For an organization to be successful, it is essential for them to have a set of overall objectives which are clearly defined and a sound business strategy associated with those ideas. This business strategy explains how exactly the organization will achieve its overall objectives over a period of time. This is underpinned by a set of individual strategies made for each unit in the organization. Business and IT strategies are dependent on each other. A business strategy defines the IT strategy, and the IT strategy supports and validates the business strategy. Multiple aspects are covered by the ITIL strategy, which includes IT Service Strategy, and IT Technology Strategy.
Watch this ITIL 4 Tutorial For Beginners for Complete Understand of the Concept
The Focus of ITIL Service Strategy
The focus of the ITIL Service Strategy is on the concepts that can be used by an IT service provider in order to build their IT strategy. An IT Service strategy that is successful has clear objectives and expectations regarding performance for the IT service provider as it aims to serve its targeted customers.
Process Areas of ITIL Service Strategy
The process areas of service strategy include:
- Service portfolio management
- Financial management of IT service
- Demand management
- Business relationship management
- Strategy management for IT services
Purpose of ITIL Service Strategy
The main purpose of the ITIL Service Lifecycle service strategy stage is to define the perspective, position, plan, and patterns that are needed by a service provider to meet the business objectives of the organization.
The Objective of ITIL Service Strategy
The service strategy should identify:
- How the service provider aims to become and remain valuable to their customers in a unique way
- The objectives it aims to achieve in terms of the business outcomes it wants to enable
- The intended unique approach of the service provider for the creation and delivery of value to the customers
- The constraints and the competitive alternatives that the service provider should work with
The objectives of the service strategy stage of the ITIL lifecycle involve providing the service provider with the following:
- A thorough understanding of what exactly is a strategy. The required processes to:
- Define its service strategy
- Identify the service which they need to provide in order to achieve their strategy
- Predict the expected levels of service demand which are a result of its service strategy
- Find out the level of investment that is required to achieve the service strategy
- Enable a working relationship between the service provider and its customers
- An understanding of the organizational capability that is required to deliver the service strategy
- A clear definition of the services it provides and the customers who use them.
- Clear articulation about the creation, funding, and delivery of services, the target customers for the service, and how each service delivers value
- A clear idea regarding which service assets are used for delivering each value and how their performance can be optimized.
Scope of ITIL Service Strategy
The ITIL service strategy is intended for usage by both internal and external service providers. The scope of service strategy includes:
- Defining a strategy where a service provider can deliver services to meet the business outcomes of the customer
- Defining a sound strategy for managing the services
Value of ITIL Service Strategy
An investment that is made in service strategy by a service provider should deliver sufficient business value in return. Some of the benefits typically obtained by the adoption and implementation of service strategy best practices include:
- An increased ability to understand and express the links between the IT service assets of the service provider, its activities, and the crucial outcomes achieved by its customers as a result of using their services
- A flexible and timely ability to adapt its IT services to take preventive action and meet the changing business needs to ensure an increased competitive advantage over time
- The service provider is seen as contributing to value and cost by its organization and its customers
- A maintained portfolio of qualified services
- Improved IT investment usage where the investment in service development is driven mainly by business priorities and a proper return on investment (ROI) analysis
Conclusion
IT Service Strategy gives an explanation regarding how IT Services will be utilized to enable the IT department to achieve the required objectives. It explains how IT services underpin the overall business strategy, which makes it a vital part of IT service operations today.
Learn more about Service Management best practices through Invensis Learning’s IT Service Management certification training on ITIL 4 Foundation Online, SIAM Foundation, SIAM professional, VeriSM, etc.
ITSM Certification Courses
FAQs
Service strategy is executed in five processes: Strategy management, service portfolio management, IT financial management, demand management, and business relationship management.
What are the 4 Ps of ITIL Service Strategy? ›
This blog is all about the 4 Ps of service strategy: perspective, position, plan, and pattern, and how they can help your company deliver the best IT services on the market.
What are the 5 stages of the ITIL service lifecycle? ›
The ITIL service lifecycle comprises five stages: Service Strategy, Service Design, Service Transition, Service Operation, and Continual Service Improvement. Each stage contributes to delivering high-quality IT services and aligning them with business objectives.
What are the 4 functions in ITIL based service operations? ›
Functions of ITIL Service Operation
- Service Desk. The service desk is the primary point of contact for the coordination of activities between the end-user and the IT service provider.
- Technical Management. ...
- IT Operation Management. ...
- Application Management.
Upper management must first plan strategically, then put that strategy into action. When everyone in the company understands the strategy, the strategic management process works best. The five stages of the process are goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring.
What are the six key SVC activities in ITIL? ›
Key Service Value Chain Activities. The six key activities of the Service Value Chain are Plan, Improve, Engage, Design and Transition, Obtain/Build, and Deliver and Support.
What is the ITIL 4 process? ›
ITIL 4 represents a fundamental reorganization of the ITIL framework with an increased focus on the concepts of value, cost, and risk. The new framework includes many of the same components as ITIL V3 while incorporating updated knowledge and concepts that reflect a more value-oriented focus to IT service delivery.
What are the 4 focus strategies in services? ›
There are four primary areas of strategic focus: design, produce, deliver, and service. The choice of strategic focus dictates your organizational and operational choices. This article is the fourth of four and will take you through how to win with a service-focused strategy.
What are the ITIL 4 guiding principles? ›
ITIL 4: The Guiding Principles
The 7 guiding principles of ITIL 4 explain the best way for IT personnel to select, plan, deliver, and maintain IT services. They focus on efficiency throughout the project, the value of the output, and collaboration.
What are the core processes of ITIL? ›
ITIL comprises 26 core processes, with organizations choosing which to implement based on their specific needs. What are the 5 stages of ITIL? It consists of five ITIL stages: Service Strategy, Design, Transition, Operation, and Continual Improvement.
ITIL is a framework of best practices for delivering IT services. ITIL's systematic approach to ITSM can help businesses manage risk, strengthen customer relations, and build an IT environment geared for growth, scale, and change.
What are the steps in the ITIL process? ›
The ITIL life cycle comprises five stages.
- Service Strategy.
- Service Design.
- Service Transition.
- Service Operation.
- Continual Service Improvement.
This is where the 4Ps of service strategy come into play. These four interconnected elements – Perspective, Position, Plan, and Pattern – provide a comprehensive framework for ITSM to not only deliver efficient IT services but also demonstrably contribute to the organization's overall objectives.
What are the 4 dimensions of ITIL service management? ›
ITIL 4 introduces four dimensions of ITSM that are essential for creating and maintaining effective IT services. These dimensions are: organizations and people, information and technology, partners and suppliers, and value streams and processes.
What are the five 5 processes related to service level management? ›
Define, document, agree, monitor, measure, report, and review the level of IT services that are being provided.
What are the 5 steps of service? ›
5 Cards in this Set
| Step 1 | Greet the customer and take the order |
|---|
| Step 2 | Deliver beverages and Syrup |
| Step 3 | Deliver hot food hot and cold food cold |
| Step 4 | Check back with customers for complete satisfaction after couple bites. |
| Step 5 | Drop Check at the table halfway through the meal. |
The ITIL framework offers guidance and best practices for managing the five stages of the IT service lifecycle: service strategy, service design, service transition, service operation and continual service improvement.
What are the service management processes of ITIL? ›
ITIL Process: The 5 ITIL Service Management Processes in the ITIL Service Lifecycle. There are 5 stages of ITIL lifecycle: Service Strategy, Service Design, Service Transition, Service Operation and Continual Service Improvement.
