ITILigent Service Management
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Where is value realised in Service Management?

Whether you are an organisation implementing Service Management or a supplier delivering  Service Management services to a customer there is always one important question - how do you show value? This isn't easy to answer. We know there is value but what can we show and how do we show it?


In the ITIL 2011 Revision of the Service Strategy book a clear distinction is made between the concepts of "value added" and "value realised" to emphasise the point that most of the time IT services add value but value is only realised once the outcome is delivered to the customer.


How can we apply this to Service Management? The individual processes add value but where and when is that value realised? This is our fundamental challenge. For example, if we take Incident Management, in isolation it can deliver the resolution (the outcome to the customer) of a limited number of incidents; but, to be effective it must be integrated with other processes such as Problem Management and Change Management. The value is realised in the output of one of the integrated processes. Unfortunately, most Service Management implementations focus on the deployment of individual processes and so struggle to show value.


So let's turn this round - what does Service Management look like from the customer or end user perspective? They are not interested (unless they are Service Management geeks) in whether the right Incident Management process is followed. They are interested in the outcome: is my laptop fixed yet? Is my new email account ready? When will the new service be launched?


We can characterise these outcomes as a series of value-chains through the ITIL processes, such as event to fix, request to fulfilment and demand to production.  Adopting this approach has a number of benefits.


First it is much easier to quantify both the value add of each step as well as the value realised at the end of the chain.


Secondly, it changes the way in which you view Service Management both in terms of implementation and operation. Rather than implement discrete processes you can focus on a particular chain and the elements that make up the chain. This may mean that you do not need to implement a "full" process in one go just the parts required for the value-chain.


Finally, rather than optimising or improving a single process with little visibility of the full impact (optimise one process degrade another) you can optimise and improve the chain ensuring that all elements work together.


As we move further into a Hybrid IT world with public cloud, private cloud and legacy systems the approach based around process silos gets harder to manage. Do you account for managing cloud based services generically in all your Service Management processes? Or do you account with for the specific impact to a value-chain?


So should we stop thinking about how we implement individual or groups of processes and start to think about how we implement value-chains?

About the Author
I am the Global Lead of HP’s Service Management Profession with approximately 7,500 members. I gained my Managers Certificate in Service Man...
About the Author(s)
  • Besides being a member of the ITIL v3 authoring team, my main responsibility is to leverage the HP solutions and technologies of today as well as the cutting-edge innovations of tomorrow to meet the business needs in the Financial Services Industry
  • In this role Joshua Brusse is consulting to our enterprise customers in regards to Strategy, Governance, Service Management, Organizational Design and Transformation (which includes Organisational Change) as well as providing training on Service Management, Organisational Change and other methodologies in the APJ Region Joshua has over 20 years experience in all aspects of Service Management. He was the Co-Founder and first secretary of the itSMF International and Co-Founded a training company in Organization Improvement, lecturing and speaking in seminars and forums in many countries in Europe, the USA and Asia. He is currently chairman of the HP MOC Community of Practice He has held various management positions, managed Service Management certification programs and several other (large) projects focused, among other things, on Organizational Change Management Constantly armed with the urge to interacting with people, Joshua has worked over 30 years in several voluntary organizations mostly focused on children and adolescence. In year 2002, Joshua was conferred with the award “Ridder in de Orde van Oranje Nassau” by Her Highness Queen Beatrix of the Netherlands for his contributions and efforts to the Dutch society. Joshua has a MBA Information Technology; several certificates in regards to HRM, Organisational Change and Psychology and he is an certified ITIL (v2 and v3) Manager.

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