The service value chain is a set of loosely coupled activities (or archetypes) that any service provider undertakes at some point (or even repeatedly). Regardless of the size of the service provider, the industry, the geography, or even the level of automation, the organization will conduct the following activities at some point (perhaps even continuously):
Engage: Interacting with external stakeholders to provide a good understanding of needs, to promote transparency, and to foster good relationships with all stakeholders
Plan: Creating a shared understanding of the vision, status and improvement directions for all four dimensions and all products and services
Improve: Ensuring continual improvement of products, services and practices across all value chain activities and the four dimensions
Design and Transition: Ensuring that products and services continually meet stakeholder expectations for quality, cost, and time to market
Obtain/ Build: Ensuring that service components are available when and where they are needed, and that they meet agreed specifications
Deliver and Support: Ensuring that services are delivered and supported according to agreed specifications and expectations.
These activities can be combined and integrated in a myriad of ways to create a “journey” from demand to value that reflects how the service provider completes work.
ITIL 4 calls this “journey” a value stream, and each value stream represents how the organization responds to specific scenarios or types of demand. Techniques like value stream mapping can help organizations streamline and optimise their value streams.