ITIL Intermediate Course: SS Instructor Guide_r3.2.0

ITpreneurs™ Service Management

INSTRUCTOR GUIDE

Service Strategy release 3.2.0 ITIL® Intermediate

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www.ITpreneurs.com

Copyright © 2012 ITpreneurs. All rights reserved

Copyright Copyright and Trademark Information for Partners/Stakeholders. ITIL® is a registered trademark of the Cabinet Office. IT Infrastructure Library® is a registered trade mark of the Cabinet Office. The Swirl logo™ is a trade mark of the Cabinet Office. All contents in italics and quotes is from the ITIL® Service Lifecycle Suite © Crown copyright 2011 Reproduced under licence from the Cabinet Office. All other text is based on Cabinet Office ITIL® material. Reproduced under licence from the Cabinet Office.

Copyright © 2012 ITpreneurs. All rights reserved. Please note that the information contained in this material is subject to change without notice. Furthermore, this material contains proprietary information that is protected by copyright. No part of this material may be photocopied, reproduced, or translated to another language without the prior consent of ITpreneurs Nederland B.V. The language used in this course is US English. Our sources of reference for grammar, syntax, and mechanics are from The Chicago Manual of Style, The American Heritage Dictionary, and the Microsoft Manual of Style for Technical Publications.

ITIL Service Strategy, Classroom course, release 3.2.0

More on: http://www.itil-officialsite.com/IntellectualPropertyRights/TrademarkLicensing.aspx

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Contents

i

LIST OF ICONS V

LIST OF ACTIVITIES VI

GENERAL TRAINING TIPS XIII

ACKNOWLEDGEMENTS XVII

FOLLOW US XIX

COURSE INTRODUCTION 1

Introductions 2

Course Introduction 3

Course Learning Objectives 4

Unique Nature of the Course 5

Course Agenda and Exam Details 10

COURSE AGENDA

ITIL Intermediate Classroom Course 12

ITIL Intermediate Expert Program Course 14

ITIL Intermediate Classroom Blended Course 15

ITIL Intermediate Virtual Classroom Blended Course 16

UNIT 1: INTRODUCTION TO SERVICE STRATEGY 17

1.1 Purpose and Objectives 21

1.2 Scope of Service Strategy 22

1.3 Value to the Business 23

1.4 Relationship with Other Lifecycle Phases 24

1.5 Group/Individual Exercise 29

Summary of Unit 1 31

UNIT 2: SERVICE STRATEGY PRINCIPLES 33

2.1 Basic Approach to Deciding a Strategy 38

2.2 Strategy and Opposing Dynamics and Outperforming Competitors 39

2.3 The Four Ps of Service Strategy 43

2.4 Services and Value 48

2.5 Utility and Warranty of Services 70

2.6 Customer Assets, Service Assets, and Strategic Assets 83

2.7 Service Providers – Types and Choosing Between Them 97

2.8 Defi ning Services 105

2.9 Strategies for Customer Satisfaction 127

2.10 Service Economics 132

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2.11 Sourcing Strategy 154

2.12 Strategy Inputs and Outputs with the Service Lifecycle 165


UNIT 3: SERVICE STRATEGY PROCESSES 175

3.1 Strategy Management for IT Services 178

3.2 Service Portfolio Management 208

3.3 Financial Management for IT Services 238

3.4 Demand Management 262

3.5 Business Relationship Management 280


3.7 Sample Test Questions 308


UNIT 4: GOVERNANCE 329

4.1 Governance 333

4.2 Strategizing for Governance 334

4.3 The Governance Framework 339

4.4 IT Governance 340

4.5 Governance Bodies 341

4.6 Relationship of Service Strategy with Governance 342



UNIT 5: ORGANIZING FOR SERVICE STRATEGY 347

5.1 Organizational Development 351

5.2 Departmentalization Organization 363

5.3 Organizational Design 365

5.4 Service Owner and Business Relationship Manager 367

5.5 Other Roles 374


UNIT 6: TECHNOLOGY CONSIDERATIONS 383

6.1 Service Automation 388

6.2 Service Interfaces 399


UNIT 7: IMPLEMENTING SERVICE STRATEGY 407

7.1 Implementation Through the Lifecycle 411

7.2 Following the Lifecycle Approach 413

7.3 Impact of Service Strategy on Other Lifecycle Phases 418


Summary of Unit 7 427Sam

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UNIT 8: CHALLENGES, CRITICAL SUCCESS FACTORS, AND RISKS 429

8.1 Challenges 433

8.2 Risks 441

8.3 CSFs 448

8.4 Sample Test Question 449


UNIT 9 : EXAM PREPARATION GUIDE 453

9.1 Mock Exam 1 455

9.2 Mock Exam 2 485

APPENDIX A: CASE STUDY 515

APPENDIX B: MIND MAP EXCERCISE 529

APPENDIX C: GLOSSARY 531

APPENDIX D: SYLLABUS 625

APPENDIX E: ANSWERS (NOT APPLICABLE FOR INSTRUCTOR) NA

APPENDIX F: DIAGRAMS (MACRO VIEW) 643

APPENDIX G: RELEASE NOTES 651

INSTRUCTOR FEEDBACK FORM 653

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LIST OF ICONS

Refers to content that is meant for the instructor to lecture in class

Refers to content that is meant for the student to read on his/her own in class or at home

Refers to information items that are not covered by the instructor in class but help the student understand a particular topic in detail

Refers to a Scenario-Based Activity that the student must do in class or as homework after the completion of a topic or in between a topic

Refers to items or contents that are given in a step-by-step-instruction or checklist format

Refers to an important snippet of information that the instructors should remember to touch upon while conducting an activity or during a lecture

Refers to the simplifi cation of content that was previously diffi cult to understand or confusing

Refers to an extra piece of information that is not very important but still good to know

Refers to light, conversational snippets of information or that the instructor can use in class to break the monotony of a serious and tedious lecture

Refers to general-knowledge-based information that the instructor can use to provide relief to students during a serious or tedious classroom lecture

Refers to space for the students to take notes

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LIST OF ACTIVITIESThis course uses a variety of delivery techniques. Each of these techniques is designed to help students not only learn the material but also apply the information. The various techniques used are:

Activity

DescriptionGenerally, the instructor asks students to fi ll up a blank diagram or to answer given questions in their Workbook.

Delivery Instructions1. Direct the students to their Workbook.

2. Ask them to do the Activity given in the Workbook.

3. Ask the students to fi ll up the blank diagram/write their answers in the Workbook.

4. Discuss the answer(s) in the class.

5. Let the students know that they will also fi nd the correct answers in Appendix E of their Workbook.

or

6. The students can fi nd the sample answers in Topic XX of the Reference Material.

Brainstorm

DescriptionThis promotes collaborative learning, where the group is encouraged to offer up ideas without analysis and to then fi nalize the solution after brainstorming.

Delivery Instructions1. Initiate a controlled brainstorm on the <topic/scenario/diagram/question>.

2. Ask the students to read/analyze/inspect/assess the context provided in <the slide/case study/scenario/topic/diagram >.

3. Direct them to write their response in the space provided in their Workbook.

4. Facilitate a brainstorm discussion on the <topic/scenario/diagram/question> and elicit responses from the students; encourage them to share their responses.

5. Note the key points on the whiteboard/fl ipchart.

6. Provide guidance when you feel the class is digressing.

7. Let students know that they will also fi nd the correct answers in Appendix E of their Reference Material.

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Compare and Contrast

DescriptionThe class compares and lists the similarities and differences between two concepts or processes.

Delivery Instructions1. Divide the class into three to four groups.

2. Ask each group to analyze the similarities and/or differences between < processes/roles and responsibilities/techniques/and so on in the topic/content/graphics/scenarios/questions/and so on> and discuss it within their respective groups.

3. Ask the students to note down similarities and differences in the space provided in their Workbook.

4. Ask students from each group to take turns, come to the fl ipchart/whiteboard, and write down a similarity or difference each in the respective column (or of course, you could write as they read out from their seats).

5. Follow this up with a brainstorm on the similarities and differences.

6. Encourage the students to take notes in their Workbook during the brainstorm.

7. Let them know that they will also fi nd the correct answers in Appendix E of their Reference Material.

Concept Jog

DescriptionThe instructor asks a “Rapid-Fire” round of questions to students. The instructor and students discuss the answers in 2 minutes.

Delivery Instructions1. The objective here is to warm up the participants to the topic activity. Keep this short

and peppy. The “dialog” given in Instructor Guide (IG) materials is indicative, and of course, you would use expressions that you are most comfortable with. When you ask the question to participants, individually call the participants names or point to participants if you do not know their names.



