and 5.26. Sometimes
a release must be made available to all users at the same time, as when a major restructuring of the
underlying shared data is required.
Staging of a release is often achieved using blue/green releases or feature flags:
Blue/green releases use two mirrored production environments. Users can be switched to an
environment that has been updated with the new functionality by use of network tools that connect
them to the correct environment.
Feature flags enable specific features to be released to individual users or groups in a controlled way.
The new functionality is deployed to the production environment without being released. A user
configuration setting then releases the new functionality to individual users (or groups of users) as
needed.
In a DevOps environment, release management is often integrated with the continuous integration and
continuous delivery toolchain. The tools of release management may be the responsibility of a dedicated
person, but decisions about the release can be made by the development team. In a more traditional
environment, releases are enabled by the deployment of the components. Each release is described by a
release record on an ITSM tool. Release records are linked to CIs and change records to maintain
information about the release.
Components of a release are often provided by third parties. Examples of third-party components include
cloud infrastructure, software as a service components, and third-party support. It is also common to
include third-party software, or open-source software, as part of application development. Release
management needs to work across organizational boundaries to ensure that all components are
compatible and to provide a seamless experience for users. It also needs to consider the impact of
changes to third-party components, and to plan for how these will be released.

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Figure 5.27 Heat map of the contribution of release management to value chain activities
Figure 5.27 shows the contribution of release management to the service value chain, with the practice
being involved in all value chain activities:
Plan Policies, guidance, and timelines for releases are driven by the organizational strategy and
service portfolio. The size, scope, and content of each release should be planned and managed.
Improve New or changed releases may be required to deliver improvements, and these should be
planned and managed in the same way as any other release.
Engage The content and cadence of releases must be designed to match the needs and expectations
of customers and users.
Design and transition Release management ensures that new or changed services are made
available to customers in a controlled way.
Obtain/build Changes to components are normally included in a release, delivered in a controlled
way.
Deliver and support Releases may impact on delivery and support. Training, documentation, release
notes, known errors, user guides, support scripts, etc. are provided by this practice to facilitate service
restoration.
The ITIL story: Axle’s release management
Marco: When we release updates to our booking app, we make sure they’re accompanied by user
awareness and marketing campaigns for our users, customers, and teams. We provide specific
training for the service desk and support teams that are internal and external.
Radhika: Some changes may need extra support or the introduction of new components. For
example, Axle Aware was released with a new user manual to explain the system. We also made
sure the Aware system could sync with the Axle booking app before we released it.
Henri: The support given to the new app and Axle Aware has really helped the release of both of
these new offerings, leading to great first impressions and a strong level of adoption amongst our
users and customers, as well as our own teams.
5.2.10 Service catalogue management

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Key message
The purpose of the service catalogue management practice is to provide a single source of
consistent information on all services and service offerings, and to ensure that it is available to the
relevant audience.
The list of services within the service catalogue represents those which are currently available and is a
subset of the total list of services tracked in the service provider’s service portfolio. Service catalogue
management ensures that service and product descriptions are expressed clearly for the target audience
to support stakeholder engagement and service delivery. The service catalogue may take many forms
such as a document, online portal, or a tool that enables the current list of services to be communicated
to the audience.
5.2.10.1 Service catalogue management activities
The service catalogue management practice includes an ongoing set of activities related to publishing,
editing, and maintaining service and product descriptions and their related offerings. It provides a view on
the scope of what services are available, and on what terms. The service catalogue management practice
is supported by roles such as the service owner and others responsible for managing, editing, and
keeping up to date the list of available services as they are introduced, changed, or retired.
Tailored views
As described above, the service catalogue enables the creation of value and is used by many
different practices within the service value chain. Because of this, it needs to be flexible regarding
what service details and attributes it presents, based on its intended purpose. As such, organizations
may wish to consider providing different views of the catalogue for different audiences.
The full list of services within a service catalogue may not be applicable to all customers and/or users.
Likewise, the various attributes of services such as technical specifications, offerings, agreements, and
costs are not applicable to all service consumer types. This means that the service catalogue should be
able to provide different views and levels of detail to different stakeholders. Examples of views include:
User views Provide information on service offerings that can be requested, and on provisioning
details.
Customer views Provide service level, financial, and service performance data.
IT to IT customer views Provide technical, security, and process information for use in service
delivery.
While multiple views of the service catalogue are possible, the creation of separate or isolated service
catalogues within different technology systems should be avoided if possible as this will promote
segregation, variability, and complexity.
For the service catalogue to be perceived as useful by the customer organization it must do more than
provide a static platform for publishing information about IT services. Unless the service catalogue
enables customer engagement by supporting discussions related to standard and non-standard service

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offerings and/or automates request and order fulfilment processes, the chances of its ongoing adoption as
a useful and meaningful resource are minimal. For this reason, the views of many organizations on the
service catalogue are focused on the consumable or orderable elements of service offerings. These are
often called request catalogues.
Definition: Request catalogue
A view of the service catalogue, providing details on service requests for existing and new services,
which is made available for the user.
Figure 5.28 shows the contribution of service catalogue management to the service value chain, with the
practice being involved in all value chain activities:
Plan The service catalogue enables strategy and service portfolio investment decisions by providing
details on current service scope and offerings.
Improve Service catalogue descriptions and demand patterns are constantly monitored and evaluated
to support continual improvement, alignment, and value creation.
Engage The service catalogue enables strategic, tactical, and operational relationships with customers
and users by enabling and potentially automating various aspects of practices such as relationship
management, request management, and the service desk.
Figure 5.28 Heat map of the contribution of service catalogue management to value chain activities
Design and transition The service catalogue ensures both the utility and warranty aspects of services
are considered and published, including the information security policy, IT service continuity levels,
service level agreements, and service offerings. Additional activities include the definition and creation
of service descriptions, request models, and views to be published.
Obtain/build Service catalogue management supports this value chain activity by providing service
catalogue views for procurement of components and services.
Deliver and support The service catalogue provides context for how the service will be delivered and
supported, and publishes expectations related to agreements and performance.

5.2.11 Service configuration management
Key message
The purpose of the service configuration management practice is to ensure that accurate and
reliable information about the configuration of services, and the CIs that support them, is available
when and where it is needed. This includes information on how CIs are configured and the
relationships between them.
Definition: Configuration item
Any component that needs to be managed in order to deliver an IT service.
Service configuration management collects and manages information about a wide variety of CIs, typically
including hardware, software, networks, buildings, people, suppliers, and documentation. Services are
also treated as CIs, and configuration management helps the organization to understand how the many
CIs that contribute to each service work together. Figure 5.29 is a simplified diagram showing how
multiple CIs contribute to an IT service.
Configuration management provides information on the CIs that contribute to each service and their
relationships: how they interact, relate, and depend on each other to create value for customers and
users. This includes information about dependencies between services. This high-level view is often
called a service map or service model, and forms part of the service architecture.
It is important that the effort needed to collect and maintain configuration information is balanced with the
value that the information creates. Maintaining large amounts of detailed information about every
component, and its relationships to other components, can be costly, and may deliver very little value.
The requirements for configuration management must be based on an understanding of the
organization’s goals, and how configuration management contributes to value creation.
The value created by configuration management is indirect, but enables many other practices to work
efficiently and effectively. As such, planning for configuration management should start by understanding
who needs the configuration information, how it will be used, what is the best way for them to obtain it,
and who can maintain and update this information. Sometimes it can be more efficient to simply collect
the information when it is needed, rather than to have it collected in advance and maintained, but on other
occasions it is essential to have information available in a configuration management system (CMS). The
type and amount of information recorded for each type of CI should be based on the value of that
information, the cost of maintaining it, and how the information will be used.

Figure 5.29 Simplified service model for a typical IT service
Definition: Configuration management system
A set of tools, data, and information that is used to support service configuration management.
Configuration information should be shared in a controlled way. Some information could be sensitive; for
example, it could be useful to someone trying to breach security controls, or it could include personal
information about users, such as phone numbers and home addresses.
Configuration information can be stored and published in a single configuration management database
(CMDB) for the whole organization, but it is more common for it to be distributed across several sources.
In either case it is important to maintain links between configuration records, so that people can see the
full set of information they need, and how the various CIs work together. Some organizations federate
CMDBs to provide an integrated view. Others may maintain different types of data; for example, having
separate data stores for asset management data (see section 5.2.6), configuration details, service
catalogue information, and high-level service models.
Tools that are used to log incidents, problems, and changes need access to configuration records. For
example, an organization trying to identify problems with a service may need to find incidents related to a
specific software version, or model of disk drive. The understanding of the need for this information helps
to establish what CI attributes should be stored for this organization; in this case software versions and
disk drive models. To diagnose incidents, visibility of recent changes to the affected CIs may be needed,
so relationships between CIs and changes must be maintained.
Many organizations use data collection tools to gather detailed configuration information from
infrastructure and applications, and use this to populate a CMS. This can be effective, but can also
encourage the collection of too much data without sufficient information on relationships, and how the
components work together to create a service. Sometimes configuration information is used to actually
create the CI, rather than just to document it. This approach is used for ‘infrastructure as a code’, where
information on the infrastructure is managed in a data repository and used to automatically configure the
environment.

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A large organization may have a team that is dedicated to configuration management. In other
organizations this practice can be combined with change enablement, or there can be a team responsible
for change, configuration, and release management. Some organizations apply a distributed model where
functional teams take ownership of updating and maintaining the CIs within their control and oversight.
Configuration management typically needs processes to:
identify new CIs, and add them to the CMS
update configuration data when changes are deployed
verify that configuration records are correct
audit applications and infrastructure to identify any that are not documented.
Figure 5.30 shows the contribution of configuration management to the service value chain, with the
practice being involved in all value chain activities:
Plan Configuration management is used for planning new or changed services.
Improve Configuration management, like every other aspect of service management, should be
subject to measurement and continual improvement. Since the value of configuration management
typically comes from how it facilitates other practices, it is important to understand what use these
practices are making of configuration information, and then identify how this can be improved.
Engage Some stakeholders (partners and suppliers, consumers, regulators, etc.) may require and use
configuration information, or provide their configuration information to the organization.
Design and transition Configuration management documents how assets work together to create a
service. This information is used to support many value chain activities, and is updated as part of the
transition activity.
Obtain/build Configuration records may be created during this value chain activity, describing new or
changed services and components. Sometimes configuration records are used to create the code or
artefact that is being built.
Deliver and support Information on CIs is essential to support service restoration. Configuration
information is used to support activities of the incident management and problem management
practices.
Figure 5.30 Heat map of the contribution of service configuration management to value chain activities
5.2.12 Service continuity management

