Service Value System and Value Chain

Learn how an organization turns opportunity and demand into value for its stakeholders. This material explains the service value system and its five components, how governance directs and controls the work, the six service value chain activities of ITIL 4 and the eight lifecycle activities of ITIL Version 5, and how value streams combine them. It gives an overview of the management practices and the purpose of the most widely used ones, and shows how to plan and check an improvement with the seven-step continual improvement model. Worked examples include mapping a value stream, calculating its lead time and flow efficiency, and measuring an improvement against its baseline.

BeginnerLesson 3 of 5 in IT Service Management Course

What you will learn

  1. Describe the inputs, components and output of the service value system, how its parts work together, and how governance directs and controls the organization.
    • Follow opportunity and demand through the system to value
      Define the service value system, its two inputs, its five components and its output, and trace how a real request becomes value.
    • Explain how governance directs and controls the organization
      Define governance and the governing body, classify evaluate, direct and monitor activities, and distinguish governance from management.
  2. Describe the six service value chain activities, trace how value streams combine them for a given situation, and use value stream mapping to find and remove delays.
    • Describe the six service value chain activities
      State the purpose of plan, improve, engage, design and transition, obtain/build, and deliver and support, with typical inputs and outputs, and explain how they connect.
    • Trace a value stream through the value chain
      Define a value stream, tell it apart from the value chain and a process, and map the steps of a real situation to value chain activities and practices.
    • Measure and improve the flow of a value stream
      Use value stream mapping and value stream management, calculate lead time and flow efficiency, and choose improvements that shorten the whole stream.
  3. Name the eight lifecycle activities of ITIL Version 5, explain the purpose and key terms of each, and relate them to the six ITIL 4 value chain activities.
    • Explain the lifecycle and how its activities are used
      Describe digital product and service management, list the eight lifecycle activities, and explain why they are used iteratively and how they relate to the ITIL 4 value chain.
    • Describe the activities that create products: discover, design, acquire and build
      State the purpose of the four creating activities and use the terms product specification, prototype, test and continuous integration correctly.
    • Describe the activities that run products: transition, operate, deliver and support
      State the purpose of the four running activities and distinguish release, deployment, event, incident, service request, problem, error and known error.
  4. Explain what a practice is and how ITIL 4 and ITIL Version 5 group the 34 practices, and state the purpose of the practices most often used in value streams.
    • Explain what a practice is and how the practices are grouped
      Define a practice, compare the ITIL 4 and Version 5 groupings, and explain how practices support the value chain and why practice guides help.
    • Describe the purpose of practices that engage and support users
      State the purpose of service desk, incident, problem, service request, service level, relationship, and monitoring and event management, and tell similar practices apart.
    • Describe the purpose of practices that change, protect and improve services
      State the purpose of change enablement, release, deployment, service configuration, IT asset, information security, supplier management and continual improvement.
  5. Apply the seven-step continual improvement model to a real improvement and measure its progress with baselines, critical success factors and key performance indicators.
    • Apply the seven steps of the continual improvement model
      State the seven steps in ITIL 4 and Version 5 wording, explain what each step does, and follow one improvement through all of them.
    • Measure improvement with critical success factors and metrics
      Define metric, key performance indicator and critical success factor, choose measures that show value, and record improvements in a continual improvement register.

Service Value System and Value Chain study guide

5 chapters

1

How the organization creates value

A useful service depends on more than a capable IT team. Users must explain their needs, people must coordinate the work, and leaders must give it direction. The service value system brings these contributions together. Its components explain how work can produce benefits that stakeholders value; governance explains who sets the direction and how they check that the organization follows it.

1.1 From a need to a useful outcome

A service value system (SVS) describes how an organization's components and activities work together to enable value creation. ITIL 4 uses this name; ITIL Version 5 calls it the ITIL value system. Version 5 was introduced in January 2026, with its Foundation syllabus dated February 2026.

Inputs and output

Demand is consumers' need or desire for products and services. Staff asking for secure remote access express demand. An opportunity is a possibility to add value or improve the organization, such as an unused cloud feature that could reduce costs. The organization decides which opportunities to pursue.

The system's output is value: the benefits, usefulness and importance stakeholders perceive. A completed expense app is a product of work. Managers approving claims in two minutes instead of two days is an outcome that makes the app useful. Finishing the software alone does not establish that people benefit from it.

Value is co-created. The provider contributes technology and support; consumers contribute knowledge, decisions and use. A clear fault report with a screenshot can help an agent restore service sooner.

Five components working together
ComponentContribution
Guiding principlesGuide decisions across the organization.
GovernanceDirects and controls the organization.
Service value chainConnects the activities that respond to demand.
PracticesSupply the resources and capabilities for the work.
Continual improvementImproves every part as needs and conditions change.

Version 5 uses value chain and management practices for the corresponding components. These components work together while an activity happens. They are not five stages to complete in order.

The seven guiding principles remain: focus on value; start where you are; progress iteratively with feedback; collaborate and promote visibility; think and work holistically; keep it simple and practical; optimize and automate. They shape choices throughout the system. For example, “start where you are” means checking an existing reset process before replacing it.

Follow a password reset improvement

A bank with 40 branches receives reports of 20-minute phone waits for password resets. That is demand. Its identity platform has an unused self-service reset feature: an opportunity.

Governance checks the idea against security policy. Value chain activities gather staff needs, design and build the reset flow, and put it into use. Service desk, information security management and change enablement practices supply people, knowledge and tools. Continual improvement later checks whether waiting fell. Staff returning to work within a few minutes is the value they experience.

See the whole system

A silo forms when teams work in isolation and share little information. Separate team targets can hide duplicated work or lost information at handovers. A shared view of the path to value helps teams coordinate, and the system allows different routes as demand changes.

The four dimensions are perspectives for examining the whole system: organizations and people, information and technology, partners and suppliers, and value streams and processes. They are different from its five components. The SVS can describe a whole organization or one part of it, in any sector or at any size.

Key Takeaways

  • The system takes opportunity and demand as inputs and enables stakeholder value.
  • Provider and consumer both contribute to value creation.
  • The five components work together, with principles and governance shaping daily activity.
  • Four dimensions are perspectives on the system; five components are its parts.
  • A shared path to value helps teams overcome silos.

1.2 Direction, accountability and oversight

Governance directs and controls an organization. It keeps work aligned with the organization's purpose, strategy and policies. A governing body is the person or group with the highest accountability for performance and compliance: a board, trustees or the owner of a small firm. A committee can prepare a decision, but the governing body retains accountability.

Evaluate, direct and monitor
ActivityWhat the governing body doesHospital example
EvaluateAssesses strategy, the organization, portfolios and relationships, including likely changes.Reviews whether a move to cloud patient records fits its strategy and legal duties.
DirectAssigns responsibility for strategy and policies and directs their preparation and execution.Approves a cloud-use policy and makes the chief information officer responsible.
MonitorChecks performance against strategy and policies.Reviews outage, cost and data-protection audit reports.

To classify an action, ask what the decision achieves. Assessing a possible direction is evaluate; establishing direction and responsibility is direct; reviewing performance against it is monitor. The document's name alone is not enough: a report could inform an evaluation or a monitoring decision.

Turn direction into daily decisions

A policy formally records expectations and intentions that guide decisions and activities. For example: “Customer personal data must be stored in approved data centers within the customer's region.” Management then selects and configures centers that meet the policy. The policy provides a shared rule without specifying every technical action.

Governance and management have different jobs. Governance sets direction, approves policies and oversees results. Management plans, organizes and runs the work within that direction, then reports back.

Suppose a board directs that an online store must achieve 99.9% availability. IT management decides how to design, maintain and support the store. It measures availability and reports results to the board. The board monitors those results against its direction; it need not choose each server setting.

Controls can enable quicker work

Clear risk limits let teams make routine decisions confidently. A policy can allow low-risk standard changes to be pre-authorized, while higher-risk changes receive a separate assessment. Teams then know when they can act and when to involve a change authority.

A change authority decides on individual changes as part of management. It is not the governing body simply because it approves work. Adding a committee approval to every change can slow value delivery without improving control. Review whether each control has a useful purpose, applying “keep it simple and practical.”

Apply the same logic to AI

AI governance provides oversight, policies and accountability for safe, lawful, transparent AI use that supports organizational goals. A governing body evaluates a proposed AI service and its risks, directs who is accountable and what policies apply, and monitors performance and compliance. Management implements and runs it within those limits.

Governance also needs continual improvement. The governing body reviews whether its controls remain useful as the organization, technology and risks change. A policy that once supported good decisions may need revision when it starts delaying work without addressing a current risk.

Key Takeaways

  • Governance evaluates direction, directs responsibility and policies, and monitors results.
  • The governing body retains highest accountability even when committees help.
  • Management runs the work within governance direction and reports results.
  • A change authority belongs to management; approving a change is not itself governance.
  • Clear policies can enable routine decisions without repeated approval.
  • AI governance applies oversight and accountability to AI use.
2

Connect activities into a useful flow

A value chain names the kinds of work an organization needs. A value stream shows how those activities connect for one kind of demand, from a trigger to a useful result. Mapping that route makes handovers and queues visible. Measuring the whole route then helps a team choose improvements that shorten the consumer’s wait, instead of making one team faster while the rest of the work still stalls.

2.1 The six ITIL 4 value chain activities

The service value chain is an operating model for creating, delivering and continually improving services. An operating model describes how an organization co-creates value and runs itself. ITIL 4 names six interconnected activities. Each transforms inputs into outputs, and those outputs can become inputs to other activities.

