ITIL Lifecycle: Service Strategy

ITIL Lifecycle: Service Strategy


The purpose of the service strategy 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.


  • Establish an understanding of strategy
  • Clearly identify and define services
  • Define how value is created and delivered
  • Articulate how services are delivered and funded
  • Establish a clear model for provisioning services
  • Document and coordinate how service assets are used to deliver services


  • Includes generic service management principles and processes
  • Applies to internal and external service providers
  • Two aspects covered by a service strategy:
    • Defining a strategy to guide how a service provider meets business outcomes
    • Defining a strategy for how to manage services


  • Links service provider activities with critical business outcomes
  • Enables clear understanding of the services desired by the business
  • Supports flexibility in response to the changing business environment
  • Quantifies services through a profolio
  • Facilitates communication between the service provider and its customers
  • Aids in effective service provider organization

Basic Concepts


  • The result of carrying out an activity, following a process or delivering a service
  • Includes intended and actual results
  • Customers seek outcomes without ownership of associated costs and risks

Types of Services

  • Core: Basic functionality
  • Enabling: Provide access to core services
  • Enhancing: Provide differentiation

Value Creation through Services

  • Business outcomes
  • Preferences
  • Perceptions
  • Establish a baseline (current state) and add Utility and Warranty in order to create Value.

Risk Management

  • Identify and Control Risks


  • Is a single overarching area that ties IT and the business together.
  • Defines common directions, policies and rules that both the business and IT use
  • Applies a consistently managed approach throughout the organization

Service Automation

  • Process and Tools must be in place prior to automation
  • Benefits
    • Imrpoves utility and warranty of a service
    • Imrpoves management of capacity
  • Areas
    • Design and modeling
    • Service catalog
    • Pattern recognition and analysis
    • Classification, prioritization and routing
    • Detection and Monitoring

Service Strategy Processes

  • Service Strategy Processes covered on the ITL Foundation syllabus
    • Service portfolio management
    • Business relationship management
    • Financial management for IT Services
  • Service Strategy Processes not covered on the ITIL Foundation Syllabus
    • Demand Management (output is Pattern and Business Activity)
    • Strategy management for IT Services