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Key message
The purpose of the service continuity management practice is to ensure that the availability and
performance of a service are maintained at sufficient levels in case of a disaster. The practice
provides a framework for building organizational resilience with the capability of producing an
effective response that safeguards the interests of key stakeholders and the organization’s
reputation, brand, and value-creating activities.
Service continuity management supports an overall business continuity management (BCM) and planning
capability by ensuring that IT and services can be resumed within required and agreed business
timescales following a disaster or crisis. It is triggered when a service disruption or organizational risk
occurs on a scale that is greater than the organization’s ability to handle it with normal response and
recovery practices such as incident and major incident management. An organizational event of this
magnitude is typically referred to as a disaster.
Each organization needs to understand what constitutes a disaster in its own context. Establishing what is
meant by a disaster must be considered and defined prior to a trigger event at both an organizational and
on a per-service level using a business impact analysis. The Business Continuity Institute defines a
disaster as:
‘…a sudden unplanned event that causes great damage or serious loss to an organization. It results
in an organization failing to provide critical business functions for some predetermined minimum
period of time.’
The sources that trigger a disaster response and recovery are varied and complex, as are the number of
stakeholders and the different aspects of potential organizational impact. The complex risk management
conditions related to the examples in Table 5.3 make it imperative that the service continuity management
practice be thoroughly thought out, designed for flexibility, and tested on a regular basis to ensure that
services can be recovered at a speed necessary for business survival.
Table 5.3 Examples of disaster sources, stakeholders involved, and organizational impact
Disaster sources Stakeholders involved Organizational impact
Supply chain failure Employees Lost income
Terrorism Executives Damaged reputation
Weather Governing body Loss of competitive advantage
Cyber attack Suppliers Breach of law, health and safety regulations
Health emergency IT teams Risk to personal safety
Political or economic event Customers Immediate and long-term loss of market share
Technology failure Users
Public crisis Communities
Definitions
Recovery time objective (RTO) The maximum acceptable period of time following a service
disruption that can elapse before the lack of business functionality severely impacts the

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organization. This represents the maximum agreed time within which a product or an activity must
be resumed, or resources must be recovered.
Recovery point objective (RPO) The point to which information used by an activity must be
restored to enable the activity to operate on resumption.
Disaster recovery plans A set of clearly defined plans related to how an organization will
recover from a disaster as well as return to a pre-disaster condition, considering the four
dimensions of service management.
Business impact analysis (BIA) A key activity in the practice of service continuity management
that identifies vital business functions (VBFs) and their dependencies. These dependencies may
include suppliers, people, other business processes, and IT services. BIA defines the recovery
requirements for IT services. These requirements include RTOs, RPOs, and minimum target
service levels for each IT service.
Service continuity management versus incident management
Service continuity management focuses on those events that the business considers significant
enough to be treated as a disaster. Less significant events will be dealt with as part of incident
management or major incident management. The distinction between disasters, major incidents, and
incidents needs to be pre-defined, agreed, and documented with clear thresholds and triggers for
calling the next tier of response and recovery into action without unnecessary delay and risk.
As organizations have become increasingly dependent on technology-enabled services, the need for
high-availability solutions has become critical to organizational resilience and competitiveness.
Organizations achieve high availability through a combination of business planning, technical architecture
resilience, availability planning, proactive risk, and information security management, as well as through
incident management and problem management.
Figure 5.31 shows the contribution of service continuity management to the service value chain, with the
practice being involved in all value chain activities:
Plan The organization’s leadership and governing body establish an initial risk appetite for the
organization with defined scope, policies, supplier strategies, and investment in recovery options.
Service continuity management supports this with relevant information about the current continuity
status of the organization and with tools and methods for planning and forecasting.
Improve Service continuity management ensures that continuity plans, measures, and mechanisms
are continually monitored and improved in line with changing internal and external circumstances.
Engage Engagement with various stakeholders to provide assurance with regard to an organization’s
readiness for disasters is supported by this practice.
Design and transition Service continuity management ensures that products and services are
designed and tested according to the organization’s continuity requirements.

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Figure 5.31 Heat map of the contribution of service continuity management to value chain activities
Obtain/build Service continuity management ensures that continuity is built into the organization’s
services and components, and that procured components and services meet the organization’s
continuity requirements.
Deliver and support Ongoing delivery, operations, and support are performed in accordance with
continuity requirements and policies.
5.2.13 Service design
Key message
The purpose of the service design practice is to design products and services that are fit for
purpose, fit for use, and that can be delivered by the organization and its ecosystem. This includes
planning and organizing people, partners and suppliers, information, communication, technology,
and practices for new or changed products and services, and the interaction between the
organization and its customers.
If products, services, or practices are not designed properly, they will not necessarily fulfil customer needs
or facilitate value creation. If they evolve without proper architecture, interfaces or controls, they are less
able to deliver the overall vision and needs of the organization and its internal and external customers.
Even when a product or service is well designed, delivering a solution that addresses the needs of both
the organization and customer in a cost-effective and resilient way can be difficult. It is therefore important
to consider iterative and incremental approaches to service design, which can ensure that products and
services introduced to live operation can continually adapt in alignment with the evolving needs of the
organization and its customers.
In the absence of formalized service design, products and services can be unduly expensive to run and
prone to failure, resulting in resources being wasted and the product or service not being customer-

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centred or designed holistically. It is unlikely that any improvement programme will ever be able to
achieve what proper design could have achieved in the first place. Without service design, cost-effective
products and services that deliver what customers need and expect are extremely hard to achieve.
Service design practice should also ensure that the customer’s journey from demand through to value
realization is as pleasant and frictionless as it can be, and delivers the best customer outcome possible.
This is achieved by focusing on customer experience (CX) and user experience (UX).
Adopting and implementing a service design practice focused on CX and UX will:
result in customer-centred products and services that include stakeholders in design activities
consider the entire environment of a product or service
enable projects to estimate the cost, timing, resource requirement, and risks associated with service
design more accurately
result in higher volumes of successful change
make design methods easier for people to adopt and follow
enable service design assets to be shared and re-used across projects and services
increase confidence that the new or changed product or service can be delivered to specification
without unexpectedly affecting other products, services, or stakeholders
ensure that new or changed products and services will be maintainable and cost-effective.
It is important that a holistic, results-driven approach to all aspects of service design is adopted, and that
when changing or amending any of the individual elements of a service design, all other aspects are
considered. It is for this reason that the coordination aspect of service design with the whole
organization’s SVS is essential. Designing and developing a new or changed product or service should
not be done in isolation, but should consider the impact it will have on:
other products and services
all relevant parties, including customers and suppliers
the existing architectures
the required technology
the service management practices
the necessary measurements and metrics.
Consideration of these factors will not only ensure that the design addresses the functional elements of
the service, but also that the management and operational requirements are regarded as a fundamental
part of the design, and are not added as an afterthought.
Service design should also be used when the change being made to the product or service is its
retirement. Unless the retirement of a product/service is carefully planned, it could cause unexpected
negative effects on customers or the organization that might otherwise have been avoided.
Not every change to a product or service will require the same level of service design activity. Every
change, no matter how small, will need some degree of design work, but the scale of the activity
necessary to ensure success will vary greatly from one change type to another. Organizations must
define what level of design activity is required for each category of change, and ensure that everyone
within the organization is clear on these criteria.
Service design supports products and services that:
are business- and customer-oriented, focused, and driven
are cost-effective
meet the information and physical security requirements of the organization and any external

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customers
are flexible and adaptable, yet fit for purpose at the point of delivery
can absorb an ever-increasing demand in the volume and speed of change
meet increasing organizational and customer demands for continuous operation
are managed and operated to an acceptable level of risk.
With many pressures on the organization, there can be a temptation to ‘cut corners’ on the coordination of
practices and relevant parties for service design activities, or to ignore them completely. This should be
avoided, as integration and coordination are essential to the overall quality of the products and services
that are delivered.
5.2.13.1 Design thinking
Design thinking is a practical and human-centred approach that accelerates innovation. It is used by
product and service designers as well as organizations to solve complex problems and find practical,
creative solutions that meet the needs of the organization and its customers. It can be viewed as a
complementary approach to Lean and Agile methodologies. Design thinking draws upon logic,
imagination, intuition, and systems thinking to explore possibilities and to create desired outcomes that
benefit customers.
Design thinking includes a series of activities:
Inspiration and empathy, through direct observation of people and how they work or interact with
products and services, as well as identifying how they might interact differently with other solutions.
Ideation, which combines divergent and convergent thinking. Divergent thinking is the ability to offer
different, unique, or variant ideas, while convergent thinking is the ability to find the preferred solution
to a given problem. Divergent thinking ensures that many possible solutions are explored, and
convergent thinking narrows these down to a final preferred solution.
Prototyping, where these ideas are tested early, iterated, and refined. A prototype helps to gather
feedback and improve an idea. Prototypes speed up the process of innovation by allowing service
designers to better understand the strengths and weaknesses of new solutions.
Implementation, where the concepts are brought to life. This should be coordinated with all relevant
service management practices and other parties. Agile methodology can be employed to develop and
implement the solution in an iterative way.
Evaluation (in conjunction with other practices, including project management and release
management) measures the actual performance of product or service implementation to ensure
acceptance criteria are met, and to find any opportunities for improvement.
Design thinking is best applied by multi-disciplinary teams; because it balances the perspectives of
customers, technology, the organization, partners, and suppliers, it is highly integrative, aligns well with
the organization’s SVS, and can be a key enabler of digital transformation.
5.2.13.2 Customer and user experience
The CX and UX aspects of service design are essential to ensuring products and services deliver the
desired value for customers and the organization. CX design is focused on managing every aspect of the
complete CX, including time, quality, cost, reliability, and effectiveness. UX looks specifically at the ease
of use of the product or service and how the customer interacts with it.
Lean user experience

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Lean user experience (Lean UX) design is a mindset, a culture, and a process that embraces Lean–
Agile methods. It implements functionality in minimum viable increments, and determines success by
measuring results against an outcome hypothesis. Lean UX is incredibly useful when working on
projects where Agile development methods are used. The core objective is to focus on obtaining
feedback as early as possible so that it can be used to make quick decisions.
Typical questions for Lean UX might include: Who are the customers of this product/service and
what will it be used for? When is it used and under what circumstances? What will be the most
important functionality? What are the biggest risks?
There may be more than one answer to each question, which creates a greater number of
assumptions than it might be practical to handle. The team will then prioritize these assumptions by
the risks they represent to the organization and its customers.
Figure 5.32 Heat map of the contribution of service design to value chain activities
Risk identification, assessment, and treatment are key requirements within all design activities; therefore
risk management must be included as an integrated aspect of service design. This will ensure that the
risks involved in the provision of products and services and the operation of practices, technology, and
measurement methods are aligned with organizational risk and impact, because risk management is
embedded within all design processes and activities.
Figure 5.32 shows the contribution of service design to the service value chain, with the practice being
involved in all value chain activities:
Plan The service design practice includes planning and organizing the people, partners and suppliers,
information, communication, technology, and practices for new or changed products and services, and
the interaction between the organization and its customers.
Improve Service design can be used to improve an existing service as well as to create a new service
from scratch. Services can be designed as a minimum viable service, deployed, and then iterated and
improved to add further value based on feedback.
Engage Service design incorporates CX and UX, which are quintessential examples of engagement.
Design and transition The purpose of service design is to design products and services that are easy
to use, desirable, and that can be delivered by the organization.
Obtain/build Service design includes the identification of products, services, and service components
that need to be obtained or built for the new or changed service.