What each activity contributes
ActivityPurposeTypical result
PlanBuild a shared understanding of the vision, current position and improvement direction across all four dimensions and all products and services.Plans, policies and decisions about service offerings.
ImproveKeep products, services and practices improving across every activity and dimension.Improvement initiatives, plans and progress reports.
EngageUnderstand stakeholder needs, make work transparent and maintain relationships.Captured demand, requirements and feedback.
Design and transitionEnsure products and services meet expectations for quality, cost and time to market.Specifications and new or changed services moved into use.
Obtain/buildMake components available where and when needed, meeting agreed specifications.Purchased, built or reused components.
Deliver and supportProvide and support services to agreed specifications and stakeholder expectations.Delivered services, restored service and fulfilled requests.
Identify work by its purpose

Deciding to fund cloud email next year is plan. Receiving a user's complaint or discussing next year's business needs is engage, the main contact with consumers and other external parties. Analyzing falling satisfaction and agreeing an improvement is improve.

For an online booking service, design and transition defines quality and user requirements and arranges the move into live use. Obtain/build creates and tests software or obtains components from a supplier. Running the service each day and restoring it after an outage is deliver and support.

A useful classification follows what the work achieves. Buying 200 laptops makes components available, so it belongs to obtain/build. Gathering staff feedback about those laptops serves engage. The same people might help with both activities.

Outputs connect the activities

A request captured through engage can become an input to design and transition. A component supplied through obtain/build can move into live use through design and transition. Performance information from deliver and support can show improve where results are weak and help plan set priorities.

These links do not impose one order. A small request can use only the activities it needs. A new service can revisit design and transition after feedback reveals a missing requirement. Improve can work on an existing service while obtain/build develops a new component.

Activities are broader than practices or teams

Each activity draws on several practices, and a practice can support several activities. Service level management helps engage agree customer targets, helps deliver and support assess results, and helps improve identify missed targets. Deliver and support therefore cannot be equated with the service desk.

Reading the six activities as a fixed project sequence hides this flexibility. The model supplies connected kinds of work; a value stream chooses a route through them for the demand being handled.

Key Takeaways

  • ITIL 4 has six interconnected value chain activities, with no fixed sequence.
  • Classify work by its purpose, not by the team doing it.
  • Outputs of activities become inputs to others.
  • Engage captures needs and feedback; obtain/build supplies components.
  • One practice can contribute to several activities.

2.2 A route from trigger to value

A value stream is a series of steps for creating and delivering products and services to consumers. It is a practical route through value chain activities. Each step also relies on practices that supply skills, information, tools and processes.

Keep three levels separate
ConceptWhat it describesExample
Value chainThe general model of activities.The six ITIL 4 activities.
Value streamA route for one kind of demand.Restoring a failed sales service.
ProcessDetailed, connected activities that transform inputs into outputs.Logging and assessing an incident within the restoration stream.

A process often operates inside a practice and contributes to part of a stream. A list of departments tells you who participates, but it does not explain what happens between the trigger and the useful result.

Build a value stream map
  1. Name the trigger: the demand or opportunity that starts work.
  2. List the actual steps until the consumer receives value.
  3. Assign each step to the value chain activity it performs.
  4. Add the main practices it needs.
  5. Check the ending with the consumer and feed results into improvement.
Trace a restoration

A user reports an error in the sales app. The service desk logs and assesses it: engage, supported by service desk and incident management. Support applies a known workaround so selling can resume: deliver and support, using incident management and knowledge about the workaround.

Developers investigate the cause and write and test a permanent fix: obtain/build, drawing on problem management and software development. Assessing, authorizing and moving the fix into use contributes to design and transition, using change enablement and deployment management.

The team tells the user and checks that the app works: engage, followed by confirmation of deliver and support. Reviewing the trend of similar incidents is improve. The consumer's value is the ability to sell again. Restoration can deliver that value before the permanent fix is finished.

Routes can repeat activities

A mobile expense-approval feature follows another route: engage captures the need; plan sets priority and budget; design and transition defines requirements; obtain/build creates the feature; design and transition moves it into use; deliver and support provides it; engage gathers feedback; improve plans changes. Repeating engage or design and transition is normal. The route follows the work's needs.

Core and enabling streams

In Version 5, a core value stream delivers value to external consumers in the way the operating model intends, such as fulfilling customer orders. An enabling value stream serves internal consumers and supports core streams, such as onboarding employees or suppliers. Both use the same activities. “Enabling” describes whom the stream serves and what it supports; it does not mean the work lacks value.

Mapping makes the value streams and processes dimension visible. It applies “think and work holistically” by showing the whole route, including handovers between teams that may each see only one part.

Key Takeaways

  • A value chain is a general model; a value stream is a route for a kind of demand.
  • Map the trigger, steps, activities, practices and consumer value.
  • A route can repeat an activity and deliver value before all follow-up work ends.
  • Core streams serve external consumers; enabling streams support them through internal services.

2.3 Measure work and waiting

Value stream mapping examines and shows how work flows so teams can see how value is created and where to improve. Value stream management is the continuing work of managing and improving that flow.

Make delays visible

A current-state map records how work actually happens. Include steps, people, information and artifacts passed between them, active work and waiting. A future-state map shows the improved flow the team aims to achieve. Recording only the official procedure can miss the queues and repeated data entry that explain a consumer's wait.

Lead time is elapsed time from the trigger to delivered value. Active time, or touch time, is time spent working on the item. For a sequential stream with non-overlapping active and waiting periods:

Lead time=active time+waiting time Flow efficiency=active timelead time×100%

Use the same time unit in numerator and denominator.

Work through a laptop request
StepActive timeWait afterward
Log and prepare approval0.5 h16 h for approval
Take laptop from stock0.5 h24 h for the build team
Configure and install software2 h8 h for delivery
Hand over and set up1 hNone

Active time is 4 h. Waiting is 48 h, giving a 52 h lead time. Flow efficiency is about 7.7% because only 4 of the 52 elapsed hours involve work on the item.

Pre-approving the standard laptop reduces approval waiting from 16 h to 1 h. Active time stays 4 h; waiting becomes 33 h. Lead time is now 37 h and flow efficiency about 10.8%. The remaining 24 h build-team queue is the next candidate to investigate.

Halving the 2 h configuration task saves only 1 h from the original 52 h: about 1.9%. Reducing the approval wait saved 15 h. Check the whole stream after a change; sending work faster into another queue may leave total lead time unchanged.

Match improvement to the kind of work

Complexity thinking helps choose a way of working.

  • Ordered work is predictable. Standard laptop requests can use agreed steps and automation.
  • Complex work has cause and effect that become clear afterward. Developing an unfamiliar digital product calls for small experiments and quick feedback.
  • Chaotic situations need stabilization first. During a major outage with an unknown cause, restore enough control for useful analysis afterward.

Treating uncertain work as a fully known procedure can lock in a poor solution. Treating every routine request as an experiment wastes effort. Choose an approach that fits the situation, then use observed results to adapt it.

Value stream management uses the map and measures to improve the practices behind the flow, remove unneeded approvals and repeated entry, and reassess the route when demand changes. Each proposed change can use the continual improvement model to establish a baseline, act and check results.

Key Takeaways

  • Lead time includes waiting as well as active work.
  • Flow efficiency is active time divided by lead time, multiplied by 100%.
  • Current-state maps show real work; future-state maps show intended improvements.
  • A shorter active task may save less time than removing a long wait.
  • Judge changes by the whole stream, including queues moved downstream.
  • Standardize ordered work, experiment with complex work, and stabilize chaotic situations first.
3

Manage the product and service throughout its life

Digital products need care from the first idea through live use and eventual retirement. ITIL Version 5 describes eight activities for this work. Their names separate creating a solution from keeping it running, delivering services from it and restoring it when it fails. Teams can carry out several activities at once, and user feedback can send a live product back into discovery, design and another release.

3.1 Eight activities used iteratively

Digital product and service management manages products and services that depend on digital technology, from an idea through retirement. A digital product is built mainly from software, data and digital infrastructure, such as a mobile banking app. A digital service gives consumers access to what products can do, such as online payments.

The Version 5 lifecycle

The ITIL product and service lifecycle names eight activities: discover, design, acquire, build, transition, operate, deliver and support. The first four mainly create and change products; the last four mainly run products and provide services from them. Transition introduces new or changed products into live use.

From an organizational perspective, these activities form the Version 5 value chain. A value stream combines them with management practices for a particular kind of demand. The lifecycle describes work needed over a product's life; a stream describes a particular route through that work.

The value system remains the wider system with its five components. The lifecycle does not replace governance, guiding principles, practices or continual improvement.

Use activities together

The lifecycle is not a single linear sequence. Discovery can continue while developers build a release. Support feedback can lead directly to design. A product released every two weeks can revisit design, build and transition while the existing service continues to operate and serve users.

A city council launches an app for reporting broken streetlights. Support notices reports arriving without locations. Discover investigates why, design adds an automatic map pin, and build and transition implement and introduce it. Operate and deliver keep the existing app available during this work. The product is involved in several activities at the same time.

Relate Version 5 to ITIL 4

The following is a broad comparison of the work, not an exact equivalence of activities.

ITIL 4 activityWhere similar work appears in Version 5
PlanMuch strategy and roadmap work appears in discover.
Design and transitionDesign and transition are distinct activities.
Obtain/buildAcquire and build distinguish resources from construction.
Deliver and supportOperate, deliver and support separate running, provision and restoration.
EngageStakeholder contact runs throughout the activities.
ImproveContinual improvement applies across the value system.

The versions group work differently, so a real stream needs its activities considered on their own purposes. Operate keeps technology healthy; deliver provides the service and handles ordinary user needs. They contribute to the same result through different work.

Measure activity results

Useful example measures include tested consumer need behind roadmap items for discover, automated test pass rates for build, and changes deployed without incidents for transition. Operate can track availability, deliver can track request fulfillment time and user satisfaction, and support can track restoration time.

These measures help locate weak points in a stream. A high build test pass rate can coexist with slow request fulfillment: success in one activity does not show whether the consumer receives a useful service on time.

