Service Strategy




Establishes overall strategy for IT


  • Ensure organization can handle cost/risk well
  • Set expectations of performance
  • Id/select/prioritize business opportunities


  • Define a strategy of services to offer
  • Define a strategy of how to manage those services

Value to Business

Link service provider activities to business outcomes

Two Levels of Activity for ITSM

  • Org level – sets direction for IT via strategy and objectives to achieve vision
  • Service level – policies/objectives to ensure value creation

Questions Answered

  • How create value?
  • How to define quality?
  • How to efficiently allocate resources across services?

Resources vs. capabilities +

How they fit in Lifecycle

Capabilities turn resources into goods/services.

  • Service Strategy manages consumption of resources and capabilities by service.
  • Service Design uses resources and capabilities.
  • Service Transition tests against resources and capabilities.
  • Service Operation allocates resources and capabilities.
  • CSI measure/assesses both resources and capabilities.

Utility & Warranty

Utility – fit for purpose:

  • What is delivered
  • What customer gets
  • What gains performance customer gets
  • Functional requirements for service

Warranty – fit for use (parameters). It must perform within stated parameters:

  • Both Utility & Warranty are tested/validated in transition
  • Utility & Warranty delivered in Operations
  • CSI measures/assesses planned utility & warranty vs. actual delivered in operations.

Three Value Areas

  • Customer Preferences
  • Customer Perceptions
  • Business Outcomes

Patterns of Business Activity (PBA) - Services are designed to enable PBAs which in turn achieve business outcomes.