ITIL Service Strategy

1. Principles

Goal: Superior performance versus competing alternatives

The 4 Ps of Strategy:

  • Perspective: descibes vision and direction, business mission, philosophy
  • Position: distinctivness of provider in the same market space
  • Plan: means of transforming from ‘as is’ to ‘to be’
  • Pattern: describes a series of consitent deccisions and actions over time to ensure consitencyu of positiona and perspective

Defining services:

  1. Define the market and identify the customer
  2. Understand the customer
  3. Quantify the outcomes
  4. Classify and visualize the service
  5. Understand the opportunities (market space)
  6. Define service based on outcomes
  7. Model the service
  8. Define Service Units and Service Packages

2. Processes

2.1 Strategy Management for IT Services

Purpose: To articulate how a service provider will enable an organization to achieve its business outcomes

Triggers Inputs Outputs
  •  Planning cycles, changes in environments, new business opportunities
  •  Existing plans
  • Service portfolio
  • Customer strategies and interviews
  • Service reporting on strategy effectiveness
  • Vision and Mission statement
  • Strategic and tactical plans
  • Policies to support plans
  • Strategic requirements for new services


2.2 Service Portfolio Management

Purpose: To ensure the service provider has the right mix of services to balance the investment in IT to meet business outcomes

Triggers Inputs Outputs
  • New or changed strategy
  • Improvement opportunities from CSI
  • Request from BRM
  • Strategy Plans
  • Service Improvment Opportunities
  • Project Updates
  • Current service portfolio
  • Service Charter
  • Change proposals

2.3 Financial Management for IT Services

Purpose: To secure the appropriate level of funding to design, develop and deliver services to meet the strategy of the organisation

Triggers Inputs Outputs
  • Reporting cycles
  • Audits
  • Requests for financial information
  • Investigation of new opportunities
  • Introduction of charging
  • RFCs
  • Policies, standards and practices
  • All data sources for financial information
  • Service portfolio
  • As process

2.4 Demand Management

Purpose: To understand, anticipate and influence customer demand for services, to work with capacity management to ensure service provider capacity meets demand

Triggers Inputs Outputs
  • Customer request of new or changed service
  • New service to meet a strategic initiative
  • Service Model needs definition along with PBAs and UPs
  • Utilization rates causing performance issues
  • Exception occurs to forecast of PBA
  • Initiative to create new service or change existing one
  • Service models to be validated against PBAs
  • Cusomter, Service and Agreement Portfolios
  • Charging models and chargeable items to be validated
  • PBAs, UPs
  • Policies for managing variations in utilization
  • Documented options for creating serivce packages

PBA = Patterns of Business Activity

UP = User Profiles

2.5 Business Relationship Management

Purpose: To establish and maintain a business relationship between the service provider and customer and to identify customer needs to ensure they can be met

Triggers Inputs Outputs
  • New Strategic initiative
  • New or changed service
  • New opportunity identified
  • Service chartered by SPM
  • Customer requirements
  • Customer requests, RFCs, complaints, compliments, strategies
  • Service strategies: PBAs, UPs, SLAs
  • Defined business outcomes
  • Customer portfolio
  • Requirements for strategy, design, transition
  • Customer satisfaction surveys

SPM = Service Portfolio Management

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