Key Takeaways

  • Version 5 has eight lifecycle activities that also form its value chain.
  • A digital service gives consumers access to capabilities of digital products.
  • Lifecycle activities can overlap and repeat as feedback drives changes.
  • The five-component value system remains the wider model.
  • The ITIL 4 comparison is approximate because the versions group work differently.

3.2 Discover, design, acquire and build

Creating a useful digital product means understanding a need, shaping a solution, obtaining resources and making the solution work. Version 5 names this work discover, design, acquire and build. Feedback can move work between these activities before a full product exists.

Discover a need worth serving

Discover explores consumer needs, technology and market opportunities, and organizational strategy. It helps decide which products and services to offer or change and keeps the roadmap aligned with those needs and opportunities. A roadmap gives direction for planned product development; it needs revision when evidence changes.

For a clinic, research shows patients want to book appointments online. The clinic adds online booking to its roadmap. The useful discovery is the patient's need and the service it could support, not simply that a new application can be built.

Design the whole solution

Design turns needs into specifications and prototypes. A product specification describes required features, quality levels and constraints. A prototype is an early simplified version used to test an idea with users before full construction.

The clinic's specification requires patients to book, move or cancel an appointment within three screens, use the system outside office hours, and receive reminders 24 hours before a visit. Each requirement describes behavior or quality the eventual solution can be checked against.

Ten patients try a clickable prototype. Four cannot find the cancel button. The team changes the design before writing the full software. A prototype is for learning; it may be discarded after it answers its question. Treating it as nearly finished software can cause a team to keep a weak design simply because something already exists.

Design also covers how the product will be operated and supported. Monitoring, backups and help for users need a place in the solution. Discovering those needs after launch can require more costly changes. This applies “think and work holistically” to the product's whole life.

Acquire resources

Acquire obtains or allocates the resources the solution needs. It includes cloud capacity, licenses, devices, data and people with suitable skills. Resources may come from suppliers or from inside the organization. Reusing an existing component or assigning an internal specialist is acquisition work too.

The clinic contracts with a text-message provider for reminders. It also allocates internal staff to support the booking system. Buying is one way to acquire resources; it is not the full meaning of the activity.

Build and check the working solution

Build develops, integrates and tests components to turn the design into a working solution. A test checks whether a component or product meets requirements and behaves as expected. Testing the reminder feature includes checking the specified timing, not merely confirming that a message can be sent.

With continuous integration, developers merge changes into a shared code base frequently, and automated builds and tests check those changes. This gives early feedback on integration failures and defects that the tests can detect. Passing those tests does not establish that every defect has been found; the result depends on what was tested.

The clinic can revise its design after a prototype test, acquire a different resource after a build test, or discover a new need while the product is being built.

Key Takeaways

  • Discover aligns needs, opportunities and strategy with product direction.
  • Design specifies functionality, experience, operation and support.
  • Prototypes test ideas early and may be discarded.
  • Acquire includes internal allocation and reuse as well as purchasing.
  • Build develops, integrates and tests a working solution.
  • Continuous integration provides early feedback through frequent merges and automated checks.

3.3 Transition, operate, deliver and support

A working digital product needs to enter live use, stay healthy and provide a useful service. Users also need help when service fails. Version 5 separates this work into transition, operate, deliver and support.

Transition into live use

Transition introduces new or changed products and services, including release, deployment and supplier onboarding or offboarding. Deployment moves components into an environment. Release makes a version or set of components available for use. Software can be installed in production with a feature switched off, so deployment and release need not happen together.

Continuous delivery keeps tested changes ready to deploy, with a person deciding when. Continuous deployment moves every change that passes automated tests into the live environment without a manual decision. Neither term means that users necessarily receive a new feature every time components move.

Operate reliable technology

Operate runs, maintains and monitors products to agreed performance and reliability. Reliability is the ability to perform required functions as expected over time. Observability means understanding internal system state from outputs such as logs, metrics and traces. Site reliability engineering (SRE) applies software engineering to operations, including automation and measurable reliability targets.

An event is a change of state significant to managing a service or configuration item. A backup completing is an event; so is disk use reaching 90%. Many events need recording only. Others warn that intervention could prevent an incident.

For a booking service available 99.9% of a whole 30-day month, total time is 43,200 minutes. Allowed downtime is 0.1% of that: 43.2 minutes. With 43 minutes down, availability is about 99.90%, just meeting the target. Compare unrounded values before deciding whether a close result meets a target.

Deliver ordinary service actions

Deliver provides services day to day, onboards and offboards users, fulfills requests and gathers feedback. A service request asks for an agreed normal service action, such as access to a shared folder or a new laptop. The authorized user or representative initiates the request.

Support when service goes wrong

Support restores normal operation and reduces future failures through incident resolution, disaster recovery and problem management. An incident is an unplanned interruption or quality reduction. A disaster causes serious loss or damage, such as a fire destroying a data center.

A problem is an actual or potential cause of incidents. An error is a flaw or vulnerability that may cause them. A known error is an analyzed problem that remains unresolved.

Suppose 30 people cannot print after a faulty driver update. Their service failures are incidents. The faulty update is the problem; once analyzed but still unfixed, the problem is a known error. Rolling the driver back can restore printing while the permanent fix is pending. Restoration therefore does not mean that the cause has been removed.

“I need access to the sales folder” is a request. “The sales folder will not open” reports an incident. Identify whether the user seeks a normal action or the restoration of something that has failed.

Key Takeaways

  • Transition introduces change; deployment puts components in place and release makes them available.
  • Continuous delivery retains a manual deployment decision; continuous deployment automates it.
  • Operate maintains technology; deliver provides ordinary services and requests.
  • Events are significant state changes; an event can warn of an incident without being one.
  • Support restores service and manages causes and recovery.
  • A known error is analyzed but unresolved; a workaround may restore service first.
  • Check availability against the full agreed service period.
4

Choose the practices the work needs

Activities describe what work contributes to value. Practices provide the people, information, technology, partners and processes that make that work possible. Their purposes help you decide which capabilities a value stream needs. ITIL 4 and Version 5 group the same 34 practices differently, while familiar distinctions remain useful: restoring service differs from removing its cause, and installing a component differs from making it available to users.

4.1 Practices supply capabilities

A practice is a set of organizational resources designed to perform work or achieve an objective. Version 5 calls it a management practice. A practice spans all four dimensions, including people and skills, information and technology, partners and suppliers, and value streams and processes.

A practice is broader than a process or department. Incident management may contain logging and diagnosis processes, a knowledge base, monitoring tools and people from a service desk, network team and supplier. Those resources together create the capability to restore service.

Two ways to group the 34 practices
VersionGroups
ITIL 414 general management, 17 service management and 3 technical management practices.
Version 512 general management and 22 product and service management practices.

Version 5 keeps the 34 practice names. Deployment management, infrastructure and platform management, and software development and management move from the technical group into product and service management. Information security management and service financial management also join that group, moving from general management.

Version 5 general management practices

The 12 practices are architecture management; continual improvement; knowledge management; measurement and reporting; organizational change management; portfolio management; project management; relationship management; risk management; strategy management; supplier management; and workforce and talent management.

These capabilities support how the organization is managed. For example, measurement and reporting supplies reliable information for improvement decisions. Continual improvement helps keep practices and services aligned with changing needs.

Version 5 product and service management practices

The 22 are availability management; business analysis; capacity and performance management; change enablement; deployment management; incident management; information security management; infrastructure and platform management; IT asset management; monitoring and event management; problem management; release management; service catalog management; service configuration management; service continuity management; service design; service desk; service financial management; service level management; service request management; service validation and testing; and software development and management.

Connect capabilities to a stream

A laptop request draws on service request management to handle the agreed action, IT asset management to track the device, deployment management to install software, and the service desk to contact the user. One value chain activity can need all these practices. The service desk can also contribute to several activities by receiving demand, updating users and gathering feedback.

Do not turn each practice into a separate team by default. Organizations adopt and adapt what they need, combine resources where useful and build capabilities gradually. A small organization may rely on the same people for several practices while keeping each purpose clear.

Use practice guides as a starting point

Official practice guides describe the practices. ITIL 4 guides cover purpose, key terms, scope, success factors and the four dimensions, including contributing processes and value streams. They provide shared language and a starting point to adapt. Following “start where you are” and “keep it simple and practical” means fitting that guidance to the organization's actual work.

Key Takeaways

  • A practice combines resources across all four dimensions.
  • Practices are broader than processes and can involve several teams.
  • ITIL 4 groups 34 practices as 14, 17 and 3; Version 5 groups them as 12 and 22.
  • A stream needs several practices, and a practice contributes to several activities.
  • Practice guides support adaptation to the organization’s needs.

4.2 Engage users and restore service

When users contact a provider, several practices may contribute. Their purposes help separate contact, ordinary requests, restoration, investigation and agreement about service quality.

Contact, restoration and causes
PracticePurpose
Service deskCapture demand for incident resolution and service requests; provide the entry point and single point of contact for users.
Incident managementMinimize incidents' negative impact by restoring normal service as quickly as possible.
Problem managementReduce the likelihood and impact of incidents by identifying actual or potential causes and managing workarounds and known errors.
Service request managementHandle predefined user-initiated service requests effectively and in a user-friendly way, supporting agreed service quality.

The service desk can use phone, chat, a portal, email or walk-in contact. It is the contact point, while incident management is the capability for restoration. Other technical teams and suppliers may perform much of that restoration.

Incident management can restore service through a workaround before the cause is known. Problem management can continue after restoration, or investigate a weakness before any incident occurs. Repeated incidents are useful evidence, but repetition is not required for a problem to exist.

A predefined password reset through a portal is a service request. A user's unexpected inability to access a working service can be an incident. Look at the need and the agreed service action, not only the word “password.”

