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Digital Transformation

Briefly explaining the ITIL 4 Key Concepts

By January 14, 2021October 25th, 2021No Comments

To be able to understand ITIL4, we need to go through some of the critical concepts of ITIL:

 

  • Service Management
  • ITIL 4 Definition
  • Value and value co-creation
  • Stakeholders in service management
  • Products & Services
  • Service relationships
  • Value: Outcomes, Costs & Risks
  • Utility & warranty

 

  • Those are some of the main concepts, and the rest we will be studying as we go.
  • ITIL Definition is:
  • Service Management: A set of specialized organizational capabilities for enabling customer value in the form of service.
  • In simple words:
  • Service Management: An organization can create value for customers using different resources.

Let us take a car renting company as an example:

 

  • It is providing Renting cars, and some other service (Like guidance, notification, 24/7 support hotline, maintenance in the Road) – Those are services… to become service management, a company needs an office, employees, cars, then also software, internet, and telephone, some ads and Brochures, printers …support line…etc.
  • Those capabilities make this company able to deliver services, and we call all those service management.
  • ITIL 4: is a collection of excellent best practices other companies use, and they work fine for them and other companies.
  • ITIL 4: Provides organizations with the most comprehensive framework for IT Service Management
  • For example:
  • You wake up every day, and you want to go to your work; what is the best way (Best Practice) which you will use to go faster and safer to work?
  • Maybe your best practice is to take the bus, or the train, or a combination… but when someone asks you how you go to your work, your answer maybe will start like this: the best way is….
  • So this is something that worked fine with you, and you think others can use it and get value as well.
  • How is the value co-created between Amazon and the customers?
    • A customer has a party on the weekend.
    • Customers browse Amazon websites.
    • Buy some supplies to cook a meal.
    • Amazon provided all supplies, and the Customer received them on time (Provided output)
    • On the weekend, customer-created excellent meals (Provided output)
    • The happiness at the party is the value co-created.
    • We understand that value is defined as:
    • Perceived benefits
    • Usefulness
    • Importance

 

 

 

 

 

 

 

Value is subject to the perception of the stakeholders, whether they be the customers or consumers, or the organization itself.

Stakeholders in service management include organizations, suppliers, consumers, financiers, regulators—even influencers.

  • Organization: company, government
  • Service Provider: Amazon, Airbnb, Whatsapp
  • Service Consumers: A business that buys and uses mobile service or Internet from ISP
    • Customer: like a financial manager, request system access for his employees (users)
    • User: the person who is using the service.
    • Sponsor: the company owner who is paying for the services.
  • In small companies, consumers may be one person; he is the user, Customer, and sponsor because he does everything.

A service relationship is defined as the cooperation between a service provider and a service consumer.

Service relationships include:

  • Service provision
  • Service consumption
  • Service Relationship management is the way SP and SC work together, maybe like a contract; service relationships are perceived as valuable only when they have more positive effects than negative, especially regarding impact on outcomes, costs, and risks.

Value is created from Utility and Warranty.

Utility: Functionality offered by a product or service to meet a particular need
What service does?
Warranty: Assurance that a product or service will meet agreed requirements
How does the service perform?

The utility is what something does.
Warranty is how well it does it.

  • Utility of a Mobile: The mobile is working without any issues; you can send and receive calls and messages.
  • Also, when you buy it, you will be able to contact your friends and family and do your work; this is also part of the utility called remove constraints.
  • Warranty for your mobile: it will work without any issues, you will not face problems while calling, and also it is safe, no one can hack it… or steal it.
  • It has good capacity and will keep delivering the same value to you each time you use it.

Let us take a car renting company as an example:

 

  • It is providing Renting cars, and some other service (Like guidance, notification, 24/7 support hotline, maintenance in the Road) – Those are services… to become service management, the company needs an office, employees, cars, then also software, internet, and telephone, some ads and Brochures, printers …support line…etc.
  • Those capabilities make this company able to deliver services, and we call all those service management.
  • ITIL 4: is a collection of excellent best practices other companies use, and they work fine for them and other companies.
  • ITIL 4: Provides organizations with the most comprehensive framework for IT Service Management
  • For example:
  • You wake up every day, and you want to go to your work; what is the best way (Best Practice) which you will use to go faster and safer to work?
  • Maybe your best practice is to take the bus, or the train, or a combination… but when someone asks you how you go to your work, your answer maybe will start like this: the best way is….
  • So this is something that worked fine with you, and you think others can use it and get value as well.
  • How is the value co-created between Amazon and the customers?
    • The Customer has a party on the weekend.
    • Customers browse the Amazon website.
    • Buy some supplies to cook a meal.
    • Amazon provided all supplies, and the Customer received them on time (Provided output)
    • In the weekend, customer-created excellent meals (Provided output)
    • The happiness at the party is the value co-created.
    • We understand that value is defined as:
    • Perceived benefits
    • Usefulness
    • Importance

Value is subject to the perception of the stakeholders, whether they be the customers or consumers, or the organization itself.

  •  Stakeholders in service management include organizations, suppliers, consumers, financiers, regulators—even influencers.
  • Organization: company, government
  • Service Provider: Amazon, Airbnb, Whatsapp
  • Service Consumers: A business that buys and uses mobile service or Internet from ISP
    • Customer: like a financial manager, request system access for his employees (users)
    • User: the person who is using the service.
    • Sponsor: the company owner who is paying for the services.
  • In small companies, consumers may be one person, and he is the user, Customer, and sponsor because he is doing everything.

 

 A service relationship is defined as the cooperation between a service provider and a service consumer.

  • Service relationships include:
    • Service provision
    • Service consumption
    • Service Relationship management is the way both SP and SC work together, maybe like a contract,
  • Service relationships are perceived as valuable only when they have more positive effects than negative, especially regarding outcomes, costs, and risks.

 

 

Value is created from Utility and Warranty.

Utility: Functionality offered by a product or service to meet a particular need

  •  What service does?

Warranty: Assurance that a product or service will meet agreed requirements

  •  How does the service perform?

 The utility is what something does.

 A warrant is how well it does it.

samir faraj

Experienced, motivated, and results-oriented Managing Business Consultant with more than +16 years of proven achievements in information technology and Business Management.Certified ITIL 2011 EXPERT, ITIL 4 ® MANAGING PROFESSIONAL, ITIL EXPERT. Certified TOGAF 9.1, COBIT 5 FOUNDATION, CLOUD COMPUTING, ISO9001, ISO27001, EXECUTIVE MANAGEMENT

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