Business of IT -- Applications -- C846, Test bank. Top Exam Questions and and answers, graded A+

Business of IT -- Applications -- C846, Test bank. Top Exam Questions and and answers, graded A+ ITIL 4 updates established _______________________________________ practices in the context of customer experience, value streams, and digital transformation. They also incorporate new methodologies, such as Lean, Agile, and DevOps - -IT service management (ITSM) ITIL (Information Technology Infrastructure Library) - -is a service management framework that offers a good-practice guidance applicable to all types of organizations who provide services to business. First adoped more than 20 years ago, ITIL has become the most widely adopted approach for IT service management in the world. Key stages in the development of the ITIL best practices framework are: - -1980 -- ITIL guidance begins to be developed in the United Kingdom, under the guidance of the Office of Government Commerce 1989 -- ITIL Version 2 released, a best-practices framework for IT on how to carry out efficient and effective processes, Service Delivery and Service Support, and the core books in the library. 2007 -- ITIL V3 release, designed around the premise that an IT service should go through a life-cycle (from a strategy, to design, to transition, and into the live environment). The processes and functions are organized and presented in a life-cycle structure. Five core books are published. Many more thousands of organizations around the globe begin to adopt ITIL. 2011 -- The "2011 Edition" of the five core ITIL books are published, expanding on the Service Strategy component and refining of the aspects of the framework. 2016 -- The ITIL framework is not being managed by AXELOS®, and a new course entitled ITIL Practitioner is added, along with the "ITIL Guiding Principles." 2018 -- The global ITIL user community has contributed their ideas and input into the next version of ITIL, and ITIL 4 is announced and released. It is structured around a "service value system," bringing ITIL up to date by reshaping many of the established ITIL practices into the wider context of customer experience, value streams, and digital transformation, as well as incorporating aspects of Lean, Agile, and DevOps. Thus, the ITIL framework has evolved from a specialized set of service management topics with a focus on function, to a service- and process-based framework, to guidance based on a _________________________________. ITIL 4 retains and extends many of the established ITSM practices to the broader context of today's digital economy. Its design ensures a flexible, coordinated, and integrated system for the effective governance and management of IT-enabled services. - -service value system The objective of the ITIL service management practice framework is: - -to provide services to business customers that are fit for their purpose, stable, and so reliable that businesses perceive the service organization offering them as a trusted provider ITIL service value system (SVS) - -A key component of the ITIL 4 framework is the service value system (SVS), which describes how the components and activities of an organization interact to create value through IT-enabled services. These components and activities can be combined in a flexible way to ensure a robust, unified, and value-centered trajectory for the organization. The core components of the ITIL SVS are: - -The ITIL service value chain ITIL practices ITIL guiding principles Governance Continual improvement The ITIL service value chain - -The ITIL service value chain is a flexible model for the creation, delivery, and continual improvement of services. Its six key activities can be combined in various ways to form corresponding value streams, including DevOps and centralized IT, to address the needs of multimodal service management. This adaptability of the service value chain enables organizations to adapt to the changing demands of stakeholders effectively, efficiently, and expediently ITIL practices - -ITIL practices further enhance the flexibility of the service value chain by supporting multiple chain avtivities, thereby providing a comprehensive and versatile tool set for ITSM practitioners ITIL guiding principles - -ITIL guiding principles help to guide organizational decisions and actions, and ensure a shared understanding and unified approach to ITSM throughout the organization. They help to codify the organization's culture and behavior, from strategic decision making to day-to-day operations. Governance - -ITIL SVS governance activities enable the organization to maintain the alignment of their operations with the strategic direction determined by its governing body. Continual improvement - -All ITIL SVS components are supported by continual improvement via a simple, practical improvement model designed to maintain the organization's resilience and agility in a constantly changing environment. The four dimensions model Each component of the SVS should be considered from these four dimensions: - -Organizations and people Information and technology Partners and suppliers Value streams and processes Indicate which of the following statements about the ITIL framework is true: It is a source of good practice in service management. Its guidance can be adapted to use in various business environments and organizational strategies It provides services to business customers that are fit for their purpose It is a system by which an organization is directed and controlled - -It is a source of good practice in service management Its guidance can be adapted to use in various business environments and organizational strategies It provides services to business customers that are fit for their purpose A key component of the ITIL 4 framework is ___________________, which describes how the components and activities of an organization interact to create value through IT-enabled services - -SVS Which of the following dimensions models used for ensuring a holistic approach to service management? Organizations and people Information and technology Partners and suppliers Information and service Value streams and components - -Organizations and people Information and technology Partners and suppliers Enables the organization to maintain the alignment of its operations with the strategic direction determined by its governing body - -Governance A good-practice guidance applicable to all types of organizations that provide services to businesses - -ITIL (Information Technology Infrastructure Library) A source of good practice in service management - -ITIL framework Help to guide organizational decisions and actions and ensure a shared understanding and unified approach to ITSM throughout the organization - -ITIL guiding principles Describes how the components and activities of an organization interact to create value through IT-enabled services - -SVS (service value system) A flexible model for the creation, delivery, and continual improvement of services - -The ITIL service value chain Service Management - -is a set of specialized organizational capabilities for enabling value for customers in the form of services Value - -is the perceived benefits, usefulness, and importance of something The purpose of an organization is to create ____________________ for stakeholders. And as such, value is an assessment subject to stakeholders' perceptions--however quantifiable it may be. These stakeholders might be customers or consumers of a service, or part of a service provider organization. Thus, the concept of value is key to understanding the ITIL service management system - -value Service providers once viewed their role of delivering value to their customers as analogous to a delivery