Agree quality and maintain relationships

Service level management establishes clear business-based service targets and assesses, monitors and manages delivery against them. A service level agreement (SLA) documents the required services and expected service level agreed between provider and customer. A response-time target is useful when it reflects what the customer's work needs.

Relationship management develops relationships with stakeholders at strategic and tactical levels. It helps understand needs and business impact beyond one contact about one fault. Discussing the effect of a poor service with a department director can inform future priorities.

Monitoring and event management observes services and components and records and reports selected significant state changes. A threshold alert supplies information that can trigger investigation or action; the practice does not replace the work of restoring a failed service.

Follow a payroll slowdown

On payday, monitoring raises an alert that payroll response time has crossed its threshold. The service desk receives users' calls. Incident management adds server capacity to restore normal speed. Problem management later identifies a faulty database index as the cause.

Service level management reports the response-time target breach to the customer. Relationship management discusses its business impact with the finance director. Each contribution has a different purpose even if the same manager attends several of the discussions.

If users can work again after capacity is added, the incident can end while the problem remains open. Keeping that distinction visible stops a successful restoration from hiding unresolved causes that could affect the next payday.

Key Takeaways

  • The service desk is the contact point; incident management restores normal operation.
  • Problem management addresses causes, including potential causes before incidents.
  • Service request management handles agreed, predefined user requests.
  • Service level management manages business-based targets and SLAs.
  • Monitoring supplies event information; relationship management maintains wider stakeholder links.
  • Restoring service can end an incident while the cause remains unresolved.

4.3 Change, protect and improve services

A new service feature needs more than installation. Risks must be assessed, users need access at the right time, and the organization needs reliable information about components, costs and suppliers. These contributions come from different practices.

Introduce successful changes

Change enablement aims to maximize successful product and service changes through risk assessment, authorization and management of the change schedule. A change adds, modifies or removes anything that could affect services directly or indirectly. The original ITIL 4 Foundation book called this practice change control.

The aim is successful change, not the largest possible number of approval meetings. Low-risk standard changes can be pre-authorized. The authority and assessment fit the change's risk and context.

PracticeWhat it achieves
Deployment managementMoves new or changed components into live, test or staging environments.
Release managementMakes new or changed services and features available for use.

A feature can be deployed with its switch off. Releasing it later makes it available to users. This distinction explains why “installed successfully” does not always mean “users can use it.”

Know the components and their value

Service configuration management provides accurate, reliable information about services and the configuration items that support them, where and when it is needed. A configuration item (CI) is a component that needs management to deliver an IT service. Configuration information includes settings and relationships, such as which application depends on which database.

IT asset management plans and manages the full lifecycle of financially valuable IT components. It supports value, costs, risks, purchasing, reuse, retirement and regulatory or contractual requirements. An IT asset can be a laptop or a software license.

One laptop can be both an asset and a CI. The asset view asks about value and lifecycle; the configuration view asks how it is set up and connected to deliver service. Keeping one record accurate does not remove the need for the other view.

Protect information and supplier performance

Information security management protects the information needed for business. Confidentiality limits access to authorized people; integrity keeps information accurate and complete; availability keeps it usable when needed.

Supplier management manages suppliers and their performance so they support smooth provision of quality products and services. Continual improvement aligns products, services, practices and other management elements with changing business needs through ongoing improvement.

Roll out a remote-access client

For 1,500 staff, change enablement assesses risk and schedules the rollout. Deployment management installs the client on test devices and then staff laptops. Release management enables use in waves.

Service configuration management records device versions and relationships. IT asset management tracks licenses. Information security management checks encryption settings, and supplier management holds the vendor to its support contract. Continual improvement can use rollout results to improve the next change. The stream succeeds through these combined capabilities; no single practice supplies every contribution.

Key Takeaways

  • Change enablement supports successful changes through risk assessment, authorization and scheduling.
  • Deployment moves components; release makes them available for use.
  • Configuration management tracks settings and relationships; asset management tracks financial value and lifecycle.
  • Information security protects confidentiality, integrity and availability.
  • Supplier management supports quality provision through supplier performance.
  • Continual improvement keeps services and practices aligned with changing needs.
5

Plan improvements and check their results

Improvement starts with an outcome worth achieving and evidence about the current position. The continual improvement model connects that starting point to a target, a plan, action and a review of results. Measures make the review useful when they match the objective and expose trade-offs. A shared improvement register keeps ideas, ownership and progress visible so that useful changes continue after the first round of work.

5.1 Seven steps from vision to further improvement

Continual improvement is recurring work at every level to keep performance meeting stakeholder expectations. It is a component of the value system, an ITIL 4 value chain activity called improve, and a practice. Everyone shares responsibility for identifying and supporting improvement.

The continual improvement model provides seven connected steps. It can guide a small team change, one value stream or an organization-wide transformation. A large change usually needs several smaller iterations.

What to do at each step
StepWork to perform
1. What is the vision?Connect the improvement to organizational objectives; agree scope and stakeholders.
2. Where are we now?Measure and describe the current state as a baseline.
3. Where do we want to be?Set a measurable target and time frame.
4. How do we get there?Plan a route, often through small iterations.
5. Take action.Carry out the plan and remain open to feedback.
6. Did we get there?Compare measured results with the target.
7. How do we keep the momentum going?Maintain and spread gains, then begin the next round.

Version 5 keeps seven steps but calls step 6 “Are we getting there?” and step 7 “How do we keep the improvements relevant?” The wording emphasizes ongoing progress and continued usefulness.

Follow a service desk improvement

Vision: staff should be able to work without long interruptions. Current position: the desk resolves 1,392 of 2,400 monthly contacts at first contact. Dividing resolutions by contacts gives a baseline of 58%.

Desired position: reach 70% within six months. At the baseline volume this would mean 1,680 contacts resolved at first contact. The target is the proportion, so the required count will change if volume changes.

Plan: build a knowledge base for the 20 most common fixes in monthly iterations. Action: publish the articles and train agents to use them.

Check: after six months, 1,620 of 2,500 contacts are resolved at first contact. The result is 64.8%: above 58%, below 70%. The desk has improved but has not met the target. At the new volume, 70% would require 1,750 first-contact resolutions.

Continue: share the results, keep the articles current and investigate the remaining gap. Feedback can send the team back to step 4 to change the plan, or to step 3 if the target needs revision. A target missed is information for the next decision.

Keep the starting point visible

Skipping the baseline removes the comparison needed to judge change. A result of 64.8% shows progress here because the team measured 58% before acting. Starting with “buy a new tool” also jumps ahead: it selects a solution before agreeing the outcome and target.

The guiding principles support the steps. “Focus on value” guides the vision; “start where you are” guides the baseline; “progress iteratively with feedback” guides planning, action and checking. “Collaborate and promote visibility” involves affected people and makes progress visible throughout.

Key Takeaways

  • Begin with vision, baseline and a measurable target before choosing a solution.
  • The seven-step model connects planning, action, checking and continued improvement.
  • Compare results with both the baseline and the target.
  • A partial gain can lead to a revised plan and another iteration.
  • Version 5 rewords steps 6 and 7 around progress and continued relevance.

5.2 Measures that show whether the change helps

A metric is a measurement or calculation monitored or reported for management and improvement. A key performance indicator (KPI) is an important metric used to judge progress toward an objective. A critical success factor (CSF) states something that must be true to achieve the intended results.

Connect the objective to evidence

Start with the objective, identify the CSFs needed to achieve it, then choose two or three reliable KPIs for each. Record a baseline before acting, set each target and date, and report results to the people who decide what to do next.

For the CSF “users can solve common problems without waiting for an agent,” useful KPIs include the share of common issues resolved through self-service and the share of password resets completed through self-service. First-contact resolution does not measure the same thing: an agent can resolve a contact, so it does not show independent user resolution.

A metric becomes a KPI through its link to the objective. Not every available count deserves equal attention. Measurement and reporting, a general management practice, provides reliable data to support these decisions.

Choose the right denominator

The service desk's first-contact resolutions rose from 1,392 to 1,620, an increase of 228. However, contacts also rose from 2,400 to 2,500. The proportions are:

13922400×100%=58% 16202500×100%=64.8%

The change is 6.8 percentage points. Reporting both count and percentage separates the workload from the share successfully handled at first contact. To reach 70% at the new volume requires 1,750 resolutions.

Use a percentage when the objective is about a share. Counts, durations and costs are also valid KPI forms when the objective concerns them. For example, an objective to shorten a wait needs a time measure.

Measure outcomes and unintended effects

“Number of knowledge articles published” measures an output. The share of contacts resolved at first contact and user satisfaction are closer to the outcome people value. Publishing 200 articles that nobody uses would meet a production count without helping users.

Combine outcome or value measures with speed and cost measures. A single target can encourage behavior that improves the number while harming service. If agents are judged only on first-contact resolution, they may close contacts too early. Tracking the share of incidents reopened within seven days helps expose that effect.

Keep ideas and ownership visible

A continual improvement register (CIR) is a structured document or database that tracks improvement ideas until completion or rejection. Entries include a description, owner, priority, expected benefit and status. A shared register avoids duplicated effort and helps compare potential benefits when deciding what to do first.

Governance monitors performance against strategy. Managers own improvements to practices and value streams. Every team member can raise an idea in the register. Assigning an owner keeps responsibility clear while allowing ideas to come from anywhere in the organization.

Key Takeaways

  • A CSF states a necessary condition; a KPI provides evidence about an objective.
  • Choose metrics from the objective and establish a baseline before action.
  • Report counts and rates together when changing volume affects interpretation.
  • Measure useful outcomes as well as production, speed and cost.
  • Balance a target with a measure that reveals harmful side effects.
  • A CIR records ideas, owners, priorities, expected benefits and status.

