MODULE 4:THE SERVICE VALUE CHAIN

LESSON 5
LEARNING OBJECTIVES

• THE ITIL SERVICE VALUE CHAIN (SVC) IS A CORE COMPONENT OF THE SVS. IT OFFERS AN OPERATING MODEL FOR CREATING,
DELIVERING AND CONTINUALLY IMPROVING SERVICES. IT CONSISTS OF SIX ACTIVITIES WHICH CAN BE COMBINED IN A NUMBER
OF DIFFERENT WAYS TO CREATE FLEXIBLE VALUE STREAMS.THE SVS CAN ALSO ACCOMMODATE DIFFERENT APPROACHES,
INCLUDING DEVOPS.
• THIS FLEXIBILITY ENABLES USERS TO ADAPT SERVICES IN ORDER TO MEET CHANGING DEMANDS AS EFFECTIVELY AND EFFICIENTLY
AS POSSIBLE. SVS ACTIVITIES ARE SUPPORTED BY ITIL PRACTICES, CREATING A HIGHLY VERSATILE TOOL FOR ITSM.
• THIS MODULE WILL INTRODUCE YOU TO THE SVS AND HOW IT CAN BE USED AND ADAPTED TO MANAGE DIFFERENT PRODUCTS
AND SERVICES.
SERVICE VALUE CHAIN

 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.
 ITIL service value chain includes six value chain
activities which lead to the creation of products
and services and, in turn, value.
SERVICE VALUE CHAIN

 the value chain activities use different combinations of ITIL practices, drawing on internal or third-party resources,
processes, skills, and competencies as required.
 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).
PLAN
 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.
 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.
 IMPROVE
 The purpose of the improve value chain activity is to ensure continual improvement of products, services, and practices
across all value chain activities and the four dimensions of service management.
 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.
ENGAGE
 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.
ENGAGE

 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.
DESIGN AND TRANSITION

 The purpose of the design and transition value chain activity is to ensure that products and services continually meet
stakeholder expectations for quality, costs, and time to market.
 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.
DESIGN AND TRANSITION

 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.
OBTAIN/BUILD

 The purpose of the obtain/build value chain activity is to ensure that service components are available when and
where they are needed, and meet agreed specifications.
 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
 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.
OBTAIN/BUILD

 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.
DELIVER AND SUPPORT

 The purpose of the deliver and support value chain activity is to ensure that services are delivered and supported
according to agreed specifications and stakeholders’ expectations.
 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.
DELIVER AND SUPPORT

 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.
CONTINUAL IMPROVEMENT

 Continual improvement takes place in all areas of the organization and at all levels, from strategic to operational.
 the ITIL SVS includes:
 the ITIL continual improvement model.
 the improve service value chain activity.
 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.
CONTINUAL IMPROVEMENT
STEPS OF THE CONTINUAL IMPROVEMENT MODEL

 Step 1: What is the vision?

 This step focuses on two key areas:
 The organization’s vision and objectives
 A high-level vision for the planned improvement needs to be created.
 Step 2: Where are we now?
 A key element in this step is a current state assessment should be done through objective measurement.
 Step 3: Where do we want to be?
 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
 The agreed objectives, CSFs, and KPIs need to follow what is known as the SMART principle.
 Step 4: How do we get there?
 A plan for addressing the challenges of the initiative can be created.
STEPS OF THE CONTINUAL IMPROVEMENT MODEL

 Step 5: Take action

 plan for the improvement is acted upon.
 Step 6: Did we get there?
 progress and the value need to be checked and confirmed.
 Step 7: How do we keep the momentum going?
 change management and knowledge management practices should be used to embed the changes in the organization
MODULE 5: ITIL MANAGEMENT
PRACTICES
LESSON 6
LEARNING OBJECTIVES

THIS MODULE COVERS THE 18 ITIL 4 PRACTICES. STUDENTS WILL LEARN THE PURPOSE AND
DESCRIPTION OF ACTIVITIES FOR EACH PRACTICE, AS WELL AS THEIR PLACE IN THE SERVICE VALUE
CHAIN.
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.
GENERAL MANAGEMENT PRACTICES
GENERAL MANAGEMENT PRACTICES

Service Organizational
Strategy Portfolio Architecture Project
Financial Change
Management Management Management Management
Management Management

Workforce Information Measurement

Supplier Relationship Risk
and Talent Security And
Management Management Management
Management Management Reporting

