Understanding Service Management in ITIL 4

In my previous article, I talked about all that you need to know about PESTLE Model in ITIL 4. In this article, I want to look at all that you need to know about service management in ITIL 4. Follow me as we are going to look at that together in this article.

Service management is defined as a set of specialized organizational capabilities for enabling value for customers in the form of services. They are tools and apparatus that organizations have put in place in order to deliver products and services to their esteemed customers.

IT Service Management is the implementation and management of quality IT services that meet the needs of the business. Service management consists of the practices, activities, governance and improvement of capabilities that enable customers to co-create value and achieve desired results.

Organizations that practice effective service management enable their customers to utilize services and produce successful business outcomes: strategically, tactically, and operationally. Effective services are efficient in the use of resources, effective in delivering results, and sustainable over the long term.

Successful, profitable and scalable IT service management is the fundamental concern of ITIL 4.

In the previous version of ITIL, the definition of service management was used to deliver with respect to value. In ITIL 4, the definition has been revised to say that service providers are enabling value for their customers.

Products and Services

Two of the most basic terms that you need to understand our products and services. In ITIL 4, a product is a configuration of an organization’s resources designed to offer value for a consumer and a service is 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.
Here, organizations own access to resources through:

People
Information and Technology
Partners and Suppliers
Value streams and processes

Products configure these resources in ways to create value for customers. Service enables customers to achieve desired outcomes and enables the co-creation of value.

Typical example…

Almost everyone today has a mobile phone. The physical phone, its accessories, and the cellular network are all products. The service is how you, as the consumer, use the phone to call others or use the phone to place an online order with a local restaurant. Value is created by the outcome of dinner being delivered to you without having to drive to the restaurant.

Action Point

PS: I know you might agree with some of the points that I have raised in this article. You might not agree with some of the issues raised. Let me know your views about the topic discussed. We will appreciate it if you could drop your comment. Thanks in anticipation.

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