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Deliver and support Service design manages the user’s full journey, through operation, restoration,
and maintenance of the service.
5.2.14 Service desk
Key message
The purpose of the service desk practice is to capture demand for incident resolution and service
requests. It should also be the entry point and single point of contact for the service provider with all
of its users.
Service desks provide a clear path for users to report issues, queries, and requests, and have them
acknowledged, classified, owned, and actioned. How this practice is managed and delivered may vary
from a physical team of people on shift work to a distributed mix of people connected virtually, or
automated technology and bots. The function and value remain the same, regardless of the model.
With increased automation and the gradual removal of technical debt, the focus of the service desk is to
provide support for ‘people and business’ rather than simply technical issues. Service desks are
increasingly being used to get various matters arranged, explained, and coordinated, rather than just to
get broken technology fixed, and the service desk has become a vital part of any service operation.
A key point to be understood is that, no matter how efficient the service desk and its people are, there will
always be issues that need escalation and underpinning support from other teams. Support and
development teams need to work in close collaboration with the service desk to present and deliver a
‘joined up’ approach to users and customers.
The service desk may not need to be highly technical, although some are. However, even if the service
desk is fairly simple, it still plays a vital role in the delivery of services, and must be actively supported by
its peer groups. It is also essential to understand that the service desk has a major influence on user
experience and how the service provider is perceived by the users.
Another key aspect of a good service desk is its practical understanding of the wider business context,
the business processes, and the users. Service desks add value not simply through the transactional acts
of, for example, incident logging, but also by understanding and acting on the business context of this
action. The service desk should be the empathetic and informed link between the service provider and its
users.
With increased automation, AI, robotic process automation (RPA), and chatbots, service desks are
moving to provide more self-service logging and resolution directly via online portals and mobile
applications. The impact on service desks is reduced phone contact, less low-level work, and a greater
ability to focus on excellent CX when personal contact is needed.
Service desks provide a variety of channels for access. These include:
phone calls, which can include specialized technology, such as interactive voice response (IVR),
conference calls, voice recognition, and others
service portals and mobile applications, supported by service and request catalogues, and knowledge
bases

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chat, through live chat and chatbots
email for logging and updating, and for follow-up surveys and confirmations. Unstructured emails can
be difficult to process, but emerging technologies based on AI and machine learning are starting to
address this
walk-in service desks are becoming more prevalent in some sectors, e.g. higher education, where
there are high peaks of activity that demand physical presence
text and social media messaging, which are useful for notifications in case of major incidents and for
contacting specific stakeholder groups, but can also be used to allow users to request support
public and corporate social media and discussion forums for contacting the service provider and for
peer-to-peer support.
Some service desks have a limited support window where service cover is available (for example, 08.00–
20.00, Monday–Friday). Staff are therefore expected to work in shift patterns to provide consistent
support levels.
In some cases, the service desk is a tangible team, working in a single location. A centralized service
desk requires supporting technologies, such as:
intelligent telephony systems, incorporating computer-telephony integration, IVR, and automatic call
distribution
workflow systems for routing and escalation
workforce management and resource planning systems
a knowledge base
call recording and quality control
remote access tools
dashboard and monitoring tools
configuration management systems.
In other cases, a virtual service desk allows agents to work from multiple locations, geographically
dispersed. A virtual service desk requires more sophisticated supporting technology, involving more
complex routing and escalation; these solutions are often cloud-based.
Figure 5.33 Heat map of the contribution of the service desk to value chain activities
Service desk staff require training and competency across a number of broad technical and business
areas. In particular, they need to demonstrate excellent customer service skills such as empathy, incident

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analysis and prioritization, effective communication, and emotional intelligence. The key skill is to be able
to fully understand and diagnose a specific incident in terms of business priority, and to take appropriate
action to get this resolved, using available skills, knowledge, people, and processes.
Figure 5.33 shows the contribution of the service desk to the service value chain, with the practice being
involved in all value chain activities except plan:
Improve Service desk activities are constantly monitored and evaluated to support continual
improvement, alignment, and value creation. Feedback from users is collected by the service desk to
support continual improvement.
Engage The service desk is the main channel for tactical and operational engagement with users.
Design and transition The service desk provides a channel for communicating with users about new
and changed services. Service desk staff participate in release planning, testing, and early life support.
Obtain/build Service desk staff can be involved in acquiring service components used to fulfil service
requests and resolve incidents.
Deliver and support The service desk is the coordination point for managing incidents and service
requests.
5.2.15 Service level management
Key message
The purpose of the service level management practice is to set clear business-based targets for
service levels, and to ensure that delivery of services is properly assessed, monitored, and managed
against these targets.
Definition: Service level
One or more metrics that define expected or achieved service quality.
Service level management provides the end-to-end visibility of the organization’s services. To achieve
this, service level management:
establishes a shared view of the services and target service levels with customers
ensures the organization meets the defined service levels through the collection, analysis, storage, and
reporting of the relevant metrics for the identified services
performs service reviews to ensure that the current set of services continues to meet the needs of the
organization and its customers
captures and reports on service issues, including performance against defined service levels.
The skills and competencies for service level management include relationship management, business

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liaison, business analysis, and commercial/supplier management. The practice requires pragmatic focus
on the whole service and not simply its constituent parts; for example, simple individual metrics (such as
percentage system availability) should not be taken to represent the whole service.
5.2.15.1 Service level agreements
Definition: Service level agreement
A documented agreement between a service provider and a customer that identifies both services
required and the expected level of service.
Service level agreements (SLAs) have long been used as a tool to measure the performance of services
from the customer’s point of view, and it is important that they are agreed in the wider business context.
Using SLAs may present many challenges; often they do not fully reflect the wider service performance
and the user experience.
Some of the key requirements for successful SLAs include:
They must be related to a defined ‘service’ in the service catalogue; otherwise they are simply
individual metrics without a purpose, that do not provide adequate visibility or reflect the service
perspective.
They should relate to defined outcomes and not simply operational metrics. This can be achieved with
balanced bundles of metrics, such as customer satisfaction and key business outcomes.
They should reflect an ‘agreement’, i.e. engagement and discussion between the service provider and
the service consumer. It is important to involve all stakeholders, including partners, sponsors, users,
and customers.
They must be simply written and easy to understand and use for all parties.
In many cases, using single-system-based metrics as targets can result in misalignment and a disconnect
between service partners regarding the success of the service delivery and the user experience. For
example, if an SLA is based only on the percentage of uptime of a service, it can be deemed to be
successful by the provider, yet still miss out on significant business functionalities and outcomes which
are important to the consumer. This is referred to as the ‘watermelon SLA’ effect.
The watermelon SLA effect
Traditional SLAs have been based on individual activities such as incident resolution times, system
availability (‘99.9’), and volume metrics (e.g. number of incidents or requests handled). Without a
business context these metrics are often meaningless. For example, although a system availability of
99.6% is impressive, this still needs to align with key business requirements. The system may have
an acceptable unavailability of 0.4%, but if that time falls when there is an important process
happening (such as a commercial transaction, an operating theatre in use, or point-of-sale tills in
use), then customer/user satisfaction will be low, regardless of whether the SLA has been met.
This can be problematic for the service provider if it thinks it is doing a great job (the reports are all
green), when in fact its customers are dissatisfied with the service received and also frustrated that
the provider doesn’t notice this. This is known as the watermelon SLA effect, because like a

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watermelon, the SLA may appear green on the outside, but is actually red inside.
Service level management identifies metrics and measures that are a truthful reflection of the
customer’s actual experience and level of satisfaction with the whole service. These will vary across
organizations and the only way to learn what these are is to find out directly from customers.
Service level management requires focus and effort to engage and listen to the requirements, issues,
concerns, and daily needs of customers:
Engagement is needed to understand and confirm the actual ongoing needs and requirements of
customers, not simply what is interpreted by the service provider or has been agreed several years
before.
Listening is important as a relationship-building and trust-building activity, to show customers that they
are valued and understood. This helps to move the provider away from always being in ‘solution mode’
and to build new, more constructive partnerships.
The activities of engaging and listening provide a great opportunity to build improved relationships and to
focus on what really needs to be delivered. It also gives service delivery staff an experience-based
understanding of the day-to-day work that is done with their technology, enabling them to deliver a more
business-focused service.
Service level management involves collating and analysing information from a number of sources,
including:
Customer engagement This involves initial listening, discovery, and information capture on which to
base metrics, measurement, and ongoing progress discussions. Consider asking customers some
simple open questions such as:
What does your work involve?
How does technology help you?
What are your key business times, areas, people, and activities?
What differentiates a good day from a bad day for you?
Which of these activities is most important to you?
What are your goals, objectives, and measurements for this year?
What is the best measure of your success?
On what do you base your opinion and evaluation of a service or IT/technology?
How can we help you more?
Customer feedback This is ideally gathered from a number of sources, both formal and informal,
including:
Surveys These can be from immediate feedback such as follow-up questions to incidents, or from
more reflective periodic surveys that gauge feedback on the overall service experience. Both are
event-based.
Key business-related measures These are measures agreed between the service provider and its
customer, based on what the customer values as important. This could be a bundle of SLA metrics
or a very specific business activity such as a sales transaction, project completion, or operational
function such as getting an ambulance to the site of an accident within x minutes.
Operational metrics These are the low-level indicators of various operational activities and may
include system availability, incident response and fix times, change and request processing times, and
system response times.
Business metrics These can be any business activity that is deemed useful or valuable by the
customer and used as a means of gauging the success of the service. These can vary from some

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simple transactional binary measures such as ATM or POS terminal availability during business hours
(09:00–17:00 daily) or successful completion of business activities such as passenger check-in.
Once this feedback is gathered and collated for ongoing review, it can be used as input to design suitable
measurement and reporting models and practices.
Figure 5.34 shows the contribution of service level management to the service value chain, with the
practice being applied mainly to the plan and engage activities:
Plan Service level management supports planning of the product and service portfolio and service
offerings with information about the actual service performance and trends.
Improve Service feedback from users, as well as requirements from customers, can be a driving force
for service improvement.
Engage Service level management ensures ongoing engagement with customers and users through
feedback processing and continual service review.
Design and transition The design and development of new and changed services receives input from
this practice, both through interaction with customers and as part of the feedback loop in transition.
Obtain/build Service level management provides objectives for components and service performance,
as well as for measurement and reporting capabilities of the products and services.
Deliver and support Service level management communicates service performance objectives to the
operations and support teams and collects their feedback as an input for service improvement.
Figure 5.34 Heat map of the contribution of service level management to value chain activities
The ITIL story: Axle’s service level management
Su: We regularly gather feedback from our customers to analyse their requirements and needs,
and update our service offerings to match their expectations.
Radhika: We can’t put every single customer expectation into our rental agreements, but we care
about all of them and do our best to meet them.
Su: We also monitor the quality of the services provided by our partners and suppliers, such as the
work done for us by Craig’s Cleaning. When doing this, we need to be sure that the quality of every
part of our services meets or exceeds the expectations of our users.

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5.2.16 Service request management
Key message
The purpose of the service request management practice is to support the agreed quality of a
service by handling all pre-defined, user-initiated service requests in an effective and user-friendly
manner.
Definition: Service request
A request from a user or a user’s authorized representative that initiates a service action which has
been agreed as a normal part of service delivery.
Each service request may include one or more of the following:
a request for a service delivery action (for example, providing a report or replacing a toner cartridge)
a request for information (for example, how to create a document or what the hours of the office are)
a request for provision of a resource or service (for example, providing a phone or laptop to a user, or
providing a virtual server for a development team)
a request for access to a resource or service (for example, providing access to a file or folder)
feedback, compliments, and complaints (for example, complaints about a new interface or
compliments to a support team).
Fulfilment of service requests may include changes to services or their components; usually these are
standard changes. Service requests are a normal part of service delivery and are not a failure or
degradation of service, which are handled as incidents. Since service requests are pre-defined and pre-
agreed as a normal part of service delivery, they can usually be formalized, with a clear, standard
procedure for initiation, approval, fulfilment, and management. Some service requests have very simple
workflows, such as a request for information. Others, such as the setup of a new employee, may be quite
complex and require contributions from many teams and systems for fulfilment. Regardless of the
complexity, the steps to fulfil the request should be well-known and proven. This allows the service
provider to agree times for fulfilment and to provide clear communication of the status of the request to
users.
Some service requests require authorization according to financial, information security, or other policies,
while others may not need any. To be handled successfully, service request management should follow
these guidelines:
Service requests and their fulfilment should be standardized and automated to the greatest degree
possible.
Policies should be established regarding what service requests will be fulfilled with limited or even no
additional approvals so that fulfilment can be streamlined.

