ITIL: Service Strategy

Service Strategy is one of the five new ITIL® Service Lifecycle books published on 30th May 2007.

Service Strategy provides advice and guidance on designing, developing and implementing service management - both as an operational capability within an organisation but also how to use that capability as a strategic asset. It tries to ensure that consideration is given as to why a particular activity is to be performed - before an organisation begins to think about how it will be performed.

The core process in Service Strategy involves:

• Define the market
• Develop the offerings
• Develop strategic assets
• Prepare for execution

This process is driven by functions such as Financial Management, Service Portfolio Management, Demand Management, Organization Development and Sourcing Management.

Service Strategy Principles

There are five core principles that support Service Strategy, namely:

• Value Creation - including the marketing mindset; framing the value of services; and utilities and warranties.
• Service Assets - including resources and capabilities; and Business Units and Service Units.
• Service Provider Types - including internal service provider; shared services provider; and external service provider.
• Service Structures - including from value chains to value networks; and service systems.
• Service Strategy Fundamentals - including the fundamental aspects of strategy; and the four P’s of strategy - perspective, position, plan and pattern.

The Service Lifecycle