Service Value Chain
The service value chain is the central element of the service value system. It is an operating model that outlines the key activities required to respond to demand and facilitate value creation through products and services. Its six activities can be combined in many sequences to form value streams.
An Operating Model of Six Activities
The service value chain consists of six activities: plan; improve; engage; design and transition; obtain/build; and deliver and support. Each activity transforms specific inputs into outputs using practices as needed. The activities are interconnected, and a given piece of work may pass through them in different orders. Together they convert demand into valuable products and services.
Plan and Improve
The 'plan' activity ensures a shared understanding of the vision, current status, and improvement direction for all four dimensions and all products and services. The 'improve' activity ensures continual improvement of products, services, and practices across all value chain activities and the four dimensions. Both activities operate at every level, from strategic planning to routine enhancements. They keep the organization aligned and continually getting better.
Engage and Design and Transition
The 'engage' activity provides a good understanding of stakeholder needs, transparency, and continual engagement with customers, users, suppliers, and partners. The 'design and transition' activity ensures that products and services continually meet stakeholder expectations for quality, cost, and time to market. Engage keeps the organization connected to demand, while design and transition turns requirements into services ready for use. Both are essential to responding to what stakeholders actually need.
Obtain/Build and Deliver and Support
The 'obtain/build' activity ensures that service components are available when and where they are needed and meet agreed specifications. The 'deliver and support' activity ensures that services are delivered and supported according to agreed specifications and stakeholder expectations. Obtain/build makes the necessary components ready, while deliver and support keeps services running for users. Practices such as incident and service request management contribute strongly to deliver and support.
Value Streams
A value stream is a specific combination of value chain activities and practices designed for a particular scenario. Because the six activities can be sequenced in many ways, an organization can define different value streams for different types of work, such as resolving an incident or onboarding a new service. Mapping value streams helps identify waste and opportunities for improvement. This flexibility is what makes the value chain adaptable to real demand.