company delivering packages to their destination—in other words, as a __________________________ endeavor. The effect of this view also placed customers at some distance from service providers, as the customer/consumer plays no role in the creation of the value they're intended to receive. In reality, the service provider-customer relationship can be highly complex, interdependent, and bidirectional. - -monodirectional Thus, organizations nowadays tend to recognize that value is co-created through active collaborations between service providers and customers/consumers. To this end, providers must always consider this dynamic relationship when defining value to customers, rather than work in isolation. This ___________________________________ can only be accomplished by establishing mutually beneficial, interactive relationships with customers, thus empowering them to become creative contributors to the service value chain. Stakeholders across the service value chain contribute to define requirements, the design of service solutions, and to service creation and/or provisioning. - -value co-creation ______________________ is a set of specialized organizational capabilities for enabling value for customers in the form of services - -Service management The ITIL ___________________________ includes six value chain activities that lead to the creation of products and services and, in turn, value - -service value chain organization - -is a person or group with its own internal functions, and with its own set of responsibilities, authorities, and relationships necessary to achieve its objectives Members of an organization are unified by common objectives, relationships, and authority. As societies and economies evolve, the relationships within and between organizations become increasingly complex. And each organization depends on others in its operation and development. - -The role(s) of an organization can differ over time, depending on the perspective from which it's viewed (and functions). When provisioning services, an organization's role is that of _______________________. - -service provider The service provider can be another entity outside the customer's organization, or both can be part of the same organization In the most common version of ITSM, the service provider is a company's IT department, with the other departments viewed as its customers. - -However, it's important to keep in mind that this is just one simple example of the provider-customer model The key to being an effective service provider is for the organization to have a clear understanding of who its customers are in any given situation, as well as any other stakeholders in the service relationship The __________________________ (or service customer) is the generic role an organization takes on when it receives services. In practice, the concept of service consumption serves as an umbrella term for more specific roles, such as customers, users, and sponsors. - -service consumer These specific roles are nonexclusive, as they can be separate or combined. Thus, it's important to understand the distinctions between customers, users, and sponsors: - -Customer -- The person who defines service requirements and takes responsibility for the outcome of service consumption User -- someone who uses the provided services Sponsor -- The person authorizing the budget for the consumed service **Sometimes individual private consumers of the same carrier's service could simultaneously serve as customer, user, and sponsor Besides the roles of service provider or consumer, there can be many types of additional stakeholders in a service relationship, all of whom are important to value creation. Examples of additional stakeholders include: - -Individual or groups of employees Partners Suppliers Investors Shareholders Government organizations (e.g. regulators) Social groups Key to the success and continuity of any organization is the understanding and skillful management of relationships with all stakeholders. Discontent of any stakeholders can quickly put the operations of the organization in jeopardy. - -Products and services provide value to stakeholders in many different ways. Some are obvious, such as the generation of revenue. Others are not as obvious, such as tacit knowledge (e.g. employee experience). The table below provides some examples of value as they apply to different stakeholders. Service customer(s)/consumer(s) What is the corresponding value given to this stakeholder? - -Benefits are achieved; costs and risks are optimized Service provider What is the corresponding value given to this stakeholder? - -Funding by the customer; business development; image improvement Service provider employees What is the corresponding value given to this stakeholder? - -Financial and other incentives; career/professional development; sense of purpose Community/society What is the corresponding value given to this stakeholder? - -Employment; taxes; contribution to the community Charitable organization(s) What is the corresponding value given to this stakeholder? - -Financial and other contributions from other organizations Shareholder(s) What is the corresponding value given to this stakeholder? - -Financial benefits (e.g. dividends); sense of assurance and stability A person authorizing the budget for the consumed service - -Sponsor A person who uses the provided services - -User A person who defines service requirements and takes responsibility for the outcome of service consumption - -Customer What is a service? - -is a means of enabling value co-creation by facilitating outcomes desirable to customers -- without their having to manage cost and risk Organizations own or have access to many different types of resources, including: - -People Information Technology Value streams Processes Suppliers Partners An organization's services are based on one or more of its products What are products? - -are configurations of an organization's resources that are created and supplied by the organization to offer value to the organization's consumers Products, as the end result of a process, are typically complex, and some of what has gone into them is invisible to the consumer. What the consumer does see represents only a small portion of all the components and resources that support its delivery. It's the organization that defines which product components (and their processes) are visible to the consumer, as it tailors them to address consumer needs. - -Resources are used to configure the products THEN Products are the foundation for services THEN Value is delivered through the service(s) Service providers offer their services to target consumers in the form of _____________________________, which describe one or more services and associated products designed to meet certain target consumer needs. - -service offerings service offering - -is a formal description of one or more services designed to address the needs of its target consumer, and may include goods, access to resources, and service actions Goods - -Consumer goods to be supplied (e.g. a smartphone) are intended to be transferred from the service provider to the consumer, with the latter assuming responsibility for its subsequent use Access to resources - -This includes access to resources granted/licensed to the consumer under agreed-upon terms and conditions (e.g. to a mobile network). The resources themselves, however, remain under the control of the service provider, and can be accessed by the consumer according to the terms and conditions of the agreement Service actions - -Actions performed to address the needs of a particular consumer (e.g. technical support). Service actions are performed by the service provider according to the terms and conditions