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The expectations of users regarding fulfilment times should be clearly set, based on what the
organization can realistically deliver.
Figure 5.35 Heat map of the contribution of service request management to value chain activities
Opportunities for improvement should be identified and implemented to produce faster fulfilment times
and take advantage of automation.
Policies and workflows should be included for the documenting and redirecting of any requests that are
submitted as service requests, but which should actually be managed as incidents or changes.
Some service requests can be completely fulfilled by automation from submission to closure, allowing for
a complete self-service experience. Examples include client software installation or provision of virtual
servers.
Service request management is dependent upon well-designed processes and procedures, which are
operationalized through tracking and automation tools to maximize the efficiency of the practice. Different
types of service request will have different fulfilment workflows, but both efficiency and maintainability will
be improved if a limited number of workflow models are identified. When new service requests need to be
added to the service catalogue, existing workflow models should be leveraged whenever possible.
Figure 5.35 shows the contribution of service request management to the service value chain, with the
practice being involved in all service value chain activities except the plan activity:
Improve Service request management can provide a channel for improvement initiatives,
compliments, and complaints from users. It also contributes to improvement by providing trend, quality,
and feedback information about fulfilment of requests.
Engage Service request management includes regular communication to collect user-specific
requirements, set expectations, and to provide status updates.
Design and transition Standard service components may be transitioned to the live environment
through service request fulfilment.
Obtain/build Acquisition of pre-approved service components may be fulfilled through service
requests.
Deliver and support Service request management makes a significant contribution to normal service
delivery. This activity of the value chain is mostly concerned with ensuring users continue to be
productive, and sometimes depends heavily on fulfilment of their requests.

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5.2.17 Service validation and testing
Key message
The purpose of the service validation and testing practice is to ensure that new or changed
products and services meet defined requirements. The definition of service value is based on input
from customers, business objectives, and regulatory requirements, and is documented as part of the
value chain activity of design and transition. These inputs are used to establish measurable quality
and performance indicators that support the definition of assurance criteria and testing requirements.
5.2.17.1 Service validation
Service validation focuses on establishing deployment and release management acceptance criteria
(conditions that must be met for production readiness), which are verified through testing. Acceptance
criteria can be either utility- or warranty-focused, and are defined through understanding customer,
regulatory, business, risk management, and security requirements.
The service validation activities of this practice establish, verify, and document both utility- and warranty-
focused service assurance criteria and form the basis for the scope and focus of testing activities.
5.2.17.2 Testing
A test strategy defines an overall approach to testing. It can apply to an environment, a platform, a set of
services, or an individual service. Testing should be carried out equally on both in-house developed
systems and externally developed solutions. The test strategy is based on the service acceptance criteria,
and should align with the requirements of appropriate stakeholders to ensure testing matches the risk
appetite and is fit for purpose.
Typical test types include:
Utility/functional tests:
Unit test A test of a single system component
System test Overall testing of the system, including software and platforms
Integration test Testing a group of dependent software modules together
Regression test Testing whether previously working functions were impacted.
Warranty/non-functional tests:
Performance and capacity test Checking speed and capacity under load
Security test Testing vulnerability, policy compliance, penetration, and denial of service risk
Compliance test Checking that legal and regulatory requirements have been met
Operational test Testing for backup, event monitoring, failover, recovery, and reporting
Warranty requirements test Checking for verification of necessary documentation, training,
support model definition, and knowledge transfer
User acceptance test The test performed by users of a new or changed system to approve a
release.

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Figure 5.36 shows the contribution of service validation and testing to the service value chain, with the
practice being involved in all value chain activities except the plan activity:
Improve Metrics of service validation and testing, such as escaped defects, test coverage, and service
performance against SLAs are critical success measures required to improve CX and lower risk.
Engage Involvement of some stakeholders in service validation and testing activities helps to engage
them and improves visibility and adoption of the services.
Design and transition Service design, knowledge management, performance management,
deployment management, and release management are all tightly integrated with the service validation
and testing practice.
Obtain/build Service validation and testing activities are closely linked to all practices related to
obtaining services from external service providers, as well as to project management and software
development activities in both waterfall and Agile methods.
Deliver and support Known errors are captured by service validation and testing and shared with the
service desk and incident management practices to enable faster service restoration timeframes.
Likewise, information regarding service disruption or escaped defects are fed back into service
validation and testing to increase the effectiveness and coverage of acceptance criteria and testing
activities.
Figure 5.36 Heat map of the contribution of service validation and testing to value chain activities
5.3 Technical management practices
5.3.1 Deployment management
Key message
The purpose of the deployment management practice is to move new or changed hardware,
software, documentation, processes, or any other component to live environments. It may also be

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involved in deploying components to other environments for testing or staging.
Deployment management works closely with release management and change enablement, but is a
separate practice. In some organizations the term ‘provisioning’ is used to describe the deployment of
infrastructure, and deployment is only used to mean software deployment, but in this case the term
deployment is used to mean both.
There are a number of distinct approaches that can be used for deployment. Many organizations use a
combination of these approaches, depending on their specific services and requirements as well as the
release sizes, types, and impact.
Phased deployment The new or changed components are deployed to just part of the production
environment at a time, for example to users in one office, or one country. This operation is repeated as
many times as needed until the deployment is complete.
Continuous delivery Components are integrated, tested, and deployed when they are needed,
providing frequent opportunities for customer feedback loops.
Big bang deployment New or changed components are deployed to all targets at the same time. This
approach is sometimes needed when dependencies prevent the simultaneous use of both the old and
new components. For example, there could be a database schema change that is not compatible with
previous versions of some components.
Pull deployment New or changed software is made available in a controlled repository, and users
download the software to client devices when they choose. This allows users to control the timing of
updates, and can be integrated with service request management to enable users to request software
only when it is needed.
Components that are available for deployment should be maintained in one or more secure locations to
ensure that they are not modified before deployment. These locations are collectively referred to as a
definitive media library for software and documentation, and a definitive hardware store for hardware
components.
Tools that support deployment are many and varied. They are often integrated with configuration
management tools, and can provide support for audit and change management. Most organizations have
tools for deploying client software, and these may be integrated with a service portal to support a request
management practice.
Communication around deployments is part of release management. Individual deployments are not
generally of interest to users and customers until they are released.
If infrastructure is provided as a service, then deployment of new or changed servers, storage, or
networking is typically managed by the organization, often treating the infrastructure as a code, so that
the organization can automate deployment. In these environments it is possible that some deployments
may be under the control of the supplier, such as the installation of firmware updates, or if they provide
the operating system as well as the infrastructure they may deploy operating system patches. The IT
organization must ensure that they know what deployments are planned, and which have happened, to
maintain a controlled environment.

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Figure 5.37 Heat map of the contribution of deployment management to value chain activities
If application development is provided as a service, then deployment may be carried out by the external
application developer, by the in-house IT department, or by a service integrator. Again, it is essential that
the organization is aware of all deployments so that a controlled environment can be maintained.
In an environment with multiple suppliers it is important to understand the scope and boundaries of each
organization’s deployment activities, and how these will interact. Most organizations have a process for
deployment, and this is often supported with standard tools and detailed procedures to ensure that
software is deployed in a consistent way. It is common to have different processes for different
environments. For example, there may be one process for the deployment of client application software,
and a completely different process for the deployment of server operating system patches.
Figure 5.37 shows the contribution of deployment management to the service value chain, with the
practice being applied mainly to the design and transition, and obtain/build value chain activities, but also
to the improve activity:
Improve Some improvements may require components to be deployed before they can be delivered,
and these should be planned and managed in the same way as any other deployment.
Design and transition Deployment management moves new and changed components to live
environments, so it is a vital element of this value chain activity.
Obtain/build Changes can be deployed incrementally as part of this value chain activity. This is
especially common in DevOps environments using a complete automated toolchain for continuous
integration, delivery, and deployment.
The ITIL story: Axle’s deployment management
Marco: Before we deploy changes to our booking app, we release the changes to a test
environment. After thorough testing, we make the changes available to our users and customers.
Radhika: We recently realized that the same logic can be applied to some of our non-digital
services and components. For example, last month we introduced two brand new hybrid models for
hire in some bigger cities. We created a promotional service offering for the new cars, updated our
marketing materials, trained our technicians to work with the new models, and deployed everything
in advance – including the vehicles. This happened before the official launch of the hybrid cars by
the manufacturer. And of course, it happened with their permission.
Su: By the time the launch date arrived, we were ready to go. We made the cars available to hire
that very day.

Henri: Partnering with our manufacturer meant we had a successful and well-prepared launch that
created a buzz with our customers and with theirs.
5.3.2 Infrastructure and platform management
Key message
The purpose of the infrastructure and platform management practice is to oversee the
infrastructure and platforms used by an organization. When carried out properly, this practice
enables the monitoring of technology solutions available to the organization, including the technology
of external service providers.
IT infrastructure is the physical and/or virtual technology resources, such as servers, storage, networks,
client hardware, middleware, and operating systems software, that provide the environments needed to
deliver IT services. This includes any CI a customer uses to access the service or consume a product. IT
infrastructure may be managed by the service provider or by an external supplier as dedicated, shared, or
cloud services. Infrastructure and platform management may also include the buildings and facilities an
organization uses to run its IT infrastructure.
The infrastructure and platform management practice includes the provision of technology needed to
support activities that create value for the organization and its stakeholders. This can include being ready
to adopt new technologies such as machine learning, chatbots, artificial intelligence, mobile device
management, and enterprise mobility management.
It is important to consider that every single organization must develop its own strategy to achieve the
intended outcome with any type of infrastructure or platform. Each organization should design its own
cloud management system to orchestrate all the interrelated components of infrastructure and platform
with its business goals and the intended service quality and operational efficiency.

