How to

integrate practices
into value streams
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In the next hour…

▪ A brief history of IT Adam Griffith

ITIL Architect
▪ Service value streams in ITIL 4
▪ Service value chain in ITIL 4
Roman Zhuravlev
▪ A value-focused operating model(s)
Senior ITIL Architect
▪ Service value streams in ITIL 4

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A brief history
of IT

3
Internal technology-centred team

Executive
leadership • IT (nee ICT) is a part of the business
team
organization
• IT reports to the executive leadership
Business Business Business
ICT
team or to one of the business units
unit A unit B unit C
• IT is focused on management of IT
systems
• IT systems are used to automate
some business operations

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Internal IT service provider

Executive
leadership
team • IT is a part of the business
organization, but positioned as an
internal service provider
Business Business Business
unit A unit B unit C
• IT is focused on management of IT
services based on IT systems
• IT services are used to support or
Service
relationships
ICT enable some business operations

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Outsourced IT service provider

Executive
leadership • IT is detached from the business
team organization and positioned as an
external service provider

Business Business Business • IT is focused on management of IT

unit A unit B unit C services while trying to become or
remain financially viable

Service
Outsourced • IT services are used by the service
IT service
relationships
provider consumer organization(s) to support
or enable some business operations

6
Internal application development and
management teams
Executive
leadership
• IT teams responsible for the business-
team specific and critical IT systems are
brought back into the organization (in
panic) and positioned as a service
Business Business Business provider
unit A unit B unit C
• IT teams responsible for generic and
commoditized IT services remain
Service Application external service provider(s)
relationships team

External IT
infrastructure
service
provider

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Finally, acceptable time to market

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Figure: O.Skrynnik, DevOps - a business perspective
Dedicated application teams

• IT teams responsible for the business-

Executive
leadership
specific and critical IT systems are
team integrated into the respective
business units
• Each business unit may have direct
Business Business Business
unit A unit B unit C service relationship with external
Application Application Application
service providers
team A team B team C
• IT systems become integral parts of
the business services offered by the
External IT infrastructure service provider organization to its clients

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IT and business product teams

• Business units including integrated IT

Executive
leadership
teams adopt a new approach to
team manage their products
• Digital products are integral parts of
(or equal to) the business services;
Product Business
team A: Product unit C the organization and its product teams
- Business
team B
Application
are positioned as service providers to
- Software
- Infra/SRE
team C the external clients
• Some product teams are full stack,
External cloud service provider others have service relationships with
external (often cloud) service
providers

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What do we manage and how

IT Systems IT Services Digital products

● Attention to business ● Attention to business

● Attention to technical
performance value and customer
performance
experience
● Holistic
● Fragmented
● Holistic
● Lack of agility
● Lack of business focus
● Limited focus on
● Limited ability to operations and service
develop or change the relationships
services

Too much focus Too much focus on

on operations development

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Too much focus Too much focus
on operations on development

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 Here could be
‘Service development’

Too much focus Too much focus

on operations on development

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What did/does ITIL say

Too much focus More focus on Full

on operations design and transition product/service lifecycle

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Products and services in ITIL 4
Other
service
provider

Resources
Products
Offering

Resources

Resources
Interaction
Products
Offering
Service
consumer

Offering
Products
Resources

Other
service
provider

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Figure: ITIL High-velocity IT
Products and services in ITIL 4

Resource
Any entity required for the execution of an activity or the achievement of an objective. Resources used by
an organization may be owned by the organization or used according to an agreement with the resource
owner.

Product
A configuration of an organization’s resources designed to offer value for a consumer.

Service offering
A formal description of one or more services, designed to address the needs of a target consumer group. A
service offering may include goods, access to resources, and service actions.

Service
A means of enabling value co-creation by facilitating outcomes that customers want to achieve, without
the customer having to manage specific costs and risks.