of the agreement. It's not enough for an organization to provide a service to its customer. It must also cooperate with the customer in a _________________________________. In this way, the service relationship between two or more organizations serves to co-create value. - -service relationship Service relationships include: - -Service provision -- these are activities an organization engages in to provide services Service consumption -- these are activities an organization engages in to consume services Service relationship management -- these are joint activities that the service provider and service consumer both engage in to ensure continued value co-creation, according to agreed-upon and available service offerings Service provision - -Management of the provider's resources configured to deliver the service Ensuring user's access to these resources Fulfillment of agreed-upon service conditions Service-level management and continual improvement Possibly supplying of goods Service consumption - -Management of consumer resources necessary to use the service Service actions performed by users (e.g. using the provider's resources, requesting that actions be taken) Possibly acquisition of goods The two roles in a relationship -- service provider and service consumer -- are not mutually exclusivef - -Organizations often both provide and consume any number of services at a given time When the provider delivers a service, new resources are created for the service consumer, or existing resources are modified. Some examples are: - -A training service might improve the skills of the consumer's employees A broadband service might enable the consumer's computers to communicate An auto-rental service might enable the customer's staff to visit clients A software developer might create a new application for the service consumer Remain under the control of the service provider; and can be used by the consumer - -Access to resources Supplied to the consumer; consumer assumes responsibility for the product use; ownership transferred to the consumer - -Goods Performed to address the needs of a particular consumer - -Service actions Thus, services should be designed by the service provider to help consumers achieve their desired _________________. And in doing so, the service provider should take on some of the associated costs and risks. - -outcomes Service relationships are considered valuable only when their effects are perceived on aggregate to be more positive than negative. Two definitions are important to consider here: - -- An output is a tangible or intangible deliverable of an activity - An outcome is a result--as perceived by a stakeholder-- that is enabled by one or more outputs Thus, it's important to understand the difference between outputs and outcomes. As an example, the __________________ of a florist shop might be a well-designed brochure that catalogs and illustrates the different categories of flower arrangements and services they offer. However, the _______________ of their service would be the ultimate satisfaction the customer receives once all the chosen flower arrangements are in place to decorate their destination. In this scenario, the outcome might be further enhanced by the positive reactions of all who view and comment on those arrangements, any photographs that might be taken there, and so on. - -output outcome Cost - -is the amount of money spent on a specific activity or resource Viewed from the customer perspective, there are two types of costs involved in service relationships: - -Costs removed from the consumer -- Cost removed from the consumer by the service—as part of the value proposition—might include those of staff, technology, and other resources. Thus, the consumer isn't expected to provide them. Costs imposed on the consumer -- The total cost imposed on the consumer by the service—the cost of service consumption—includes any applicable price charged by the service provider, plus staff training, network utilization, procurement, and so on. Consumers sometimes term these costs what they have to "invest" to use the service. **The consumer considers both types of cost in asserting the value they expect from the service provided Risk - -is a possible event that could cause harm or loss, or make the achievement of objectives more difficult Risk also implies uncertainty of outcome, and can thus be used to measure the probability of both positive and negative outcomes. As with cost, there are two types of risk of concern to service consumers: - -Risks removed from a consumer -- Risk removed from a consumer by the service—as part of the value proposition—might include things like failure of the consumer's server hardware or lack of staff availability. A service might only reduce consumer risk, but the consumer might determine that this reduction is sufficient to support the value proposition. Risks imposed on a consumer -- Risk imposed on a consumer by the service—in other words, risks of service consumption—might include a service provider ceasing to trade, or experiencing a security breach. The consumer contributes to the reduction of risk by: - -- Actively contributing to the definition of service requirements and the clarification of its required outcomes - Clearly communicating the critical success factors (CSFs) and constraints applicable to the service - Ensuring that the provider has access to the necessary consumer resources throughout the duration of the service relationship To assess the effectiveness and success of the co-creation of value for a consumer, two important elements are necessary for the service provider to address: - -utility warranty Utility - -is the functionality offered by a product or service to meet a particular need - It can be summarized as what the service does - It can help to determine whether a service is "fit for purpose" - To have utility, a service must either support consumer performance or remove consumer restraints. Many services do both Warranty - -is assurance that a product or service meets agreed-upon requirements - it can be summarized as how the service performs - it can help to determine whether a service is "fit for use" - Warranty often relates to service levels aligned with the needs of service consumers, either according to formal agreement, or by a marketing message or brand image. - It typically addresses areas such as availability of service, its capacity, levels of security, and continuity. - The service is said to provide acceptable warranty, or assurance, when all defined and agreed-upon conditions are met. Service assessment must always take into consideration the impact of cost and risk on utility and warranty to generate overall insight into the viability of a service. - -Thus, utility and warranty are both essential for a service to facilitate its desired outcomes and therefore help create value. Indicate if each of the given statements about warranty is true ... It can be summarized as how the service performs It can help determine whether a service is "fit for purpose" It relates to service levels aligned with the needs of service consumers according to a formal agreement It can be summarized as what the service does - -It can be summarized as how the service performs It relates to service levels aligned with the needs of service consumers according to formal agreement A possible event that could cause harm or loss, or make the achievement of objectives more difficult - -Risk A result as perceived by a stakeholder that is enabled by one or more outputs - -Outcome A functionality offered by a product or service to meet a particular need - -Utility An assurance that a product or service meets agreed-upon requirements - -Warranty To understand how the various components