the latest version of ITIL:, ITIL 4: introduced many new concepts. is one of these new concepts Value system of services, Service value chain and: Value stream. The Service Value Chain (SVC) is a key component of the ITIL® Service Value System (SVS). It is an operational model used to represent how all the components and activities of an organization work together to contribute to the creation of value. It uses six core “activities” that help ITIL practitioners conceptualize, create, review, and improve high-quality services that fully meet customer and stakeholder requirements.
The six activities of the service value chain represent the steps that can be taken to create value. Remember that activities are not linear. Not all operations will be used for every service, and each service may have different orders and/or combinations of these operations.
Plan- The purpose of project services value chain activities is to ensure that all stakeholders and people involved have a shared understanding of the vision. This will focus on the current status and direction for improvement across all four dimensions and across all of the organization’s products and services.
Improve- Improve Services Value Chain Operations focuses on the continuous improvement of products, services and practices across all value chain operations and the four dimensions of service management.
Engage- The Engage value chain activity is the most important activity because this is where you listen to your customer and understand their needs well. This is where you ensure transparency and with continued engagement you will build good relationships with all stakeholders. They will also take stakeholder and client requirements and turn them into tangible design points to be used in the fourth activity.
Design and Transition – The design and transition value chain activities are where you aim to match your products and services to your customer’s expectations when it comes to design, quality, features, cost and time to market. Requirements are also translated into specifications that can be used in Get/Build activities. Finally, Design and Transition provides new products and services for the sixth activity, delivery and support.
Get/build- These Activities ensure that service components meet the required specifications, including being available when and where needed. It effectively translates requirements into service components that can be used in both Design and Transition and Delivery and Support Activities.
Shipping and Support – Delivery and support activities deliver services and products to the customer, ensuring that such delivery meets agreed specifications and stakeholder expectations.
Advantages of using Service Value Stream –
IT related Benefits of using the ITIL Service Value Stream is part of a larger set of benefits associated with using ITIL for value mapping and value chain analysis;
- Meeting business needs for “better, faster, cheaper” operations and competitive advantage.
- Optimizing IT service delivery and support capabilities and outcomes.
- An opportunity for full digital transformation of the enterprise.
Furthermore, the benefits available include:
- Focus on value creation or co-creation (and ability to demonstrate the value of IT)
- Standardization and consistency using proven best practices
- Better meet the growing expectations and demands of customers and employees
- Increased speed and efficiency
- Reduced costs (for competitive advantage)
- Improved control and management
- A platform for continuous improvement
It Service value chain in ITIL 4 is essentially an operational model that lists the six key activities needed to create value with a product or service: plan, engage, design and transition, acquire/build, deliver and support, and improve. The important thing to know here is that the Service Value Chain is the operating model through which service value flows. flow from demand/capability to value. You can think of the Service Value Chain as a railway network, and the Service Value Streams as the trains running on that network. It’s also worth noting that the model can indeed serve as a workflow, but can also be used simply as a high-level reminder of a sound thought process to ensure proper value chain management.