Continual Knowledge
Improvement Management
GENERAL MANAGEMENT PRACTICES
Organizational velocity
Organizations Goals Competencies
W&TM • Skills, Ability, Knowledge, Attitude
Business Strategy
Analyze the environment Activates
• Recruitment.
Budgeting/costing • Performance measurement.
Service Portfolio Accounting • Personal development.
Project Portfolio Charging
Customer Portfolio FM
• Service Pipeline Risk Management
• Service Catalogue Risk Analysis
• Retired Services • Impact, Probability
RM • Identified, Assessed, Treated

Opportunity Measure
/Demand SM PM AM PrM RelM SupM /Report
CI

Organizational Change
CSI
Management
CSF
KPI Information Security
Waterfall Vs. Agile Management
Business case Vendor Book
Service
Catalogue
Risk Management Contract and Supplier DB Knowledge
Business
Service Management
Information, technology. Stakeholder Needs, satisfaction
Environment.
STRATEGY MANAGEMENT

 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.
 The objectives of strategy management are to:
 Analyze the environment in which the organization exists
 identify constraints that might prevent the achievement of business outcomes.
 decide and agree the organization’s perspective and direction with relevant stakeholders.
 ensure that the strategy has been translated into tactical and operational plans.
STRATEGY MANAGEMENT

 The contribution of Strategy financial management to the service value chain

 Plan: ensures that the organization’s strategy has been translated into tactical and operational plans.
 Improve: provides strategy and objectives to be used.
 Engage: decisions about how to prioritize opportunities or demand.
 Design and transition, Obtain/build, Deliver and support: ensures the strategy is implemented through execution of the
strategic plans.
STRATEGY MANAGEMENT
PORTFOLIO MANAGEMENT

 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.
 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.
 Clearly defining products and services and linking them to the achievement of agreed outcomes.
 Evaluating and prioritizing incoming product, service, or project proposals.
 Implementing a strategic investment appraisal and decision-making process based on an understanding of the value, costs,
risks, resource constraints, interdependencies, and impact on existing business activities.
 Analyzing and tracking investments.
 Monitoring the performance of the overall portfolio
 Reviewing the portfolios in terms of progress, outcomes, costs, risk, benefits, and strategic contribution.
PORTFOLIO MANAGEMENT

 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.
 Project portfolio The project portfolio is used to manage and coordinate projects that have been authorized.
 Customer portfolio The customer portfolio is maintained by the organization’s relationship management practice, which
provides important input to the portfolio management practice.
PORTFOLIO MANAGEMENT

 The contribution of Portfolio management to the service value chain

 Plan: provides important information about the status of projects, products, and services currently in the pipeline or
catalogue
 Improve: identifies opportunities to improve efficiency and increase collaboration, eliminate duplication between projects,
and identify and mitigate risks..
 Engage: the decisions on how to prioritize opportunities or demand are made based upon the organization’s strategy.
 Design and transition, Obtain/build, Deliver and support: responsible for ensuring that products and services are clearly
defined and linked to the achievement of business outcomes.
PORTFOLIO MANAGEMENT
ARCHITECTURE MANAGEMENT

 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.
 A complete architecture management practice should address all architecture domains
 Architecture types
 Business
 Service
 Information, technology.
 Environment.
ARCHITECTURE MANAGEMENT

 The contribution of architecture management to the service value chain

 Plan: basis for all the plan value chain activity.
 Improve: opportunities for improvement.
 Engage: understand the organization’s readiness.
 Design and transition: evaluate whether the product/service meets the investment objectives.
 Obtain/build: facilitate identification of what products, services, or service components need to be obtained or built.
 Deliver and support: used continually as part of the operation, restoration, and maintenance of products and services.
ARCHITECTURE MANAGEMENT
SERVICE FINANCIAL MANAGEMENT

 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.
 Finance is the common language which allows the organization to communicate effectively with its stakeholders.
 Service financial management is responsible for managing:
 Budgeting/costing
 Accounting
 Charging
SERVICE FINANCIAL MANAGEMENT

 The contribution of Service financial management to the service value chain

 Plan: Plans at all levels need funding based on information, including financial.
 Improve: All improvements should be prioritized with return on investment in mind.
 Engage: important for establishing and maintaining service relationships with service consumers, suppliers, and partners.
 Design and transition: helps to keep this activity cost-effective.
 Obtain/build: Obtaining resources of all types is supported by budgeting.
 Deliver and support: Ongoing operational costs are a significant part of the organization’s expenditures.
SERVICE FINANCIAL MANAGEMENT
PROJECT MANAGEMENT

