ITIL® Foundation Certification Notes
: The ITIL® Service Life Cycle & Service Strategy
2. The ITIL Service Life Cycle
ITIL consists of the following
The ITIL Core: a set of five publications containing
the best practice guidance applicable to all organizations
The ITIL Complementary Guidance: a auxiliary set
of publications (online or printed) detailing the application
of ITIL to specific industries, organization and technology
The ITIL core consists of five lifecycle publications.
They are as follows:
1) ITIL Service Strategy - The phase of strategic planning
of service management capabilities, and the alignment of
service and business strategies.
2) ITIL Service Design The phase of designing and developing
appropriate IT services, including architecture, processes,
policy and documents. The design goal is to meet the current
and future business requirements.
3) ITIL Service Transition: The phase of realizing the
requirements from previous stages, and improving the capabilities
for the transition of new and modified services to production.
4) ITIL Service Operation: The phase of achieving effectiveness
and efficiency in providing and supporting services in order
to ensure value for the customer and the service provider.
5) ITIL Continual Service Improvement: The phase of creating
and maintaining the value for the customer by design improvement,
and service introduction and operation.
Figure: THE ITIL Service Life Cycle
3. Service Strategy
Service strategy shows organizations how to transform
service management from an organizational capability into
a strategic asset, and to then think and act in a strategic
Service strategy helps clarify the relationships between
various services, systems or processes and the business
models, strategies or objectives they support.
3.1 Purpose of Service Strategy
The purpose of the Service Strategy is to define the perspective,
position, plans and patterns that a service provider needs to
be able to execute to meet an organization's business outcomes
3.2 Objectives of service Strategy
1) Provide business stakeholder value
2) Differentiate the organization
3) Make solid cases for investment
4) Resolve conflicting demands for services
5) Improve service quality by strategic planning
3.3 Scope of service Strategy
1) Generic principles and processes of service management.
These generic principles are applied consistently to IT service
2) Intended for use by both internal and external service
providers, and includes guidance for organizations which are
required to offer IT services as a profitable business, as well
as those which are required to offer IT services to other business
units within the same organization - at no profit
3) Two aspects of strategy:
a) Defining a strategy whereby a service provider will
deliver services to meet a customer's business outcomes.
b) Defining a strategy for how to manage those services
3.4 Value to business
1) Provides guidance on how to design, and put in place service
management as a strategic asset.
2) Sets the principles for developing service management
policies, guidelines and processes across the service lifecycle.
3) Sets objectives and expectations of performance towards
serving customers and market spaces.
4) Identifies and prioritizes opportunities.
5) Ensures that organizations can manage the costs and risks
associated with their service portfolios.
6) Asks questions and plans a strategy for how to do something
3.5 Basic concepts in Service Strategy
1) Utility: also called 'fitness for purpose' involves the
ability of the service to remove constraints or increase the
performance of the customer.
2) Warranty: also called 'fitness for use' is the ability
of the service to operate reliably.
3) Assets, Resources and capabilities
a) Assets: Asset is any resource or capability
Customer asset: asset used by a customer to achieve a
Service asset: asset used by a service provider to deliver
services to a customer
b) Resources are the direct inputs for the production of
Example: Money, IT Infrastructure, people, or anything else
that might help delivering an IT service.
c) Capabilities are the assets that represent the organization's
ability/ knowledge to do something to achieve value
Example: organization, processes, management, etc.
4) Service Portfolio: is the entire set of services under
management by a Service Provider. It consists of three major
parts: Service Pipeline, Service Catalog, and Retired Services.
5) Governance: Governance ensures that policies and strategy
are actually implemented, and that required processes are correctly
followed. Governance includes defining roles and responsibilities,
measuring and reporting, and taking actions to resolve any issues
6) Business case: is a structured and documented justification
for investment in something expected to deliver value in return.
Business Cases are used during Service Strategy to evaluate
the feasibility and desirability of creating and providing various
7) Risk Management: is process of identification, assessing
and controlling risks through analyzing asset`s value, threats
and how vulnerable each asset is to those threats.
8) Service Provider: There are three types of service providers
they are :
a) Internal service provider: exists within an organization
and provides service solely for a unique business unit.
b) External service provider: operates outside the organization.
c) Shared service provider: exists within an organization,
but provides service for more than one business unit.
9) Supplier: Is a third party responsible for supplying the
goods or Services required to deliver IT Services.
10) Types of Services: according to the value for customers
services are classified into three types they are:
a) Core Services: required directly by customers to deliver
an intended outcome.
b) Enabling Services: needed to ensure core services
can be delivered successfully, not visible to customers
c) Enhancing Services: created to add features / values
to the customers, not essential.
11) Patterns of Business Activities: Influence the demand
patterns seen by the Service Providers.
3.6.1 Service Portfolio management:
A) Purpose of Service Portfolio Management
Purpose of is to make sure that the service provider
has got the perfect set of services so that it can balance
the investment in IT with the capacity to get the desired
business outcomes. It keeps a track of the investments in
services throughout their lifecycle
Service portfolio also makes sure that services are defined
clearly and linked to the achievement of business outcomes,
thus ensuring that all design, transition and operation
activities are in line with the value of services.
B) Objectives of Service Portfolio Management
1) To develop and maintain a Service Portfolio that provides
a complete picture of all services including their status.
2) To establish conditions and requirements for inclusion
of new services in the Service Portfolio.
3) To ensure a Service Catalogue is developed and managed
as part of the Portfolio.
4) Agree on the rules for transferring services to the
Service Catalogue as they move into transition and out of
the Catalogue and as they move into retirement.
5) To ensure that the Service Portfolio meets the functional
and performance requirements of its users and that its performance,
availability and security meet agreed requirements.
6) To ensure that management reports are produced in
line with agreed reporting requirements.
C) Scope of Service Portfolio Management
1) All services a service provider plans to deliver,
those currently delivered and those that have been withdrawn
a) The primary concern of service portfolio management
is whether the service provider is able to generate
value from the services.
b) Service portfolio management will therefore track
investments in services and compare them to the desired
2) Service portfolio management evaluates the value of
services throughout their lifecycles, and must be able to
compare what newer services have offered over the retired
services they have replaced
D) Service Portfolio
A Service Portfolio is a complete list of services regardless
of where they are in their life cycle (i.e. planning, development,
production, retired). The Service Portfolio includes the
service pipeline, a service catalog, and a list of retired
1) Service pipeline includes services being created for
a given market space or customer.
2) Service catalog consists of services presently active
in the service operation phase, as well as those approved
in the pipeline. The service catalog provides a description
of each service, pricing and service level commitments,
and terms and conditions. The service catalog is an important
tool in service strategy because it is the virtual projection
of your actual and present capabilities. It also serves
as a service-order and demand-channeling mechanism, as well
as a visualization tool for SPM decisions. The service catalog
provides a strong link between SPM and service level management
3) Retired services are services no longer offered.
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