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The 5 Processes of ITIL Service Strategy

24th Apr, 2024
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    The 5 Processes of ITIL Service Strategy


    For an organization to be successful, it must have a set of clearly stated overarching objectives and a good business plan to go along with those goals. This business strategy shows how the company will attain its ultimate goals over a set period. This is supported by customized plans developed for each business unit. Business and IT strategies are inextricably linked, so it is no surprise when best practices dictate that technology and operations should be aligned with the business goals through its IT strategy.  

    This clearly identifies how technologies will be implemented and used and describe how it will support key business objectives. It is essential to understand that commerce and technology are inextricably linked. An organization's ability to maintain better handling of IT operations is required to meet the needs and satisfaction of customers while also avoiding major breakdowns. Let's delve a little more into this topic and look into ITIL Service Strategy.

    The 5 Processes of ITIL Service Strategy

    ITIL Meaning

    ITIL stands for Information Technology Infrastructure Library. It is a set of well-defined rules that aid Software professionals in providing the best IT services possible. ITIL rules are standard procedures for delivering excellent IT services observed, collated, and compiled through time. The IT Infrastructure Library (ITIL) is a set of guidelines that outline a framework for standardizing the planning, selection, implementation, and maintenance of IT services inside a company. By allowing IT administrators to be business support partners rather than back-end support, the ITIL framework intends to increase operational efficiency and ensure quality service delivery.

    ITIL Processes

    ITIL comprises several processes that make it extremely adaptable, scalable, and diverse. These processes consist of activities with specified inputs, causes, and outputs. Let's look at some of the ITIL Processes and ideas that underpin them.

    ITIL is constituted of 26 procedures organized into five service lifecycle stages. These are the following:

    1. Service Strategy

    The ITIL service lifecycle begins at this point. This stage assists organizations in determining their mission and vision for their firm. Examining current market demands and existing options also aids in the development of strategies to satisfy client demands and priorities. There are five ITIL procedures in the Service Strategy stage.

    • Service Portfolio Management: This procedure is related to managing the IT service portfolios that are available. The Service Portfolio Management process ensures that the delivered services align with the Service Strategy's objectives. This procedure consists of four steps: defining services, analyzing services, certifying services, and chartering services.
    • Financial Management: This procedure focuses on financial expenditures and other corporate services such as forecasting, bookkeeping, and invoicing. Financial Management also manages the expenses associated with providing services while optimizing their value. Budgeting, accounting, and invoicing are the three sequential operations that make up this procedure.
    • Strategy Management for IT Services: This procedure examines IT services to determine their entire market position. This method involves four steps: doing a strategic evaluation, developing a strategy, implementing the strategy, and monitoring and assessing the results.
    • Demand Management: This procedure compares current client demand for the services. Demand management is entirely concerned with determining the customer's needs and matching them to the volume, availability, and range of facilities available.
      Identifying demand sources and forecasting, assessing business activity patterns and user profiles, generating distinctive solutions, and optimizing operational demand are the four sequential actions conducted in this process.
    • Business Relationship Management: The ITIL Service Strategy stage concludes with this process. The Business Relationship Management process includes creating and managing client connections, understanding customer requirements, and implementing essential services to suit those needs.
      Request and grievance management, discovering opportunities, and managing commercial connections are the three sequential actions conducted in this procedure.

    2. Service Design 

    This is the second stage of the ITIL service lifecycle. This is the stage in which procedures and functionalities are designed. Service management methods, technology, infrastructure, and products are meticulously planned and tailored to fulfil customer and corporate needs.

    This stage comprises eight ITIL procedures, which are detailed below.

    • Service Level Management: This procedure entails planning and setting the overall organizational service delivery targets and monitoring and evaluating their performance. Service Level Agreements (SLAs) make it easier to assess and compare services versus actual service performance. They also assist in determining service level targets. In other words, this process consists of four steps: analyzing needs and developing service level agreements, negotiating service level agreements, defining and standardizing service level agreements, and recording and evaluating service performance.
    • Service Catalog Management: This method primarily ensures that an updated service catalog is available, with quick access to the services that consumers require to be productive. This process consists of four consecutive activities: documenting service definition and presentation, deciding on service catalog contents, developing and updating the service catalog.
    • Capacity Management: This procedure assists a firm in meeting its objectives by ensuring that the mechanisms involved are working at peak performance.
      This process is completed through five successive activities. Monitoring capacity and performance data, evaluating capacity data, investigating capacity concerns, developing and amending production schedules, and reviewing and optimizing capacity are examples of these activities.
    • Availability Management: This method ensures that the customer may get the services they need at any time. This method consists of four steps: monitoring availability, assessing availability data, examining service unavailability, planning availability, and evaluating accessibility and validation.
    • IT Service Continuity Management: This procedure is primarily concerned with security management and business continuity. This procedure is divided into three steps: establishing requirements and continuity plans, executing contingency plans, and activating the continuity plan.
    • Information Security Management: This procedure focuses on protecting the system and data and the individuals who have access to them. Information Security Management encompasses operations such as intrusion detection, denial, deterrence, damage mitigation, and problem resolution. Understanding security needs, generating security policies, implementing security measures, evaluating cyber security risks and threats, and reviewing security controls are the five sequential actions undertaken in this process.
    • Supplier Management: This procedure primarily monitors all supplier relationships and monitors if the parties involved are following contracts and agreements. This procedure consists of five consecutive activities: creating requirements, evaluating vendors, selecting providers, managing performance, and renewing/terminating contracts.
    • Design Coordination: This process manages the conceptual service design by monitoring resource allocation, and various service needs to assess whether the design is optimal and effective enough to meet the needs. This process consists of four consecutive activities: defining policies and techniques, planning resources and competencies, controlling design risks, and enhancing service design.