Service Value System and Value Chain examples

5 Walkthroughs

1

Follow a request through the value system

12 steps
Trace a lab-booking improvement from a consumer need to useful value, then separate governance from management.
  1. 1
    IntroductionA useful system for booking labs

    A university’s researchers can book shared laboratory equipment only by email. Replies arrive late, and some bookings clash. IT has discovered that an existing scheduling product could provide shared availability.

    Follow the need (demand) and the possible solution (an opportunity) through the value system, then examine how leaders give the work direction and check its results. That is the job of governance, which stays distinct from management.

  2. 2
    ExampleIdentify the two inputs

    Researchers need dependable booking and timely replies. This is demand: a consumer need for a product or service. The unused scheduling capability is an opportunity: a possibility to add value or improve work.

    Both can start organizational work. The organization still decides whether to pursue the opportunity and how it fits the researchers’ needs.

  3. 3
    Key InsightDescribe the value researchers want

    A configured calendar is a product of the IT work. The value researchers seek is dependable access to equipment with less time spent arranging it. They judge the benefit through their experience of the service.

    Researchers also contribute by describing booking rules and using the service accurately. The provider and consumers co-create value; installing the product is only part of that work.

  4. 4
    ExplanationBring the five components together

    The guiding principles shape choices. Governance gives direction and limits. Value chain activities connect the work needed for booking. Practices supply skills, tools and information. Continual improvement checks and adjusts the service.

    These contributions happen together. A team applies security policy and collaborates with researchers while it designs the booking flow.

  5. 5
    ChallengeSpot a system gap

    The product team finishes configuration, but nobody has agreed who handles clashes or gathers user feedback. What is missing from the route to value?

    ---reveal---

    The route needs coordinated service and support work with users, not just configuration. Practices must supply the capability to handle clashes, and feedback must inform improvement. A finished calendar alone leaves the consumer’s outcome uncertain.

  6. 6
    ConnectionUse the dimensions as perspectives

    The four dimensions help examine the booking service: people and roles; information and technology; partners and suppliers; and value streams and processes. They apply across the whole system.

    The five components describe how the system works. The dimensions ask whether its resources and arrangements have been considered from every relevant perspective. They answer a different question.

  7. 7
    ExampleEvaluate the proposed direction

    The university’s governing body reviews whether shared scheduling supports its research strategy and responsibilities. This is evaluate: assessing the organization, its strategy and relationships, including likely changes.

    A technical manager can prepare options and evidence. That support does not transfer the governing body’s highest accountability for performance and compliance.

  8. 8
    ExampleDirect through policy and responsibility

    The governing body approves a policy for equipment access and assigns responsibility for carrying it out. This is direct. A policy formally documents expectations that guide decisions.

    Management then organizes configuration, training and support within that direction. Choosing the calendar’s technical settings is management work, even though those settings help satisfy the policy.

  9. 9
    ExplanationMonitor useful evidence

    After launch, the governing body reviews booking conflicts and service performance against the direction it approved. This is monitor. Management supplies the results and runs improvement work.

    The governing body also checks whether its policies still help. Clear access rules can enable routine decisions; an approval that adds delay without controlling a useful risk needs review.

  10. 10
    ChallengeClassify the decision

    An IT manager authorizes a routine calendar update under an existing change policy. Is that governance or management, and why?

    ---reveal---

    It is management: the manager applies the direction already set to an individual change. Governance establishes the policy and accountability, then oversees results. An approval is not governance merely because it controls whether work proceeds.

  11. 11
    ChallengeConnect governance with the whole result

    Booking conflicts persist because a department has kept a separate private calendar. What should leaders and managers address?

    ---reveal---

    Leaders should review whether shared policy and responsibilities support the intended outcome. Managers should coordinate the departments’ work and information so bookings follow one useful route. Separate team success has left a silo that obstructs value for researchers.

  12. 12
    RecapKeep the two views connected

    Trace a service from opportunity and demand through coordinated components to stakeholder value. Then locate the decisions: governance evaluates direction, directs policy and accountability, and monitors results; management organizes and runs the work.

    For the booking service, the useful test is whether researchers can arrange dependable access, with feedback feeding the next improvement.

2

Map and improve a software-access stream

16 steps
Build an ITIL 4 value stream, calculate its waiting and flow measures, and compare improvements across the whole route.

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  1. 1
    IntroductionFollow one access request
  2. 2
    ExplanationChoose activities by purpose
  3. 3
    ExamplePlace the first two actions
  4. 4
    ChallengeClassify a planning decision
  5. 5
    ConnectionConnect the route to practices
  6. 6
    ExampleFinish with use and feedback
  7. 7
    ChallengeDistinguish route and model
  8. 8
    Key InsightRecognize enabling value
  9. 9
    ExampleRecord work and waiting
  10. 10
    ExampleFind total elapsed time
  11. 11
    ExampleCalculate flow efficiency
  12. 12
    ChallengeCompare two proposals
  13. 13
    TipCheck the proposed future state
  14. 14
    ExplanationFit the approach to uncertainty
  15. 15
    ChallengeDiagnose a local improvement
  16. 16
    RecapRead the complete route
3

Improve a live class-booking service

15 steps
Follow a digital product through the eight Version 5 activities while distinguishing ongoing service provision from changes and restoration.

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  1. 1
    IntroductionA product with a continuing service
  2. 2
    ExplanationPlace the eight activities
  3. 3
    Key InsightSee parallel work
  4. 4
    ChallengeCorrect a lifecycle claim
  5. 5
    ExampleDiscover the need behind the feature
  6. 6
    ExampleDesign and test an idea
  7. 7
    ConnectionAcquire and build
  8. 8
    ChallengeFind the design gap
  9. 9
    ExampleTransition without confusing two actions
  10. 10
    TipKeep the deployment decision clear
  11. 11
    ExplanationOperate with useful signals
  12. 12
    ExampleCheck availability before rounding
  13. 13
    ChallengeDistinguish delivery from restoration
  14. 14
    ChallengeConnect a workaround to the next change
  15. 15
    RecapFollow feedback through the lifecycle
4

Choose practices for an inventory service

14 steps
Identify the capabilities needed during a service failure and a controlled rollout, using each practice’s purpose.

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  1. 1
    IntroductionSeveral capabilities for one service
  2. 2
    ExplanationThink beyond a procedure
  3. 3
    ExplanationKeep the grouping separate from the work
  4. 4
    ChallengeCheck an organizational proposal
  5. 5
    ExampleReceive the report and restore use
  6. 6
    ConnectionInvestigate causes after restoration
  7. 7
    ExplanationUse targets and relationships
  8. 8
    ChallengeChoose the remaining practice
  9. 9
    ExampleAssess, deploy and release the update
  10. 10
    ExplanationKnow what depends on what
  11. 11
    ConnectionProtect information and supplier support
  12. 12
    ChallengeIdentify the missing information
  13. 13
    ChallengeFollow a normal request through release
  14. 14
    RecapAsk what contribution is needed
5

Check a self-service improvement

12 steps
Use the seven-step model to plan a change, compare results fairly and select measures that expose useful outcomes.

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  1. 1
    IntroductionStart with a service outcome
  2. 2
    ExampleAgree the vision and current state
  3. 3
    ExampleSet a target and a route
  4. 4
    ExampleCheck the result against both comparisons
  5. 5
    ChallengeDecide what follows partial success
  6. 6
    ConnectionKeep the model connected
  7. 7
    ExplanationChoose a KPI that fits the CSF
  8. 8
    ExampleKeep the denominator visible
  9. 9
    ChallengeBalance speed with useful resolution
  10. 10
    TipRecord ideas and ownership
  11. 11
    ChallengeConnect the next action to evidence
  12. 12
    RecapKeep improvement measurable and useful

Service Value System and Value Chain practice questions

40 Practice Questions in 4 sets

Set 1: Recognize the system and its activities10 Practice Questions

Question 1 of 10

A courier’s dispatchers ask for access to delivery updates on their phones. What input to the service value system does this express?
  1. An opportunity chosen by leaders
  2. Demand from service consumers
  3. Value already received by users
  4. Governance directing the service
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Answer: B
The dispatchers express a need for a service, so this is demand. An opportunity is a possibility the organization could pursue to improve or add value. Access to a new technical feature could be an opportunity, but the dispatchers’ stated need is consumer demand.

Question 2 of 10

A charity’s trustees review whether a proposed hosting partnership fits the charity’s strategy. Which governance activity are they performing?
  1. Direct the operating responsibilities
  2. Monitor actual service performance
  3. Manage the supplier’s daily work
  4. Evaluate the proposed direction
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Answer: D
Evaluate assesses the organization, strategy and relationships, including a proposed partnership. Monitoring would check actual performance against an established direction or policy. The trustees are assessing whether to take this direction, not reviewing how an operating service has performed.

Question 3 of 10

An IT team reuses an available server to provide a component meeting an agreed specification. What ITIL 4 value chain activity does this serve?
  1. Obtain/build
  2. Design and transition
  3. Deliver and support
  4. Engage
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Answer: A
Obtain/build supplies components that meet specifications where and when they are needed. Reuse qualifies just as purchasing or construction does. Design and transition addresses expectations and movement into use, while the stated action is making the specified component available.

Question 4 of 10

A provider agrees response-time targets with a customer and later uses missed targets to choose an improvement. What does this show about service level management?
  1. It belongs entirely to deliver and support.
  2. It replaces engage when targets are agreed.
  3. It contributes to both engage and improve.
  4. It requires a separate team for each activity.
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Answer: C
Service level management supports engage when targets are agreed and improve when missed targets guide changes. A practice can contribute to several value chain activities. Limiting it to deliver and support confuses an ongoing capability with just one activity it helps perform.

