management processes, preventing undesired consequences while allowing for innovation. ITIL Service Transition also introduces the service knowledge management system, which can support organizational learning and help to improve the overall efficiency and effectiveness of all stages of the service lifecycle. This will enable people to benefit from the knowledge and experience of others, support informed decision- making, and improve the management of services.
At the center of the service lifecycle is service strategy. Value creation begins here with understanding organizational objectives and customer needs. Every organizational asset including people, processes and products should support the strategy. ITIL Service Strategy provides guidance on how to view service management not only as an organizational capability but as a strategic asset. It describes the principles underpinning the practice of service management which are useful for developing service management policies, guidelines and processes across the ITIL service lifecycle. Topics covered in ITIL Service Strategy include the development of market spaces, characteristics of internal and external provider types, service assets, the service portfolio and implementation of strategy through the service lifecycle. Business relationship management, demand management, financial management, organizational development and strategic risks are among the other major topics. Organizations should use ITIL Service Strategy to set objectives and expectations of performance towards serving customers and market spaces, and to identify, select and prioritize opportunities. Service strategy is about ensuring that organizations are in a position to handle the costs and risks associated with their service portfolios, and are set up not just for operational effectiveness but for distinctive performance. Organizations already practicing ITIL can use ITIL Service Strategy to guide a strategic review of their ITIL-based service management capabilities and to improve the alignment between those capabilities and their business strategies. ITIL Service Strategy will encourage readers to stop and think about why something is to be done before thinking of how.
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