4. Elicit responses from the students and encourage them to share their responses.

5. Do not allow the participants to take a lot of time to answer these questions.

6. Treat the questions in a “rapid-fi re” style.

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Critical Thinking

DescriptionThe students think about a given question(s), write their responses, and present their views in class.

Delivery Instructions1. Initiate a critical thinking session on the <question/content/topic/and so on>.

2. Guide the students to <perform their tasks (answer questions/complete diagrams/design a solution/and so on> in the space given in their Workbook.

3. Ask them to share their refl ections with the rest of the class (use this point ONLY if you would like this; REMOVE this point if you just want students to refl ect for themselves, without sharing).

4. Ask them to share their refl ections with the rest of the class. Note that you don’t need to have all the participants share their responses. Randomly pick participants or offer participants an opportunity to share and pick two or three participants who are enthusiastic about sharing (use this point ONLY if you would like this; REMOVE this point if you just want students to refl ect for themselves without sharing).

5. Let the students know that they will also fi nd the correct answers in Appendix E of their Reference Material.

Discussion

DescriptionThe instructor poses questions to guide the students through complex subjects. The discussion assists the students in comprehending complicated topics.

Delivery Instructions1. Direct the students to write their response in the space provided in their Workbook.

2. Facilitate a discussion on the question and elicit responses from the students; encourage them to share their responses.



5. Let the students know that they will also fi nd the correct answers in Appendix E of their Workbook.

Lecture

DescriptionThis is a traditional method of instruction but is done from the Instructor Guide, not from the PowerPoint presentation. The students are encouraged to follow along in their Student Reference Materials.

Delivery Instructions1. Present the content provided in the “Speaking Points” to the students.

2. Use personal styles to teach the materials.

3. Try to intersperse long snippets of content with light-hearted “Icebreakers” or “Did You Knows?” given in the Instructor Guide (IG).

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Mind Map

DescriptionThe class draws a stepwise list of activities/phases/functions or web of content, for example, processes, functions, activities, steps, and so on. The idea is to map one idea in relation to other ideas, to understand whether or not the students have understood a concept properly.

Delivery Instructions1. Present the slide with the question(s) to the class.

2. Ask the students to create a mind map of the concept given/stated in the question.

3. If the students are struggling, provide them with an example by drawing it on the whiteboard/fl ipchart.

4. Let them know that they will also fi nd the correct answers in Appendix E of their Workbook.

Recall, Describe, and List

DescriptionThe class lists as many ideas on or the key points of a previously learned topic, either in the Foundations course or through the course materials.

Delivery Instructions1. Ask the class to spend a couple of minutes to refl ect on what they have just learned.

2. Ask the students to list the <state topic gist (for example, benefi ts of xyz)>in the space provided in their Workbook.

3. Ask them to read out some of the points they just listed in their Workbook (you may either randomly pick students to read out one point each from their list or ask them to take turns).

4. List the points that they read out on the whiteboard/fl ipchart.

5. Check if the students have any questions.

6. Let them know that they will also fi nd the correct answers in Appendix E of their Reference Material.

Role-Play

DescriptionThe instructor and the students play different roles. The instructor assigns roles to the students based on real-life situations/problems and asks them to act out their roles in a problem situation. The students give their views of/solutions to the situation/problem, per the specifi c roles assigned to them. Role-reversal can also take place where the students act as the instructor and teach the class.

Delivery InstructionsPart 1:

1. Divide the students into <#> groups.

2. Explain to the students that you are going to play an interactive role-play exercise. Let them know that you will wear two hats during this role-play - that of their instructor and that of the <role>.

3. Provide a brief but clear list of what the students are expected to do (for example, create your analysis/recommendation/pitch/and so on).

4. Instruct the students that they will fi nd the following <template/questionnaire/graph/and so on> in their Workbook to complete their <task>.

5. Instruct the students that they will be making presentations and to choose a member from their group for the presentation.

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Part 2:

6. As the <#> groups set to work on their project, walk around to observe their work, and guide them if they are way off. They may not have the right solution as you know it nor be able to do a great job.

7. As you walk around, guide the teams to cover at least the points provided within the above <template/questionnaire/graph/and so on> in their Workbook.

8. Keep a time check, remind participants of the time available, and urge them to complete their presentations quickly.

9. Once the three teams are ready with their <presentations/responses/skits/work>, ask them to make name cards for their <teams/organizations> and place it on the Instructor table before <she/he> arrives.

10. After the <presentations/responses/skits/work>, and the subsequent class interactions, it’s time to wear the Instructor’s hat again.

Part 3:

11. Inquire of the presenters what their experience was, and how they could have improved their <presentations/responses/skits/work>.

12. Ask each team to take a couple of minutes to huddle together as a team and refl ect upon their <presentations/responses/skits/work>, and how they could have improved it.

13. Ask the nonparticipating students to ask their questions or share their views/comments from their notes or from the questions raised in their team huddle.

Round-Robin

DescriptionThis is similar to a discussion, except that the conversation goes from one student to the next, and each student must offer up an idea or a concept.

Delivery Instructions1. Pick a student to read paragraph <X> to the class.

2. Follow this with the question to drive the discussion on <topic/concepts/questions/and so on>.

or

1. Ask the class the question <xx>.

2. Initiate a discussion on the question and the possible answers.

3. Make all students contribute to the session.

4. Note the key points on the whiteboard.

5. The students can fi nd the sample answers in Appendix E of their Workbook.

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Scenario

DescriptionReal-world cases are used to provide context to apply the ITIL framework. These are particularly valuable when the students are developing a consultative view of a situation and selecting what aspect of ITIL will meet the needs of the scenario.

Delivery Instructions1. Direct the students to their Workbook.

2. Ask them to read the scenario and do Scenario-Based Activity <#> given in their Workbook.

3. Ask them to write their answer(s) <under the relevant questions/in the table given> in the Workbook.

4. Discuss the answer(s) in the class.

5. The students can fi nd the sample answers in Appendix E of their Workbook.

Self-Study

DescriptionThis is usually used for supplemental material after a topic has been covered. It is also used to create diversifi cation of teaching techniques in order to keep students engaged.

Delivery InstructionsIn Class and at Home:

1. Ask the students to read through the content in detail and note down their queries.

2. Let them know that you will answer their queries and clarify doubts regarding the content.

3. There might be times when you do not have enough time to answer all questions. In this case, answer only one or two questions, and either write the other questions down or request the students to give their questions in writing/e-mail to you.

Solve a Common Problem/Risk Mitigation

DescriptionThe class is divided into two groups. Each group notes down a brief, “topic-related” problem. The groups then quiz each other about “how to solve” the given problem.

Delivery Instructions1. Direct the students to read the <problem/Risk scenario> in their Workbook.

2. Ask them to analyze the various aspects and nuances of the <problem/Risk scenario>.

3. Ask them to <answer questions/create a plan, solution, or strategy/list recommendations/create a process map/and so on> in the space provided in their Workbook, based on the <problem/Risk scenario>.

4. Ask them to randomly take turns to share their responses. If they are required to create a <diagram/process map/and so on>, seek a volunteer(s) to come draw it on the whiteboard/fl ipchart, and initiate a discussion around it.

5. Encourage the students to take notes during the discussion.

6. Summarize the key points on the fl ipchart/whiteboard.

7. Let the students know that they will also fi nd the correct answers in Appendix E of their Reference Material.Sam

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Teach-Back

DescriptionThis encourages greater retention of topics through self-study and preparation, to teach the concepts back to fellow classmates. The instructor plays a key role to ensure that the teach-back session refl ects the appropriate content.

Delivery Instructions1. Slice the content/topics into logical parts.

2. Divide the class into the same number of groups as the number of content parts you have just created.

3. Assign each content part to a group.

4. Inform the students that each group will teach its section to the rest of the class.

5. Let the students know they have <xx> minutes for reading up their respective parts and for discussing them within their respective groups.

6. At the end of the allotted time, ask each group for a volunteer to teach back the material to the rest of the class.

7. Encourage the class to discuss the topic after each of the groups has completed its task.

The Big “Why”

DescriptionThe instructor asks “The Big ‘Why’” questions to introduce a <concept/topic/idea> to class. The instructor conducts this activity in a conversational or less formal manner and provides a gist of the entire course/topic(s)/subtopic(s).

Delivery Instructions1. Display the question(s) given on the slide.

2. Ask the class to answer the question(s) shown on the slide.

3. There is no provision of space for answers in the students’ Workbook.

4. The students need to given verbal answers to the question(s) asked in class.

5. Encourage the class to relate their answers to their work environment and give examples from real life or the hotel scenario.

6. There is no sample answer for the question(s) in Appendix E of the Workbook.

Think-Pair-Share

DescriptionThe instructor asks the class a question. The students then pair up with a partner to compare or discuss their responses. The instructor calls randomly on a few students to summarize their discussion or give their answer.

