ITIL Foundations v5 objectives

Key ITIL terms and definitions

• Having a common vocabulary supports effective communication and consistent application of ITIL principles
• 1.1 Product and service management
• More than just operating a service; requires a disciplined approach to ensure digital solutions align with organizational goals and consistently deliver value
• Manage the full lifecycle of products and services while adapting to changing consumer needs
• The design, delivery, and continual improvement of digital products and the services that support or enable them

1.1.1 Define digital product and service management

• Digital product and service management: a set of specialized organizational capabilities for enabling value for customers in the form of digital products and services
• How services interact to contribute to value co‑creation
• Value is co‑created through alignment of outcomes, costs, risks, and quality attributes
• Holistic view through the four dimensions:
  • Organizations and people
  • Information and technology
  • Partners and suppliers
  • Value streams and processes

• 1.1.2 Define product and service as key concepts

• Service: enables value co‑creation by facilitating outcomes consumers want without requiring them to manage specific costs and risks
• Product: a configuration of an organization’s resources based on digital technology and designed to offer value
• The design, delivery, and continual improvement of digital products and supporting services

• 1.1.3 Define digital product and digital service

  • Digital product: the combination of an organization’s resources based on digital technology designed to offer value
  • Digital service: a service that fully or largely relies on digital products

• 1.1.4 Define continual improvement

  (5.1)
  • Continual improvement: a recurring activity performed at all levels to ensure stakeholder expectations are consistently met
  • Both a structured activity and a mindset

• 1.1.5 Define the ITIL Product and Service Lifecycle (ITIL PSLM)

  • Lifecycle: the full set of stages, transitions, and statuses in the life of a service, product, practice, or other entity
  • ITIL PSLM: a structured model describing activities used to conceive, design, operate, and continually improve digital products and services
  • How products and services evolve over time and how management focus shifts

• 1.1.6 Define goods

  • Goods: tangible resources transferred or available for transfer from provider to consumer, including ownership and responsibilities

• 1.1.7 Define utility, warranty, user experience, and sustainability

  • Utility: functionality offered to meet a need (“what a service does,” “fit for purpose”)
    • Supports customer performance or removes constraints—many services do both
  • Warranty: assurance that a product or service meets agreed requirements (“how a service performs,” “fit for use”)
    • Often relates to SLAs, capacity, security, continuity
    • Warranty exists when all agreed conditions are met
  • User experience: the sum of functional and subjective interactions with the service and provider from the user’s perspective
  • Sustainability: assurance that a product or service meets expected environmental, societal, and economic responsibility levels

• 1.2 Service offering

  A formal description of one or more services to address the needs of a target group. May include goods, access to resources, and service actions. Describes what value is available, how it is accessed, and under what conditions it is provided, as well as how a service provider provides a service.

• 1.2.2 Service actions, transfer of goods, and access to resources

  • Service actions: An action by a service provider (or jointly with a service consumer).
  • Transfer of goods: A form of service action where goods are given to the consumer, transferring stewardship to the customer.
  • Access to resources: A form of service action where the consumer gets access, under agreed conditions, without transferring ownership.

• 1.2.3 Service offering explanation

  Service offerings are how an organization provides a service and how customers request the service. They are pre-packaged goods, actions, or access that the organization offers for customers to choose, helping align expectations between consumer and provider. Service offerings should be described from the consumer’s point of view.

• 1.3 Value co-creation

  Value is jointly created through interaction of service provider and service consumer. Services are consumed and used to achieve desired outcomes of the customer, while costs, risks, and responsibilities are shared between the parties.

• 1.3.1 Value and value co-creation

  • Value: The perceived benefit, usefulness, and importance of something.
  • Value co-creation: A collaborative process where providers, consumers, and stakeholders jointly create value.

• 1.3.2 Cost and risk

  • Cost: Money spent on an activity, resource, product, or service.
  • Risk: A possible event that could cause harm or loss.

• 1.3.3 Output and outcome

  • Output: A tangible or intangible deliverable.
  • Outcome: A result for a stakeholder enabled by outputs.

• 1.3.4 Difference between output and outcome

  Value is achieved through outcomes. Outputs are only valuable if they enable desired outcomes.

• 1.3.5 Products and services enabling value co-creation

  Value emerges when services and products are used to achieve desired outcomes.

• 1.3.6 Outcomes, costs, risks in value co-creation

  Outcomes, costs, and risks are shared between provider and consumer.

• 1.4 Service relationships

  Describes structured relationships between service provider and service consumer.

• 1.4.1 Key concepts of service relationships

  • Organization: A group with functions and responsibilities.
  • Service provider: Delivers and supports services.
  • Service consumer: Procures and uses services.
  • Digital product vendor: Creates and improves digital products.

• 1.4.2 Types of service relationships

  • Basic: Transactional, standardized services.
  • Cooperative: Improvement-focused, custom configurations.
  • Collaborative: Strategic partnership, shared goals.

• 1.4.3 Service journey

  The sum of activities and interactions in a service relationship

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