Lesson 08: An Introduction to the Service Value Chain
Now that you’re familiar enough with the Service Value System, let’s focus on its center: Service Value Chain.
Based on AXELOS ITIL® material. Reproduced under licence from AXELOS. All rights reserved.
- 00:06 – Welcome back.
- 00:08 – In this lesson, I’m going to talk about the Service Value Chain.
- 00:13 – I’ve already waxed lyrical about it in the last lesson about how important it is and how it’s the fundamental building block, and that’s what it looks like.
- 00:24 – Again, it’s taking us, it’s the core of that value system that takes us from Demand/Opportunity through to the Value. From the seed to the tree.
- 00:33 – From conceptual and initial idea through to realization.
- 00:40 – It’s got several stages to it, and we’re going to look at those stages.
- 00:47 – It’s an operating model. It’s talking about key activities, and it uses those elements in different combinations and different elements of ITIL practices. It’s universally applicable.
- 01:04 – We’re going to look at Plan, Improve, Engage, Design and Transition, Obtain and Build.
- 01:11 – So, these value streams carrying out tasks, organization can build them.
- 01:19 – Each one will have a defined combination, specific combinations of activities for different scenarios.
- 01:28 – They’re not a fixed and rigid structure.
- 01:32 – Each organization can combine them in multiple streams to do different things in their organizations.
- 01:38 – These are your basic Lego blocks; you can build anything with them.
- 01:43 – Of course, you need to know what you want to build, and you don’t get anywhere just by randomly collecting them together.
- 01:49 – So, you have to understand what you’re trying to achieve.
- 01:53 – So, I think, yeah, some general examples, everything from resolving an incident.
- 01:58 – Something has broken, we need to fix it. We need to go through the stages.
- 02:02 – We need to plan, we need to work out what improvement, success would look like, we need to engage people, we need to bring in resources, we need to do some designing, understand how we use the resources and combine them together and put them in place, transition it.
- 02:16 – We need to get things in. We may need to get spare parts, we may need to get skills in, we may need to get knowledge in, and then we have to deliver it, put it in place, and then we have to support it.
- 02:27 – So, all those elements I’ve talked about - Plan, Improve, Engage, Design and Transition, Obtain and Build, Deliver and Support are valid even in a tiny little value chain like that, but value streams, value chains can also be talking about adding new functionality.
- 02:44 – We’ve got an existing application. We want to improve it. We want to make it better.
- 02:48 – We want to make it do more things. That’s valid as well. That’s a value stream.
- 02:53 – Or it could be a whole new service. This is something we’ve never done before.
- 02:59 – It could be everything bigger than IT as the same concepts apply. We can be acquiring new customers.
- 03:05 – We can be acquiring new companies. We can be building new structures.
- 03:10 – I mean we can be building a new country.
- 03:12 – All sorts of things are going to be delivered by that chain from concept to realization, but we’ve got parts in here. We’ve got the six activities within the chain.
- 03:30 – They are focuses, they’re not walled-off silos, and all I’ve done so far is name those parts.
- 03:39 – They’re things we probably have a feeling for.
- 03:42 – I’ve mentioned them in that Incident Management example.
- 03:45 – They’re concepts we do, and again, service value stream, service value chain, service value systems, they’re fancy terminology, but they’re things we do at home.
- 03:56 – You can apply it to making a meal.
- 04:00 – You’ve got an input of hunger, hungry family. You’ve got an output of dinner.
- 04:06 – You’re going to have to do these stages along the way.
- 04:08 – You’re going to have to make them work together, they’re going to overlap.
- 04:12 – We do that without hanging the names on them.
- 04:15 – At work, we’ve done that without hanging the names on them.
- 04:18 – What we’re trying to get you to do now is to realize you’ve been doing that and by understanding the components and the aspects and how they fit together, it gives you the opportunity to get more efficient and more effective at doing that because with that degree of understanding of how things fit together, you can look for efficiencies.
- 04:37 – You can look, just as importantly, for areas that are missing or understand why something doesn’t flow as it should.
- 04:46 – So, there’s a power in the naming of the parts, if you like, and now we’re going to investigate exactly what those parts were and give you some names that you can hang on to the talent you’ve already got.
Can you explain the service value chain based on its diagram below?
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