Delivery Instructions1. Display the slide.

2. Ask the class to answer the question(s) shown on the slide.

3. Ask the class to write their answer(s) under the relevant questions in the Workbook.

4. Give the class anywhere from 10 secs to 5 mins to work individually.

5. Ask the students to pair up with a partner to compare or discuss their responses.

6. The students can fi nd the sample answers in Appendix E of their Workbook.Sample

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GENERAL TRAINING TIPS

Value of ScenariosScenarios provide invaluable support to the learning process. As a result, we recommend that you provide scenarios from your own or anyone else’s experience to contextualize ITIL concepts. This will facilitate a deeper understanding of some of the more-challenging concepts or aspects of the best practices you are describing. Ensure that your stories are as succinct and effective as possible. Here are some helpful guidelines to follow when sharing scenarios:

Do’s: Be sincere and genuine.

Make sure that the story is fresh in your mind, and that you remember all the important facts.

Share the story with enthusiasm.

Vary the tone and intensity of your voice.

Smile and use facial expressions to animate the scenario.

Share the story, as if you are talking to a close friend.

Keep your story brief and to the point.

Link your scenario closely to the skill or concept you are teaching. Explain why you are narrating the scenario.

Remember to involve the group and ask for their experiences too.

If the experience is someone else’s, be upfront about saying that.

Don’ts: Be careful not to use space fi llers, such as “and,” “umm,” “but,” “ok,” and “ya’ know,” because they detract

from the story.

Avoid too many personal stories because that can give the impression that you are merely “reminiscing.”

Avoid topics such as religion, politics, race, gender, or age. These can be controversial.

FacilitatingThe main difference between training and facilitating is that training involves telling or informing to directly impart knowledge to participants while facilitation guides participants to discovery. ITpreneurs’ ITIL Intermediate training materials are expressly designed for “facilitation.” A successful facilitator does the following:

Asks questions

Listens

Explains concepts when they are unknown

Answers questions

Transfers energy by encouraging particular points of view/ideas

Guides participants to correct conclusions (doesn’t just correct answers)

Stimulates interaction between class participants

To quote Julie Mohr, an industry expert, “Now with the introduction of the new Intermediate ITIL® materials, ITpreneurs has elevated the playing fi eld and developed a completely new approach to not only teaching the ITIL framework but changing the way that students learn.

The new approach requires that instructors elevate their teaching methodologies. No longer can the instructor use a PowerPoint slide as a crutch, they must know the materials - and know them well. The result is that students really know and experience the material. But instructors be forewarned - you must prepare for these courses like you have never prepared before!”

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Participant WIIFMWIIFM stands for “What’s in it for me,” and underlies the principle that adult learners seldom learn just for the sake of it, but rather learn to achieve a personal goal. It is important that participants know how the course will help them in their lives/workplaces. Establish this at the beginning of the course and reaffi rm it frequently throughout the course to maintain participants’ commitment to learning from this course. For example, you can say things like:

“People often fi nd they need ITIL , and the principles and practices covered in the OSA course, for their jobs.”

“OSA will help improve your performance.”

“Once applied, OSA will help you stand out from the crowd and can increase your chances of promotion.”

Establish What Participants Want from the Course and Achieve ItParticipants generally just want a few things to keep them happy during a course, and it is your responsibility to try to accommodate them. ITpreneurs will supply all the necessary tools/resources to satisfy these requirements, as described below.

Enjoy a Relaxed AtmosphereCreate a relaxed and fun learning environment using color, treats (sweets or fruit), and so on to stimulate creative thinking, humor, and laughter. Evolve your own mantra for creating a relaxed atmosphere conducive to learning the fun and experiential way.

Find Useful skillsProvide a learning experience that is personal to each participant. Ensure that the learning experience supplies skills that the participants can usefully apply to their own job and life. Do this by encouraging them to think of at least one concept in the OSA course that could help them at work.

Use Practical ExamplesSupplement theory about the ideas and concepts with examples of how they can be put into practice either in their working environment, public (local news) environment, or at home. The OSA Instructor Guide provides you with several ideas and resources to do so.

Respect Participants’ Feelings and ThoughtsAdult learners do not welcome surprises, nor do individuals like being singled out or criticized. Remain respectful at all times, and ensure that participants always know what is coming next.

Vary Information PresentationTry to use multiple modes of learning, including reading, listening, practicing, seeing, interacting, or introspecting! The OSA materials provide several exercises to enable this. Of course, the more you enrich these, the richer your delivery will be.

Time ManagementSome adult learners can get frustrated and feel rushed if the course is running late, even if it’s only by a few minutes. Try to get through all the topics on time. Use your judgment of the class level and experience to guide if you should spend longer or less time on specifi c topics.

The Top-Ten (Non-ITIL/OSA) Questions That Participants AskWe suggest that you have answers to the following questions before beginning the course. You may wish to cover some in your introduction.

Are we going to fi nish on time?

When is the coffee break?

Will there be a vegetarian lunch available?

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Where are the toilets?

Is it OK if I take or make phone calls?

Are we going out after class?

Has my management attended this class?

How are you qualifi ed to train us?

Are you going to cover anything important in the next hour?

How will this course help me improve my career prospects?

What other ITIL or other courses would I benefi t from?

How much do those other trainings cost?

Can we contact you directly to train for my company or should we only go via ITpreneurs/their partner?

Considerations for Adult LearnersAdults are autonomous and self-directed. They often take charge of a situation and like to direct themselves to information discovery. They need to connect current learning to their existing experiences and knowledge.

Learner GoalsMost adult learners are goal-oriented and already know their goals when they arrive for the course. You should fi nd out their goals when they introduce themselves on the fi rst day of the course. Goals are not the same as course or unit objectives.

Participants usually enroll in an OSA course for one or more of the following reasons:

Networking: Those attending OSA courses are like-minded people in similar working environments, who could offer business opportunities.

External expectations: An employer/customer requests the certifi cation, or potential clients have a condition that contractors must use a structured methodology. Encourage the sharing of experiences.

Adults like to apply their learning practically. Although you do not have the time to run a full ITIL Lifecycle project in the course, participants often benefi t from being made to think about a scenario and discuss the implications of applying a concept equivalent to the real world. At all times, be respectful of the experiences shared with the group. Even if the experiences are not relevant to the current discussion, they should be encouraged and appreciated. If a participant does not grasp a concept, use the phrase “you would think that, wouldn’t you, but…” or “most people believe that too, however…”

Low-Intensity ActivitiesThe material provides several low-intensity activities aimed at energizing participants. Icebreakers and Concept Jogs are some such activities. Here are some more simple activities that you can utilize at any point during the course, for example, while waiting for people to return from a break, to wake people up after lunch, or to break the tension after an intensive study period.

“What If”To get your group laughing and talking right off the bat, start your session with a quick game of “What if.”

Directions: Give each participant a small piece of paper. Ask them to write a “What-if ” question, such as “What if the sky was purple?” or “What if we all had three arms?” When everyone has fi nished (encourage them to work quickly), ask them to pass their question to the person to their right. Then ask each person to write the answer to the question they’ve received. They should answer the question as if they had written it. For example, if Tom hands his question (“What if I won the lottery?”) to Susan, she should answer the question as if she had won the lottery, not Tom.

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When everyone has written their answer, select someone to read only the question they have in front of them. Ask the person to their right to read the answer to their question. They should then read the question on their paper and the person to their right should read the answer and so on. Even though the questions and answers are unrelated, you’ll fi nd some hilarious combinations!

Materials/time needed: For a group of 6–20 people, this exercise will take about 10–15 minutes. No advance preparation is required, but you’ll need pens or pencils and note paper.

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We would like to sincerely thank the experts who have contributed to and shaped ITpreneurs’ ITIL Intermediate product suite.

ITpreneurs’ Course Reviewers Anessi, Ray - Pangloss Group

Costigan, Michael D - CSC

Mohr, Julie - Blue Print Audits

Vikdal, Mike - Independent

Wigmore, Michael - Independent

Per Ivar Lillebraten - Ciber

Fatih Celen – Impetus Consulting

Michale D Costigan - CSC

ITpreneurs’ Course Exercise WritersFoederer, Marcel - ITpreneurs

Mohr, Julie - Blue Print Audits

Vikdal, Mike - Independent

Wigmore, Michael - Independent

Julie Mohr – Blue Print Audits

ACKNOWLEDGEMENTS

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Copyright © 2012, ITpreneurs Nederland B.V. All rights reserved. 1

Course Introduction

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ITIL Intermediate Certifi cation Level | Service Strategy

Copyright © 2012, ITpreneurs Nederland B.V. All rights reserved.2

INTRODUCTIONS

2

Course IntroductionCourse IntroductionITIL

Intermediate® Service Strategy

Course Introduction Course Learning Objectives Unique Nature of the CourseIntroductions

Welcome!Please share with the class:

• Your name• Your profession• Your role• Your background in IT• Your familiarity with the Information Technology Infrastructure Library (ITIL®)• What you expect to learn over the next few days

1. Welcome the students to the training course and introduce yourself.

2. Be sure to give the students background information that establishes you as a credible expert on the learning material. Please share with the class your experience and background in IT and ITIL.

