IT Service Management (ITSM)
Service management is a set of specialized organizational capabilities for enabling value for customers in the form of services.
- ITIL provides ITSM framework
- ISO/IEC 20000-1, Information technology — Service management
- defines a set of operational controls and standards used to manage IT services
- goal of ITSM is to identify user needs, design an IT service that meets those needs, successfully deploy it, then enter a cycle of continuous improvement
Continual service improvement aims to ensure that IT services provide ongoing business value and that the services are updated as needed to respond to changing business requirements.
Value and Value Co-Creation
The purpose of an organization is to create value for stakeholders.
Value is the perceived benefits, usefulness, and importance of something.
- services are the main way organizations create value for themselves and their customers
- almost all services today are IT-enabled
Value co-creation
- value is co-created through an active collaboration between service providers and service consumers
- organizations should seek to establish mutually beneficial, interactive relationships with their consumers
Organizations, Service Providers and Consumers, and Stakeholders
An organization is a person or group of people that has its own functions with responsibilities, authorities, and relationships to achieve its objectives.
- when provisioning services, an organization takes on the role of a service provider
- provider can be external to the consumer’s organization
- or can both be part of same org
- provider can be external to the consumer’s organization
Customer is the role that defines the requirements for a service and takes responsibility for the outcomes of service consumption.
User is the role that uses services
Sponsor is the role that authorizes budget for service consumption.
- CIO is typically the customer
- CFO is typically the sponsor
- employees are typically the users
Products and Services
Services are a means of enabling value co-creation by facilitating outcomes that customers want to achieve, without the customer having to manage specific costs and risks.
Product is a configuration of an organization’s resources designed to offer value for a consumer.
- created with a target consumer in mind
- tailored to appeal and meet the needs of the consumer
- are complex and not fully visible to the consumer
Service offering is a formal description of one or more services, designed to address the needs of a target consumer group.
- service providers represent their services to consumers via service offerings
- may include:
- goods
- access to resources
- service actions
Service Relationships
Service relationship is a cooperation between a service provider and service consumer.
- to create value, an org must cooperate with consumers in a service relationship
- established between two or more organizations to co-create value
- e.g.,
- service provision
- service consumption
- service relationship management
Service Relationhips Model
- when services are delivered by the provider, they create new resources for service consumers, or modify their existing ones
Service relationship management is joint activities performed by a service provider and a service consumer to ensure continual value co-creation based on agreed and available service offerings.
Outcome, Costs, and Risks
Output is a tangible or intangible deliverable of an activity.
Outcome is a result for a stakeholder enabled by one or more outputs.
Cost is the amount of money spent on a specific activity or resource.
- two types of costs for service consumer:
- costs removed from the consumer by the service
- e.g., costs of staff, tech, and other resources that consumer does not need to provide
- costs imposed on the consumer by the service
- costs of service consumption
- price, etc.
- costs of service consumption
- costs removed from the consumer by the service
- both types are considered when assessing value
Risk is a possible event that could cause harm or loss, or make it more difficult to achieve objectives.
- two types for services consumers:
- risks removed from a consumer by the service
- risks imposed on a consumer by the service
Utility is the functionality offered by a product or service to meet a particular need.
Warranty is assurance that a product or service will meet agreed requirements.
ITIL 4 Framework
- components:
- ITIL Service Value System (SVS)
- ITIL Service Value Chain
- ITIL Practices
- ITIL Guiding Principles
- governance
- continual improvement
- ITIL Four Dimensions Model
- ITIL Service Value System (SVS)