 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.
 Project temporary structures that are created for the purpose of delivering one or more outputs (or products)
according to an agreed business case.
 There are different approaches to the way in which projects are delivered:
 The waterfall method works well in environments where the requirements are known upfront (and unlikely to significantly
change).
 The Agile method works best where requirements are uncertain and likely to evolve rapidly over time.
PROJECT MANAGEMENT

 The contribution of Project management to the service value chain

 Plan: Supports strategic and tactical planning with methods and tools.
 Improve: Many improvement initiatives are large and complex.
 Engage provides the organization with stakeholder management tools and techniques.
 Design and transition: Design of a practice or service can be managed as a project.
 Obtain/build: Obtaining new resources as well as development and integration is usually performed as a project.
 Deliver and support: The design, transition, and handover to internal or external service consumers for operational
management needs to be well planned and executed.
PROJECT MANAGEMENT
ORGANIZATIONAL CHANGE MANAGEMENT

 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.
 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 ensuring a successful transition to the changed state.
ORGANIZATIONAL CHANGE MANAGEMENT

 Organizational change management must ensure that the following are established and maintained throughout the
change:
 Clear and relevant objectives
 Strong and committed leadership
 Willing and prepared participants
 Sustained improvement
ORGANIZATIONAL CHANGE MANAGEMENT

 Activities of organizational change management

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
ORGANIZATIONAL CHANGE MANAGEMENT

 The contribution of Measurement and reporting to the service value chain

 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: engages with stakeholders at all stages of a change.
 Design and transition: essential for the deployment of a new service or a significant change to an existing one
 Obtain/build: ensures engagement and cooperation within and across projects
 Deliver and support: continues during live operations and support to ensure that the change has been adopted and is
sustained.
ORGANIZATIONAL CHANGE MANAGEMENT
WORKFORCE AND TALENT MANAGEMENT

 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.
 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 behaviors towards a particular object, person, thing, or event.
WORKFORCE AND TALENT MANAGEMENT

 Workforce and talent management activities

 Workforce planning.
 Recruitment.
 Performance measurement.
 Personal development.
 Learning and development.
 Mentoring and succession planning.
WORKFORCE AND TALENT MANAGEMENT

 The contribution of Workforce and talent management to the service value chain
 Plan: Workforce planning is a specific output of this value chain activity.
 Improve: All improvements require sufficiently skilled and motivated people.
 Engage: It works with practices such as relationship management, service request management, and service desk to
understand and forecast changing service demand requirements.
 Design and transition: Specific focus is given to knowledge, skills, and abilities related to systems and design thinking.
 Obtain/build: 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.
WORKFORCE AND TALENT MANAGEMENT
SUPPLIER MANAGEMENT

 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.
 Activities that are central to the practice include:
 Creating a single point of visibility and control to ensure consistency.
 Maintaining a supplier strategy, policy, and contract management information.
 Negotiating and agreeing contracts and arrangements.
 Managing relationships and contracts with internal and external suppliers.
 Managing supplier performance.
SUPPLIER MANAGEMENT
 Sourcing, supplier strategy, and relationships
 There are different types of supplier relationship between an organization and its suppliers:
 Insourcing.
 Outsourcing.
 Single source or partnership.
 Multi-sourcing.
 Evaluation and selection of suppliers
 The organization should evaluate and select suppliers based on Importance and impact, Risk, and Cost.
 Activities
 Activities of the supplier management practice include:
 Supplier planning
 Evaluation of suppliers and contracts
 Supplier and contract negotiation
 Supplier categorization
 Supplier and contract management
 Warranty management
 Performance management
 Contract renewal and/or termination
 Service integration
SUPPLIER MANAGEMENT

 The contribution of Supplier financial management to the service value chain

 Plan: provides the organization’s approved sourcing.
 Improve: identifies opportunities for improvement with existing suppliers.
 Engage: responsible for engaging with all suppliers and for the evaluation and selection of suppliers.
 Design and transition: responsible for defining requirements for contracts and agreements.
 Obtain/build: supports the procurement or obtaining of products, services.
 Deliver and support: Supplier performance for live services is managed by this practice.
SUPPLIER MANAGEMENT
RELATIONSHIP MANAGEMENT

 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.
 stakeholders’ satisfaction is high.
 customers’ priorities for new or changed products and services, in alignment with desired business outcomes.
 any stakeholders’ complaints and escalations are handled well.
 conflicting stakeholder requirements are mediated appropriately.
RELATIONSHIP MANAGEMENT