and activities of an organization work together to create value, it's important to understand the four dimensions of service management, and how they are relevant to and impact all elements of the SVS. These dimensions are: - -Organizations and people Information and technology Partners and suppliers Value streams and processes These four dimensions represent perspectives relevant to the entire service value chain, and encompass all ITIL practices. - -And all four dimensions are also constrained or influenced by external factors that are often beyond the control of the SVS. The reason why all four dimensions are constrained or influenced by external factors should be obvious. Service providers don't operate in isolation; rather, they're affected by many external factors, as they function in dynamic, complex environments with high degrees of volatility and uncertainty. These factors can impose constraints on the operation of service providers. These external considerations include the following factors: - -Political Economical Social Technological Legal Environmental ***This model or framework of external influencing factors is thus referred to by the acronym "PESTLE." It is sometimes used to analyze these factors. PESTLE provides measures for how these factors influence a service provider's operation. Collectively, these factors influence how organizations configure their resources and address the four dimensions of service management, for example: - -Government and societal attitudes toward environmentally friendly products/services can result in an organization investing more in tools and technologies that meet these external expectations. Economic and societal factors can influence an organization to create several versions of the same product to address the buying patterns of different consumer groups. For example, music/video streaming services often have a free tier (with advertising), a premium tier (without advertising), and in some cases, a "family plan." Doing so enables multiple individual profiles under one paid account. Data protection laws/regulations (e.g. GDPR) have changed how companies collect, process, access, and store customer data as well as how they work with external partners and suppliers ____________________________________________________________________ can result in undeliverable services, or services that are inefficient, or that don't meet agreed-upon expectations of quality. For example, inadequate consideration of value streams and processes dimension can result in ineffectual work, wasted effort, duplicated effort, or work that's simply not in keeping with that of other parts of the organization. Likewise, ignoring the partners and suppliers dimension could result in the misalignment of outsourced services vis-à-vis the needs of the organization. - -Failing to address all four dimensions adequately Finally, remember that all four dimensions apply to all services being managed (and provided), as well as to the SVS in general. - -Thus, these dimensions must be considered for every service offered, and each dimension must be addressed in managing and improving SVS at all levels. The organizations and people dimension of service management includes the following elements, all of which are related to the creation, delivery, and ongoing improvement of a service: - -Roles and responsibilities Formal organizational structure Culture Staffing and competencies Organizational effectiveness hinges on various factors. Establishing a formal organizational structure, system of authority, and hierarchy is important, as organizations have become increasingly complex in both form and function. - -However, it's also important that the organization creates and supports a culture that supports its objectives and has the appropriate level of capacity and competency throughout its workforce. People are the key element of organizational culture; this includes: - -Customers Employees of suppliers Employees of the service provider Other stakeholders When dealing with customers, staffing, and training employees, and interfacing with suppliers and partners, attention should be paid to: - -Required skills and competencies of individual teams Leadership styles required to lead and motivate staff Communication and collaboration skills to facilitate teams working effectively together, as well as customers and suppliers/partners As with the other dimensions, it's important to know that the information and technology dimension applies to both the practice of service management, as well as the services being managed. Technologies that support service management include, but are not limited to: - -Workflow management system Knowledge bases Inventory systems Communications systems Analytic tools Developments in technology have a direct, beneficial effect on service management. Artificial intelligence (AI), machine learning, and other cognitive computing solutions are used at all levels, from strategic planning and portfolio optimization to system monitoring and user support. Mobile platforms, cloud systems, remote collaboration tools, automated testing, and deployment solutions have become common practice among service providers. In the context of IT services, this dimension includes: - -Information created, managed, and used in the course of service provision and consumption Technologies that support and enable that service Regarding the information component of this dimension, organizations should consider the following questions: - -What information is managed by the services? What supporting information and knowledge are required to deliver and manage the services? How are the information and knowledge assets to be protected, managed, archived, and disposed of? For many services, information management is the primary means of enabling customer value: - -An HR service facilitates value creation for its customers by enabling its organization auto access and maintain accurate information about its employees, their employment, and their benefits while securing that information against access by unauthorized parties A network management service facilitates value creation for its users by maintaining and providing accurate information about an organizations active network connections and utilization, thus allowing it to adjust its network bandwidth capacity The role of information architecture - -Another key consideration of this dimension is how information is exchanged between different services and service components. The information architecture of these services must be well understood and continually optimized, taking into account criteria such as the availability, reliability, accessibility, timeliness, accuracy, and relevance of the information provided to users and exchanged between services.Challenges of service management, such as those of security and regulatory compliance, are also a focus of this dimension. Service technology considerations - -Today, most services are based—and heavily dependent—on technology. When considering a technology for use in the planning, design, transition, or operation of a product or service, questions an organization might ask include: Is this technology compatible with the current architecture of the organization and its customers? Do the different technology products used by the organization and its stakeholders work together. How are emerging technologies—for example, AI, machine learning, Internet of Things (IoT)—likely to disrupt the service or organization? Does this technology raise any regulatory or other compliance issues with the organization's policies and information security controls, or those of its customers? Will this technology continue to be viable in the foreseeable future? Is the organization