6 Service value chain
The ITIL service value chain provides an operating model for the creation, delivery, and continual improvement of services. It is a flexible model defining six key activities that can be combined in many ways to form multiple value streams.
The service value chain is flexible enough to be adapted to multiple approaches, including DevOps and centralized IT, and 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.
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.
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.
6.2 Overview of the service value chain
The six ITIL service value chain activities, as shown in Figure 6.1, 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.
Figure 6.1 The ITIL service value chain
All the activities are interconnected, with each activity receiving and providing 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.
Heat maps are used to show the contribution of a specific ITIL practice to the value chain activities.
Purpose
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.
Table 6.1 summarizes the key inputs and outputs for the plan activity.
Table 6.1 Key inputs and outputs for the plan activity 
Key inputs |
Key outputs |
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 service from design and transition and obtain/build Knowledge and information about third-party service components from engage |
Strategic, tactical, and operational plans Portfolio decisions for design and transition Architectures and policies for design and transition Improvement opportunities for improve Product and service portfolio for engage Contract and agreement requirements for engage |
Purpose
To ensure continual improvement of products, services, and practices across all value chain activities and the four dimensions of service management.
Table 6.2 summarizes the key inputs and outputs for the improve activity.
Table 6.2 Key inputs and outputs for the improve activity
Key inputs |
Key outputs |
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 |
Improvement initiatives for all value chain activities Contract and agreement requirements for engage Value chain performance information for plan and the governing body Improvement status reports for all value chain activities Service performance information for design and transition |
Purpose
To provide a good understanding of stakeholder needs, transparency, and continual engagement and good relationships with all stakeholders.
Table 6.3 summarizes the key inputs and outputs for the engage activity.
Table 6.3 Key inputs and outputs for the engage activity
Key inputs |
Key outputs |
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 |
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 |
Purpose
To ensure that products and services continually meet stakeholder expectations for quality, costs, and time to market.
Table 6.4 summarizes the key inputs and outputs for the design and transition activity.
Table 6.4 Key inputs and outputs for the design and transition activity
Key inputs |
Key outputs |
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 |
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 |
Purpose
To ensure that service components are available when and where they are needed, and meet agreed specifications.
Table 6.5 summarizes the key inputs and outputs for the obtain/build activity.
Table 6.5 Key inputs and outputs for the obtain/build activity
Key inputs |
Key outputs |
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 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 |
Service components for deliver and support and design and transition Knowledge and information about new and changed service components to all value chain activities Contract and agreement requirement for engage Performance information and improvement opportunities for improve |
Purpose
To ensure that services are delivered and supported according to agreed specifications and stakeholders’ expectations.
Table 6.6 summarizes the key inputs and outputs for the deliver and support activity.
Table 6.6 Key inputs and outputs for the deliver and support activity
Key inputs |
Key outputs |
New and changed products and services provided by design and transition Service components provided by obtain/build Improvement initiatives provided by improve User support tasks provided by engage Improvement status reports from improve Knowledge and information about new and changed service components and services from design and transition and obtain/build |
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 |
Value context: Service value streams
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, each designed for a particular scenario. Once designed, value streams should be subject to continual improvement.
These activities can be combined and integrated in a myriad of ways to create a ‘journey’ from demand to value that reflects how the service provider completes work. ITIL 4 calls this ‘journey’ a value stream, and each value stream represents how the organization responds to specific scenarios or types of demand. Techniques such as value stream mapping can help organizations streamline and optimize their value streams.
Value streams can be defined at any level of the organization, so there may be value streams at the enterprise level, and completely different (yet ultimately connected) value streams for each development or support team.