It is important to understand the level of each student because it indicates the following challenges that the students may face:

Diffi culty in understanding the concepts taught because applying “best practices” is unfamiliar territory.

Helping students overcome the infl uence of “too much experience” in their current way of operating and any resistance to the thought-pattern changes required with ITIL.

To overcome these challenges, you must question the students about their expectations from the course.

You can record the students’ expectations on a fl ipchart. The expectations may range from passing the exam to wanting to implement the changes in their organization. As the expectations are stated and recorded, you can begin to manage them within the scope of this training. You can also use this exercise to start to introduce the key concepts that will be taught as part of the course.

Delivery Instructions

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Instructor | ITIL Intermediate Certifi cation Level | Course Introduction


COURSE INTRODUCTION

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OverviewService Strategy is one of the five courses that are part of the ITIL Intermediate Lifecycle stream.The Service Strategy course helps you understand and implement ITIL best practices related to:

Service Strategy principles

Services and market spaces

Strategic assessments

Financial Management

Service Portfolio Management

Demand Management


Alright! Let us now quickly understand what Service Strategy is. We will go through a brief overview of Service Strategy here. A more detailed understanding along with the relationship of Service Strategy with the Service Lifecycle processes will be dealt with in Unit 1.

OverviewService Strategy is one of the fi ve courses that are part of the ITIL Intermediate Lifecycle stream. The Service Strategy course helps you understand and implement ITIL best practices related to Service Strategy principles, defi ning Services and market spaces, conducting strategic assessments, Financial Management, Service Portfolio Management, and Demand Management; how the Service Strategy processes contribute to driving strategy through the Service Lifecycle, and the Critical Success Factors (CSFs) and Risks associated with Service Strategy.

To understand Service Strategy, it is important to know the Learning Objectives of the Service Strategy course. The slide will help you understand what you will be able to do after taking this course.

Talk through the bulleted list, and answer any questions that participants may have. Take a moment to establish the connect between the Course Overview and Learning Objectives slides, emphasizing the key words and phrases.


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COURSE LEARNING OBJECTIVES

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Course Learning ObjectivesAt the end of this training, you will have gained the knowledge and skills to:

• Understand the fundamentals of Service Strategy.• Understand the importance of the principles and basic concepts of

Service Strategy.• Learn the process activities, methods, and techniques used in each of the

Service Strategy processes and its interfaces with other processes.• Understand the importance of governance. • Recognize the need to organize for Service Strategy to achieve

operational excellence.• Explain how to implement Service Strategy.• Understand the technology and implementation considerations surrounding

Service Strategy.• Outline the challenges, Critical Success Factors (CSFs),

and Risks associated with Service Strategy.


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UNIQUE NATURE OF THE COURSE

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Course Delivery Method

This course will not be delivered in the traditional mode of “technical training”.

You will benefit

when you:


Internalize learning to take your final examination.

Apply new, practical experience.

Participate in your learning experience.

Course Delivery MethodThis course will not be delivered in the traditional mode of “technical training”, where the instructor presents and lectures slide after slide. Instead, you will be expected to participate in the learning experience through discussions, exercises, and the sharing of practical experiences. This is to ensure that you internalize the learning, as required, to sit for your fi nal examination successfully and to apply your new practical experience back at the workplace.

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Sample from the Student Reference Material and Workbook


Take this introductory time to also walk through the student materials with your students. Explain where they will fi nd information and how best to participate in the training session.


Student MaterialsThe student materials consist of two parts:

Student Reference Material: Contains the concepts that are covered in class. We recommend that you use the Reference Material to study each evening, after class, to prepare for the fi nal exam. Each unit ends with Sample Test Questions. These questions have been created based on the format of the qualifi cation exam. The answers to these questions are given in Answers: Appendix E in the Workbook.

Student Workbook: Contains all the exercises you have to do in class. The answers to these questions are given in Answers: Appendix E in the Workbook.

Mock ExamThe Exam Preparation Guide contains the two sample exams released by APMG. Mock Exam 1 consists of Sample Paper 1 (a complete set with scenarios + question-and-answer options with their rationale) and Mock Exam 2 contains Sample Paper 2 (a complete set with scenarios + question-and-answer options with their rationale). On the last day of the course, you will have the opportunity to attempt the Mock Exam questions, which will help you prepare for the fi nal exam.

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The Royal Chao Phraya Hotel Case StudyActivities in this course are aimed at improving retention of concepts learned. The Royal Chao Phraya Hotel case study provides the “scenario setting” for these activities.

Scenario-Based Activities are based on Single Points of Failure (SPOFs) that occur because of IT challenges at the Royal Chao Phraya hotel. The scenarios are often intentionally not situated in the IT department, to establish the real-life connect between IT and business.

The SPOFs at the Royal are illustrative of the connect between business and IT, and the fact that IT failures or challenges lead to business challenges and setbacks.

Working through the IT challenges faced by the Royal, students will understand the value of implementing ITIL to overcome IT challenges and, consequently, comprehend how to ensure smooth business operations at their workplace.

Also, the Royal Chao Phraya hotel is used in the Intermediate-level courses to provide a “scenario setting” for the assignments, rather than in an analogous manner, as was used in the Foundation level course. This has been designed to ensure that the assignments, far more complex at this level, focus directly on the job at hand, and consequently, directly relate to IT.

Intermediate Course MatrixImportant information on Intermediate-level syllabi:

The composition of the ITIL Intermediate-level syllabi has a fair degree of overlap in concepts across each of the qualifi cations. The courses too, consequently, refl ect this syllabus overlap. As you progress through the Intermediate levels and add one qualifi cation after another, you may fi nd this repetition of concepts increasing.

From a syllabus point of view, this is done to ensure students have skills in and knowledge of all the content areas required for a given Intermediate qualifi cation. In practice, for example, the same concept may differ in the way it is applied in say Service Strategy vis-à-vis how it is applied in Service Operation.

Teaching Style Suggestions1. For repeated topics from the Foundation course:

If the content of a unit has already been covered in the ITIL Foundation course, we suggest you do a dipstick check in class to test the students’ familiarity with and knowledge of previously covered concepts.

If you think that the class needs to revise Foundation topics, continue teaching the course. If you think that some students need reinforcement of the Foundation concepts while the others do not need such revision, you could offer the latter the option of taking a coffee break while you teach these topics to their classmates.

2. For topics repeated from other Intermediate courses:

The Intermediate course syllabi are such that several topics are repeated across courses. These repeated topics may be taught in more or less detail across different courses. For example, Capacity Management is covered in three Intermediate Courses [Service Design, Service Operation, and Planning, Protection, and Optimization (PPO)]. Suppose you are taking a Service Design course and the class has some students who have passed PPO. These students will have learned this process in detail. In this situation, you must inform the students who have already done PPO that they should use this opportunity to revise the topics they have learned in the previous course and that doing this will help reinforce their knowledge.


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COURSE QUALIFICATION SCHEME

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Course Agenda and Exam DetailsCourse Qualification Scheme

© Crown Copyright 2011 Reproduced under licence from the Cabinet Office

Legend

SS Service Strategy

SD Service Design

ST Service Transition

SO Service Operation

CSI Continual Service Improvement

OSA Operational Support and Analysis

PPO Planning, Protection, and Optimization

RCV Release, Control, and Validation

SOA Service Offerings and Agreements

ITIL Qualification Scheme and Credit Assignment

Qualifi cation SchemeThe purpose of this topic is to help you understand the Qualifi cation Scheme, distinguish between the purposes of the two Intermediate streams, mention the included certifi cates and diplomas, and understand the different options for further training (no examinable).

There are four levels within the new scheme: Foundation, Intermediate, Managing Across the Lifecycle, and Advanced. The Advanced level, known as ITIL Masters, was offi cially launched on May 1, 2012.

The new Intermediate level contains two streams, a Lifecycle stream and a Capability stream.

