Service Value System

“Digital IT Service Management for the 4th Industrial Revolution” VINAY KRISHNA Deepti Khanduri #ITIL 4

In the last article, we discussed?“How to leverage ITIL 4’s Service Value Chain to build a process”?It is important for organizations to not only build processes but also to govern, continually improve, follow standard practices, create benchmarks, and most importantly apply guiding principles to transform services.

Article #2:?This article is intended for ITSM consultants who have successfully implemented a process but are struggling with transforming it to align with the organization’s vision, strategy, and industry best practices.

Welcome to ITIL 4’s Service Value System-

The ITIL 4 service value system is an operating model that organizations can tweak to suit their specific requirements. Essentially, it shows how different components within an organization work together to provide value. Let’s use this useful tool to assist you in transforming your service.

So here is how to use SVS..

Step 1: Understanding Stakeholder Demands

In any transformation journey, it’s crucial to first understand Stakeholder Demands:

Begin by identifying the needs and expectations of stakeholders (customers, users, and other interested parties)

Focus on gathering insights into what they value and require from the service.

For Example, stakeholders could include customers, investors, employees, and regulators. To understand their demands, Consultants would need to secure market research data, engage with stakeholders through surveys or focus groups, and analyze industry trends and regulations. By doing so, Consultants can develop products and services that meet the needs of their stakeholders and stay competitive in the market.

Step 2: Apply Guiding Principles:

• Start Where You Are: Assess your current state and build upon existing capabilities.
• Focus on Value: Prioritize value creation throughout the transformation process.
• Progress Iteratively with feedback : Break down a project into smaller parts, working on each part one at a time, and getting feedback after each iteration. This approach helps to identify and resolve issues early on, leading to a more efficient outcome.
• Collaborate and Promote Visibility: Involve relevant teams and ensure transparency.
• Think and work Holistically: Consider the entire system, not just isolated parts.
• Optimize and Automate: As part of continual improvement, we should recommend customers to focus on automation. Service automation is a critical part of developing a successful strategy for a new or optimized service. Service automation is generally considered to improve both the utility and warranty of services. Automation helps in simplification of the ITIL processes.

Example- For one of the organizations that provided IT services to various businesses. They were known for their excellent customer service and innovative solutions. The company wanted to improve its service delivery process. As a consultant, you could recommend the implementation of the ITIL 4 framework, which was based on seven guiding principles.

First, make sure the organization is focused on delivering value to its customers by understanding their needs and expectations. Conduct surveys and gather feedback to ensure that their services are aligned with their customers' requirements.

Next, ensure that the organization starts where they are and works with their existing resources and capabilities. Avoid trying to reinvent the wheel, but instead, focus on improving their existing services.

Make sure the organization progressed iteratively with feedback by continuously gathering feedback from their customers and stakeholders. Use this feedback to make improvements and enhance their services.

To promote collaboration and visibility, suggest the organization establish a cross-functional team that shall include representatives from all departments involved in the service delivery process. This helps to ensure that everyone is working together towards a common goal.

Bring in the OCM experts to ensure that the organization thinks and works holistically. Consider all aspects of the service delivery process, from the initial request to the final product delivery. This will take into account the customer's needs, the resources required, and the potential risks and challenges.

To keep things simple and practical, build processes and procedures that were easy to understand and implement. use plain language and avoid unnecessary complexity.

Finally, optimize and automate the service delivery process to improve efficiency and reduce costs. Leverage various tools and technologies to automate repetitive tasks and streamline workflows.

As a result of implementing the ITIL 4 framework, the organizations will be able to provide a more efficient, effective, and valuable service to their customers. They will be able to improve customer satisfaction and build long-term relationships with their customers.

Step 3- Define Governance:

• Establish policies, guidelines, and decision-making processes.
• Ensure alignment with organizational objectives and compliance.

For example, for one of the organizations, we established a policy and defined governance for IT change management by mandating that all changes to the IT infrastructure must go through a standardized change management process. This helps ensure that all changes are thoroughly evaluated before being implemented, reducing the risk of system downtime or security breaches. Governance and Guidelines could be put in place to dictate how changes should be requested, evaluated, and approved, such as requiring detailed documentation of the change and its impact, and specifying who is responsible for approving the change. Decision-making processes could also be established, such as requiring a cross-functional team to review and approve changes that have a significant impact on the organization's operations or security. All of these policies, guidelines, and decision-making processes should be aligned with the organization's objectives and comply with any relevant laws and regulations.

Step 4: Service Value Chain Activities (refer to our previous Article if you are trying to build something from scratch "How to leverage ITIL 4’s Service Value Chain to build a process") or skip to Step 5 if you are transforming an existing service) A.K.A "Start Where You Are"

in short-

• Plan: Set clear objectives for the service transformation. Create a roadmap and allocate necessary resources.
• Improve: Continuously enhance the service based on feedback and lessons learned. Identify areas for optimization.
• Engage: Understand stakeholder needs and expectations. Communicate effectively with all relevant parties.
• Design and Transition: Develop and deploy the transformed service. Ensure a smooth transition without disrupting existing operations.
• Obtain/Build: Acquire necessary resources (technology, people, etc.). Build or procure components required for the service.
• Deliver and Support: Provide the transformed service to users. Maintain and support it effectively.

Step 5: Choose the right management Practices: ITIL has around 34 practices

• Utilize specific practices (e.g., incident management, change control) to execute activities within the service value chain. Tweak the practices with the overall transformation goals.

Last but not least: Continual Improvement:

Regularly assess the effectiveness of the transformed service.

Gather feedback, measure performance, and identify areas for enhancement. Iterate and adapt based on insights.

Remember, the ITIL 4 service value system is not a one-time process; it’s a dynamic cycle of continuous improvement. By following these steps, you’ll be well on your way to transforming your service to deliver maximum value!

ABOUT THE AUTHORS:

Deepti Khanduri is a seasoned ITSM Process Consultant, SIAM Professional Certified, ITIL 4 Foundation Certified, Google Cloud certified Cloud Digital Leader and Service Integration Manager. Deepti is an experienced Principal Consultant in IT Service Management with strong analytical skills and a proven track record in the information technology and services industry. She has expertise in identifying data trends, designing and implementing IT Service Management strategies, and delivering high-quality customer service. Deepti is result-driven, proactive, efficient, and focused on effective time management.

Vinay Krishna is a certified ITIL 4 Managing Professional, Strategic Leader, and SIAM Professional. He works as an ITSM Managing Consultant and is an expert in implementing ITIL4, ISO 20K, and COBIT 2019 Principles. His specializations include designing and implementing ITIL processes, creating customized IT operating models, and establishing governance to ensure efficient operations. He has extensive experience in conducting ITIL maturity assessments, designing IT operating models, and developing, implementing, and transforming ITIL processes.