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Figure 5.38 Heat map of the contribution of infrastructure and platform management to value chain
activities
Figure 5.38 shows the contribution of infrastructure and platform management to the service value chain,
with the practice being involved in all value chain activities except the engage activity:
Plan Infrastructure and platform management provides information about technology opportunities and
constraints that is used for the organization’s strategic and tactical planning.
Improve Information about technology opportunities that can support continual improvement, and any
constraints of the technologies in use, is provided by this practice.
Design and transition Product and service design benefits from the information provided about
technology opportunities and constraints.
Obtain/build Infrastructure and platform management is a critical contributor to this activity as it
provides necessary information about the components to be obtained.
Deliver and support At the operational level, infrastructure and platform management supports
ongoing maintenance of the services and the infrastructure, including any executions of patch
management, backups, etc.
Cloud service models
Cloud service models include:
Software as a service (SaaS) The consumer can use the applications running in the cloud
infrastructure without having to control or even manage the underlying cloud infrastructure.
Platform as a service (PaaS) The consumer can deploy onto the cloud acquired applications
created using programming languages, services, libraries, and/or tools supported by the supplier
without having to control or even manage the underlying cloud infrastructure. They have control
over the deployed applications and sometimes the configuration settings for the application and
hosting environment.
Infrastructure as a service (IaaS) The consumer can get processing, storage, and/or any other
computing resources without having to control the underlying infrastructure.
Cloud service deployment models
Every service model can be deployed in several ways, either independently or using a mix of the
following:
Private cloud This type of cloud may be located within the organization’s premises or outside of
it. It is a cloud infrastructure or platform to be used exclusively by a specific organization which, at
the same time, can have one or several consumers. This cloud is normally managed and owned
by an organization, a provider, or a combination of both.
Public cloud This type of cloud is located on the cloud provider premises. It is provisioned for
open use and may be owned, managed, and operated by any type of organization interested in
using it.
Community cloud A community cloud may be owned, managed, and operated by one or more of
the stakeholders in the community, and it may exist on or off the organization’s premises. This
cloud deployment model consists of several cloud services that are meant to support and share a
collection of cloud service customers with the same requirements and who have a relationship
with one another.
Hybrid cloud This cloud infrastructure is a composition of two or more distinct cloud

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infrastructures (private, community, or public) that remain unique entities, but are bound together
by standardized or proprietary technology that enables data and application portability.
ITIL practices and cloud computing
The advent of the cloud has been one of the greatest challenges and opportunities within the IT
world for decades. The promise of rapid, elastic storage and IT services available at the touch of a
button is one that many organizations struggle to deliver internally, not because the benefits are not
there to be had, but rather because their own ITSM processes and controls have not been adapted
to support a radically different way of working.
The management and control of IT services is a key skill of IT departments no matter where those
services are physically located, and the processes and controls offered by ITIL are readily adaptable
to support the management of those cloud services.
A coordinated response to the management of cloud services is essential. Organizations that
attempt to address only a cloud service provision as an operational issue will suffer on the tactical
front, just as an organization that attempts to control cloud services on a tactical front will suffer at
the strategic level. A joined-up approach covering all three levels, strategic, tactical, and operational,
is required.
Apart from the infrastructure and platform management practice, the operation and management of
cloud-based services involves many other practices. It should be noted that this is not a
comprehensive list:
Service financial management One of the adjustments that IT departments often have to make
for cloud computing is to their fiscal planning, which typically uses both traditional capital
expenditure (CAPEX) and operational expenditure (OPEX). With the advent of cloud computing,
OPEX is preferred over CAPEX, as cloud services are often consumed as utilities and paid out of
the operational budget. If cloud services are quicker and easier to access than in-house services,
the costs associated with them will grow as more parts of the business use them. The IT cost
model must be adjusted, and the service financial management practice can help to determine
the techniques and controls required to ensure that the organization does not run out of OPEX
unexpectedly.
Supplier management The focus of this practice will need to change from simply selecting
suppliers and onboarding them to acting as the front end for a full-on release management
process. This will ensure that areas such as IT security, data protection, and regulatory
compliance are routinely assessed prior to the onboarding of a new cloud offering.
Capacity and performance management Coupled with service financial management, this
practice should establish and monitor budgets, with thresholds tracked and warnings published if
an upswing in demand leads to an increase in the cost of cloud services.
Change enablement The boundaries of this practice will have to be redefined, as cloud service
providers often make changes with minimal customer involvement, and almost no customer
approval. Products and services built on top of cloud services will need to make far greater use of
standard changes to unlock the benefits that cloud platforms (and associated business models)
provide.
Incident management The focus of this practice will change from knowing how to fix in-house
issues, to knowing which service is supported by which cloud provider, and what information they
will require to resolve an issue. Greater care will be needed to support impacted customers and
teams.
Deployment management This practice will continue to be critical to IT departments, but the

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ability to safely onboard or offboard a cloud provider will become a common requirement for IT
departments. Deployment management will be a key capability for successful IT organizations, to
ensure new cloud capabilities are rapidly deployed and embedded within the in-house service
offerings.
5.3.3 Software development and management
Key message
The purpose of the software development and management practice is to ensure that
applications meet internal and external stakeholder needs, in terms of functionality, reliability,
maintainability, compliance, and auditability.
The term ‘software’ can be used to describe anything from a single program (or suite of programs) to
larger constructs (such as an operating system, an operating environment, or a database) on which
various smaller application programs, processes, or workflows can run. Therefore the term includes, but
is not limited to, desktop applications, or mobile apps, embedded software (controlling machines and
devices), and websites.
Software applications, whether developed in house or by a partner or vendor, are of critical importance in
the delivery of customer value in technology-enabled business services. As a result, software
development and management is a key practice in every modern IT organization, ensuring that
applications are fit for purpose and use.
The software development and management practice encompasses activities such as:
solution architecture
solution design (user interface, CX, service design, etc.)
software development
software testing (which can include several components, such as unit testing, integration testing,
regression testing, information security testing, and user acceptance testing)
management of code repositories or libraries to maintain integrity of artefacts
package creation, for the effective and efficient deployment of the application
version control, sharing, and ongoing management of smaller blocks of code.
The two generally accepted approaches to software development are referred to as the waterfall and
Agile methods (see section 5.1.8 for more information on these methods).
Software management is a wider practice, encompassing the ongoing activities of designing, testing,
operating, and improving software applications so they continue to facilitate value creation. Software
components can be continually evaluated using a lifecycle that tracks the component from ideation
through to ongoing improvement, and eventually retirement. This lifecycle is represented in Figure 5.39.

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Figure 5.39 The software lifecycle
Figure 5.40 shows the contribution of software development and management to the service value chain,
with the practice being involved in all value chain activities except the engage activity:
Plan Software development and management provides information about opportunities and constraints
related to the creation and changing of the organization’s software.
Improve Service improvements involving software components of the services, especially those
developed in house, rely on this practice.
Engage Software development and management often requires ongoing collaboration and
coordination with stakeholders.
Design and transition Software development and management allows the organization to holistically
design and manage changes to products and services.
Obtain/build The creation of in-house products and the configuration of products developed by
partners and suppliers depend on this practice.
Deliver and support Software development and management provides delivery and support teams
with documentation needed to use products that facilitate the co-creation of value.
Figure 5.40 Heat map of the contribution of software development and management to value chain

activities

END NOTE
THE ITIL STORY, ONE YEAR ON

End note
The ITIL story, one year on
It has been a year since Henri joined Axle Car Hire. There has been significant positive change during
this period. New services, such as biometrics and the advanced driver assistance system, are being
widely adopted by Axle’s consumers, and the company continues to gain a reputation for fast and reliable
service.
Customer loyalty has improved, with a large increase in the number of repeat bookings. Axle has also
been awarded Partner of the Year by two major clients, including Food for Fuel.
The Axle Green improvement initiative is well underway, with many targets to make the company more
environmentally friendly already met. Efforts to make up half of the Axle fleet with electric cars are also
going well, and the company has made great progress towards hitting this target. Henri’s vision to
become the most recognized car-hire brand in the world, offering a full travel experience, is within reach.
Axle sees how the concepts of ITIL are helping it to fulfil its objectives. The adoption and adaptation of
ITIL guidance helps Axle to deliver high-quality services and create value for itself and its customers.

APPENDIX A
EXAMPLES OF VALUE STREAMS

A Examples of value streams
This section demonstrates how the service value chain can be applied to practical situations and provides
examples of value streams. These value streams show how activity might flow through the value chain.
These are not models to be copied, but simply examples to give an understanding of how the value chain
should be used.
The examples include some sample job roles. These are just roles that might exist in the fictional
organization being described and are not recommended roles for every organization. To aid
understanding, the first value stream is described in some detail; in subsequent examples only a table
has been provided.
A.1 A user needs an incident to be resolved
In this first example of a value stream, the WiFi in a warehouse is not working properly because a
wireless access point has failed. This has a significant impact on the business because the forklift driver
cannot receive instructions quickly enough, and as such there is a risk that a business deadline will be
missed. This may seem like a relatively straightforward incident; however, it can’t be resolved by simply
mechanically following the steps of a predetermined incident management procedure.
First, someone must notice that there is an incident and know how to report it, and it must be possible for
that person to communicate the urgency of the situation accurately so that it can be prioritized correctly.
The person receiving the report must have both the authority to escalate the incident and the procedures
for doing so, and for monitoring the progress of the incident. Resources must be in place to allow for a
sufficiently rapid escalation; someone must have the skills, knowledge, and tools required to investigate
the incident; and there have to be procedures in place that allow standard changes to be implemented
without a requirement to obtain additional approval. It must be possible for someone to access accurate
configuration information and to log the repair once it has been completed. It must also be possible to log
that a spare part has been consumed and to re-order it against future need. If the repair is to be of any
value, however, the warehouse needs to be told what has happened, so that normal working can be
resumed. It is also important to check how well the incident was resolved, to see if there are any lessons
to be learned.
Table A.1 summarizes the different actions and resources required to resolve this apparently simple
incident. The table shows how multiple practices support this work, with some practices supporting
multiple value chain activities at different times.
Table A.1 Examples of value streams for incident resolution

A.2 An error in third-party software creates issues for a user
In this example a user discovers an issue when using an application. The vendor has a patch available
and this needs to be installed to rectify the situation. Note that this incident takes a very different path
through the service value chain, and is supported by a different balance of practices than the previous
incident.
Table A.2 Examples of value streams for software issues

A.3 Business requirement for a significant new IT service
In this example the internal IT department of a shoe manufacturer identifies a need for a new IT service.
Table A.3 Examples of value streams for creation of an IT service

A.4 Regulatory change requires new software development
In this example a financial organization must get ready to meet new regulatory requirements.
Table A.4 Examples of value streams for new software development

FURTHER RESEARCH

Further research
AXELOS publications
AXELOS (2018) A Guide to AgileSHIFT™. TSO, London.
AXELOS (2017) Managing Successful Projects with PRINCE2®. TSO, London.
AXELOS (2015) PRINCE2 Agile®. TSO, London.
AXELOS (2015) RESILIA®: Cyber Resilience Best Practice. TSO, London.
Cabinet Office (2011) Managing Successful Programmes. TSO, London.
Office of Government Commerce (2010) Management of Risk: Guidance for Practitioners. TSO, London.
Office of Government Commerce (2010) Management of Value. TSO, London.
Other publications
Goldratt, E. and Cox, J. (1992) The Goal: A Process of Ongoing Improvement. North River Press.
Hall, J. (2016). ITSM, DevOps, and why three-tier support should be replaced with Swarming.
https://medium.com/@JonHall_/itsm-devops-and-why-the-three-tier-structure-must-be-replaced-with-
swarming-91e76ba22304 [accessed: 22 July 2019].
Humble, J., Molesky, J. and O’Reilly, B. (2015) Lean Enterprise: How High Performance Organizations
Innovate at Scale. O’Reilly Media.
Kim, G., Behr, K. and Spafford, G. (2013) The Phoenix Project: A Novel About IT, DevOps and Helping
Your Business Win. IT Revolution Press.
Kim, G., Debois, P. and Willis, J. (2016) The DevOps Handbook: How to Create World-Class Agility,
Reliability, and Security in Technology Organizations. IT Revolution Press.
Vargo, S. L. and Lusch, R. F. (2016) Institutions and axioms: an extension and update of service-
dominant logic. Journal of the Academy of Marketing Science 44(4), pp. 5–23.
Vargo, S. L. and Lusch, R. F. (2011) Service-dominant logic: a necessary step. European Journal of
Marketing 45(7), pp. 1289–1309.
Vargo, S. L. and Lusch, R. F. (2008) Service-dominant logic: continuing the evolution. Journal of the
Academy of Marketing Science 36, pp. 1–10.
Websites
Agile Manifesto: http://www.agilemanifesto.org [accessed: 22 July 2019].
COBIT® 2019: http://www.isaca.org/Cobit/pages/default.aspx [accessed: 22 July 2019].