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Products and services in ITIL 4

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Figure: ITIL High-velocity IT
Portfolio management: optimizing value

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Figure: ITIL Portfolio management practice guide
Portfolio management: optimizing value

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Figure: based on ITIL Portfolio management practice guide
Value streams
in ITIL 4

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Practice guide’s structure
▪ General information ▪ Partners and suppliers
▪ Purpose and description
▪ Terms and concepts ▪ Capability assessment
▪ Scope and development
▪ Practice success factors ▪ Capability levels
▪ Key metrics ▪ Capability self-
assessment
▪ Value streams and processes ▪ Capability
▪ Processes development
▪ Value stream contribution
▪ Recommendations for
▪ Organization and people practice success
▪ Roles, competencies, and
responsibilities
▪ Organizational structures and teams

▪ Information and technology

▪ Information exchange
▪ Automation and tooling

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Practices, processes, and service value streams

• Practices include multiple

processes.
• Workflow of a service value
stream is formed of activities
from multiple practices.
• Practices enable value only in the
context of service value streams.

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Figure: ITIL high-velocity IT
Each practice includes more than one process
Change enablement planning and optimization

Change lifecycle management

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Figure: ITIL Change enablement practice guide
Change enablement in value streams

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Figure: ITIL Change enablement practice guide
Analysing a service value stream

Use the ‘to be’ VSM,

Automation can
plan improvements
facilitate working
Create a ‘to be’ holistically.
VSM
Reflect on the
value stream map
(VSM)
Do the service
value stream walk
Define the purpose of the
value stream from the
Identify the scope business standpoint
of the analysis

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Figure: any updated practice guide
 Incident resolution as a value stream
Resolve
Detect Register Classify Diagnose Close
Restore

• Monitoring • Incident • Incident • Incident • Incident • Incident

and event management management management management management
activities of…

management • Change • Monitoring

Includes

• Service desk enablement and event

• Infrastructure • Release management
and platform management • Service desk
management • Deployment • Infrastructure
management and platform
• Software management
development
and
management

• Service • Service • Service • Service • Infrastructure • Service

Supported by…

configuration configuration configuration configuration and platform configuration

management management management management management management
• Service • Service level • Service level • Problem • Financial
catalogue management management management management
management • Knowledge • Knowledge • Supplier • Knowledge
management management management management
• Problem • Monitoring • Problem
management and event management
management
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Incident resolution as a value stream

Resolve
Detect Register Classify Diagnose Close
Restore

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Incident resolution as a value stream

5 min 5 min 5 min 5 min 5 min 3 min 3 min

Detect and report Register Classify Diagnose Resolve Confirm resolution Closure

10 min 10 min 2 min 23 min 25 min 25 min 10 min

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Key workflow metrics

Metric Description
Cycle time The amount of time required to complete a descrete unit of work, converting input(s) into
output(s). For example, if it takes five minutes to fill a new incident form, the cycle time is five
minutes.

Wait time The amount of time a descrete unit of work waits in a queue before work begins. For example, if
an incident ticket waits (on average) four hours before work on it begins, the wait time is four
hours.

Lead time The sum of the cycle time and wait time. Lead time represents the total time required to
complete a discrete unit of work, from when it enters the process queue to when the process
ends.

Process cycle efficiency The ratio of the cycle time to the lead time expressed in percentage. Helps to quickly identify the
(PCE) process steps with the longest queues.

Process queue The number of discrete units of work waiting to be operated upon by a process.

Work in progress (WIP) The number of discrete units of work being operated on, but which are not yet completed.

Throughput The rate at which work enters or exits the system.

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 Incident resolution as a value stream
5 min 5 min 5 min 5 min 5 min 3 min 3 min
Detect and report Register Classify Diagnose Resolve Confirm resolution Close

10 min 10 min 2 min 23 min 25 min 25 min 10 min

Metric Detect Register Classify Diagnose Resolve Close

Cycle time 5 5 5 5 5 6 31 min

Wait time 10 10 2 23 25 35 105 min

Lead time 15 15 7 28 30 39 134 min

Process
cycle
33% 33% 71% 18% 17% 15% 23%
efficiency
(PCE)

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What can we learn from a value stream map?