Question 5 of 10

A sequential request stream has 2 h of active work and 18 h of waiting. What are its lead time and flow efficiency?
  1. 18 h and 11.1%
  2. 20 h and 10.0%
  3. 20 h and 90.0%
  4. 16 h and 12.5%
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Answer: B
Lead time includes both work and waiting: 2+18=20 h. Flow efficiency is 2/20×100%=10.0%. Dividing by 18 h treats waiting as the denominator, but the measure requires the full elapsed time from trigger to delivered value.

Question 6 of 10

A bank’s app, software and data support a service that lets customers make payments. What is the digital service in this example?
  1. Access to making payments through the bank
  2. The app’s stored software and supporting data
  3. The infrastructure hosting the app’s components
  4. The tested version of the app before release
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Answer: A
The service gives consumers access to the products’ payment capabilities. The software, data and infrastructure are digital product resources that support that service. Treating the app alone as the service misses the consumer’s access to a useful capability.

Question 7 of 10

An insurer has unused cloud capacity and staff with suitable skills. It assigns both to a new claims product. Which Version 5 activity is this, and why?
  1. Build, because it secures technical resources.
  2. Discover, because it confirms available resources.
  3. Design, because it assigns product responsibilities.
  4. Acquire, because it allocates needed resources.
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Answer: D
Acquire includes allocating internal resources as well as obtaining them from suppliers. The insurer is assigning capacity and skills needed by the product. Build would develop, integrate and test components; having resources available is not the same as constructing the working solution.

Question 8 of 10

A manager says incident management is only the written procedure for logging faults. What important part of a practice has this view left out?
  1. The fixed order of all six value chain activities
  2. The people, tools and other resources for the work
  3. The requirement for a department per practice
  4. The rule that every incident needs a new process
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Answer: B
A practice combines resources across all four dimensions, including people, information, technology, partners and processes. The logging procedure describes only part of that capability. The missing breadth does not mean the organization must create a separate department for incident management.

Question 9 of 10

A team restores a scheduling service by restarting a component, but it has not identified the cause. What practice should investigate the cause to reduce future failures?
  1. Service request management
  2. Service level management
  3. Problem management
  4. Relationship management
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Answer: C
Problem management identifies actual and potential incident causes and manages workarounds and known errors. Restoring service addresses the incident’s immediate impact but leaves the cause unresolved. Service level management assesses delivery against targets; it does not replace causal investigation.

Question 10 of 10

A desk starts with 200 of 400 contacts resolved at first contact and targets 75%. After a change, it resolves 390 of 600. How should the team assess and continue the improvement?
  1. The target was met because resolved contacts nearly doubled.
  2. Performance fell because unresolved contacts increased.
  3. The target was met because the new rate exceeds the baseline.
  4. Performance improved but missed target; revise the plan.
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Answer: D
The baseline is 50%, and the new rate is 390/600×100%=65%. That is progress but below 75%, so the team should learn from results and adjust its plan. The higher resolution count alone cannot show target success because total contact volume also changed.
Set 2: Apply the concepts to service decisions10 Practice Questions

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Question 1 of 10

A document-search tool is delivered on schedule, but staff still cannot find the records they need. What should the provider assess next to judge value?
  1. Whether the completed tool meets the release date
  2. Whether every component has an assigned team name
  3. Whether users achieve useful record-search outcomes
  4. Whether the product appears in the software inventory
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Question 2 of 10

A service desk receives a user’s report and clarifies what has happened. What ITIL 4 activity does this contact serve?
  1. Engage
  2. Improve
  3. Obtain/build
  4. Plan
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Question 3 of 10

A sequential stream contains 5 h of active work and 35 h of waiting. One proposal saves 2 h of work; another saves 10 h of waiting. With no other changes, which gives the shorter lead time?
  1. The active-work reduction, giving a 33 h lead time
  2. The waiting reduction, giving a 25 h lead time
  3. The active-work reduction, giving a 38 h lead time
  4. The waiting reduction, giving a 30 h lead time
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Question 4 of 10

Users of an early clickable delivery-tracking prototype cannot find the rescheduling action. What should the design team do with this evidence?
  1. Deploy the prototype as the finished product.
  2. Revise the design and test the revised idea.
  3. Treat the issue as an incident in live operation.
  4. Add server capacity before changing the screens.
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Question 5 of 10

A service promises 99.95% availability across a full 28-day period. Three outages last 8, 7 and 6 minutes, with no overlap or other downtime. Has it met the target?
  1. Yes; 21 min is below the 40.32 min allowance.
  2. Yes; each outage is below the 20.16 min allowance.
  3. No; 21 min exceeds the 20.16 min allowance.
  4. No; 21 min exceeds the 14.00 min allowance.
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Question 6 of 10

How many management practices does Version 5 retain in total?
  1. 22 practices
  2. 12 practices
  3. 17 practices
  4. 34 practices
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Question 7 of 10

A manager wants evidence that delivery meets the customer’s agreed response-time target. Which practice directly addresses this need?
  1. Service level management
  2. Monitoring and event management
  3. Service request management
  4. Relationship management
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Question 8 of 10

An update has been installed on production servers, but users cannot access its disabled feature. Which practice makes the feature available for use?
  1. Deployment management
  2. IT asset management
  3. Release management
  4. Service configuration management
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Question 9 of 10

A team measures its current fulfillment time before making changes. Which continual improvement model question is it answering?
  1. What is the vision?
  2. Where are we now?
  3. Where do we want to be?
  4. How do we get there?
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Question 10 of 10

An access team targets at least 55% independent self-service resolution. It moves from 240 of 400 issues to 375 of 750, while reporting only the higher count. What should its review conclude?
  1. The share fell to 50%, below target despite more resolutions.
  2. The share rose to 62.5%, above target with more resolutions.
  3. The share stayed at 60%, above target despite higher demand.
  4. The share fell to 55%, meeting target with more resolutions.
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Set 3: Connect evidence, activities and outcomes10 Practice Questions

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Question 1 of 10

A board sets a service policy, and an operations manager chooses the backup schedule to meet it. How should responsibility for these actions be classified?
  1. The policy is management; the schedule is governance.
  2. Both are governance because both influence service risk.
  3. Both are management because both concern IT operations.
  4. The policy is governance; the schedule is management.
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Question 2 of 10

A provider maps work from a new employee’s access request to usable access. Is this a value chain or a value stream?
  1. A value chain listing general activities
  2. A value stream for a kind of demand
  3. A practice combining shared resources
  4. A dimension examining the organization
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Question 3 of 10

A retailer maps work for customer order fulfillment and for onboarding its own suppliers. How does Version 5 classify these two streams?
  1. Order fulfillment is enabling; supplier onboarding is core.
  2. Both are core because both contribute to customer value.
  3. Order fulfillment is core; supplier onboarding is enabling.
  4. Both are enabling because both require internal activity.
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Question 4 of 10

A sequential stream has 6 h active work and 54 h waiting. A target requires lead time at most 45 h and flow efficiency at least 12%. Proposal R cuts work to 3 h; proposal S cuts waiting to 36 h. Everything else stays unchanged. Which meets both targets?
  1. S only, with 42 h lead time and 14.3% efficiency
  2. R only, with 57 h lead time and 5.3% efficiency
  3. Both, because each reduces one part of lead time
  4. Neither, because neither reduces active work enough
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Question 5 of 10

A live product team studies changing user needs, tests a simplified screen idea, and prepares a working update while the existing service remains available. Which Version 5 description fits this combined work?
  1. Discover, acquire and transition replace continuing operation.
  2. Design, acquire and deliver finish before operation can resume.
  3. Plan, obtain/build and engage form the eight-activity lifecycle.
  4. Discover, design and build overlap with continuing operation.
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Question 6 of 10

Monitoring records that a backup completed successfully. Does this qualify as an event, and must it also be an incident?
  1. It is an incident and need not be an event.
  2. It is both because every event disrupts service.
  3. It is an event and need not be an incident.
  4. It is neither because the backup was successful.
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Question 7 of 10

An investigation finds a weakness that could disrupt a service, although no user has yet experienced failure. Which practice should manage this potential cause?
  1. Incident management
  2. Problem management
  3. Service request management
  4. Service desk
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Question 8 of 10

A patch is installed but disabled. Before enabling it, the team must assess which services depend on its database and whether change risks are acceptable. Which combination covers all three needs?
  1. Release management, configuration management and change enablement
  2. Deployment management, asset management and change enablement
  3. Release management, asset management and supplier management
  4. Deployment management, configuration management and incident management
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Question 9 of 10

What kind of record tracks improvement ideas with an owner, priority, expected benefit and status?
  1. A service level agreement
  2. A product specification
  3. A continual improvement register
  4. A current-state value stream map
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Question 10 of 10

A team proposes buying a tool before agreeing what service outcome should improve. What should it do first under the continual improvement model?
  1. Choose the tool, then use its features to define the target.
  2. Agree the vision and scope, then assess the current state.
  3. Implement the tool, then select a baseline from its results.
  4. Set the launch date, then treat delivery as the improvement.
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Set 4: Reason through changes and competing measures10 Practice Questions

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Question 1 of 10

A provider’s build team meets its completion target, but support receives no handover information and users cannot complete their work. What response best applies the service value system?
  1. Coordinate build and support around useful service for users.
  2. Judge value by build completion and pass information on later.
  3. Keep the build target and ask users to adapt their work.
  4. Judge support only by closures in its separate service system.
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Question 2 of 10

A council’s governing body assesses an AI proposal’s strategic fit, approves its use policy and accountable owner, then reviews compliance reports. A committee prepared the papers. How should the work and accountability be described?
  1. Monitor, direct, evaluate; the governing body retains accountability.
  2. Evaluate, monitor, direct; the committee now holds accountability.
  3. Evaluate, direct, monitor; the governing body retains accountability.
  4. Direct, evaluate, monitor; accountability moves to the policy owner.
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Question 3 of 10

