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The ITIL 4 Service Value Chain (Simplified)

What is the ITIL 4 Service Value Chain?

The central element in the ITIL Service Value System (SVS) is the Service Value Chain (SVC). The SVC is an operating model that outlines key activities required to respond to demand and facilitate value via the creation and management of products and services.

The ITIL SVC labels six activities that an organisation should follow in order to create products, services and, in turn, value. 

  1. Plan
  2. Engage
  3. Design and Transition
  4. Obtain/Build
  5. Deliver and Support
  6. Improve

Each activity contributes to the service value chain by converting specific inputs into desired outputs. All of the activities are interconnected, with each other receiving and providing the triggers for further action. 

The Service Value Chain | Diagram | Credit (AXELOS Global Best Practice)

 

Plan

Communicate to all, the vision of the organisation. Where you are currently, your future plans and how you will improve.

Example Inputs:

  • Policies, requirements, and constraints, provided by the organization’s governing body
  • Consolidated demands and opportunities, provided by engage
  • Value chain performance information, improvement initiatives, and plans, provided by improve
  • Improvement status reports 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

Example Outputs:

  • 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

Ensure continual improvement to products, services, and practices. Don’t rest on your laurels. Find ways and means of doing things better.

Example Inputs:

  • 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

Example Outputs

  • Improvement initiatives and plans 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

Keep talking to everyone. Engage early, communicate regularly and openly.  This will promote better understanding of the vision and build trust.

Example Inputs: 

  • 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
  • Improvements initiatives and plans from improve
  • Improvement status reports from improve

Example Output:

  • 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

Ensure that all products and services meet the agreed needs of the business in terms of costs, quality and delivery times.

Example Inputs:

  • Portfolio decisions, provided by plan
  • Architectures and policies, provided by plan
  • Product and service requirements, provided by engage
  • Improvement initiatives and plans, 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

Example Outputs:

  • 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

Ensure that service components meet the agreed business requirements and are ready when needed.

Example Inputs:

  • 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 and plans, 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

Example Outputs: 

  • 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 

Ensure that the services are deployed and supported according to business timescales and requirements.

Example Inputs:

  • New and changed products and services, provided by design and transition
  • Contracts and agreements with external and internal suppliers and partners, provided by engage
  • Service components provided by obtain/build
  • Improvement initiatives and plans, 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

Example Outputs:

  • 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

 

 

Free ITIL 4: Service Value Chain (Simplified) Poster

Download our ITIL 4: Service Value Chain (Simplified) Poster for free, Click here.

ITIL 4: Service Value Chain (Simplified) Poster

 

Credit (AXELOS Global Best Practice)

“ITIL® is a Registered Trade Mark of AXELOS Limited.” 
Marval also recognises the trade mark rights of the 3rd party trade mark owners mentioned in this document. 

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