ITIL v3 (Information Technology Infrastructure Library)/Service Strategy

Service Strategy is the center and origin point of the ITIL Service Lifecycle. It provides guidance on clarification and prioritization of service-provider investments in services. More generally, Service Strategy focuses on helping IT organizations improve and develop over the long term. In both cases, Service Strategy relies largely upon a market-driven approach.

This is a view of ITIL where IT and business align their visions. Its key topics covered include service value definition, business-case development, service assets, market analysis, and service provider types. List of covered processes:

  • Strategy Management
  • Service Portfolio Management
  • IT Financial Management
  • Demand Management
  • Business Relationship Management

Importance of this view is because this phase that is responsible to define service value. When defining a service is important to have in mind four Ps for strategy: Perspective, Position, Plan, Pattern.

Strategy activities are:

  • Define market
  • Develop strategic offer
  • Develop strategic assets
  • Prepare for execution

Service StrategyEdit


When defining a service, strategist must have in mind list of principles, as stated below:

  • Value creation
  • Service assets
  • Service provider types
  • Service structure


Stages for definition of strategy are:

  1. Define
  2. Analyze
  3. Approval
  4. Charter


Service provider typesEdit

There are three types of service providers, that may include service provided as well providers for the service:

  1. Internal service provider: exists within an organization and provides service solely for a unique business unit
  2. Shared service unit: exists within an organization, but provides service for more than one business unit
  3. External service provider: operates outside organization


Service strategy has two processes: Service Portfolio Management and IT Financial Management, as depicted below.

Service Portfolio ManagementEdit

Owned by service portfolio manager, it is composed of four sub-processes:

  • Strategic service assessment: assesses current service in the market.
  • Service strategy definition: to define overall goals of the service, as well to define customer and customer segmentation.
  • Service portfolio update: adjusts services offered in portfolio based on strategy definition.
  • Strategic planning: defines, initiates and controls the program and projects required to execute Service Strategy.
  • Demand Management: Service Strategy.

IT Financial ManagementEdit

Owned by financial manager, it is composed of four sub-processes:

  • Financial management support: defines necessary structure for management of financial planning data and costs.
  • Financial planning: determines required financial resources over next planning period.
  • Financial analysis and reporting: analysis of financial costs provisioning and service profitability.
  • Service invoicing: issues invoices for the provisioned service.