    3. Service Transition

    This is the third stage of the ITIL service lifecycle. This stage of project management focuses on preserving the current condition of service while implementing new organizational changes and managing services during transitions. It also aids in the reduction of risks.

    The Service Transition stage is made up of seven ITIL procedures, each of which is detailed in detail below:

    • Change Management: This procedure ensures that the services stay scalable and reliable as the needs of the business evolve. Registration and classification, risk and impact assessment, approval, coordination change development and test, authorization change deployment, and lastly, review and close the change record are the five sequential tasks that make up this process. Watch this webinar on change management to get a clearer picture.
    • Change Evaluation: This procedure entails anticipating and managing changes and assessing the modifications that will aid in progress. Planning evaluation, evaluating projected performance, and evaluating true results are the three sequential tasks that make up this process.
    • Release and Deployment Management: This procedure handles software deployment while ensuring that business changes have the least possible impact on the current operational production environment. Release planning, prototyping, testing launch, deploying, formative year maintenance, and reviewing and closing are the five sequential tasks conducted in this procedure.
    • Service Validation and Testing: This procedure outlines the testing and measurement results and aids in decision-making for service adjustments and continuance. Planning and developing tests, confirming test blueprints, preparing test environments, running tests, analyzing exit criteria, and cleaning test scripts and closing are the five sequential actions conducted in this process.
    • Service Asset and Configuration Management: This process is in charge of managing the features, state, owner, relationships, activity history, and other aspects of configuration items (CIs).
    • Knowledge Management: This procedure entails obtaining and organizing important information used by professionals and customers to resolve difficulties.
      Defining knowledge management strategy, identifying and acquiring data sources, generating information, technical reviews, editorial reviews, and finally publishing are the five sequential tasks that make up this process.
    • Support and Transition Planning: This is a less typical technique used to prepare for the deployment of a new or updated service.

    4. Service Operations

    This is the ITIL service lifecycle's fourth stage. This stage provides several options for managing the regular delivery of services. This stage's ultimate goal is to deliver value to the customers. This stage monitors changes in business needs due to today's market's ever-changing technologies.

    • Incident Management: This procedure takes rapid action to restore service outages caused by various events such as user credentials, printer problems, or error messages, among others. This process consists of five steps: recording and categorizing the incident, prioritizing, researching and diagnosing, settlement, and ultimately closure.
    • Problem Management: This procedure focuses on identifying and preventing problems and incidents from occurring again. Problem identification and logging, categorizing, investigating and troubleshooting, and issue resolution and closure are the five sequential tasks carried out during this procedure.
    • Event Management: This process examines and analyses all service events that may arise from numerous technologies, tracking systems, and other systems to take the appropriate steps to assure service continuity.
      Event notification, detection, correlation and filtering, categorization, and finally reviewing and closing the event are the five sequential tasks conducted in this procedure.
    • Access Management: This procedure prevents illegal access to the system by limiting access to just authorized users. The accessing requisition, checking and validating, provisioning of rights, managing the access, tracking the access, and finally de-provisioning the access are the five sequential operations that make up this process.
    • Service Request Fulfillment: This procedure receives, logs, prioritizes, and handles various service requests that the service desk receives frequently.

    5. Continual Service Improvement (CSI) 

    The ITIL service lifecycle comes to a close with this stage. This stage introduces the ITIL process framework's improvements and policy changes/updates for service expansion and enhancement. This step essentially pinpoints the areas for improvement and the effects of those modifications by examining the data. It thoroughly examines the reasons for each business's success and failure, and it also aids in the identification of market trends, bottlenecks, and defects. This stage assists a company in implementing adjustments that will improve its operations.

    • Seven-Step Improvement: The seven steps in this process are identifying the improvement plan, defining what you'll measure, acquiring data, processing data, evaluating data and information, reporting, and executing improvement.

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    What Do ITIL Process Standards Mean in Practice? 

