ITIL v3 : Service Startegy (Part 2)

Four main activities in the service strategy process:

• Define the Market
• Services and strategy
• Understand the customer
• Understand the opportunities
• Classify and visualize
• Develop the Offerings
• Understand market space
• Outcome base definition of services
• Service Portfolio
• Develop Strategic assets
• Service management as closed-loop control system.
• Service management as a strategic asset.
• Prepare for execution
• Strategic assessment.
• Setting Objectives (MBO)
• Defining critical success factors
• Expansion and growth

Process & Roles

Service Portfolio Management

• A dynamic method for governing investments in service management across the enterprise & managing them for value
• Role: Product Manager

Demand Management

• To understand and influence customer demand for services & Provide capacity to meet these demands
• Role: Demand Manager

Financial Management

• Financial Management provides operational visibility, insight and superior decision making capabilities ( Quantification: Financial terms, value of service, of assets)
• Explains Return on Investment to both Customer and Service Provider
• Role: Financial Manager

Service Portfolio

It is part of the Service Management Knowledge System (SMKS) and it is considered as a Configuration Item (CI).
Here's what the ITIL V3 glossary says:
"The complete set of Services that are managed by a Service Provider. The Service Portfolio is used to manage the entire Lifecycle of all Services, and includes three Categories: Service Pipeline (proposed or in Development); Service Catalogue (Live or available for Deployment); and Retired Services."


In order to accomplish this goal, the following activities are periodically executed:

1. Define - inventory services, ensure business cases and validate portfolio data.
2. Analyse - maximize portfolio value, align and prioritize and balance supply and demand.
3. Approve - finalize proposed portfolio, authorize services and resources.
4. Charter - communicate decisions, allocate resources and charter services.

Click here to know more about Service Portfolio Management .

Develop Strategic assets
The closed loop created through strategic Service Management is that mutual reinforcement between capabilities and resources enables an organization to accept bigger challenges and to overcome them through better service delivery.

To succeed in creating a closed-loop value control system, strategic Service Management must fulfill the following functions:

• Develop and maintain service assets.
• Map service assets to customer assets through services.
• Design ,develop,and operate suitable service assets.
• Extract Service potential from service assets.
• Convert service potential into performance potential.
• Reduce risk for the customer.
• Control the cost of providing services.