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Service Strategy

Strategy Management for IT Services

Service Portfolio Management

Financial Management for IT Services

Demand Management

Adapted from ITIL Core© Crown Copyright 2011 Reproduced under licence from the Cabinet Office


Business Relationship Management

The Lifecycle stream is built around the fi ve core Cabinet Offi ce books: Service Strategy, Service Design, Service Transition, Service Operation, and Continual Service Improvement

The Capability stream is built around four clusters:

Operational Support and Analysis (OSA): Event Management, Incident Management, Request Fulfi lment, Problem Management, Access Management, Service Desk, Technical Management, IT Operations Management, and Application Management

Planning, Protection, and Optimization (PPO): Availability Management, Capacity Management, IT Service Continuity Management, Demand Management, Risk Management, and Information Security Management

Release, Control, and Validation (RCV): Change Management, Release and Deployment Management, Service Validation and Testing, Service Asset and Confi guration Management, Knowledge Management, Request Fulfi lment, and Change Evaluation

Service Offerings and Agreements (SOA): Service Portfolio Management, Service Level Management, Service Catalogue Management, Demand Management, Supplier Management, Financial Management for IT Services, and Business Relationship Management

Both Intermediate streams assess your comprehension and application of the concepts of ITIL. You will be able to take units from either of the Intermediate streams, giving you credits toward a diploma.

The Managing Across the Lifecycle course brings together the full essence of the Lifecycle approach to Service Management.

After gaining the requisite number of 22 credits through your education at the Foundation, Intermediate, and Managing Across the Lifecycle levels, you will be awarded the ITIL Expert qualifi cation. No further examination or course is required to gain the qualifi cation.

The Advanced-level diploma will assess your ability to apply and analyze ITIL concepts in new and old areas.

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Note: The ITIL Qualifi cation scheme is not examinable and is intended as information only. According to the APM Group, this qualifi cation is subject to change.

COURSE AGENDA AND EXAM DETAILS

Course Prerequisites:For the Capability courses, there is no minimum mandatory experience requirement, but 2 to 4 years’ professional experience working in IT Service Management is highly desirable.

For the Lifecycle courses, there is no minimum experience requirement. However, basic IT literacy and around 2 years of IT experience is desirable.

To be eligible for the exam, you must hold the Foundation Certifi cate in IT Service Management or other appropriate earlier ITIL and bridge qualifi cations.

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Duration: 1.5 hoursQuestions: 8 Multiple-Choice Questions Each question has 4 Answer OptionsScoring Scheme: Most Correct Answer: Worth 5 marksSecond Best Answer: Worth 3 marksThird-Best Answer: Worth 1 markDistracter: No marksFormat: Closed-book, online, or paper-based examinationPass Score: 28/40 or 70% Distinction Score: Not defined yetContact Hours: 21-hour formal training with Accredited Training Organization (ATO)Personal Study Hours by APMG: 21 hours

Provisions for additional time relating to language: Candidates completing an exam:• in a language that is not their mother tongue, and• where the language of the exam is not their primary business

language, have a maximum of 120 minutes to complete the exam and are allowed the use of a dictionary

Exam Details

Useful Tips for Writing the Exam: Review the syllabus in your course material.

Use the syllabus to focus your study within the identifi ed chapters in the core ITIL books to prepare for these exams.

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The exam is written to a depth where you not only need to have a strong core competency in the ITIL best practice, but you also need to be able to apply this knowledge in practical scenarios.

Read the question CAREFULLY.

Remember that there will be qualifi ers such as NOT and BEST.

Make note of the unique business situation presented – this scenario may point you in the direction of the “best” answer from the list.

As far as possible, try to eliminate the incorrect distracter question by using your ITIL theory and assessment of the provided information.

Use your ITIL theory to assist with answering the question and selecting the best remaining answers from which to choose.

Because this exam is gradient marked, you will most likely fi nd very close similarities with the remaining answers.

If you are stuck on a question, skip it and move to the next one.

As you progress through the exam, you will pick up the rhythm of the structure and the language of the questions.

When in doubt, guess – you will not lose marks for providing the wrong answer.

1. Review the 3-day course agenda with the students.

2. Inform the students that there will be a 1-hour lunch break each day (or 45 minutes if time is of issue and lunch is available onsite).

3. Encourage the students to set time aside to study and review the material each evening to prepare for the fi nal exam.

Let the students know that each unit will include practice questions, with a mock exam conducted on Day 3. As a result, the students will be very familiar with the format by the time they fi nish the course


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Course Agenda

ITIL Intermediate Classroom Course

Day1 Service StrategyUnit Subject Start End Total Time

(in hours)

Course Introduction 08:00 08:30 00:30

1 Introduction to Service Strategy 08:30 09:00 00:30

2 Service Strategy Principles 09:00 12:00 03:00

LUNCH 12:00 01:00 01:00

2 Service Strategy Principles 01:00 05:00 04:00

Homework (review of day's material) 01:00

TOTAL 10:00

Total – (less lunch & homework) 08:00

Note: Reading the Case StudyThe case study used for activities in this course can be found in Appendix A of the Instructor Guide and Student Reference Material. It is recommended that you read through the case study during the fi rst break. This will enhance your understanding of the scenarios used for the activities.

Remark: Students may choose to read the “nonessential” section of the case study as well, for more-detailed insight into the Royal Chao Phraya hotel and its staff.

Note: Personal Study Recommendation for StudentsThe Service Strategy syllabus recommends 21 hours of personal study in addition to the assigned classroom time.

The content to support such personal study for this course has been provided in the Student Reference Material. We would like to recommend that you take time after class each day to read through the sections covered in class that day. This would refresh your memory and reinforce the concepts learned in class.

Remark: While this would signifi cantly contribute to the student’s learning, it is not mandatory.

Some ideas for structured personal study:You may want to direct the students to do a mind-map exercise to review the concepts learned during the day in a structured manner.

Refer to Appendix B for a sample mind-map exercise and for instructions on how to do this exercise (this is also provided to the students in the Appendix section of the Student Reference Material). The exercise will help the students discover gaps in their understanding. You may want to utilize breaks or take time at the start or end of the class to discuss these gaps with your students and clarify concepts.

Direct your students to use homework time to also attempt the sample test questions.


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(in hours)

3 Service Strategy Processes 08:00 12:00 04:00

LUNCH 12:00 01:00 01:00

3 Service Strategy Processes 01:00 03:30 02:30

4 Governance 03:30 05:00 01:30


TOTAL 10:00

Total – (less lunch & homework) 08:00


(in hours)

5 Organizing for Service Strategy 08:00 09:00 01:00

6 Technology Considerations 09:00 10:15 01:15

7 Implementing Service Strategy 10:15 12:00 01:45

LUNCH 12:00 01:00 01:00

8 Challenges, Critical Success Factors, and Risks 01:00 02:15 01:15

9 Exam Preparation / Mock Exam 02:15 03:30 01:15

Exam 03:30 05:00 01:30

TOTAL 09:00

Total – (less lunch & exam) 06:30

TOTAL CONTACT HOURS 22.5 hrs

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Course Agenda

ITIL Intermediate Expert Program – ‘Classic’ learning path

Day1 Service Strategy *All times in hours

Unit Subject Start End Time*


1 Introduction to Service Strategy (incl. 30-min RECAP) 08:30 09:30 01:00

2 Service Strategy Principles (incl. 90-min RECAP) 09:30 11:30 02:00

3 Service Strategy Processes (incl. 30-min RECAP) 11:30 12:00 00:30

LUNCH 12:00 01:00 01:00


4 Governance (incl. 30-min RECAP) 04:00 05:00 01:00


TOTAL 10:00Total – (less lunch & homework) 08:00



5 Organizing for Service Strategy (incl. 30-min RECAP) 08:00 09:00 01:00

6 Technology Considerations (incl. 45-min RECAP) 09:00 10:00 01:00

7 Implementing Service Strategy (incl. 30-min RECAP) 10:00 11:30 01:30

8 Challenges, Critical Success Factors, and Risks (incl. 30-min RECAP) 11:30 12:00 00:30

LUNCH 12:00 01:00 01:00


TOTAL 06:00

Total – (less lunch) 05:00

TOTAL CONTACT HOURS13

hours

This agenda is based on the ‘Classic’ learning path. Your course might follow a different path. Please visit www.itpreneurs.com/expert for details of the various learning path options.

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Course Agenda

ITIL Intermediate Classroom Blended Course







LUNCH 12:00 01:00 01:00











LUNCH 12:00 01:00 01:00


TOTAL 06:00



hours

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Course Agenda

ITIL Intermediate Virtual Classroom Blended Course







LUNCH 12:00 01:00 01:00











LUNCH 12:00 01:00 01:00


TOTAL 06:00



hours

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Unit1Introduction to Service Strategy

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Course IntroductionUnit 1 : Introduction to Service StrategyITIL


The Big ‘‘Why’’• What is Service Strategy?• What does Service Strategy do for you?• What does Service Strategy do for your organization? • Why Service Strategy?

Alright! Our primary question is “why.” Why Service Strategy? Why take this course? Of course, you know why you’re here! But the question is, “What does taking a Service Strategy course do for you and for your organization?”

