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ITIL 4 Service Value Chain: An Introduction

The ITIL 4 Service Value Chain is a vital component of the ITIL 4 Service Management best practice framework. This article will explore the basics of the Service Value Chain, its functions, and how it can transform service management by creating value for customers.

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ITIL 4 Service Value Chain and Service Value System

The Service Value Chain is a core element of the ITIL 4 Service Value System. It serves as an operating model designed to create, deliver, and improve services. The model identifies the key activities involved in generating value through the development and delivery of products and services that respond to customer demand and opportunities.

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The Six ITIL Service Value Chain Activities

  1. Engage: Interacting with stakeholders to understand their needs, ensure transparency, and maintain strong relationships.
  2. Plan: Establishing a shared vision, status, and improvement directions for all products, services, and dimensions.
  3. Improve: Continuously enhancing products, services, and practices across all value chain activities.
  4. Design and Transition: Ensuring that products and services consistently meet stakeholder expectations for quality, cost, and time to market.
  5. Obtain/Build: Ensuring that service components are available when and where they are needed, meeting agreed specifications.
  6. Deliver and Support: Providing services according to agreed specifications and customer expectations.

(Source: Axelos, 2019)

ITIL Value Chain in Action

The six value chain activities can be integrated in various ways to create a flexible journey from demand to value. This model is not a rigid, step-by-step process but one that can be adapted based on an organisation’s specific needs and the type of value chain involved. It’s important to apply critical judgement and common sense, as steps may need to be revisited for optimal results.

The Service Value Chain can serve as a workflow or as a high-level guide, ensuring that value chains are managed effectively.

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