willing to accept the risk of using aging technology, or of embracing emerging or unproven technology? Does this technology align with the strategy of the service provider or its service consumers? Does the organization have the right skills across its staff and suppliers to support and maintain the technology? Does this technology have sufficient automation capabilities to ensure it can be efficiently developed, deployed, and operated? Does this technology offer additional capabilities that might be leveraged for other products or services? Does this technology introduce new risks or constraints to the organization (e.g. locking it into a specific vendor)? How organizational type and culture influence technology - -An organization's culture can have a significant impact on the technologies it chooses to use. Some organizations might be more interested in functioning at the cutting edge of technology, while others might have a more traditional "wait and see" approach to such advances. The type of business in which an organization functions can also affect the technology it employs. ITSM remains focused on creating and maintaining value for both users and customers. Historically, this has typically been a "technology agnostic" focus; in other words, importance has been placed not on the technology, but rather on the opportunities it can generate for its customers. Although this has largely been a successful and acceptable approach, the ubiquity of technology in many aspects of business means that nowadays organizations must not ignore new architectural solutions—and the evolution of technology in general. - -Cloud computing is an example of an architectural shift in IT that introduces both new opportunities and new risks. Organizations have been forced to react to cloud computing in ways that result in most benefit for themselves, their customers, and their stakeholders Properly defined, cloud computing is a storage-based system for enabling on-demand network access to a shared pool for configurable computing resources that can be rapidly provided with minimal management effort or provider interaction. Key characteristics of cloud computing include: - -On-demand (often self-service) availability Network (often Internet) access Resource pooling (often among multiple organizations) Rapid (often automatic) elasticity Measured service (often from the consumer's perspective) In the ITSM context, cloud computing impacts service architecture and the distribution of responsibilities between service consumers, service providers, and their partners. In particular, this applies to in-house service providers (e.g. internal IT departments). Typically, adoption of a cloud computing model: - -Replaces some infrastructure--previously managed by the service provider--with a partner's cloud service Decreases (or removes) the need for infrastructure management expertise and service provider resources Shifts the focus of service monitoring and control from the in-house infrastructure to a partner's services Changes the service provider's cost structure by removing specific capital expenditures and introducing new operating expenditures and the need to manage them appropriately Introduces stricter requirements for network availability and security Introduces new security and compliance risks and requirements, applicable to both the service provider and its cloud-service-providing partner Provides users with opportunities to scale service consumption using self-service via simple standard requests, or without any requests at all All the above results affect multiple service providers' practices. These include, but are not limited to: - -Service-level management Measurement and reporting Information security management Service continuity management Supplier management Incident management Problem management Service request management Service configuration management An important effect of the elasticity of cloud computing resources is that the cloud infrastructure has the potential to enable significantly faster deployment of new and updated services. This can in turn help to support high-velocity service delivery. The ability to configure and deploy computing resources with the same speed as new applications is important as a prerequisite to the success of DevOps and similar initiatives. Modern organizations can thus be supported in their need for faster time to market and digitization of their services. - -Taking all the above factors into consideration, cloud computing will likely continue to play an increasingly significant role in the function of organizations. Thus, it's important that decisions regarding the use of cloud technologies are made at an organization's strategic level, and involving all levels of stakeholders, from governance to operations. Indicate if each of the given statements about the adoption of a cloud computing model is true: It replaces some infrastructure--previously managed by teh service provider--with a partner's cloud service It shifts the focus of service monitoring and control from the in-house infrastructure to a partner's services It changes the service provider's cost structure by adding specific capital expenditures It introduces stricter requirements for network availability and security - -It replaces some infrastructure--previously managed by the service provider--with a partner's cloud service It shifts the focus of service monitoring and control from the in-house infrastructure to a partner's services It introduces stricter requirements for network availability and security The __________________ service facilitates value creation for its customers by enabling its organization to access and maintain accurate information about its employees, their employment, and their benefits - -HR The ________________________ service facilitates value creation for its users by maintaining and providing accurate information about an organization's active network connections and utilization, thus allowing it to adjust its network bandwidth capacity - -network management These days, it's safe to say that every organization and service depend to some extent on services provided by other organizations. The ______________________________ dimension encompasses an organization's relationships with other organizations involved in the design, development, deployment, delivery, support, and continual improvement of services. It also incorporates contracts and other agreements between the organization and its partners or suppliers - -partners and suppliers Relationships between organizations involve various levels of integration and formality. These can range from formal contracts with clearly separated responsibilities to flexible partnerships in which parties share common goals and risks, and collaborate to achieve their desired outcomes. - -Keep in mind that the forms of possible cooperation aren't fixed, but instead represent a spectrum of possibilities. A service provider has a position on this spectrum that can vary, depending on its particular strategy and customer relationship objectives. Likewise, a service consumer's role depends its sourcing strategy and objectives, as well as supplier management. In using partners and suppliers, an organization should base its strategy on: - -its goals, culture, and the business environment in which it operates Some organizations might believe they can be best served by focusing their attention on developing core competencies, using partners and suppliers to provide other needs. Other organizations might rely on their own resources, thus using partners and suppliers as little as necessary. Both these approaches represent extremes; there are many possibilities between them. service integration and management (SIAM) - -A method for addressing the partners and suppliers dimension SIAM involves the use of a specially established integrator to ensure the proper coordination of service relationships. Service integration and management can reside within the organization, or it can be delegated to a trusted partner Factors that can influence and organization's strategy in their use of suppliers include: - -Strategic focus Corporate culture Resources scarcity Cost concerns Subject-matter expertise External constraints Demand patterns Strategic focus - -Organizations might prefer to focus on core competencies and outsource "non-core" supporting functions to third parties, Others might prefer self-sufficiency, thus retaining full control over all important functions Corporate culture - -Organizations might have a historical preference of one approach over another. Longstanding cultural bias can be difficult to change without compelling reasons for doing so Resource scarcity - -When a necessary resource or skill set is in short supply, it can be difficult for the service provider to acquire it without using a supplier Cost concerns - -A strategic decision can be influenced by the service provider's perception of the economy of sourcing from a supplier Subject-matter expertise - -The service provider might believe that using a supplier with expertise in a required area is less risky than developing subject-matter expertise in house External constraints - -An organization's supplier strategy can be impacted by government regulation or policy, industry codes of conduct, and social, political, or legal constraints Demand patterns - -Demand for services or customer activity can be seasonal, or otherwise demonstrate a high degree of variability. This can impact the extent to which an organization uses external service providers to cope with such variable demand An organization's supplier strategy can be impacted by government regulation or policy, industry codes of conduct - -External constraint A strategic decision can be influenced by the service provider's perception of the economy from a supplier - -Cost concern An organization prefers to pay attention to core competencies and outsource "non-core" supporting functions to third parties - -Strategic focus An organization has a historical preferences for one approach over the other - -Corporate culture As with the other dimensions of service management, the value ________________________________ dimension is applicable to the SVS in general, as well as to specific products and services. In both these contexts, it defines the activities, workflows, controls, and procedures necessary to achieve agreed-upon objectives - -streams and processes In the context of SVS, the value streams and processes dimension is concerned with: - -how an organization's various parts work in an integrated and coordinated way to enable value creation via products and services. **** This dimension focuses on the activities undertaken by the organization and how they're organized. It also focuses on how the organization ensures that it's enabling value creation for all stakeholders efficiently and effectively service value chain (SVC) - -the core of the SVS, is a generic operating model that can, in practice, follow different patterns, which are called value streams value stream - -is a series of steps undertaken by an organization to create and deliver products and services to consumers. It's implemented as a combination of the organization's value chain activities It's critical that an organization __________________________________________ to improve its overall performance - -identify and understand its various value streams An organization should examine exactly how it performs work, and thus map all the value streams it can identify. - -Doing so enables the organization to analyze its current state and identify barriers to its workflow and non-value-adding activities (i.e. waste). Any wasteful activities should then be eliminated to increase productivity. Opportunities for increasing value-adding activities are found across the service value chain—these can be new, or merely modifications to existing ones. Implementing value-adding activities can serve to make the organization more productive. - -Value stream optimization can include enhancements such as process automation or adoption of emerging technologies, and ways of working to increase efficiency or enhance user experiences. An organization should likewise define value streams for each ____________________ and _____________________ it offers. Depending on its strategy, a value stream can be redefined along the way and react to changing consumer demands, market demands, and other circumstances - -Or the value stream can remain stable for an extended period--in other words, as long as it continues to add value In any case, the value stream should be continually evaluated, modified, and/or improved, as necessary, to ensure that the organization optimally achieves process - -is a set of interrelated or interacting activities that transform inputs into outputs. More specifically, the process takes one or more defined inputs and turns them into defined outputs. Processes define the sequence of actions and their dependencies When applied to products and services, the value streams and process dimension helps answer the following questions critical to the design, delivery, and improvement of services: - -What's the generic delivery model for the service, and how does the service work? What are the value streams involved in delivering the agreed-upon outputs of the service? Who-or what-performs the required service actions? Defines the sequence of actions and their dependencies - -Process A set of interrelated or interacting activities that transform inputs into outputs - -Process A series of steps undertaken by an organization to create and deliver products and services to consumers - -Value stream Includes enhancements such as process automation or adoption of emerging technologies - -Value stream Describes what is done to accomplish an objective - -Value stream A storage-based system for enabling on-demand network access to a shared pool of configurable computing resources that can be rapidly provided with minimal management effort or provider interaction - -Cloud computing Applies to both the practice of service management, as well as the services being managed - -Information and technology dimension Remains focused on creating and maintaining value for both users and customers - -ITSM (information technology and service management) Includes the elements such as roles and responsibilities, formal organizational structure, culture, and staffing and competencies, all of which are related to the creation, delivery, and ongoing improvement of service - -Organizations and people dimensions Incorporates contracts and other agreements between the organization and its partners or suppliers - -Partners and suppliers dimension A set of interrelated or interacting activities that transform inputs into outputs - -process A series of steps undertaken by an organization to create and deliver products and services to consumers - -Value stream Focuses on how the organization ensures that it's enabling value creation for all stakeholders efficiently and effectively - -Value streams and processes dimension All of the components of service management must work as a system in order to function properly and enable value co-creation among stakeholders. The ITIL service value system (SVS) describes: - -the system's inputs (opportunity and demand) and key elements (guiding principles, organizational governance, service management, and service calue chain, continual improvement, and organizational capabilities and