https://medium.com/@JonHall_/itsm-devops-and-why-the-three-tier-structure-must-be-replaced-with-swarming-91e76ba22304

http://www.agilemanifesto.org/

http://www.isaca.org/Cobit/pages/default.aspx

Cynefin Framework for decision making: https://cognitive-edge.com [accessed: 22 July 2019].
ISO/IEC 20000-1:2018: https://www.iso.org/standard/70636.html [accessed: 22 July 2019].
Lean IT: http://leanitassociation.com [accessed: 22 July 2019].
The IT4IT™ standards: https://publications.opengroup.org/standards/it4it [accessed: 22 July 2019].
The Open Group Architecture Framework (TOGAF®) standards:
https://publications.opengroup.org/standards/togaf [accessed: 22 July 2019].
The Standard + Case approach: applying Case management to ITSM: http://www.itskeptic.org/standard-
case [accessed: 22 July 2019].

https://cognitive-edge.com/

https://www.iso.org/standard/70636.html

Home

https://publications.opengroup.org/standards/it4it

https://publications.opengroup.org/standards/togaf

http://www.itskeptic.org/standard-case

GLOSSARY

Glossary
acceptance criteria
A list of minimum requirements that a service or service component must meet for it to be acceptable to
key stakeholders.
Agile
An umbrella term for a collection of frameworks and techniques that together enable teams and
individuals to work in a way that is typified by collaboration, prioritization, iterative and incremental
delivery, and timeboxing. There are several specific methods (or frameworks) that are classed as Agile,
such as Scrum, Lean, and Kanban.
architecture management practice
The practice of providing an understanding of all the different elements that make up an organization and
how those elements relate to one another.
asset register
A database or list of assets, capturing key attributes such as ownership and financial value.
availability
The ability of an IT service or other configuration item to perform its agreed function when required.
availability management practice
The practice of ensuring that services deliver agreed levels of availability to meet the needs of customers
and users.
baseline
A report or metric that serves as a starting point against which progress or change can be assessed.
best practice
A way of working that has been proven to be successful by multiple organizations.
big data
The use of very large volumes of structured and unstructured data from a variety of sources to gain new
insights.
business analysis practice
The practice of analysing a business or some element of a business, defining its needs and
recommending solutions to address these needs and/or solve a business problem, and create value for
stakeholders.
business case
A justification for expenditure of organizational resources, providing information about costs, benefits,
options, risks, and issues.
business impact analysis (BIA)

A key activity in the practice of service continuity management that identifies vital business functions and
their dependencies.
business relationship manager (BRM)
A role responsible for maintaining good relationships with one or more customers.
call
An interaction (e.g. a telephone call) with the service desk. A call could result in an incident or a service
request being logged.
call/contact centre
An organization or business unit that handles large numbers of incoming and outgoing calls and other
interactions.
capability
The ability of an organization, person, process, application, configuration item, or IT service to carry out
an activity.
capacity and performance management practice
The practice of ensuring that services achieve agreed and expected performance levels, satisfying
current and future demand in a cost-effective way.
capacity planning
The activity of creating a plan that manages resources to meet demand for services.
change
The addition, modification, or removal of anything that could have a direct or indirect effect on services.
change authority
A person or group responsible for authorizing a change.
change enablement practice
The practice of ensuring that risks are properly assessed, authorizing changes to proceed and managing
a change schedule in order to maximize the number of successful service and product changes.
change model
A repeatable approach to the management of a particular type of change.
change schedule
A calendar that shows planned and historical changes.
charging
The activity that assigns a price for services.
cloud computing
A model for enabling on-demand network access to a shared pool of configurable computing resources
that can be rapidly provided with minimal management effort or provider interaction.
compliance

The act of ensuring that a standard or set of guidelines is followed, or that proper, consistent accounting
or other practices are being employed.
confidentiality
A security objective that ensures information is not made available or disclosed to unauthorized entities.
configuration
An arrangement of configuration items (CIs) or other resources that work together to deliver a product or
service. Can also be used to describe the parameter settings for one or more CIs.
configuration item (CI)
Any component that needs to be managed in order to deliver an IT service.
configuration management database (CMDB)
A database used to store configuration records throughout their lifecycle. The CMDB also maintains the
relationships between configuration records.
configuration management system (CMS)
A set of tools, data, and information that is used to support service configuration management.
configuration record
A record containing the details of a configuration item (CI). Each configuration record documents the
lifecycle of a single CI. Configuration records are stored in a configuration management database.
continual improvement practice
The practice of aligning an organization’s practices and services with changing business needs through
the ongoing identification and improvement of all elements involved in the effective management of
products and services.
continuous deployment
An integrated set of practices and tools used to deploy software changes into the production environment.
These software changes have already passed pre-defined automated tests.
continuous integration/continuous delivery
An integrated set of practices and tools used to merge developers’ code, build and test the resulting
software, and package it so that it is ready for deployment.
control
The means of managing a risk, ensuring that a business objective is achieved, or that a process is
followed.
cost
The amount of money spent on a specific activity or resource.
cost centre
A business unit or project to which costs are assigned.
critical success factor (CSF)
A necessary precondition for the achievement of intended results.

culture
A set of values that is shared by a group of people, including expectations about how people should
behave, ideas, beliefs, and practices.
customer
The role that defines the requirements for a service and takes responsibility for the outcomes of service
consumption.
customer experience (CX)
The sum of functional and emotional interactions with a service and service provider as perceived by a
service customer.
dashboard
A real-time graphical representation of data.
deliver and support
The value chain activity that ensures services are delivered and supported according to agreed
specifications and stakeholders’ expectations.
demand
Input to the service value system based on opportunities and needs from internal and external
stakeholders.
deployment
The movement of any service component into any environment.
deployment management practice
The practice of moving new or changed hardware, software, documentation, processes, or any other
service component to live environments.
design and transition
The value chain activity that ensures products and services continually meet stakeholder expectations for
quality, costs, and time to market.
design thinking
A practical and human-centred approach used by product and service designers to solve complex
problems and find practical and creative solutions that meet the needs of an organization and its
customers.
development environment
An environment used to create or modify IT services or applications.
DevOps
An organizational culture that aims to improve the flow of value to customers. DevOps focuses on culture,
automation, Lean, measurement, and sharing (CALMS).
digital transformation
The evolution of traditional business models to meet the needs of highly empowered customers, with
technology playing an enabling role.

disaster
A sudden unplanned event that causes great damage or serious loss to an organization. A disaster
results in an organization failing to provide critical business functions for some predetermined minimum
period of time.
disaster recovery plans
A set of clearly defined plans related to how an organization will recover from a disaster as well as return
to a pre-disaster condition, considering the four dimensions of service management.
driver
Something that influences strategy, objectives, or requirements.
effectiveness
A measure of whether the objectives of a practice, service or activity have been achieved.
efficiency
A measure of whether the right amount of resources have been used by a practice, service, or activity.
emergency change
A change that must be introduced as soon as possible.
engage
The value chain activity that provides a good understanding of stakeholder needs, transparency, continual
engagement, and good relationships with all stakeholders.
environment
A subset of the IT infrastructure that is used for a particular purpose, for example a live environment or
test environment. Can also mean the external conditions that influence or affect something.
error
A flaw or vulnerability that may cause incidents.
error control
Problem management activities used to manage known errors.
escalation
The act of sharing awareness or transferring ownership of an issue or work item.
event
Any change of state that has significance for the management of a service or other configuration item.
external customer
A customer who works for an organization other than the service provider.
failure
A loss of ability to operate to specification, or to deliver the required output or outcome.
feedback loop
A technique whereby the outputs of one part of a system are used as inputs to the same part of the

system.
four dimensions of service management
The four perspectives that are critical to the effective and efficient facilitation of value for customers and
other stakeholders in the form of products and services.
goods
Tangible resources that are transferred or available for transfer from a service provider to a service
consumer, together with ownership and associated rights and responsibilities.
governance
The means by which an organization is directed and controlled.
identity
A unique name that is used to identify and grant system access rights to a user, person, or role.
improve
The value chain activity that ensures continual improvement of products, services, and practices across
all value chain activities and the four dimensions of service management.
incident
An unplanned interruption to a service or reduction in the quality of a service.
incident management
The practice of minimizing the negative impact of incidents by restoring normal service operation as
quickly as possible.
information and technology
One of the four dimensions of service management. It includes the information and knowledge used to
deliver services, and the information and technologies used to manage all aspects of the service value
system.
information security management practice
The practice of protecting an organization by understanding and managing risks to the confidentiality,
integrity, and availability of information.
information security policy
The policy that governs an organization’s approach to information security management.
infrastructure and platform management practice
The practice of overseeing the infrastructure and platforms used by an organization. This enables the
monitoring of technology solutions available, including solutions from third parties.
integrity
A security objective that ensures information is only modified by authorized personnel and activities.
internal customer
A customer who works for the same organization as the service provider.