 The contribution of Project management to the service value chain

 Plan: provides information on the requirements and expectations of internal and external customers.
 Improve: Seeks to harmonize and synergize different organizational relationships.
 Engage: Practice responsible for engaging with internal and external customers.
 Design and transition: plays a key role in coordinating feedback.
 Obtain/build: provides the customer requirements and priorities to help select products, services.
 Deliver and support: responsible for ensuring that a high level of customer satisfaction and a constructive relationship
between the organization and its customers are established and maintained.
RELATIONSHIP MANAGEMENT
INFORMATION SECURITY MANAGEMENT

 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 nonrepudiation (ensuring that someone can’t deny that they
took an action).
 The required security is established by means of policies, processes, behaviors, 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.
INFORMATION SECURITY MANAGEMENT

 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.
 procedures for managing information security related changes, such as firewall configuration changes.
INFORMATION SECURITY MANAGEMENT

 The contribution of Information security management to the service value chain

 Plan: must be considered in all planning activity and must be built into every practice and service.
 Improve: must be considered in all improvement value chain activity
 Engage: requirements for new and changed services must be understood and captured.
 Design and transition: The design and transition of all services must consider information security aspects as well as all
other utility and warranty requirements.
 Obtain/build: must be built into all components, based on the risk analysis, policies, procedures, and controls.
 Deliver and support: Detection and correction of information security incidents must be an integral part of this value chain
activity
INFORMATION SECURITY MANAGEMENT
RISK MANAGEMENT

 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.
 For risk management to be effective, risks need to be:
 Identified Uncertainties that would affect the achievement of objectives.
 Assessed The probability, impact, and proximity of individual risks must be estimated.
 Treated Appropriate responses to risks must be planned, assigning owners and actionees, and then implemented,
monitored, and controlled.
RISK MANAGEMENT

 The following principles apply specifically to the risk management practice:

 Risk is part of business.
 Risk management must be consistent across the organization.
 Risk management culture and behaviors are important.
 understanding that effective risk management.
 using proactive behaviors.
 ensuring transparency and clarity.

 ISO 31000:2018 Risk management

RISK MANAGEMENT

 The contribution of Risk management to the service value chain

 Plan: provides essential inputs to the organization’s strategy and planning.
 Improve: All improvement initiatives should be assessed and continually controlled.
 Engage: helps to identify key stakeholders and optimize engagement.
 Design and transition: Products and services should be designed to address prioritized risks.
 Obtain/build: Risk management should inform decisions about the obtaining or building of products.
 Deliver and support: helps to ensure that the ongoing delivery of products and services is maintained at the agreed level.
RISK MANAGEMENT
MEASUREMENT AND REPORTING

 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 appropriate context.
 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.
 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.
MEASUREMENT AND REPORTING

 KPIs and behavior

 KPIs for individuals can work as a competitive motivator, and this will drive positive results.
 Target-setting for individuals can also have a negative side, driving inappropriate or unsuitable behaviors.
 Operational KPIs should ideally be set for teams rather than focusing too closely on individuals.
 Reporting
 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.
MEASUREMENT AND REPORTING

 The contribution of Measurement and reporting to the service value chain

 Plan: 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.
 Engage: Engagement with stakeholders is based on correct, up-to-date, and sufficient information provided
 Design and transition: provides information for management decisions at every stage before going live.
 Obtain/build: ensures transparency of all development and procurement activities
 Deliver and support: Ongoing management of products and services is based on correct, up-to-date, and sufficient
performance information.
MEASUREMENT AND REPORTING
CONTINUAL IMPROVEMENT

 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.
 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.
CONTINUAL IMPROVEMENT

 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.
 The contribution of Continual improvement to the service value chain
 Plan: applied to planning activities, methods, and techniques to make sure they are relevant to the organization’s current
objectives and context.
 Improve: It structures resources and activities, enabling improvement at all levels of the organization and the SVS.
 Engage, Design and transition, Obtain/build, Deliver and support: Each of these value chain activities is subject to continual
improvement, and then continual improvement practice is applied to all of them.
CONTINUAL IMPROVEMENT
KNOWLEDGE MANAGEMENT

 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.
 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.
KNOWLEDGE MANAGEMENT

 The contribution of Knowledge management to the service value chain

 Plan: helps the organization to make sound portfolio decisions and to define its strategy
 Improve: provides context for the assessment of achievements and improvement planning.
 Engage: helps to better understand stakeholders.
 Design and transition: knowledge of the solutions and technologies available, and the re-use of information, can make this
value chain activity more effective
 Obtain/build: can be significantly improved with sufficient knowledge of the solutions and technologies available.
 Deliver and support: re-use of solutions in standard situations and a better understanding of the context of non-standard
situations that require analysis.
KNOWLEDGE MANAGEMENT
ANY QUESTIONS?