resources), resulting in desired outputs (achievement of objectives and acceptable value to the organization, its customers, and other stakeholders) The ITIL SVS describes how all components and activities of an organization would work together as a system to enable value creation. Each organization's SVS interfaces with other organizations, thus forming an _________________________ that services to facilitate value for the organizations, their customers, and other stakeholders - -ecosystem The ITIL SVS describes how all components and activities of an organization work together as a system to enable value creation. Each organization's SVS interfaces with other organizations, thus forming an _____________________ that services to facilitate value for the organizations, their customers, and other stakeholders - -ecosystem Key inputs to the SVS are - -Opportunity Demand The output of the SVS is: - -Value The SVS includes these components: - -Guiding principles Governance Service value chain Practices Continual improvement What is the purpose of the SVS? - -The purpose of the SVS is to ensure that the organization continually co-creates value with all stakeholders via the use and management of products and services Structure of the SVS - -Opportunity/demand is input into the SVS Guiding principles, governance, service value chain, Practices, and Continual improvement pillars all work together to process it Value is output the other end As mentioned earlier, the ITIL SVS describes how all components and activities operate as a single system for enabling value creation. This system, in tandem with the organization's resources, can be flexibly configured and reconfigured in many different combinations as circumstances change. - -However, this requires the integration and coordination of activities, practices, teams, authorities, and responsibilities, and all parties involved to be truly effective. A major challenge to an organization in trying to work effectively and efficiently, and with a shared vision, or to become more Agile and resilient, is the presence of __________________________, which can form in many different ways and for many different reasons. Silos can be resistant to change and can prevent easy access to the information and specialized expertise present throughout the organization. This can in turn reduce efficiency and increase cost and risk. - -organizational silos **Silos also make it more inherently difficult for different groups in an organization to communicate or collaborate. Thus, a siloed organization can't make decisions or act quickly to take advantage of opportunities as they arise, or to optimize resource use throughout the organization. Decisions become difficult to make because of limited visibility and many hidden agendas, among other things. The ITIL SVS architecture specifically enables flexibility and discourages siloed working. The activities of the service value chain and the practices of the SVS don't form a fixed, rigid structure. Instead, they can be combined in multiple value streams to address organizational needs in many different scenarios. - -The examples of service value streams we provide in this course are not intended to be definitive, prescriptive, or all-inclusive; they're merely examples of possibilities. Organizations should define and redefine their value streams as needed, and in a flexible, safe, and efficient manner, to address their needs and contingencies. Doing so requires continual improvement activities to be engaged in at all organizational levels. To this end, ITIL SVS provides its continual improvement model. The continual improvement and overall operation of an organization are shaped according to the ITIL ___________________________, which create a foundation for a shared culture throughout the organization. - -An organization can take any number of forms, including sole trader, company, corporation, firm, enterprise, authority, partnership, charity, or institution (or any part or combination of these). This is the case whether it's incorporated or not, and whether it's public or private. A successful organization is one that has achieved organizational agility to support internal changes, and the organizational resilience to withstand--and even thrive--in changing circumstances. - -It must consider itself a part of a larger ecosystem of organizations, all of which deliver, and consume products and services Organizational agility - -This is the ability of an organization to move and adapt quickly, flexibly, and decisively to support internal changes. Organizational agility can include changes in: - -Organizational scope Mergers and acquisitions Organizational practices Skills required by new technologies Organizational structure Partners and/or suppliers The ITIL SVS provides the means necessary to achieve organizational agility and resilience - -It also facilitates the adoption of a strong, unified direction throughout the organization, as it focuses on value and is understood and shared by everyone in the organization. This includes the organization's continual improvement Organizational resilience - -This is the ability of an organization to anticipate, prepare for, respond to, and adapt to incremental changes and sudden disruptions as external conditions change Resilience can only be achieved with a common understanding of the organization's priorities and objectives, which set its directions and promotes alignment as external circumstances change Indicate which of the following statements about the ITIL SVS (service value system) is true or false: It describes how all components of an organization work together as a system to enable value creation It includes opportunity and value as the key inputs of the SVS It ensures that the organization continually co-creates value with all stakeholders via the use and management of products and services It includes demand as the key output of the SVS It describes the system's inputs and key elements, resulting in desired outputs - -It describes how all components of an organization work together as a system to enable value creation It ensures that the organization continually co-creates value with all other stakeholders via the use and management of products and services It describes a system's inputs and key elements, resulting in desired outputs A set of interconnected activities an organization performs to deliver a valuable product/service to its consumers - -SVC The way(s) in which the organization is directed and controlled - -Governance A set of organizational resources designed for performing work or accomplishing an objective - -Practice Organizational __________________________ is the ability of an organization to anticipate, prepare for, respond to, and adapt to incremental changes and sudden disruptions as external conditions change - -resilience Opportunity - -consists of the options or possibilities of adding value for stakeholders (e.g. in delivering a new/improved service) or otherwise improve the organization (e.g. by improving a certain practice). There may not yet be demand for these opportunities (as might be the case for a breakthrough product or service), but they can still trigger work within the system Demand - -represents the need or desire for products and services from internal and/or external customers. Opportunities represent the potential to add value for customers and other stakeholders (e.g. by delivering a new/improved service), or otherwise improve the organization (e.g. by improving a practice that lower costs or improves the quality of delivery). Opportunity and demand trigger activities within the ITIL SVS. These activities in turn lead to the creation of value. Opportunity and demand continually enter the