Anyone? OK, let’s do a quick round-robin. What does the Service Strategy course help with?

Service Strategy establishes an overall strategy for IT Services and for IT Service Management (ITSM).

Now let’s move on to the overview of what this unit covers.

The objective here is to warm up the participants to the course. Keep this peppy. The “dialog” above is indicative, and of course, you would use expressions that you are most comfortable with.

It is important that you keep this short and energetic. Point to participants when you ask questions, call them out by their names individually…

Then, once you get a couple of responses, say you would move on to what this course really deals with.


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Instructor | ITIL Intermediate Certifi cation Level | Introduction to Service Strategy


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What does the illustration tell you?

OverviewTo begin developing any Service, it is essential that you put a strategy for the Service in fi rst place. Service Strategy helps organizations determine the most crucial Service attributes for meeting and exceeding customer expectations. A good Service Strategy is an important attribute for Service Providers because it helps determine the live and upcoming Service capabilities of the organizations. As a result, organizations should develop a strategy that addresses the needs of the customer, exploits the vulnerabilities of the competition, and suits the organizations’ capabilities and potential.

Service Strategy provides best-practice guidance for the Service Strategy stage of the ITIL Service Lifecycle. Although this publication can be read in isolation, it is recommended that it be used in conjunction with the other, core ITIL publications.

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Unit Learning ObjectivesAt the end of this unit, you will be able to:

• Understand the concepts and terms of Service Strategy.• Understand the purpose and objectives of Service Strategy.• Understand the scope of Service Strategy.• Know the value to the business.• Understand the relationship of Service Strategy with other Lifecycle stages.

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Topics Covered in This Module1.1 Purpose and Objectives1.2 Scope of Service Strategy1.3 Value to the Business1.4 Relationship with Other Lifecycle Phases1.5 Group/Individual Exercise

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1.1 PURPOSE AND OBJECTIVES

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"The objectives of service strategy include providing:• An understanding of what strategy is• A clear identification of the definition of services and the

customers who use them• The ability to define how value is created and delivered• A means to identify opportunities to provide services and how

to exploit them• A clear service provision model, that articulates how services

will be delivered and funded, and to whom they will be delivered and for what purpose

• The means to understand the organizational capability required to deliver the strategy

• Documentation and coordination of how service assets are used to deliver services, and how to optimize their performance

• Processes that define the strategy of the organization, which services will achieve the strategy, what level of investment will be required, at what levels of demand, and the means to ensure a working relationship exists between the customer and service provider.”

(Source: Service Strategy book)

“The purpose of the service strategy stage of the service lifecycle is to define the perspective, position, plans and patterns that a service provider needs to be able to execute to meet an organization’s business outcomes.”


1.1 Purpose and Objectives 1.2 Scope of Service Strategy 1.3 Value to the Business 1.4 Relationship with Other Lifecycle Phases

Purp

ose

Obj

ectiv

es

Purpose and ObjectivesCore Guidance Reference — SS 1.1.1Student Reference Material — Pg. 15

The Service Strategy stage of the Service Lifecycle defi nes the perspective, position, plans, and patterns that a Service Provider needs to meet an organization’s business outcomes.

The objectives of Service Strategy include providing:

An understanding of what strategy is

A clear identifi cation of the defi nition of services and the customers who use them

The ability to defi ne how value is created and delivered

A means to identify opportunities to provide services and how to exploit them

A Service provision model that articulates clearly how Services will be delivered and funded, to whom they will be delivered, and for what purpose.

The means to understand the organizational capability required to deliver the strategy

Documentation and coordination of how service assets are used to deliver Services and how to optimize their performance

Processes that defi ne the strategy of the organization, which services will achieve the strategy, what level of

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investment will be required, at what levels of demand, and the means to ensure a working relationship exists between the customer and Service Provider.

The reader should be able to understand the most important practices related to defi ning and executing a service strategy within a service provider organization.

Just Concluded T R A N S I T I O N

1.2Scope of Service Strategy

1.1Purpose and Objectives

Coming Up

1.2 SCOPE OF SERVICE STRATEGY

Core Guidance Reference — SS 1.1.2Student Reference Material — Pg. 16

7



Scope of Service StrategyThe scope of Service Strategy includes:

• Defining and discussing the generic principles and processes of Service Management. Then, applying the principles to consistently manage IT Services.

• Being applicable to both internal and external Service Providers. • Providing guidance to organizations that offer IT Services as a profitable business

and to those that offer IT Services to other Business Units within thesame organization.


Aspects of Service Strategy The two aspects of Service Strategy are:

Defi ne a strategy to deliver Services that meet a customer’s business outcomes. Defi ne a strategy to manage those Services.


1.3Value to the Business

1.2Scope of Service Strategy

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1.3 VALUE TO THE BUSINESS

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Value to the Business

Some benefits that organizations can achieve with the adoption and implementation of Service Strategy include:

• Support the ability to link activities to outcomes that are critical to customers.• Enable a clear understanding of the types and levels of Services to make

customers successful.• Enable quick and effective response to Changes in the business environment, to

ensure increased competitive advantage.• Support the creation and maintenance of portfolios of quantified Services.• Facilitate functional and transparent communication between customers and

Service Providers.• Provide the means for the Service Provider to organize itself to provide Services

that are efficient and effective.


Value to the BusinessCore Guidance Reference — SS 1.1.4Student Reference Material — Pg. 17

Some benefi ts that organizations can achieve with the adoption and implementation of Service Strategy include:

Support the ability to link activities to outcomes that are critical to customers. As a result, the Service Provider will be seen to be contributing to the value and not just the costs of the organization.

Enable a clear understanding of the types and levels of Services to make customers successful. This enables the Service Provider to organize optimally to deliver and support the Servicesthrough a process of:

Defi ning strategies and Services

Defi ning how value will be built and delivered to all stakeholders through a consistent, repeatable approach

Enable quick and effective response to Changes in the business environment to ensure increased competitive advantage.

Support the creation and maintenance of a portfolio of quantifi ed Services that help the business achieve positive Return on Investment (ROI).

Facilitate functional and transparent communication between customers and Service Providers, which ensures a consistent understanding of what is required and how to deliver it.

Provide the means for the Service Provider to organize itself to provide Services that are effi cient and effective.

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1.4Relationship with Other Lifecycle Phases

1.3Value to the Business

Coming Up

1.4 RELATIONSHIP WITH OTHER LIFECYCLE PHASES

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The ITIL Service LifecycleService Strategy provides the guidance for how the other lifecycle phases should be managed and integrated.

ContinualService

Improvement Service Transition

ServiceStrategy

Service Operation

ServiceDesign


Adapted from The ITIL Service Lifecycle © Crown Copyright 2011 Reproduced under licence from Cabinet Office

The ITIL Service LifecycleCore Guidance Reference — SS 1.2Student Reference Material — Pg. 18

The diagram on the slide shows the ITIL core, which consists of fi ve Lifecycle phases, that is, Service Strategy, Service Design, Service Transition, Service Operation, and Continual Service Improvement. Each Lifecycle phase provides guidance that is essential for an integrated approach, as specifi ed by the ISO/IEC 20000 standard. Each publication has an infl uence on the working of Service Providers.

The ITIL core provides structure, stability, and strength to Service Management capabilities and its robust principles, methods, and tools. This helps organizations protect investments and provide the basis for measurement, learning, and improvement.

Let us now understand the relationship between Service Strategy and the other Lifecycle phases. Let us begin with Service Design.

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Service Design “provides guidance for the design and development of services and service management practices. It covers design principles and methods for converting strategic objectives into portfolios of services and service assets.”(Source: Service Strategy book)

The scope of Service Design includes:• The design of new Services.• Implementing Changes and improvements to increase or maintain value to

customers over the Service Lifecycle.• Ensure Service Continuity, Service-level achievements, and conformance with

standards and regulations. • Guide the organization to develop design capabilities for Service Management.


Service DesignCore Guidance Reference — SS 1.2.2 Student Reference Material — Pg. 19

Services must be designed with the objectives of the business in mind to provide true value to the business. Service Design covers the entire IT organization, and the IT organization as a whole delivers and supports the Services. Service Design is the phase in the Lifecycle that takes Service Strategy and turns it into a plan to deliver the objectives of the business.

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Service Transition “provides guidance for the development and improvement of capabilities for introducing new and changed services into supported environments. It describes how to transition an organization from one state to another while controlling risk and supporting organizational knowledge for decision support. It ensures that the value(s) identified in the service strategy, and encoded in service design, are effectively transitioned so that they can be realized in service operation.”



Service TransitionCore Guidance Reference — SS 1.2.3Student Reference Material — Pg. 20

Service Transition describes best practices in Transition Planning and Support, which includes:

Guidance on the Service Management processes of Change Management, Service Asset and Confi guration Management (SACM), Release and Deployment Management, Service Validation and Testing, Change Evaluation, and Knowledge Management.