Internet of Things
The interconnection of devices via the internet that were not traditionally thought of as IT assets, but now
include embedded computing capability and network connectivity.
IT asset
Any financially valuable component that can contribute to the delivery of an IT product or service.
IT asset management practice
The practice of planning and managing the full lifecycle of all IT assets.
IT infrastructure
All of the hardware, software, networks, and facilities that are required to develop, test, deliver, monitor,
manage, and support IT services.
IT service
A service based on the use of information technology.
ITIL
Best-practice guidance for IT service management.
ITIL guiding principles
Recommendations that can guide an organization in all circumstances, regardless of changes in its goals,
strategies, type of work, or management structure.
ITIL service value chain
An operating model for service providers that covers all the key activities required to effectively manage
products and services.
ITIL value chain activity
A step of the value chain that an organization takes in the creation of value.
Kanban
A method for visualizing work, identifying potential blockages and resource conflicts, and managing work
in progress.
key performance indicator (KPI)
An important metric used to evaluate the success in meeting an objective.
knowledge management practice
The practice of maintaining and improving the effective, efficient, and convenient use of information and
knowledge across an organization.
known error
A problem that has been analysed but has not been resolved.
Lean
An approach that focuses on improving workflows by maximizing value through the elimination of waste.
lifecycle

The full set of stages, transitions, and associated statuses in the life of a service, product, practice, or
other entity.
live
Refers to a service or other configuration item operating in the live environment.
live environment
A controlled environment used in the delivery of IT services to service consumers.
maintainability
The ease with which a service or other entity can be repaired or modified.
major incident
An incident with significant business impact, requiring an immediate coordinated resolution.
management system
Interrelated or interacting elements that establish policy and objectives and enable the achievement of
those objectives.
maturity
A measure of the reliability, efficiency and effectiveness of an organization, practice, or process.
mean time between failures (MTBF)
A metric of how frequently a service or other configuration item fails.
mean time to restore service (MTRS)
A metric of how quickly a service is restored after a failure.
measurement and reporting
The practice of supporting good decision-making and continual improvement by decreasing levels of
uncertainty.
metric
A measurement or calculation that is monitored or reported for management and improvement.
minimum viable product (MVP)
A product with just enough features to satisfy early customers, and to provide feedback for future product
development.
mission
A short but complete description of the overall purpose and intentions of an organization.
model
A representation of a system, practice, process, service, or other entity that is used to understand and
predict its behaviour and relationships.
modelling
The activity of creating, maintaining, and utilizing models.

monitoring
Repeated observation of a system, practice, process, service, or other entity to detect events and to
ensure that the current status is known.
monitoring and event management practice
The practice of systematically observing services and service components, and recording and reporting
selected changes of state identified as events.
obtain/build
The value chain activity that ensures service components are available when and where they are needed,
and that they meet agreed specifications.
operation
The routine running and management of an activity, product, service, or other configuration item.
operational technology
The hardware and software solutions that detect or cause changes in physical processes through direct
monitoring and/or control of physical devices such as valves, pumps, etc.
organization
A person or a group of people that has its own functions with responsibilities, authorities, and
relationships to achieve its objectives.
organizational change management practice
The practice of ensuring that changes in an organization are smoothly and successfully implemented and
that lasting benefits are achieved by managing the human aspects of the changes.
organizational resilience
The ability of an organization to anticipate, prepare for, respond to, and adapt to unplanned external
influences.
organizational velocity
The speed, effectiveness, and efficiency with which an organization operates. Organizational velocity
influences time to market, quality, safety, costs, and risks.
organizations and people
One of the four dimensions of service management. It ensures 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.
outcome
A result for a stakeholder enabled by one or more outputs.
output
A tangible or intangible deliverable of an activity.
outsourcing
The process of having external suppliers provide products and services that were previously provided
internally.

partners and suppliers
One of the four dimensions of service management. It encompasses the relationships an organization has
with other organizations that are involved in the design, development, deployment, delivery, support,
and/or continual improvement of services.
partnership
A relationship between two organizations that involves working closely together to achieve common goals
and objectives.
performance
A measure of what is achieved or delivered by a system, person, team, practice, or service.
pilot
A test implementation of a service with a limited scope in a live environment.
plan
The value chain activity that ensures a shared understanding of the vision, current status, and
improvement direction for all four dimensions and all products and services across an organization.
policy
Formally documented management expectations and intentions, used to direct decisions and activities.
portfolio management practice
The practice of ensuring that an organization has the right mix of programmes, projects, products, and
services to execute its strategy within its funding and resource constraints.
post-implementation review (PIR)
A review after the implementation of a change, to evaluate success and identify opportunities for
improvement.
practice
A set of organizational resources designed for performing work or accomplishing an objective.
problem
A cause, or potential cause, of one or more incidents.
problem management practice
The practice of reducing the likelihood and impact of incidents by identifying actual and potential causes
of incidents, and managing workarounds and known errors.
procedure
A documented way to carry out an activity or a process.
process
A set of interrelated or interacting activities that transform inputs into outputs. Processes define the
sequence of activities and their dependencies.
product
A configuration of an organization’s resources designed to offer value for a consumer.

production environment
See live environment.
programme
A set of related projects and activities, and an organization structure created to direct and oversee them.
project
A temporary structure that is created for the purpose of delivering one or more outputs (or products)
according to an agreed business case.
project management practice
The practice of ensuring that all an organization’s projects are successfully delivered.
quick win
An improvement that is expected to provide a return on investment in a short period of time with relatively
small cost and effort.
record
A document stating results achieved and providing evidence of activities performed.
recovery
The activity of returning a configuration item to normal operation after a failure.
recovery point objective (RPO)
The point to which information used by an activity must be restored to enable the activity to operate on
resumption.
recovery time objective (RTO)
The maximum acceptable period of time following a service disruption that can elapse before the lack of
business functionality severely impacts the organization.
relationship management practice
The practice of establishing and nurturing links between an organization and its stakeholders at strategic
and tactical levels.
release
A version of a service or other configuration item, or a collection of configuration items, that is made
available for use.
release management practice
The practice of making new and changed services and features available for use.
reliability
The ability of a product, service, or other configuration item to perform its intended function for a specified
period of time or number of cycles.
request catalogue
A view of the service catalogue, providing details on service requests for existing and new services, which
is made available for the user.

request for change (RFC)
A description of a proposed change used to initiate change enablement.
resolution
The action of solving an incident or problem.
resource
Personnel, material, finance, or other entity that is required for the execution of an activity or the
achievement of an objective. Resources used by an organization may be owned by the organization or
used according to an agreement with the resource owner.
retire
The act of permanently withdrawing a product, service, or other configuration item from use.
risk
A possible event that could cause harm or loss, or make it more difficult to achieve objectives. Can also
be defined as uncertainty of outcome, and can be used in the context of measuring the probability of
positive outcomes as well as negative outcomes.
risk assessment
An activity to identify, analyse, and evaluate risks.
risk management practice
The practice of ensuring that an organization understands and effectively handles risks.
service
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.
service action
Any action required to deliver a service output to a user. Service actions may be performed by a service
provider resource, by service users, or jointly.
service architecture
A view of all the services provided by an organization. It includes interactions between the services, and
service models that describe the structure and dynamics of each service.
service catalogue
Structured information about all the services and service offerings of a service provider, relevant for a
specific target audience.
service catalogue management practice
The practice of providing a single source of consistent information on all services and service offerings,
and ensuring that it is available to the relevant audience.
service configuration management practice
The practice of ensuring that accurate and reliable information about the configuration of services, and
the configuration items that support them, is available when and where needed.

service consumption
Activities performed by an organization to consume services. It includes the management of the
consumer’s resources needed to use the service, service actions performed by users, and the receiving
(acquiring) of goods (if required).
service continuity management practice
The practice of ensuring that service availability and performance are maintained at a sufficient level in
case of a disaster.
service design practice
The practice of designing products and services that are fit for purpose, fit for use, and that can be
delivered by the organization and its ecosystem.
service desk
The point of communication between the service provider and all its users.
service desk practice
The practice of capturing demand for incident resolution and service requests.
service financial management practice
The practice of supporting an organization’s strategies and plans for service management by ensuring
that the organization’s financial resources and investments are being used effectively.
service level
One or more metrics that define expected or achieved service quality.
service level agreement (SLA)
A documented agreement between a service provider and a customer that identifies both services
required and the expected level of service.
service level management practice
The practice of setting clear business-based targets for service performance so that the delivery of a
service can be properly assessed, monitored, and managed against these targets.
service management
A set of specialized organizational capabilities for enabling value for customers in the form of services.
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.
service owner
A role that is accountable for the delivery of a specific service.
service portfolio
A complete set of products and services that are managed throughout their lifecycles by an organization.
service provider
A role performed by an organization in a service relationship to provide services to consumers.

service provision
Activities performed by an organization to provide services. It includes 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. It may also include
the supply of goods.
service relationship
A cooperation between a service provider and service consumer. Service relationships include service
provision, service consumption, and service relationship management.
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 request
A request from a user or a user’s authorized representative that initiates a service action which has been
agreed as a normal part of service delivery.
service request management practice
The practice of supporting the agreed quality of a service by handling all pre-defined, user-initiated
service requests in an effective and user-friendly manner.
service validation and testing practice
The practice of ensuring that new or changed products and services meet defined requirements.
service value system (SVS)
A model representing how all the components and activities of an organization work together to facilitate
value creation.
software development and management practice
The practice of ensuring that applications meet stakeholder needs in terms of functionality, reliability,
maintainability, compliance, and auditability.
sourcing
The activity of planning and obtaining resources from a particular source type, which could be internal or
external, centralized or distributed, and open or proprietary.
specification
A documented description of the properties of a product, service, or other configuration item.
sponsor
The role that authorizes budget for service consumption. Can also be used to describe an organization or
individual that provides financial or other support for an initiative.
stakeholder
A person or organization that has an interest or involvement in an organization, product, service, practice,
or other entity.
standard

A document, established by consensus and approved by a recognized body, that provides for common
and repeated use, mandatory requirements, guidelines, or characteristics for its subject.
standard change
A low-risk, pre-authorized change that is well understood and fully documented, and which can be
implemented without needing additional authorization.
status
A description of the specific states an entity can have at a given time.
strategy management practice
The practice of formulating the goals of an organization and adopting the courses of action and allocation
of resources necessary for achieving those goals.
supplier
A stakeholder responsible for providing services that are used by an organization.
supplier management practice
The practice of ensuring that an organization’s suppliers and their performance levels are managed
appropriately to support the provision of seamless quality products and services.
support team
A team with the responsibility to maintain normal operations, address users’ requests, and resolve
incidents and problems related to specified products, services, or other configuration items.
system
A combination of interacting elements organized and maintained to achieve one or more stated purposes.
systems thinking
A holistic approach to analysis that focuses on the way that a system’s constituent parts work, interrelate,
and interact over time, and within the context of other systems.
technical debt
The total rework backlog accumulated by choosing workarounds instead of system solutions that would
take longer.
test environment
A controlled environment established to test products, services, and other configuration items.
third party
A stakeholder external to an organization.
throughput
A measure of the amount of work performed by a product, service, or other system over a given period of
time.
transaction
A unit of work consisting of an exchange between two or more participants or systems.

use case
A technique using realistic practical scenarios to define functional requirements and to design tests.
user
The role that uses services.
user experience (UX)
The sum of the functional and emotional interactions with a service and service provider as perceived by
a user.
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,
a service must either support the performance of the consumer or remove constraints from the consumer.
Many services do both.
utility requirements
Functional requirements which have been defined by the customer and are unique to a specific product.
validation
Confirmation that the system, product, service, or other entity meets the agreed specification.
value
The perceived benefits, usefulness, and importance of something.
value stream
A series of steps an organization undertakes to create and deliver products and services to consumers.
value streams and processes
One of the four dimensions of service management. It defines the activities, workflows, controls, and
procedures needed to achieve the agreed objectives.
vision
A defined aspiration of what an organization would like to become in the future.
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’. Warranty often
relates to service levels aligned with the needs of service consumers. This may be based on a formal
agreement, or it may be a marketing message or brand image. Warranty typically addresses such areas
as the availability of the service, its capacity, levels of security, and continuity. A service may be said to
provide acceptable assurance, or ‘warranty’, if all defined and agreed conditions are met.
warranty requirements
Typically non-functional requirements captured as inputs from key stakeholders and other practices.
waterfall method
A development approach that is linear and sequential with distinct objectives for each phase of
development.

work instruction
A detailed description to be followed in order to perform an activity.
workaround
A solution that reduces or eliminates the impact of an incident or problem for which a full resolution is not
yet available. Some workarounds reduce the likelihood of incidents.
workforce and talent management practice
The practice of ensuring that an organization has the right people with the appropriate skills and
knowledge and in the correct roles to support its business objectives.