system; however, the organization doesn't automatically accept all opportunities or satisfy all demand. - -An organization should prioritize new or changed services with opportunities for improvement to ensure that its resources are appropriately allocated. Agile methods applied to software development focus on the delivery of ________________________________ to software products in response to the evolving needs of users. These methods foster a culture of continual learning, flexibility, and willingness to adopt and adapt new approaches to ever-changing needs. Agile techniques include, for example, "time-boxing" work, self-organizing and cross-functional teams, and ongoing communication and collaboration with customers and users. - -incremental changes Agile software teams typically focus on the rapid delivery of product updates and the expense of a more holistic view that takes into account the operability, reliability, and maintainability of the products in a live environment - -Continual learning and improvement initiatives enable focus on bettering the articulation and prioritization of user needs or streamlining procedures to develop, test, and deploy working software. Although these initiatives can provide valuable outcomes, they do run the risk of being out of sync with other initiatives at a service level. In the same way that Agile techniques can provide service organizations with a flow of product and software increments, ITIL can provide software development organizations with a wider perspective, using a language by which to engage other service teams. - -Adopting Agile without ITIL can lead to higher costs over time—for example, the costs of adopting different technologies and architectures, as well as the costs required to release, operate, and maintain software increments. Likewise, implementing ITIL without Agile techniques can result in a lost focus on value to customers and users. The result can be a slow-moving, highly centralized bureaucracy. What happens when Agile and ITIL are adopted together? - -software development and service management can both progress at a similar pace, share common terminology, and ensure that the organization continues to co-create value with all of its stakeholders Ways in which ITIL and Agile can work together include: - -Streamlining practices such as change control Establishing procedures to incorporate and prioritize management of unplanned interruptions (incidents), and to investigate causes of failure Separating interactions, if necessary, between "systems of record" (e.g. the configuration management database) needed to manage services from "systems of engagement" (e.g. collaboration tools) used by software development teams. DevOps methods build on Agile software development and service management techniques by emphasizing close collaboration between the roles of software development and technical operations. - -By using high degrees of automation to free up skilled professional so they can focus their time on value-adding activities, DevOps can focus on aspects such as operability, reliability, and maintainability of software products that can assist in service management. Cultural factors that DevOps practitioners advocate can, and should be extended across the value stream and all service value chain activities, so that product and service teams are aligned by the same goals and use the same methods. It's often said that DevOps combines: - -software development techniques (Agile), good governance, and a holistic view to value creation (ITIL), and an obsession with learning about and improving the way in which value is created (Lean). DevOps methods present further opportunities for improving how software products are developed and managed, for example, by: - -Creating fast feedback loops from delivery and support to software development and technology operations Streamlining value chain activities and value streams. so that demand for work can be quickly converted to value for multiple stakholders Differentiating deployment management from release management Advocating a "systems view" that emphasizes close collaboration between enterprise governance, service teams, software development, and technology operations Indicate if each of the given statements about the term demand is true or false? Represents the need or desire for products and services from internal and/or external customers Represents the potential to add value for customers and other stakeholders Triggers activities within the ITIL SVS and these activities, in turn lead to the creation of value - -Represents the need or desire for products and services from internal and/or external customers Triggers activities within the ITIL SVS and these activities, in turn lead to the creation of value guiding principle - -is a recommendation that guides an organization in all circumstances, regardless of changes in its goals, strategies, type of work, or management structure. As such, it is universal and enduring What are the ITIL guiding principles? - -Focus on value Start where you are Progress iteratively with feedback Collaborate and promote visibility Think and work holistically Keep it simple and practical Optimize and automate The ITIL guiding principles can be used to: - -guide organizations in their work as they adopt a service management approach and adapt ITIL to their own specific needs and circumstances Focus on value - -The key message of the "focus on value" guiding principle is that all activities are conducted by an organization should link back -- directly or indirectly-- to value for its customers, for its stakeholders, and for the organization itself In focusing on value, the first step is to know who your organization is serving. In every case, the service provider organization must determine who the service consumer is, as well as who the stakeholders are (e.g. customers, users, and sponsors). By so doing, the service provider must determine who is to receive value from the service(s) being delivered or improved - -The service provider must know what the service consumer deems of value In "Focus on value", the service provider must know: - -Why the customer uses the services What the service enables them to do How the services enable them to achieve their goals The role of cost/financial consequences for the consumer The risks incurred by the consumer For the service consumer, value: - -Is defined by their needs Is achieved through intended outcomes, and optimization of costs and risks Changes over time, according to circumstances Customer experience (CX) is an important aspect of value to service consumers in their experience interacting with a service provider and their service. This is sometimes also called "user experience" (UX), depending on the definitions adopted. Either way, this aspect of value must be actively managed. - -Customer experience represents the entirety of interactions between a customer and a service provider organization. This includes the products provided by the service organization. CX typically determines how the customer feels about the organization, its products, and its services As such, CX is both objective and subjective: - -Objective CX -- when a customer receives a product they ordered, and it arrives as promised, and within the delivery time promised, the success of their experience is objectively measurable (through repeat purchases) Subjective CX -- If it turns out that the customer doesn't like the design or navigability of a paopular retailer's website while attempting to place an order, their experience is more of a subjective one, as another customer might find the design pleasant and easy to navigate. Such an experience would be subjectively measurable through a feedback survey