A restoration map lists only “service desk → technical team → service desk.” What addition would best explain how the stream produces value?
  1. The department managers’ names and the teams’ reporting hierarchy
  2. The work performed, its activities and practices, and the user result
  3. The full practice list arranged in its published grouping order
  4. The six activity names imposed once each as a fixed project plan
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Question 4 of 10

A sequential stream has 4 h active time and 20% flow efficiency. A proposal halves active time and leaves waiting unchanged. What happens to lead time and flow efficiency?
  1. Lead time falls to 10 h; efficiency stays at 20.0%.
  2. Lead time falls to 18 h; efficiency rises to 22.2%.
  3. Lead time falls to 16 h; efficiency falls to 12.5%.
  4. Lead time falls to 18 h; efficiency falls to 11.1%.
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Question 5 of 10

What wider ITIL model still surrounds the eight lifecycle activities in Version 5?
  1. The five-component ITIL value system
  2. The six-activity ITIL 4 service value chain
  3. The four dimensions of service management
  4. The seven-step continual improvement model
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Question 6 of 10

A product passes its automated integration tests, but users of its prototype still cannot understand an important action. What should the team infer?
  1. The tests passed, so the user feedback concerns only operation.
  2. The tests passed, but design feedback still requires attention.
  3. The prototype failed, so no integrated component can be valid.
  4. The prototype failed, so acquiring new licenses is the solution.
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Question 7 of 10

A failed service is restored with a workaround. Its analyzed cause is still unresolved. A fix then passes tests and is automatically deployed to live, with the feature disabled. What is the accurate description?
  1. The problem is resolved; continuous delivery made the feature available.
  2. A known error remains; continuous delivery released the new feature.
  3. The incident must remain open; continuous deployment completed release.
  4. A known error remains; continuous deployment occurred before release.
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Question 8 of 10

Version 5 keeps 34 practices, moving the three ITIL 4 technical practices and two general practices into product and service management. What grouping and organizational conclusion follow?
  1. 14 general and 20 product/service practices; teams may share resources.
  2. 12 general and 22 product/service practices; each needs its own team.
  3. 12 general and 22 product/service practices; teams may share resources.
  4. 17 general and 17 product/service practices; each needs its own team.
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Question 9 of 10

A team must decide whether to reuse unused laptops and also learn which services depend on one of them. Which two practice views does it need?
  1. Asset lifecycle value and service configuration relationships
  2. Asset lifecycle value and service level agreement wording
  3. Service configuration relationships and release availability
  4. Service level targets and supplier performance comparisons
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Question 10 of 10

A provider targets 80% of routine issues resolved without an agent. Its results change from 540 of 900 to 780 of 1,300. A manager reports 90% first-contact resolution as proof of success. What should the review conclude?
  1. Independent resolution rose to 80%; the first-contact figure confirms the target was met.
  2. Independent resolution stayed at 60%; the first-contact figure proves no progress occurred.
  3. Independent resolution rose to 90%; the higher resolved count explains the difference.
  4. Independent resolution stayed at 60%; the first-contact figure tests a different result.
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Stuck on your own question? Homework Help

Key Terms

98 Key Terms, each with its definition

A

Acquire
Acquire is the Version 5 activity that obtains or allocates resources needed by products and services, internally or from suppliers.
A clinic acquires message capacity from a supplier and assigns internal staff to support users.
Active time
Active time, also called touch time, is the time a person or system spends actually working on an item in a value stream.
Automated configuration contributes active time while a device is being prepared for use.
AI governance
AI governance is the oversight, policies and accountability used to keep AI use safe, lawful, transparent and aligned with organizational goals.
Leaders assign responsibility for an AI service and review how it performs against agreed policy.
Availability
Availability describes whether a service or component can be used when needed, measured over an agreed service period.
A team compares actual downtime with the allowance under the agreed monthly target for an online booking service.

B

Baseline
A baseline is an objective measurement and description of the current state used as a starting comparison for later improvement results.
A first-contact resolution rate of 58% is recorded before the team changes its knowledge base.
Build
Build is the Version 5 activity that develops, integrates and tests components to turn the design into a working solution.
Developers build an appointment reminder function and test whether it meets its specified delivery timing.

C

Change
A change adds, modifies or removes anything that could have a direct or indirect effect on services, requiring appropriate control.
Removing an unused component can be a change because other services may still depend on it.
Change enablement
Change enablement maximizes successful changes through proper risk assessment, authorization and management of the change schedule.
A low-risk standard update proceeds under pre-authorization, while a riskier change needs assessment.
Complexity thinking
Complexity thinking recognizes that ordered, complex and chaotic situations need different approaches to action and learning.
A team experiments with an unfamiliar product but standardizes its predictable equipment requests.
Confidentiality
Confidentiality protects information by limiting access to authorized people, supporting the organization’s information security.
An access rule prevents staff without permission from reading confidential customer records.
Configuration item
A configuration item is any component that needs to be managed to deliver an IT service, with relevant settings and relationships recorded.
A database is a configuration item because its setup and dependencies matter to the service.
Continual improvement
Continual improvement is recurring work at every organizational level to keep performance aligned with stakeholder expectations and changing needs.
A team reviews user feedback regularly and changes its service when the current approach falls short.
Continual improvement model
The continual improvement model is a seven-step approach linking vision, baseline, targets, planning, action, checking and continued improvement.
A service desk uses the model to plan knowledge articles and check their effect on resolution.
Continual improvement register
A continual improvement register is a structured record that manages improvement ideas from when they are raised to completion or rejection.
An entry names the owner, priority, expected benefit and status of a proposed approval improvement.
Continuous delivery
Continuous delivery keeps tested changes ready to deploy at any time, while a person decides when deployment should happen.
A tested update is ready today, but the responsible person schedules its deployment for tomorrow.
Continuous deployment
Continuous deployment automatically puts each change that passes the automated tests into the live environment without a manual decision.
After passing the automated checks, a code change enters the live system without a release meeting.
Continuous integration
Continuous integration frequently merges development changes into a shared code base and automatically builds and tests those changes.
An automated integration test flags an incompatible change soon after it enters the shared code base.
Core value stream
A core value stream delivers value to external consumers in the way the organization’s operating model intends.
Fulfilling a customer’s order is a retailer’s core value stream, supported by internal services.
Critical success factor
A critical success factor is a necessary precondition for achieving intended results, supported by KPIs that show whether it is being achieved.
Users being able to solve common problems without an agent is a CSF for a self-service improvement.
Current-state map
A current-state map represents how a value stream actually works now, including steps, handovers, active work and waiting.
The current-state map reveals an approval queue that is missing from the official procedure.

D

Deliver
Deliver is the Version 5 activity that provides day-to-day services, onboards or offboards users, fulfills requests and gathers feedback.
A new employee receives an account and agreed access through the deliver activity.
Deliver and support
Deliver and support is the ITIL 4 activity that provides and supports services to agreed specifications and stakeholder expectations.
Running an email service and restoring it after an outage both contribute to deliver and support.
Demand
Demand is the need or desire for products and services among internal or external consumers that can trigger organizational work.
Requests from field staff for secure access to office systems express demand for a service.
Deployment management
Deployment management moves new or changed hardware, software, documentation, processes or other components into an environment.
The team deploys a feature to production but leaves it disabled until the planned user release.
Design
Design is the Version 5 activity that turns needs into product specifications and prototypes, including operation and support requirements.
For a clinic’s online booking service, design specifies how patients cancel appointments and how staff will support it.
Design and transition
Design and transition is the ITIL 4 activity that ensures products and services meet expectations for quality, cost and time to market.
A booking service gains specifications and moves from testing into use through design and transition.
Digital product
A digital product is built mainly from software, data and digital infrastructure and supplies capabilities from which services can be offered.
A mobile banking app is a digital product that supports a bank’s online payment services.
Digital product and service management
Digital product and service management manages technology-dependent products and services from their first idea through retirement.
A team plans support and maintenance for an app while it develops the product’s first release.
Digital service
A digital service gives consumers access to the capabilities of one or more digital products to support outcomes they value.
A bank’s online payment service lets customers move funds through the bank’s digital products.
Direct
Direct is the governance activity of assigning responsibility for strategy and policies and directing their preparation and execution.
A board directs a cloud move by approving policy and assigning an accountable executive.
Disaster
A disaster is a sudden, unplanned event that causes serious loss or damage to an organization and can require major recovery work.
A fire destroying a data center creates a disaster affecting the services hosted there.
Discover
Discover is the Version 5 activity that explores needs, opportunities and strategy and keeps product and service roadmaps aligned with them.
Patient research leads a clinic to place online appointment booking on its product roadmap.

E

Enabling value stream
An enabling value stream delivers value to internal consumers and supports the organization’s core value streams.
Onboarding a supplier enables a retailer to obtain stock needed for customer orders.
Engage
Engage is the ITIL 4 activity that understands stakeholder needs, captures demand and feedback, builds relationships and promotes transparency.
A service desk captures a user’s report, and a relationship manager discusses future business needs.
Error
An error is a flaw or vulnerability that may cause incidents, even if it has not yet disrupted a service.
A flaw found in a component during investigation could explain an existing failure or cause a future one.
Evaluate
Evaluate is the governance activity of assessing the organization, strategy, portfolios and relationships, now and as they may change.
The board evaluates whether a proposed cloud move fits its strategy and responsibilities.
Event
An event is a change of state significant to managing a service or configuration item, whether or not it requires further action.
A backup completion and a disk-capacity warning are both events, although their responses differ.

F

Flow efficiency
Flow efficiency is active time divided by lead time, expressed as a percentage using the same time unit for both quantities.
A stream with 2 h active work and 10 h lead time has 20% flow efficiency; the rest is waiting.
Future-state map
A future-state map represents the improved flow that a team aims to achieve after changing steps, handovers or supporting practices.
A future-state map replaces repeated entry with a shared request record used by all teams.