▪ How does the work flow?

• For a product / flow model / all instances / individual instances

▪ Bottlenecks
• The longest cycle time / the longest wait time / the lowest
PCE

▪ Dependencies
• Which practices contribute to the bottlenecks?
• Which information is missing?
• What could be automated?
• Is escalation necessary and efficient?
• Are third parties involved?
▪ What can be learned from other flow models?

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Service value
chain
in ITIL 4

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Service value chain

“An operating model for

service providers that covers
all the key activities required
to effectively manage
products and services.”

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Figure: ITIL Foundation
Service value streams
in the service value chain

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Figure: ITIL Create, Deliver, and Support
We need
a better
operating
model

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 • ‘Use’ is NOT a
service provider’s
Plan value stream
• ‘Improve’ IS a
Create Deliver
service provider’s
value stream
Operate Use

Support
Improvements

Measurements, reports, feedback

Improve

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Figure: nowhere in ITIL yet
 • ‘Create’:
Services are based
Plan on internally
developed
Create Deliver products
• ‘Deliver’:
Operate Use Service
relationships
Support include service
Improvements actions and/or
transfer of goods
Measurements, reports, feedback

Improve

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Figure: nowhere in ITIL yet
 • ‘Acquire and
implement’:
Plan Services are based
on externally
Acquire and
implement Deliver developed
products
Operate Use

Support
Improvements

Measurements, reports, feedback

Improve

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Figure: nowhere in ITIL yet
 • No ‘Deliver’:
Service
Plan relationships do
NOT include
Create Operate service actions or
Use transfer of goods
Support

Improvements

Measurements, reports, feedback

Improve

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Figure: nowhere in ITIL yet
 Product Service
• ‘Create’ value
stream is typically
Plan associated with
products
Create Deliver
• ‘Deliver’,
‘Operate’, and
Operate Use ‘Support’ value
streams are
Support typically
Improvements associated with
services
Measurements, reports, feedback
• This is NOT
Improve correct

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Figure: nowhere in ITIL yet
 Product & service management
• Each value stream
Product and may and should
Plan service portfolio address products
and services
Create Deliver
• Value from
Product and products can only
service design Operate Use be realised
Product and service operations
through service
Support relationship – co-
Improvements Product and service support
created, rather
than delivered
Measurements, reports, feedback

Improve
Product and service improvement

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 In the last hour…

▪ A brief history of IT: from system management to value co-creation

▪ Service value streams in ITIL 4: there was not enough practical support
▪ Service value chain in ITIL 4: we need a better operating model
▪ A value-focused operating model(s): your model may vary
▪ Service value streams in ITIL 4: something is brewing

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It was the last
one
…for now

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Practice bundles master classes

• November, 28
• Monitor, support, and fulfil Adam

• December, 5
• Plan, implement, and control Roman

• December, 12
• Collaborate, assure, and improve David

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How-to master classes

• October, 10
• How to self-assess service management capability Roman

• October, 24
• How to use the competency model Roman & Dmitry

• November, 7
• How to ensure practices’ success Adam & Roman

• December, 19
• How to integrate practices into value streams Roman & Adam

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Follow-up webinars

• January, 18
• Unlocking ITIL 4 Practice Guides: Your Questions Answered, Part 1

• January, 31
• Unlocking ITIL 4 Practice Guides: Your Questions Answered, Part 2

Frequently asked, most interesting, most difficult questions you asked

…or wanted to ask

Usual time (3-4pm GMT)

Registration links will be shared in the coming days.

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Thank you!
Joan Sales
ITIL Product Manager

Anna Palamari
Senior Conferences
& Events Associate
Adam Griffith
ITIL Architect

Apostolos Koromilas
Digital Products
Marketing Manager Roman Zhuravlev
Senior ITIL Architect

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Get ready for 2024
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