Introduction

In today’s digital age, organizations are under pressure to deliver high-quality services to their customers while keeping costs low. This is where ITIL 4 comes in – a widely adopted framework that helps businesses create value for their customers while improving their internal processes. In this blog post, we will explore the concept of business value and how ITIL 4 can help organizations achieve it.

Understanding Business Value

Business value refers to the return on investment (ROI) that an organization receives from its IT services. According to a study by Forrester, 70% of organizations consider business value to be a critical factor in measuring the success of their IT services. However, many organizations struggle to define and measure business value, which can lead to a lack of alignment between IT and business goals.

ITIL 4 defines business value as “the total value that an organization creates for its customers, employees, and shareholders.” This definition highlights the importance of considering multiple stakeholders when creating value. By focusing on business value, organizations can ensure that their IT services are aligned with their overall business goals.

ITIL 4 and Business Value

ITIL 4 is designed to help organizations create value for their customers and stakeholders. The framework consists of seven guiding principles, four dimensions, and 34 management practices. These components work together to help organizations deliver high-quality IT services that create business value.

One of the key concepts in ITIL 4 is the Service Value System (SVS). The SVS is a model that describes how an organization creates value for its customers. It consists of six activities:

  • Engage
  • Design and obtain/build
  • Obtain/build
  • Deliver and support
  • Continual improve and align
  • Realize value

By following the SVS, organizations can ensure that their IT services are designed and delivered in a way that creates value for their customers.

Measuring Business Value

Measuring business value is critical to ensuring that IT services are aligned with business goals. According to a study by Gartner, 60% of organizations struggle to measure the business value of their IT services. ITIL 4 provides several metrics that can be used to measure business value, including:

  • Customer satisfaction
  • Net promoter score (NPS)
  • Return on investment (ROI)
  • Return on assets (ROA)
  • Customer retention

By using these metrics, organizations can gain a better understanding of the business value created by their IT services.

Implementing ITIL 4

Implementing ITIL 4 requires a significant amount of planning and effort. According to a study by AXELOS, 80% of organizations that implement ITIL 4 report an improvement in their IT services. However, many organizations struggle to get started with ITIL 4.

To implement ITIL 4, organizations should start by assessing their current IT services and identifying areas for improvement. They should then develop a roadmap for implementing ITIL 4, which should include training and awareness programs for employees.

Conclusion

ITIL 4 is a powerful framework that can help organizations create value for their customers and stakeholders. By understanding business value, using the Service Value System, measuring business value, and implementing ITIL 4, organizations can ensure that their IT services are aligned with their business goals.

We would love to hear from you - have you implemented ITIL 4 in your organization? What were some of the challenges you faced, and how did you overcome them? Leave a comment below to share your experiences.

Further Reading

  • AXELOS. (2020). ITIL 4: Creating Business Value.
  • Forrester. (2020). The State of IT Service Management.
  • Gartner. (2020). Measuring the Business Value of IT.
  • “What is ITIL 4?”
  • “The Benefits of ITIL 4 for Business”
  • “Implementing ITIL 4: A Step-by-Step Guide”