ACKNOWLEDGEMENTS

Acknowledgements
AXELOS Ltd is grateful to everyone who has contributed to the development of this guidance and in
particular would like to thank the following people.
Authoring team
Roman Jouravlev
Roman works at AXELOS as a portfolio development manager, responsible for the continual development
of ITIL. He joined AXELOS in 2016 after working for more than 15 years in ITSM, mostly in Russia, as a
trainer, consultant, quality manager, and (many years ago) service desk manager. Roman has authored
and translated several books and many articles on IT service management.
Akshay Anand
Akshay is a product ambassador at AXELOS, working on the development of new guidance and research
within the ITSM portfolio. With experience from the US, UK, and India, he previously advised Fortune 100
clients on their ITSM capabilities, implemented toolsets such as Remedy and ServiceNow, and headed
up global ITSM activities at Macmillan Publishing. More recently, Akshay has focused on bringing
together Agile development teams and ITSM professionals to address the challenges posed by emerging
technologies. He tweets as @bloreboy.
José Carmona Orbezo
José works at AXELOS as head of product management, responsible for shaping the strategy and vision
of the AXELOS product portfolio. He joined AXELOS in 2016, after completing his MBA at Manchester
Business School. His background as a commercial strategist entails product management, product
launch, licensing, marketing, branding, and consumer engagement.
Erin Casteel
Erin is a specialist in service management and integration, organizational governance, and cybersecurity.
She is passionate about helping organizations to build, run, and improve integrated, organizational
ecosystems that enable increased agility, resilience, and velocity. Erin is particularly focused on systems
thinking, enterprise architecture, and organizational culture to support digital transformation. Since 2006,
Erin has contributed to the development of ISO/IEC 20000, has chaired the ISO/IEC working group, and
has edited and contributed to the ISO/IEC 27000 series of standards for information security
management.
Mauricio Corona
Dr Corona is an experienced IT and ITSM professional, considered as one of the top 25 thought leaders
in technical support and service management, and as one of the top 100 influencers in IT service
management. He holds 19 ITIL certifications as well as certifications in COBIT, ISO 20000 and 27000,
PRINCE2, and MCP. In addition to teaching graduate-level courses in Mexico and conducting scientific
research related to digital transformation, Dr Corona is also a well-known international speaker. In 2018

he was appointed as a member of the SDI board as the global chief of transformation.
Troy DuMoulin
Troy is a leading IT governance and service management authority with more than 20 years’ experience
in executive IT service management training and consulting. Troy is a frequent public speaker, and is a
published author and contributor to multiple ITSM and Lean IT books, such as Defining IT Success
through the Service Catalog (2007), ITIL V3 Planning to Implement IT Service Management (2010) and
ITIL Continual Service Improvement (2011). Troy was recently named as one of the top 25 industry
influencers in tech support.
Marcel Foederer
As an IT service management trainer, consultant, and line manager with more than 25 years’ experience,
Marcel has performed strategic and tactical assignments in a wide variety of areas. His experience in both
the private and public sectors includes project and programme management, product management,
service management, requirements analysis, and training delivery in best-practice IT service
management.
Philip Hearsum
Philip joined the Office of Government Commerce (later to become the Cabinet Office) in 2010. In 2013,
AXELOS was born as a partnership between the Cabinet Office and Capita, and Philip moved into the
role he holds today as ITSM portfolio manager. Philip is a member of the UK working group for ISO
20000. He holds the ITIL V2 Manager, V3 Expert, PRINCE2 Practitioner, RESILIA, M_O_R, ITIL
Practitioner and ISO 20000 consultant certifications. He was also involved in the ITIL 2011 update, in the
role of project quality assurance.
Lou Hunnebeck
An ITIL expert with more than 30 years’ experience in the service industries, Lou is a principal adviser at
DXC Fruition. Her passion for improving how we do what we do has led her to IT service management
from a background of process consulting, training, and service management systems consulting. Devoted
to advancing the art and practice of service management, Lou served as the author of ITIL Service
Design (2011), was on the ITIL senior examination panel, served on the architect team, and was co-
author for ITIL Practitioner Guidance (2016). Lou speaks regularly at industry meetings to spread the
message of ITSM.
Margo Leach
Margo joined AXELOS in 2016, bringing diverse experience in new product delivery, product
management, and digital and business transformation. Previously responsible for market-leading product
portfolios and business-wide transformations, Margo has since been instrumental in the development and
management of the PPM and ITSM portfolios at AXELOS. Leading the entire product function, recent
successes include the release of Managing Successful Projects with PRINCE2 (2017), the ongoing
evolution of the ITIL 4 programme, and the further development with key partners of global markets for
AXELOS.
Barclay Rae
Barclay is an experienced ITSM consultant, analyst, and writer. He has worked on approximately 700
ITSM projects over the last 25 years, and writes blogs and research and white papers on ITSM topics for

a variety of industry organizations and vendors. Barclay is a director of EssentialSM and was CEO of
itSMF UK from 2015 to 2018. He is also a co-author of the SDI SDC certification standards, a participant
in the current ISO/IEC 20000 revision, and a co-architect of the ITIL Practitioner scheme. Barclay is an
associate of SDI (as a consultant and auditor) and is a member of the SDI strategic advisory board.
Stuart Rance
Stuart is a consultant, author, and expert in ITSM and information security management. He was an
author for ITIL Practitioner (2016), RESILIA™: Cyber Resilience Best Practice (2015), and ITIL Service
Transition (2011). Stuart is an examiner for RESILIA and ITIL, and teaches these as well as CISSP and
others. Stuart also provides consulting to organizations of all sizes, helping them use ideas from IT
service management and information security management to increase the value they create for
themselves and their customers.
Takashi Yagi
Takashi is a service management professional based in Japan, and was one of the core members of
itSMF Japan that was established in 2003. He has been proactive in the promotion of IT service
management best practice through the translation of ITIL books, including ITIL V2, ITIL V3, and the ITIL
2011 editions. Takashi is also active in the ISO world, working as the convener for the Special Committee
40 Working Group 2 in Japan, which focuses on the maintenance and development of ISO/IEC 20000. He
was co-editor for the ISO/IEC 20000-1.
The ITIL storyline
Katrina Macdermid
Katrina is an ITIL4 global ambassador, author, and creator of an innovative integrated framework, human-
centred ITIL service design. She is an ITIL Master, with a solid background in designing and
implementing innovative IT operating models which put the customer experience at the heart of all ITIL
processes. Katrina has been responsible for the successful implementation of key strategic programmes
and integrated service management in some of Australia’s largest organizations. She is a well-known
speaker on human-centred ITIL service design.
Project team
David Atkins Content delivery and production manager
Rachida Chekaf Head of translations
Clémence Court Product and community coordinator
Adrian Crago-Graham Head of PMO
Ricky Elizabeth Brand and design manager
James Lord Senior qualifications and assessment specialist
Michael Macgregor Project manager
James Robertson Senior qualifications and assessment specialist
Heigor Simões de Freitas Product manager ITSM
Tom Young Commissioning editor – ITIL
Contributors
Lief Andersson, Virginia Araújo, Craig Bennion, Joseph Caudle, Stefan Cronholm, Pavel Demin, Domitien
Dijon, Marie DiRuzza, Phyllis Drucker, John Edmonds, Douglas Fidler, Alfonso Figueroa, James Gander,
Ann Gerwitz, Hannes Göbel, Bob Gribben, Damian Harris, Simon Harris, Denise Heinle, Matthew Helm,

Peter Hero, Jessica Hinkal, Frantz Honegger, Rosh Hosany, Peter Hubbard, Dmitriy Isaychenko, Marcus
Jackson, Stéphane Joret, Michael Keeling, Claudine Koers, Shirley Lacy, Anton Lykov, Celisa Manly,
Caspar Miller, James Monek, David Moskowitz, Christian Nissen, Mark O’Loughlin, Tatiana Orlova, Ben
Page, Mitch Pautz, Tatiana Peftieva, Donka Raytcheva, Nicola Reeves, Frances Scarff, Nikolai Schmidt-
Ott, Mark Smalley, Chris Whitehead, Paul Wilkinson, Martin Wolf, Sarah Woodrow, Ulla Zeeberg

Copyright Page
Contents
List of figures
List of tables
Welcome to ITIL 4
About this publication
Chapter 1: Introduction
1.1 IT service management in the modern world
1.2 About ITIL 4
1.3 The structure and benefits of the ITIL 4 framework
1.3.1 The ITIL SVS
1.3.2 The four dimensions model

Chapter 2: Key concepts of service management
2.1 Value and value co-creation
2.1.1 Value co-creation
2.2 Organizations, service providers, service consumers, and other stakeholders
2.2.1 Service providers
2.2.2 Service consumers
2.2.3 Other stakeholders
2.3 Products and services
2.3.1 Configuring resources for value creation
2.3.2 Service offerings
2.4 Service relationships
2.4.1 The service relationship model
2.5 Value: outcomes, costs, and risks
2.5.1 Outcomes
2.5.2 Costs
2.5.3 Risks
2.5.4 Utility and warranty
2.6 Summary
Chapter 3: The four dimensions of service management
3.1 Organizations and people
3.2 Information and technology
3.3 Partners and suppliers
3.4 Value streams and processes
3.4.1 Value streams for service management
3.4.2 Processes
3.5 External factors
3.6 Summary
Chapter 4: The ITIL service value system
4.1 Service value system overview
4.2 Opportunity, demand, and value
4.3 The ITIL guiding principles
4.3.1 Focus on value
4.3.2 Start where you are
4.3.3 Progress iteratively with feedback
4.3.4 Collaborate and promote visibility
4.3.5 Think and work holistically
4.3.6 Keep it simple and practical
4.3.7 Optimize and automate
4.3.8 Principle interaction
4.4 Governance
4.4.1 Governing bodies and governance
4.4.2 Governance in the SVS
4.5 Service value chain
4.5.1 Plan
4.5.2 Improve
4.5.3 Engage
4.5.4 Design and transition
4.5.5 Obtain/build
4.5.6 Deliver and support
4.6 Continual improvement
4.6.1 Steps of the continual improvement model
4.6.2 Continual improvement and the guiding principles
4.7 Practices
4.8 Summary
Chapter 5: ITIL management practices
5.1 General management practices
5.1.1 Architecture management
5.1.2 Continual improvement
5.1.3 Information security management
5.1.4 Knowledge management
5.1.5 Measurement and reporting
5.1.6 Organizational change management
5.1.7 Portfolio management
5.1.8 Project management
5.1.9 Relationship management
5.1.10 Risk management
5.1.11 Service financial management
5.1.12 Strategy management
5.1.13 Supplier management
5.1.14 Workforce and talent management
5.2 Service management practices
5.2.1 Availability management
5.2.2 Business analysis
5.2.3 Capacity and performance management
5.2.4 Change enablement
5.2.5 Incident management
5.2.6 IT asset management
5.2.7 Monitoring and event management
5.2.8 Problem management
5.2.9 Release management
5.2.10 Service catalogue management
5.2.11 Service configuration management
5.2.12 Service continuity management
5.2.13 Service design
5.2.14 Service desk
5.2.15 Service level management
5.2.16 Service request management
5.2.17 Service validation and testing
5.3 Technical management practices
5.3.1 Deployment management
5.3.2 Infrastructure and platform management
5.3.3 Software development and management

End note: The ITIL story, one year on
Appendix A: Examples of value streams
Further research
Glossary
Acknowledgements