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Transforming IT Capabilities into a Strategic Asset with ITIL® Service Strategy

ITIL Service Strategy, ITIL, ITIL Service

In today's digital era world, businesses must be agile and strategic in deciding on how to deliver their services. Business leaders need to understand what their customers so that they will have advantages over their rivals. This is why ITIL® Service Strategy is crucial.

Also check out our IT Service Management (ITSM) training and certification programs such as ITIL® v4 Foundation, ITIL® Service Strategy, and many more. We are ready to deliver end-to-end ITSM solutions that could improve your organizational performance.

Understanding ITIL® Service Strategy

ITIL® is a comprehensive set of best practices for IT service management (ITSM), and Service Strategy is another core publication besides ITIL® Service Design. ITIL® Service Strategy offers direction on how to prioritize and clarify service provider investments. The aim of ITIL® Service Strategy is to assist organizations in defining their strategic goals and creating a roadmap to achieve them through effective IT services, focusing on long-term development and heavily relying on a market-driven strategy. It acts as a bridge between the business's long-term objectives and the tactical implementation of IT services.

The objectives of ITIL® Service Strategy are:

  • Identify how the organization intends to add and maintain value for their customers
  • Define the desired goals in order to enable certain business outcomes
  • Identify the organization's approach for creating and delivering value to customers
  • Set the limitations and alternatives that the organization must consider

How Can ITIL® Service Strategy Benefit Business?

ITIL® Service Strategy is a vital component of IT service management that helps organizations transform their IT capabilities into a strategic asset. Implementing ITIL® Service Strategy in your organization can benefit your business in the following aspects.

  1. Improved Business Alignment: By aligning IT services with business strategy, organizations can respond more effectively to changing market conditions and customer demands.

  2. Enhanced Service Quality: Service Strategy encourages organizations to focus on the quality and value of their services, resulting in higher customer satisfaction

  3. Efficient Resource Allocation: The framework aids in optimizing resource allocation, leading to cost savings and improved resource utilization

  4. Risk Mitigation: With a clear focus on risk management, organizations can proactively address potential issues, reducing the impact of service disruptions.

  5. Competitive Advantage: ITIL® Service Strategy enables organizations to differentiate themselves in the market by delivering innovative and strategic IT services..

The 4 Ps in ITIL® Service Strategy


Perspective relates to the direction or vision you have for your services.


Position refers to comparing your strategy with others to position yourself in the market effectively.


Plan is referred to the actions you'll take to achieve your objectives and vision.


Pattern means the steps to consistently run smoothly, including the processes, budgets, and management systems.

5 Processes of ITIL® Service Strategy

There are 5 processes to transform IT capabilities into a strategic asset with the ITIL® Service Strategy, namely: Strategy Management for IT Services, Service Portfolio Management, IT Financial Management, Demand Management, and Business Relationship Management.

  • Strategy Management for IT Services

    The goal of this process is to ensure that the IT services are in line with the organization. This process includes 4 steps, namely: doing a strategic evaluation, creating a strategy, implementing the strategy, and monitoring and evaluating the results. By ensuring that new services are designed with the strategic goals in mind, organizations can minimize costly rework and accelerate time-to-market.

  • Service Portfolio Management

    ITIL® Service Strategy helps organizations create a structured portfolio of services that are aligned with business goals. Therefore, this process aims to ensure that every service is in line with the service management strategy and organizational goals. By evaluating the current service offerings and identifying areas for improvement, businesses can make informed decisions about which services to invest in, modify, or retire. This can more help to effectively justify the service needs based on actual business value.

  • IT Financial Management

    ITIL® Service Strategy emphasizes cost-effectiveness by helping organizations understand the financial implications of their services. Therefore, this process focuses on service valuation and includes 3 steps known as “ABCs” of IT Financial Management: accounting, budgeting, and charging. Budgeting, cost modeling, and financial risk assessment are also included in this process, allowing businesses to optimize their IT investments and cover services while generating profits.

  • Demand Management

    Understanding and managing customer demands is essential for success. Demand management in ITIL® Service Strategy aims to better analyze and manage customer demand for the IT services, ensuring that resources are allocated efficiently to meet customer needs. Therefore, organizations can avoid having insufficient service capacity by accurately understanding and adjusting to service demand.

  • Business Relationship Management

    This process focuses on developing solid customer relationships. The aim of this process is to maintain a positive relationship with customers. This can be accomplished by increasing the value of the services they provide to customers to maintain their satisfaction and loyalty, while ensuring that all services provided meet their needs.

In conclusion, ITIL® Service Strategy is a vital component of IT service management that helps organizations transform their IT capabilities into a strategic asset. Adopting ITIL® Service Strategy is a wise investment that can pave the way for long-term success. Following the 5 processes of ITIL® Service Strategy can also help organizations consistently deliver high-quality IT services that meet the evolving needs of the customers.

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Atlassian. (n.d.). ITIL Service Strategy Guide | Atlassian. https://www.atlassian.com/itsm/itil/service-strategy

Brahmachary, A. (2018). Understanding 4 P’s of ITIL Service Strategy | ITIL Foundation | ITSM. CertGuidance. https://www.certguidance.com/itil-4ps-service-strategy/

The 5 Processes of ITIL Service Strategy. (2023). https://www.knowledgehut.com/blog/it-service-management/itil-service-strategy-process

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