Guidance on managing the diffi cult Changes related to Services and Service Management processes, to avert undesired outcomes while supporting the business requirement for innovation.

Support for organizational learning through the Service Knowledge Management System (SKMS).

Help for improving the overall effi ciency and effectiveness of the Service Lifecycle and enabling informed decision-making and Service improvement.

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Service Operation “describes best practice for managing services in supported environments. It includes guidance on achieving effectiveness and efficiency in the delivery and support of services to ensure value for the customer, the users and the service provider.”(Source: Service Strategy book)


Service OperationService OperationCore Guidance Reference — SS 1.2.4Student Reference Material — Pg. 21

Service Operation is a critical capability, where strategic objectives are fi nally realized. Service Operation provides guidance on maintaining stability while allowing for Changes in design, scale, scope, and Service levels. Detailed process guidelines, methods, and tools are provided with two major perspectives: Reactive and proactive. Knowledge is provided to managers and practitioners, which allows better decisions in managing availability, controlling demand, optimizing capacity, scheduling operations, avoiding or resolving Incidents, and managing Problems.

Service Operation provides guidance on the Service Management processes of Event Management, Incident Management, Request Fulfi lment, Problem Management, and Access Management processes. It also provides guidance on the Service Desk, Technical Management, IT Operations Management, and Application Management functions.

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Continual Service Improvement (CSI) “provides guidance on creating and maintaining value for customers through better strategy, design, transition and operation of services. It combines principles, practices and methods from quality management, change management and capability improvement.”(Source: Service Strategy book)


Continual Service Improvement Core Guidance Reference — SS 1.2.5Student Reference Material — Pg. 22

CSI:

Describes how to achieve increasing and large-scale improvements in Service quality, operational effi ciency, and business continuity.

Helps ensure that the Service Portfolio aligns to the requirements of the business.

Provides guidance on helping link improvement efforts and outcomes to Service Strategy, Service Design, Service Transition, and Service Operation.

Establishes the Plan-Do-Check-Act (PDCA) cycle, which creates a closed-loop feedback system. Feedback from any of the Lifecycle phases is used to identify improvement opportunities for any other Service Lifecycle phase.

Provides guidance on Service measurement, value through metrics, developing baselines, and maturity assessments.


1.5Group/Individual Exercise

1.4Relationship with Other Lifecycle Phases

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1.5 GROUP/INDIVIDUAL EXERCISE

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ActivityWork with a partner and identify at least one way that Service Strategy impacts each of the other phases of the Service Lifecycle — Service Design, Service Transition, Service Operation, and CSI — in their organization.

Note:1. Assess the context provided on the slide.2. Write your response in the space provided in your Workbook.3. Activity!

1.5 Group/Individual Exercise

Bloom’s Levels: 3, 4

Suggested Activity Duration: 20 mins

Q1. Work with a partner and identify at least one way that Service Strategy impacts each of the other phases of the Service Lifecycle — Service Design, Service Transition, Service Operation, and CSI — in their organization.

Sample Answer: There is no sample answer.

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Summary of Unit 1

Introduction to Service StrategyUnit Roadmap SummaryOverview

Unit Learning Objectives

Overview of the Unit.

Learning Objectives of the Unit.

1.1 Purpose and Objectives

The purpose of Service Strategy is “To defi ne the perspectives, positions, plans, and patterns that a Service Provider needs to be able to execute to meet an organization’s business outcomes.”(Source: Service Strategy book)

Some objectives of Service Strategy are to understand what strategy is, identify the defi nition of Services and customers, defi ne how value is created and delivered, identify opportunities to provide Services and exploit them, and so on.

1.2 Scope of Service Strategy

The scope of Service Strategy includes: Defi ning and discussing the generic principles and processes of Service Management.

Then, applying the principles to consistently manage IT Services. Being applicable to both internal and external Service Providers. Providing guidance to organizations that offer IT Services as a profi table business and

to those that offer IT Services to other Business Units within the same organization.

1.3 Value to the Business

Some benefi ts that organizations can achieve with the adoption and implementation of Service Strategy include:

Support the ability to link activities to outcomes that are critical to customers. Enable a clear understanding of the types and levels of Services. Enable quick and effective response to Changes in the business environment, to ensure

increased competitive advantage. Support the creation and maintenance of portfolios of quantifi ed Services. Facilitate functional and transparent communication between customers and Service

Providers. Provide the means for the Service Provider to organize itself to provide Services that

are effi cient and effective.

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1.4 Relationship with Other Lifecycle Phases

The ITIL core provides structure, stability, and strength to Service Management capabilities and its robust principles, methods, and tools. This helps organizations protect investments and provide the basis for measurement, learning, and improvement.

Service DesignServices must be designed with the objectives of the business in mind to provide true value to the business. Service Design covers the entire IT organization, and the IT organization as a whole delivers and supports the Services. Service Design is the phase in the Lifecycle that takes Service Strategy and turns it into a plan to deliver the objectives of the business.

Service TransitionService Transition describes best practices in Transition Planning and Support, which includes:

Guidance on the Service Management processes of Change Management, Service Asset and Confi guration Management (SACM), Release and Deployment Management, Service Validation and Testing, Change Evaluation, and Knowledge Management.

Guidance on managing the diffi cult Changes related to Services and Service Management processes.

Support for organizational learning through the SKMS. Help for improving the overall effi ciency and effectiveness of the Service Lifecycle and

enabling informed decision-making and Service improvement.

Service OperationService Operation provides guidance on maintaining stability while allowing for Changes in design, scale, scope, and Service levels. Detailed process guidelines, methods, and tools are provided with two major perspectives: Reactive and proactive. Knowledge is provided to managers and practitioners, which allows better decisions in managing availability, controlling demand, optimizing capacity, scheduling operations, avoiding or resolving Incidents, and managing Problems.

CSI Describes how to achieve increasing and large-scale improvements in Service quality,

operational effi ciency, and business continuity. Helps ensure that the Service Portfolio aligns to the requirements of the business. Provides guidance on helping link improvement efforts and outcomes to Service

Strategy, Service Design, Service Transition, and Service Operation. Establishes the PDCA cycle, which creates a closed-loop feedback system. Provides guidance on Service measurement, value through metrics, developing

baselines, and maturity assessments.

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Unit2Service Strategy Principles

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2

Course IntroductionUnit 2 : Service Strategy PrinciplesITIL


Look at the cartoon on the slide. Can you think of reasons why customers are rushing to buy fi sh from the fi sh seller who has advertised “Fresh Fish” at his shop? Why are the customers not buying fi sh from the man who has advertised “Cheap Fish” at his shop? What can you understand about Services from this cartoon?

Alright, let us discuss some more questions now.

Show the slide and allow the participants a couple of seconds to understand the cartoon.


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Instructor | ITIL Intermediate Certifi cation Level | Service Strategy Principles


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The Big “Why”• What are Services and market spaces?• Why do you need to understand the concepts of Services

and market spaces?• How do these concepts help your organization?

So, we come to that big fundamental “why” question. Why Services and market spaces? Why do you need to understand the concepts of Services and market spaces? Of course, you know why you’re here! But my question is, what does learning about Services and market spaces do for you, for your organization?

Anyone? OK, so let’s do a quick round-robin. What does the unit Defi ning Services and Market Spaces help with?

Great! Let us now look at the specifi cs, at what this unit really deals with. You will fi nd this in your Reference Material as well.

The objective here is to warm the participants up to the unit. Keep this peppy. The “dialog” above is indicative, and of course, you would use expressions that you’re most comfortable with.

It is important to keep this short and energetic. Point to participants when you ask the question, call them out by their names individually…

Then, once you have a couple of responses, say you would move on to what this unit really deals with.


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OverviewTo gain an understanding of market spaces, Service Providers should:

• Get a sense of the outcomes that the customer desires. • Tailor Services to facilitate outcomes. • Base the definitions of Services on the outcomes that customers desire.

“Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for. Customers pay only for what is of use to them and gives them value. Nothing else constitutes quality.”- Peter Drucker, Innovation and Entrepreneurship

OverviewTo spot emerging opportunities, it is extremely important for Service Providers to gain an understanding of their respective market spaces. The fi rst step toward this is to get a sense of the outcomes that the customer desires. Knowing what outcomes the customer desires enables the Service Providers to tailor their Services to facilitate those outcomes.

Defi nitions of Services must also be based on the outcomes that customers desire. This makes customers more inclined to buy the Service. It also creates value for the Service Providers because implementing Service Management from the point of view of what is valuable to the customer makes the entire Service Management process more effective. These outcome-based defi nitions of Services also ensure that the capabilities of the Service Provider are always in line with customer needs.

