3-The Four Dimensions of Service

The four dimensions of service management
Key message
To support a holistic approach to service management, ITIL defines four
dimensions that collectively are critical to the effective these dimensions are:
1-organizations and people

2-information and technology
3-partners and suppliers
4-value streams and processes.
To help their customers achieve their desired outcomes, organizations must

take a holistic approach in the way services are conceptualized, developed,
and managed.
Failing to address all four dimensions properly may result in services becoming
undeliverable, or not meeting expectations of quality or efficiency.
There are six environmental factors that may positively or negatively affect any or several or
all the four dimensions, and as a result they have to be considered from a risk management
perspective. These factors, shortened to PESTLE, are
•Political: Change in leadership within an organization, or in the locality where
an organization exists can result in positive or negative sentiments towards an
organization’s services or service management practices e.g. a government can
come into power with a protectionism or open borders approach that may
impact a company’s market share.
•Economical: Change in interest rates, gas prices or talent can result in an

organization’s services being overpriced or unprofitable.
•Social: People’s preferences and perceptions change over time. Many

organizations have a stakeholder base which spans a wide range of ages and
demographic groups, and hence it can be difficult to to find a one-size fit
approach in services and service management.
•Technological: Whether its AI, big data, crypto currencies or continuous
delivery, the way services are created and delivered is hugely impacted by
technology.
•Legal: GDPR has led to significant changes in the way service providers

handle user data from a privacy perspective. At the same time, service
delivery and access to services can be limited or enhanced through prevailing
regulatory frameworks.
•Environmental: Climate change is impacting how organizations view their

services and service delivery. Customers are becoming keen on purchasing
services from companies that are seen to be respectful of the environment
1. Organizations & People
People are the lifeblood of any organization that wants to remain relevant to
its customers and stakeholders. People bring diverse skills, competencies,
and culture, without which an organization cannot function. Despite the
growth in use of machinery and technology, people are indispensable. For
this reason, it is important to:
•Clearly define the roles and responsibilities

•Ensure reporting lines and communication channels are open and clear
•Establish a leadership framework to provide direction and oversight
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.
2-Information & Technology
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.
Organizations are now coming to terms with the need to manage the lifecycle of
information from creation, access, use, modification, storage to disposal, in order to
maximize the value of the data in the delivery of technology services, while effectively
managing the risks and obligations resulting from owning it.
Security has become key in how we manage information and technology, given the
critical role they play as enablers in service management.
3. Partners & Suppliers
No one organization globally has the capacity to produce and manage the entire supply
chain of its services or service management framework. Partners and suppliers play a
vital role, and value is increasingly achieved through co-creation. An Internet Service
Provider, for example, is a critical partner for any e-commerce business .
The relationship with partners and suppliers is usually defined based on what the
organization needs. Some suppliers will be characterized as strategic due to their critical
impact on services. In such cases, the relationship should be managed at a high level of
leadership. Others are easily replaceable, as they operate at a commodity level. The
organization, and its partners and suppliers, must have a common understanding of how
their collaborative efforts delivers value through outcomes, and what is expected from
both parties regarding value creation.
One of the ways organizations are managing their interactions with partners and
suppliers is through a framework called SIAM (Service Integration and Management),
which involves using an integrator to enact and manage common, coordinated processes
across multiple partners and suppliers.
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. Long-standing
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.
4. Value Streams & Processes
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. This dimension defines the activities, workflows, controls
and procedures needed to achieve agreed objectives. What matters in service
management is that an organization establishes an operating model that that effectively
organizes the key activities needed to manage products and services.
Value streams
A value stream is defined as a series of steps an organization undertakes to create and
deliver products and services to consumers.
Structuring the organization’s service and product portfolios around value streams allows
it to have a clear picture of what it delivers and how, and to make continual
improvements to its services. By mapping its value streams, an organization can identify
what is critical, what introduces waste and what can be improved upon.
• Processes
• A process is defined as a set of interrelated or interacting activities
that transform inputs into outputs.
• Processes define the sequence of actions and their dependencies, as

well as describe what is done to accomplish an objective. Processes
are underpinned by policies and can be broken down further through
procedures which outline what is done, when, and by whom.

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The four dimensions of service management

1-organizations and people

To help their customers achieve their desired outcomes, organizations must

•Economical: Change in interest rates, gas prices or talent can result in an

•Social: People’s preferences and perceptions change over time. Many

•Legal: GDPR has led to significant changes in the way service providers

•Environmental: Climate change is impacting how organizations view their

•Clearly define the roles and responsibilities

As an example, it is useful to promote a culture of trust and transparency

• Processes define the sequence of actions and their dependencies, as

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