G

General management practices
General management practices are capabilities adopted from wider business management, grouped as 14 practices in ITIL 4 and 12 in Version 5.
Measurement and reporting is a general management practice that supports reliable improvement decisions.
Governance
Governance is the means of directing and controlling an organization so that work follows its purpose, strategy and policies.
Trustees review whether service investments support the organization’s agreed direction.
Governing body
A governing body is the person or group with the highest accountability for the organization’s performance and compliance.
A small firm’s owner retains governing-body accountability when a committee prepares advice.

I

Improve
Improve is the ITIL 4 value chain activity that continually improves products, services and practices across activities and dimensions.
A team uses service feedback to agree an initiative addressing falling satisfaction after a release.
Improvement target
An improvement target is a measurable desired state with a time frame that defines what the team is trying to achieve.
A service desk aims to resolve 70% of contacts at first contact within six months.
Incident
An incident is an unplanned service interruption or reduction in quality, such as an unexpected inability to use a working service.
An unexpected failure to open a working shared folder is reported as an incident.
Incident management
Incident management minimizes incidents’ negative impact by restoring normal service operation as quickly as possible.
The team uses a workaround to restore payroll processing before the permanent correction is ready.
Information security management
Information security management protects the business information an organization needs, including confidentiality, integrity and availability.
The team checks encryption and access settings before staff begin using a remote-access client.
Integrity
Integrity protects the accuracy and completeness of information so that people and systems can rely on it for their work.
The team checks that a client update has preserved complete and accurate inventory records.
IT asset
An IT asset is a financially valuable component that can contribute to delivering an IT product or service, such as a laptop or license.
A software license is tracked as an IT asset through purchase, use and eventual retirement.
IT asset management
IT asset management plans and manages financially valuable IT components across their full lifecycle to support value, costs and risks.
The asset record helps decide whether an unused laptop should be reused or retired.

K

Key performance indicator
A key performance indicator is an important metric used to evaluate success in meeting a particular objective.
Self-service resolution rate is a KPI for reducing users’ dependence on agents for common issues.
Known error
A known error is a problem that has been analyzed but remains unresolved, even if a workaround has restored service.
A team records an analyzed printer driver fault as a known error while awaiting a permanent fix.

L

Lead time
Lead time is the total elapsed time from a value stream’s trigger until value is delivered, including both work and waiting.
A device takes 20 h to reach its user even though technicians work on it for only 3 h.

M

Management practice
A management practice is a set of organizational resources designed to perform work or achieve an objective across the four dimensions.
Incident management combines staff, information, tools, partners and processes to restore service.
Metric
A metric is a measurement or calculation monitored or reported to support management and improvement, such as weekly incident volume.
The team records both monthly contact count and the percentage resolved at first contact.
Monitor
Monitor is the governance activity of checking organizational performance against strategy and policies through relevant evidence.
The board monitors outage reports and audit results against the policy it approved earlier.
Monitoring and event management
Monitoring and event management observes services and components systematically and records and reports selected significant changes of state.
An alert reports a response-time threshold crossing so the team can investigate the service.

O

Observability
Observability is the ability to understand a system’s internal state through its outputs, including logs, metrics and traces.
Engineers combine logs and traces to understand where a slow transaction is spending time.
Obtain/build
Obtain/build is the ITIL 4 activity that supplies components meeting agreed specifications where and when they are needed.
The team buys devices and develops a software feature as different parts of obtain/build.
Operate
Operate is the Version 5 activity that runs, maintains and monitors digital products and technology to agreed performance and reliability.
The operations team monitors capacity and maintains the infrastructure behind an online booking product.
Operating model
An operating model describes how an organization co-creates value with customers and other stakeholders and how it runs itself.
A retailer’s operating model connects ordering, fulfillment and supporting work around customer value.
Opportunity
An opportunity is a possibility to add value for stakeholders or improve the organization, which the organization can choose to pursue.
An unused identity-platform feature offers an opportunity to shorten password reset waits.

P

Plan
Plan is the ITIL 4 value chain activity that builds shared understanding of vision, current status and the direction for improvement.
A decision to fund cloud email next year is part of plan because it sets a shared direction.
Policy
A policy is a formally documented statement of expectations and intentions that guides decisions and activities within an organization.
A data-location policy guides management when it selects and configures approved data centers.
Practice guide
A practice guide is official guidance describing a practice and helping organizations understand and adapt its purpose and operation.
A team uses a practice guide as a starting point, then adapts its resources to local needs.
Problem
A problem is an actual or potential cause of one or more incidents, which can remain after service has been restored.
A faulty driver causes printing failures even though a rollback temporarily restores printing.
Problem management
Problem management reduces incident likelihood and impact by identifying causes and managing workarounds and known errors.
An investigation finds a faulty index behind payroll slowdowns after service has been restored.
Process
A process is a set of interrelated or interacting activities that transforms inputs into outputs, often within part of a practice.
Logging and assessing an incident can be a process inside a wider value stream for restoring service.
Product and service lifecycle
The product and service lifecycle in Version 5 describes eight activities for managing digital products and services over their lives.
Support feedback returns a live product to design and build while its existing service keeps running.
Product and service management practices
Product and service management practices are the Version 5 group of 22 practices supporting the management of products and services.
Version 5 places information security management and deployment management together in this group.
Product specification
A product specification describes the features, quality levels and constraints that a product must meet to address agreed needs.
A specification for appointment booking requires reminders 24 hours before each visit and access outside office hours.
Prototype
A prototype is an early simplified version of a proposed product used to test ideas with users before the full product is built.
Patients try a clickable prototype of appointment booking, revealing that its cancellation button is difficult to find.

R

Relationship management
Relationship management develops and maintains links between the organization and stakeholders at strategic and tactical levels.
A relationship manager meets the finance director to discuss how service quality affects payday work.
Release
A release is a version of a service or other configuration item, or a set of them, that is made available for use.
An installed feature becomes part of a release when it is enabled for the intended users.
Release management
Release management makes new or changed services and features available for use, which can occur separately from deployment.
Release management enables an already installed feature for a first group of users.
Reliability
Reliability is the ability of a product or service to perform its required functions as expected over time.
A team sets reliability targets so its online booking product continues to perform its required functions.

S

Service configuration management
Service configuration management provides accurate, reliable information about services and supporting items, including their relationships.
A configuration record shows which application uses a database that is scheduled to change.
Service desk
The service desk captures incident and request demand and provides the entry point and single point of contact between provider and users.
A user contacts the service desk by chat, and the desk coordinates updates during restoration.
Service level agreement
A service level agreement is a documented agreement between provider and customer identifying required services and expected service levels.
An SLA records the availability that a customer expects from an online booking service.
Service level management
Service level management sets clear business-based service targets and assesses, monitors and manages delivery against them.
The customer and provider agree a response-time target that reflects the needs of payroll staff.
Service management practices
Service management practices are the ITIL 4 group of 17 practices developed from service management and IT service management.
ITIL 4 places incident management in this group; Version 5 uses a broader product and service group.
Service request
A service request asks for an agreed normal service action, initiated by a user or an authorized representative.
An employee requests agreed access to a shared folder, without reporting a failure of existing access.
Service request management
Service request management handles agreed, predefined user-initiated requests effectively and helpfully to support service quality.
An employee requests a standard laptop through a portal that follows an agreed fulfillment route.
Service value chain
The service value chain is an operating model of interconnected activities for creating, delivering and continually improving services.
An ITIL 4 team combines engage, obtain/build and other activities to fulfill a business need.
Service value system
The service value system describes how an organization’s components and activities work together to enable value creation.
A bank connects user feedback, policies and service work through its service value system.
Silo
A silo is an isolated way of working in which a team shares little information or coordination with other parts of the organization.
Separate teams repeat a customer’s details because their silos hide the information already collected.
Site reliability engineering
Site reliability engineering applies software engineering methods to operations, such as automating routine work and setting reliability targets.
An SRE team automates a repetitive recovery task and measures whether service reliability improves.
Supplier management
Supplier management manages suppliers and their performance so they support smooth provision of quality products and services.
A supplier manager reviews whether a remote-access vendor meets its agreed support commitments.
Support
Support is the Version 5 activity that restores normal operation and addresses future failures through incidents, recovery and problems.
Support restores a failed booking service and investigates the cause to reduce future failures.

T

Technical management practices
Technical management practices are the ITIL 4 group of three practices adapted from technology management for service work.
Deployment management leaves this separate group and joins product and service management in Version 5.
Test
A test checks whether a component or product meets its requirements and works as expected, supplying evidence for further decisions.
A reminder test checks the required timing as well as whether the system can send a message.
Transition
Transition is the Version 5 activity that introduces new or changed products and services into live use, including releases and deployment.
A team prepares a changed booking service for live use and onboards its new message supplier.
Trigger
A trigger is the demand or opportunity that starts a value stream, giving the stream a defined point from which to trace work.
A new employee’s approved start creates the trigger for an onboarding value stream.

V

Value
Value is the perceived benefit, usefulness and importance of something, judged by the stakeholders who experience its outcomes.
Managers value an expense service when it lets them approve valid claims without long delays.
Value co-creation
Value co-creation means providers and consumers both contribute to useful outcomes through their resources, decisions and participation.
A user supplies an accurate fault report, helping the provider restore the service more quickly.
Value stream
A value stream is a series of steps an organization undertakes to create and deliver products and services to its consumers.
A restoration stream connects the first fault report to the user being able to work again.
Value stream management
Value stream management is the ongoing work of managing and improving value streams to optimize work flow and value creation.
Managers revisit a map and its measures after a change to check whether the whole stream improved.
Value stream mapping
Value stream mapping examines and visually represents work flow to understand value creation and identify opportunities for improvement.
A team maps laptop provisioning to see both active tasks and queues between departments.

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