    If you wish to apply ITIL in your company, you must first understand the techniques listed above. There are many consulting, training, and ITIL Foundation certification training courses available for ITIL practices to help your team better grasp what ITIL is and how to implement it in everyday business activities. In ITIL 4, there are five levels of ITIL:

    1. Foundation level: Basic certification gives a basic understanding of ITIL principles, concepts, and terminology, as well as how the procedures contribute to service management.
    2. Practitioner level: Includes all foundation ingredients, plus the ability to incorporate the ITIL framework into organizations.
    3. Intermediate level: All of those mentioned above, plus a selection of modules focusing on different aspects of the framework, such as change and configuration management.
    4. Expert level: This certification covers the complete ITIL framework and is normally achieved only after an individual has obtained the above-mentioned certifications. Professionals must have the Expert level certification before earning a master-level certification.
    5. Master level: Validates your ability to use ITIL concepts, processes, and strategies in the workplace to accomplish desired results. Practitioners must first enroll in the best IT service management courses to obtain expert-level certification and work in IT service management for at least five years before becoming an ITIL master. ITIL Foundation and ITIL Master have been streamlined in ITIL 4, with two independent paths in the ITIL Foundation course: ITIL Managing Professional (MP) and ITIL Strategic Leader (SL). The MP exam is designed for IT workers who work in technology and digital teams across their firm rather than in a dedicated IT department. This is ideal for those in charge of IT projects, operations, and multidisciplinary teams.

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    Tools for Implementing ITIL

    1. Training Programs

    All IT service team members should receive ITIL service strategy training to help them grasp the new processes, roles, and contributions. Employees will be able to actively participate in ITIL implementation only if they have a complete understanding of the ITIL Service Lifecycle, which will be achieved by providing access to the fundamental advice for all five stages.

    2. Simulation Programs and Workshops 

    Workshops and simulation programs will provide a controlled environment for team members to create, execute, implement, and enhance procedures. Employees will also have a clear grasp of their roles and duties, as well as the benefits of the ITIL procedures and why they are built with a certain workflow, thanks to role-playing exercises in these seminars.

    3. Making Use Cases for Later Use 

    A use case is a series of events between applications and users that occur in a specific context and aim to attain a certain goal. ITIL-based use cases assist teams in implementing processes effectively. The use-case should be detailed and include all main and entrepreneurial scenarios and any adjustments made.

    Getting Started with ITIL Processes 

    1. Create a formally organized service desk

    While different firms will implement different aspects of ITIL, the majority will establish an IT service desk. It can be a quick win, and most of the time, it's just a matter of improving on what your IT support team is already doing.

    2. Determine the source of the problem 

    A percentage of your IT problems will recur, and rather than wasting time and effort trying to fix each one, again and again, ITIL recommends that problem management be utilized to eradicate the core cause of the recurrent events.

    3. Manage Your Changes 

    All modifications to your testing environment should be managed properly. In the absence of any controls, change is frequently driven by technology rather than business objectives without regard for the big picture.

    4. Make use of your knowledge 

    When learning ITIL, it's important to understand how this is going to help you stand out as you will be equipped with different IT service management (ITSM) disciplines, particularly the IT service desk. Furthermore, the successful implementation of organizational transformation tools and approaches will necessitate more than just the deployment of knowledge management technology.

    5. Keep Improving Through CSI 

    Continual service improvement (CSI) is increasingly being promoted as the first – not the last – step in ITSM, or ITIL, implementation. It may seem like overkill when you're first learning ITIL, but the sooner you start incorporating CSI into your processes, the easier it will be to improve on the status quo.

    Strategizing Profitability 

    IT Service Strategy is instrumental in ensuring the holistic success of an enterprise through the role that IT plays in delivering solutions. ITIL’s framework ensures that the service strategy is current, adheres to a globally recognized framework, and highlights problems at early stages to drive profitable outcomes for the organization’s IT department, and the organization as a whole.  

    To successfully master all aspects of ITIL including IT Service Strategy, you can enroll in a comprehensive program like the KnowledgeHut ITIL foundation certification training course to learn how IT services support overall business strategy, making it a critical component of IT service operations today.

    Frequently Asked Questions (FAQs)

    1Is ITIL a standard or framework?

    ITIL is a set of guidelines or a framework for delivering and managing IT services. Some refer to it as ITIL standards, but it's a collection of best practices included in five guidance papers that evolves in response to changes in how IT businesses work.

    2What are the ITIL 4 foundations examinations?

    The most generally recognized entry-level ITIL certification accessible for IT professionals is ITIL 4 Foundation. This new ITIL 4 certification training for the ITIL framework is intended to educate learners on the management of current IT-enabled services, as well as important ideas and terminology used in the ITIL services lifecycle.


    Manikandan Mohanakrishnan


    Manikandan Mohanakrishnan is a highly skilled corporate trainer, consultant, and content developer with expertise in a wide range of areas including ITIL 4, PRINCE2, Agile/Scrum, PMP, DevOps, and soft skills. With a passion for delivering exceptional training experiences, Manikandan offers a comprehensive suite of training services covering service management, project management, business simulations, and more. With over 20+ years of experience, he has successfully facilitated numerous programs, including business communications, emotional intelligence, team building, and organizational change management. Manikandan's dedication to empowering individuals and organizations shines through his motivational talks and impactful training sessions.

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