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Unit Learning Objectives At the end of this unit, you will be able to:

• Understand the basic approach to deciding strategy for the organization.• Describe the strategy and opposing dynamics. • Define outperforming competitors for the organization.• Explain the four Ps of Service Strategy. • Understand and explain the formal definitions of Services suitable for planning and

executing across the Service Lifecycle.• Understand the value that the business provides to the organization.• Comprehend the Utility and Warranty elements of Services.• Identify the different types of Service Assets; that is customer, Service, and

strategic assets.• Identify the different types of Service Providers, and explain how to choose

between them.• Understand how to define Services.• Comprehend strategies for customer satisfaction.• Define the concepts of Service economics.• Understand and explain what a sourcing strategy is and how to

apply it in the organization.• Identify what are the strategy inputs and outputs with the Service Lifecycle.

Talk through the bulleted list, and answer any questions participants may have. Take a moment to establish the connect between the Unit Overview and Learning Objectives slides, emphasizing the key words and phrases.


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Topics Covered in This Unit2.1 Basic Approach to Deciding a Strategy2.2 Strategy and Opposing Dynamics and Outperforming Competitors2.3 The Four Ps of Service Strategy 2.4 Services and Value2.5 Utility and Warranty of Services2.6 Customer Assets, Service Assets, and Strategic Assets2.7 Service Providers – Types and Choosing Between Them2.8 Defining Services2.9 Strategies for Customer Satisfaction2.10 Service Economics2.11 Sourcing Strategy2.12 Strategy Inputs and Outputs with the Service Lifecycle

2.1 BASIC APPROACH TO DECIDING A STRATEGYCore Guidance Reference — SS 3.1.1.3 Student Reference Material — Pg. 29

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2.2Strategy and Opposing Dynamics and Outperforming Competitors

2.3 The Four Ps of Service Strategy 2.4 Services and ValueBasic Approach to Deciding a

Strategy2.1

Basic Approach to Deciding a Strategy

The organization must perform its mission better than the competing alternatives do though the created value can be difficult to define and measure.

Every organization also must have an objective or desired end state that differentiates the value of what you do and how you do it.

Service Strategy is what the Service Providers must define in terms of achieving the customer’s business outcomes while adhering to the necessary constraints of the industry or environment.

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Basic Approach to Deciding Strategy Organizations have competition. Even government agencies are subject to the competitiveness of industry. The value that is created can be diffi cult to defi ne and measure but the organization must still perform its mission better than the competing alternatives do. Every organization must also have an objective or desired end state that differentiates the value of what you do and how you do it. In this way, customers will perceive greater value generated by your company over the alternatives. The value may be monetary or social, and differentiation can come from the barrier to entry or the switching costs. Often, organizations develop vision and mission statements that help articulate what differentiates them from the competition and defi nes the value to the customers.

Service Strategy is what the Service Providers must defi ne in terms of achieving the customer’s business outcomes while adhering to the necessary constraints of the industry or environment. Organizations have constraints in terms of resources and capability and must still hold a competitive position to survive. Understanding the trade-offs involved is part of making the necessary strategic choices on what Services to offer, markets to serve, and how to outperform competitors. The goal is to have better performance than the competition.


2.2Strategy and Opposing Dynamicsand Outperforming Competitors

2.1Basic Approach to Deciding a Strategy

Coming Up

2.2 STRATEGY AND OPPOSING DYNAMICS AND OUTPERFORMING COMPETITORS

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Concept JogLet us discuss the following:

• What do you understand by the term “strategy?”• List some challenges that you may face during Service

Strategy.

Note:• You may choose to take notes as this discussion progresses.• Attempting to connect the concept to practical specifics from your

organization will help you understand the concept well, and eventually support your ability to succeed at the Exam or apply the concept correctly within your organization.

2.2 2.3 The Four Ps of Service Strategy 2.4 Services and ValueBasic Approach to Deciding a

Strategy2.1Strategy and Opposing Dynamics and Outperforming Competitors

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Please see “List of Activities” for guidance on conducting “Concept Jog” as an activity.

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Strategy Synthesizes Opposing Dynamics

Future course of action: When the management puts together a strategy, the initial response is to develop a strategic plan that details how to move the organization from the current state to a desired future state.

Future versus present: When we create a plan today for some future outcome, that plan might become a liability in the future.

Operational effectiveness: Another challenge is the balance between operational effectiveness and improvements in functionality.

Value capture: Focusing solely on the strategic plan can also impede the organization’s ability to be agile and respond to the changing needs of the business.



Strategy Synthesizes Opposing DynamicsCore Guidance Reference — SS 3.1.1.5 Student Reference Material — Pg. 30

Strategy is thought of in the context of a future course of action. When the management is asked to put together a strategy, the initial response is to develop a strategic plan that details how to move the organization from the current state to a desired future state. There are, however, some disadvantages of this approach to Service Strategy.

The fi rst challenge is the future versus the present. When we create a plan today for some future outcome, that plan might become a liability in the future. Focusing solely on the strategic plan can also impede the organization’s ability to be agile and respond to the changing needs of the business.

Another challenge is the balance between operational effectiveness and functionality improvement. If the organization constantly focuses on improving operational effectiveness, this might lead to an inability to improve the competitive advantage. Both are necessary, but organizational effectiveness does not always lead to competitive advantage. If the strategy of the organization is focused on operational effectiveness, at the expense of its distinctiveness, it might not survive in the industry for long. Every organization has competitors. This applies even to the public sector, where an agency may choose to outsource IT.

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Another challenge is how to capture value when innovation is driven through the launch of new strategies instead of captured during the delivery and support of live operations. A strategic plan is not usually focused on the long-term capture of value. There is often a small window of opportunity between the time that an innovation program is launched and operated. The company can then maintain its competitive advantage.

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Focus on the future Focus on the present

Improvements inoperational effectiveness

Improvements infunctionality

Immediate value captureat launch

Value capture duringongoing operations


Strategy2.1

Adapted from Achieving a Balance Between Opposing Strategic Dynamics © Crown Copyright 2011 Reproduced under licence from the Cabinet Office

Strategy and Opposing Dynamics and Outperforming Competitors

Strategic Failure

Strategic FailureFailures in strategy will often result if the organization fails to manage these opposing dynamics. The organization must be able to react and predict, adapt and plan. The diagram on the slide shows how organizations should balance these opposing dynamics.

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Strategy as a Means to Outperform Competitors

Organizations can use strategy as a means to outperform competitors.

A Service Provider must also meet the objectives that are defined as the business outcomes of customers.

An organization can provide superior performance as well ascompeting alternatives.

When a Service Strategy is high performing, it will help enable the Service Provider outperform its competitors consistently over time.



Strategy as a Means to Outperform CompetitorsCore Guidance Reference — SS 3.1.1.6Student Reference Material — Pg. 32

Organizations can use strategy as a means to outperform competitors. A Service Provider must also meet the objectives that are defi ned as the business outcomes of customers. These outcomes are often subject to many constraints. Strategic choices have trade-offs. An organization can better service customers or outperform its competitors, but the goal is both: Superior performance versus competing alternatives.

When a Service Strategy is high-performing, it will help enable the Service Provider to outperform its competitors consistently over time. This includes outperformance across business cycles, disruptions in the industry, and even changes in leadership. Strategy is both the ability to be successful today and to position the organization for future success.


2.3The Four Ps of Service Strategy

2.2Strategy and Opposing Dynamicsand Outperforming Competitors

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2.3 THE FOUR PS OF SERVICE STRATEGY

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PatternsPlans

Perspective

Positions

Adapted from Perspective, Positions, Plans, and Patterns © Crown Copyright 2011 Reproduced under licence from Cabinet Office



The Four Ps of StrategyCore Guidance Reference — SS 3.1.2 Student Reference Material — Pg. 33

The four Ps of Service Strategy are shown in the diagram on the slide. The four Ps can be best described as:

“Perspective: Describes the vision and direction of the organization. A strategic perspective articulates what the business of the organization is, how it interacts with the customer and how its services or products will be provided. A perspective cements a service provider’s distinctiveness in the minds of the employees and customers.

Positions: Describe how the service provider intends to compete against other service providers in the market. The position refers to the attributes and capabilities that the service provider has that set them apart from their competitors. Positions could be based on value or low cost, specialized services or providing an inclusive range of services, knowledge of a customer environment or industry variables.

Plans: Describe how the service provider will transition from their current situation to their desired situation. Plans describe the activities that the service provider will need to take to be able to achieve their perspective and positions.

Patterns: Describe the ongoing, repeatable actions that a service provider will have to perform in order to continue to meet its strategic objectives.”


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Documents

ITIL Intermediate Course: SS Instructor Guide_r3.2.0