May 16, 2019 | 4 min read
The Service Value SystemWelcome back! This post is the third in a series in which I connect the key concepts of ITIL 4. In the last article, we briefly covered concepts such as multiple stakeholders, PESTLE, and the Four Dimensions of Service Management. In this article we will be looking at the service value system. The service provider can be regarded as a system that converts demand from a myriad of sources into value for multiple stakeholders. ITIL 4 calls this the service value system (SVS) and describes five component parts that interact with each other and external stakeholders to co-create value. The five parts of the SVS are:
The core components are the structure of the ITIL SVS (Service Value System) which are:
The purpose of the SVS is to ensure that the organization continually co-creates value with all stakeholders through the use and management of products and services. The ITIL SVS describes how all the components and activities of the organization work together as a system to enable value creation. Each organization’s SVS has interfaces with other organizations, forming an ecosystem that can in turn facilitate value for those organizations, their customers, and other stakeholders. The key inputs to the SVS are opportunity and demand. Opportunities represent options or possibilities to add value for stakeholders or otherwise improve the organization. Demand is the need or desire for products and services among internal and external consumers. The outcome of the SVS is value, that is, the perceived benefits, usefulness, and importance of something. The ITIL SVS can enable the creation of many different types of value for a wide group of stakeholders. The ITIL SVS describes how all the components and activities of the organization work together as a system to enable value creation. These components and activities, together with the organization’s resources, can be configured and reconfigured in multiple combinations in a flexible way as circumstances change, but this requires the integration and coordination of activities, practices, teams, authorities and responsibilities, and all parties to be truly effective. The architecture of the ITIL SVS specifically enables flexibility and discourages siloed working. The service value chain activities and the practices in the SVS do not form a fixed, rigid structure. Rather, they can be combined in multiple value streams to address the needs of the organization in a variety of scenarios. Organizations should be able to define and redefine their value streams in a flexible, yet safe and efficient manner. This requires continual improvement activity to be carried out at all levels of the organization; the ITIL continual improvement model helps to structure this activity. Finally, the continual improvement and overall operation of an organization are shaped by the ITIL guiding principles. The guiding principles create a foundation for a shared culture across the organization, thus supporting collaboration and cooperation within and between the teams, and removing the need for constraints and controls previously provided by silos. With these components, the ITIL SVS supports many work approaches, such as Agile, DevOps and Lean, as well as traditional process and project management, with a flexible value-oriented operating model. What is the definition of a practice in SVS?Practices. Sets of organizational resources designed for performing work or accomplishing an objective. Continual Improvement. A recurring organizational activity performed at all levels to ensure that an organization's performance continually meets stakeholders' expectations.
Which are key inputs to the service value system SVS )?ITIL 4 introduces the Service Value System, or SVS. The key inputs to this system are opportunity and demand, and the key output is value for customers and other stakeholders. The ITIL SVS describes how all the components and activities of the organization work together as a system to enable value creation.
What are the guiding principles in the service value system?Progress iteratively with feedback. Collaborate and promote visibility. Think and work holistically. Keep it simple and practical.
What are ITIL practices?In ITIL, a management practice is a set of organizational resources designed for performing work or accomplishing an objective. Previous ITIL versions focus on processes.
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